Investors & landlords
Hi @Carl ,
Thanks for the reply. I deleted all asset information and restarted by first adding the "27.5 year structure" (total cost minus the cost of segregated 5 and 15 year items). I then went back in and added the 5 and 15 year items, as furnishings, appliances, etc., and land improvements. These do show as depreciable over 5 and 15 years in TurboTax, as desired, and allow special depreciation to be selected. Picture below shows the summary.
What confuses me is that fact that this doesn't seem to count against my taxable income. My other property, that I've had for a few years (straight line depreciation, no bonus or segregation) shows up as a net negative (loss) because of the depreciation, and thus reduces my total taxable income (W2 and other investments included), and results in a larger tax return.
I'm not seeing that with this property. Rather than showing as negative, it just shows zero, not allowing me to take full advantage of the depreciation. Perhaps I am mistaken, but all of the research I have done led me to believe that the bonus depreciation would cause the property to show up as a large loss on my return and result in a much smaller taxable income, which can then be reinvested. Am I misunderstanding?
