Good Evening Amy,
Thank you for your response. I agree that the single asset method of depreciating the replacement property is the simplest and the easiest, but it means that the amount that I can depreciate each year will be significantly less than if I use the more complex 2 asset method (exchanged basis asset from the old property which is depreciated on it's remaining depreciation schedule plus excess basis asset which is new money depreciated on new 27.5 year schedule). I thought the sale pitch for Turbotax is that it gives you the biggest refund but the single asset method your are advocating will give me smaller refunds for 20 years because I will need to depreciate the exchanged basis from the old property over 27.5 year when I could depreciate it over it's remaining depreciating schedule (20 years in my case) if I use the more complex 2 asset method that you seem to be discouraging me from using.
Is Turbotax able to support the 2 asset method? I would need Turbotax to add a new asset for the exchanged basis which is depreciated over its remaining depreciation schedule (20 years in my case). How would Turbotax do this?
Also, I think you didn't understand my original question. My old property had an improvement (HVAC) that was a separate asset that acquired after the original property so it is on a different depreciation schedule (even though both are 27.5 year residential real estate) . So do I need to depreciate 3 assets (the exchanged basis of the original property on it's remaining depreciation schedule, the exchanged basis of the improvement (HVAC) on it's remaining depreciation schedule, and the excess basis (new money) on a new 27.5 year depreciation schedule? Or can I combine the exchanged basis of the original property with the exchanged basis of the HVAC so that I only have 2 assets to depreciate (exchanged basis of combined assets plus excess basis of new asset)?
Thank you again for your help. I know it is a complicated question.
