@TomYoungI know this is an old post but as it's the top hit for this question, I wanted to try a follow up here with regards to how TurboTax generates the actual depreciation schedule.
When I have had an accountant prepare my returns in the past, they have always shown a more verbose form of the depreciation schedule whereby it starts with the original basis amount (100%) and then applies a 50% exclusion to derive the share of basis, before then calculating the corresponding share of depreciaton. I seem to recall my accountant telling me it needs to be shown that way.
TurboTax however only ever shows the resultant basis amount even if I enter full amounts and tell TurboTax to automatically divide everything. You never see the original amount or show that you are claiming the depreciation at 50%, it's just shown as if the basis of the property was that half amount in the first place. The end result is the same, but is this simpler version actually OK for IRS purposes or is this a bug in TT?
Example, accountant prepared returns show:
Building = $300,000
Less Exclusion at 50% = -$150,000
Depreciation = ($300,000 - $150,000) / Life
TurboTax just shows, even if you enter the full amount (i.e. $300,000) and ask TT to divide:
Building = $150,000
Depreciation = $150,000 / Life
Thanks
