Cost basis=$182,905 for rental in service starting 9/1/20. TT says depreciation=$647. I think it should be $1,940. Is TT calculating it wrong

This is the first year I rented the property, placing it into service in September, 2020. I'm calculating as follows:
182,905 (cost basis)/27.5 (years)=6,651.09
6,651.09 (2020 depreciation)/12(months)=554.26
554.26(1 mo depreciation)*3.5(months)=1,939.90

Investors & landlords

Your math is correct, so there must be something else that we are missing.

 

Is the $182,905 for the BUILDING?  Or is that the total price (building and land)?  The portion for the land is not depreciated.

 

Is the property in the United States, or some other unusual reason why 27.5 years is not correct?

Investors & landlords

Yes, $182,905 is for the building (no land included) and it's in the US.

Investors & landlords

Are you saying it is 100% business use?

 

When it asks for the number of rental days and the number of personal days, are you entering any personal days?

 

Double check that you entered the "placed in service" date correctly ... it doesn't ask for "prior depreciation" does it?

ColeenD3
Expert Alumni

Investors & landlords

Make sure that you included it in the Rental Real Estate portion and not in another category. Also, say that it was rented all year, even though you started in September.

Investors & landlords

I entered your info in my Windows Desktop program and got the full $1,940 Depreciation.  You really have to pay attention to the questions closely.   Try deleting it and re enter it.