Carl
Level 15

Investors & landlords

I see it a different way.

A) Is it a vacation home where my deductions are limited to income? Looks like Turbotax sets depreciation to 100% and doesn't allow me to over ride it on the Sch E worksheet.

That's because depreciation is 100% *during the period of time it is classified as a rental*

B) Is it a rental where it's rented 185 days and personal use is 0 days during this interval? I can edit the Asset Depreciation Worksheet to make the depreciation 50%

Yes, provided you clearly identify the starting date of it being classified as a rental, and the ending date of it being classified as a rental. So long as there is no personal use between the start date and end date, it's 100% depreciation.

 

But overall, the program can not handle a situation such as yours without manual intervention and manual math on your part, every single year to correct the cost basis so you can account for prior year's depreciation already taken. It's the only way to keep the depreciation right each year, and it's an absolute math nightmare to deal with every year.

 

You might be better off leaving the property classified as a rental for the entire year and then claiming your number of days of personal use each year. It's the only way I know of that the program will keep the depreciation on track without you having to manually intervene every single year.  You just enter total expenses for the entire year and the program will pro-rate everything based on your personal use number of days.