DianeW777
Expert Alumni

Investors & landlords

No the depreciation should not be zero.  It's important to point out as noted by @RaifH and @Critter-3, that once the property was converted to rental (February 1st), there was no personal use.  

 

TurboTax asks the date the property was placed in service.  There should be no days of personal use entered because there was none after it became available for rent. This is the intent to make sure the appropriate depreciation is calculated.

 

Once this is complete you should see the depreciation as part of your rental expenses.  On your screen image attached it clearly shows depreciation figures for each asset.

 

The entire rental loss could have limitations as noted for the phaseout rule.

  • Phaseout Rule: The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately). If your modified adjusted gross income is $150,000 or more ($75,000 or more if you’re married filing separately), you generally can’t use the special allowance. This is because the special allowance is reduced to $0 since the modified adjusted gross income is over the $100,000 amount.
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