Investors & landlords
TurboTax is using the basis for depreciation of Land Improvements of $1,440 (not $1,500) based on the information I entered below.
According to IRS Publication 946, Table A-1, page 69, the depreciation amount is 5% for year 1 for 15-year property which is $72. I was able to recreate that depreciation in TurboTax.
I did not try and recreate your rental building since I did not have any information. Please refer to IRS Pub 946.
Using the Home & Business version of TurboTax:
1. On the Tell Us About This Rental Asset screen, I entered Land improvement,
$1,500 and 2/1/2021 as the Date purchased or acquired.
3. On the Tell Us More About This Rental Asset screen, I entered:
- I purchased this asset
- No, I have not always used this item 100% of the time for this business.
- I first used this item at least part of the time for this business, and also used it for personal purposes.
- Date I started (or it was available to rent) using it in this business: 01/01/2022
- Percentage of time I used this item for this business in 2022: 96%
