Hi,
My dad set up an irrevocable trust (i am the trustee) and put his house within the trust. The trust is set up to have my parents pay rent to the trust. He passed away in 2021and now my mom pays rent to the trust - which has turned into a simple trust.
I had an accountant do the trust returns for 2020 and 2021 taxes. I wanted to try to do the tax return this year using the TurboTax business edition. To start, I've filled in the info from what the accountant filed in 2020. Everything has lined up except when I toggled the box for "single residential property" it automatically puts 27.5 years as the depreciation rate.
When I look at the depreciation rate the accountant added, I noticed he has it listed as a single residential property with a "life" of 30.5.
I googled it and see that 27.5 is the default for a residential property.
My Questions:
1. Did the accountant make a mistake? (it's also listed on 2021's return)
2. Or is this a "strategy" for trusts?
3. Is there a way to "override" the area to match what the accountant has (if it's some kind of strategy?)
thanks!!
