I bought a house in 1996 that has been paid for since 2001. This year we started a rent-to-own contract on it and received two payments so I am trying to set it up as a rental property in turbotax. I got most of the way through and get to a screen that says my property will be depreciated by $45000 (original purchase price) over the next 27 ½ years. I do not understand this. I have already owned it 25 years. I put the purchase date in a few screens earlier and it is the address I have used for TurboTax for twenty years.
How do I do this correctly?
