I placed in service a residential single family home on August 26, 2021. There appears to be a bug in the desktop version of TurboTax 2021 Business when calculating depreciation.
To use nice simple numbers, I tried using the following:
Purchase Date: 08/26/2021
Cost/Basis: $300,000
First year expense deduction claimed (Section 179): zero
Land value: $100,000
Amount to be depreciated over 27.50 years: $200,000
According to the IRS Pub 527 putting the property in service in August should mean depreciating 1.364%, or $2,728. But TurboTax calculates it as $3,140.
Interestingly, if I change the service date to 9/1/2021, the software calculates correctly at 1.061% (rounded up to $2122).
Anyone know how to get this fixed or work around it to override the calculated value??
