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Investors & landlords
the depreciation deduction amount and tax refund amount came out exactly the same in both cases,
Understand that it's not a deduction amount. It's a "depreciation" amount. Here's the difference.
A deduction is an amount that is subtracted from your taxable income and remains so permanently and forever. Depreciation merely reduces your cost basis, and you get to subtract that cost from your income. However, in the future when you dispose of the property (sell it, donate it, etc.) that depreciation is recaptured and taxed in the tax year you dispose of the property. So while a deduction is permanent, depreciation is not.
Now the depreciation amount means nothing really. What does mean something is if between the two methods, are there different amounts on the 4562 in the COST (net of land) column and LAND column of the 4562 titled "Depreciation & Amortization Report".
If between the two methods the amount in the LAND column remains the same, then you're good as that means the programmers have fixed this issue. But I still need to run a scenario to confirm that for myself, which I will do soon.