You are correct, TurboTax Premier will guide you in entering your Rental income and expenses. Depreciation lets you deduct the "used up" part of an asset's cost year after year until the entire cost is used up or you no longer own it. It provides for wear and tear or obsolescence of the property or asset. So follow the flow of the questions and TurboTax will make sure you are adding information for depreciation.
To start entering your Rental Income and Expenses follow the steps below:
- Open or continue your return, if you haven’t already
- Locate the Search bar in the upper right of your screen. Search for rentals and select the Jump to link at the top of the search results
- Answer Yes to the question Did you have any income from rentals or royalties?
- On the next screen, Let's see if you're a real estate professional, select any options that apply to you.
- On the screen What are you here to report?, select Rental property and Continue
- If you have more than one rental property to report, no problem—just start with one, and we’ll come back to the other one(s) later
- On the following screens, we'll ask you to enter all the info we need about your rental property, including a description of the property, your rental income, any expenses and assets, and other less common situations about your rental
- When you reach the Here’s your rental property info screen, double-check the info you entered to make sure everything is accurate and that you haven’t left anything out
- Once you’ve entered all your info, you’ll be taken to the Your income and expenses screen
- If you have more rentals to enter, scroll down to Rental Properties and Royalty Income (Sch E) and select Edit/Add next to this line
- On the Your 2022 rentals and royalties summary screen, select Add another rental or royalty
- From here, follow these instructions again, starting with Step 5, and repeat until you’ve entered all your rental income
