markestes
New Member

I have no 4562 form from 2019 that shows rental home new roof expense of 8K and previous depreciations. How do I update for 2021 return as TT critical notice is unclear.

 
DaveF1006
Expert Alumni

Investors & landlords

At this point, you will need to add this as a depreciable asset again and report all depreciation taken in past years. Here is how to report it.

 

  1. Select federal tab in the left pane and go to income and expenses>Rentals, Royalties, and Farm>show more
  2. Rental Properties and Royalties (Sch E) start or edit
  3. After you enter a description of your property enter the income and expenses.  When you are done, then you will select the add expenses and asset button.
  4. You will select asset and rental property as the asset plus all other applicable expenses.  
  5. After the expenses are added, Turbo Tax will ask for depreciation of your property and ask if the [property can be depreciation. here you will say yes.
  6. Then you will continue with next few questions until you reach a screen that asks for a description. Here indicate rental real estate. Next screen indicate that it is rental real estate.
  7. Next screen is where you will record a description and original cost basis and when you bought the home.
  8. Next screen asks for a little more information.  Here you will say no, I have not always used this item 100% of the time for this business.
  9. Next asks Have you used this item 100% for this business since you acquired it? You will say no. You will select and answer these questions
  10. First used this item at least part of the time for this business, and also used it for personal purposes.
    Date I started using it in this business:
    Percentage of time I used this item for this business in 2020 (e.g., 80%): 
  1. The next screen will confirm your prior depreciation. There you should see the prior depreciation that should have been taken in the 23 years you rented your house.  I have included a screenshot that illustrates 23 years of depreciation based off of the original cost basis of $200,000. Note, if you made improvements during this time and wish to depreciate those, these will need to be added as additional depreciable assets.  Here is the screen shot that illustrates prior depreciation made.
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View solution in original post

Carl
Level 15

Investors & landlords

Did you not use TTX to prepare your 2019 return last year? If you did, ***AND*** you use the same exact account to prepare your 2020 tax return as you used to prepare your 2019 tax return, (assuming you used the online version) then all that data will be automatically imported for you.

Accuracy on depreciable assets is really not an option. It's a must.

I'm just curious as to why you don't have the depreciation history on your rental assets, because you very well may have it, and just don't realize it.