I have an update to this…
Firstly, thanks to Carl for his answer.
I spent multiple hours onto TT support, who were not able to explain why this was happening and generally concluded that there was nothing they could identify in CA tax law that would explain this. Having reached this conclusion they somewhat bizarrely and resolutely refused to accept that it was even conceivable that this might be an error in their software and that my next step was to pay to talk to a CPA. I refused to do this unless they agreed to pay costs if/ when the CPA determined the CA Sch E was being produced wrong. Eventually, escalated and the supervisor agreed to raise an investigation and got me to speak to one of their CPAs.
In my initial post I said TT was using a 30 year life for depreciation (this is stated on 3885A). However, on checking the numbers, I found TT is not even using this, they are using 27.5 years!!!
The CPA’s assessment was that the deprecation for CA should be the same as the federal, i.e. 40 year life and consequently there should be no CA adjustment to rental income.
This is the first time TT have raised an investigation on my behalf. Does anybody know what I should now expect? I’ve had no communication from TT. I would have expected an investigation to have some sort of ticket number, if it does this was not conveyed to me. How will they advise of progress and when the fix is completed? Any idea how quickly fixes get issued (I know that is a bit like asking about the “length of string”, but this one can’t be too difficult: they got it correct for many years prior to this one!).
Regards,
Roy
