Depreciation calculation

[rtesar]

I have an issue with the depreciation calculation in my 2023 tax return. Here are the details:

Cost: $1,353,000

Business use: 26.5%
Depreciable Basis: $358,545

Life: 27.5

Method/Convention: SL/MM

As I understand it, the depreciation calculation in this case is

$358,545/27.5 = $13,038.

However, TurboTax has calculated the depreciation as $27,878. 

What is correct? If TT is correct what are the numbers behind it’s calculation. 

[Rick19744]

Somewhere in your inputs there is a disconnect.  Double check all your entries.

Additionally, depreciation as you noted is SLMM.

So depending on the month placed in service, depreciation will run from $12,495 to $545 assuming this is the initial year for depreciation.

[AmeliesUncle]

Was the business percentage lower in prior years?

What was the "placed in service" date and what did you enter for the "prior depreciation"?

[rtesar]

The property was placed in service on 01/01/2013. Quite frankly, however, I entered the Cost Basis incorrectly on that 2013 return and never checked it until this year. I corrected the input this year. Given the error on my part is the program making some adjustment for that? (FWIW---the number I entered originally was much lower than it should have been---I left out a 0.)

[rtesar]

The property was placed in service on 01/01/2013. Quite frankly, however, I entered the Cost Basis incorrectly on that 2013 return and never checked it until this year. I corrected the input this year. Given the error on my part is the program making some adjustment for that? (FWIW---the number I entered originally was much lower than it should have been---I left out a 0.) 

Thanks for your response, BTW.

[Carl]

As I understand it, the depreciation calculation in this case is

$358,545/27.5 = $13,038.

Your math is wrong, as you are using an incorrect formula. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf and use the MACRS worksheet that starts on page 36. For line 6 of the worksheet, use table A-6 on page 71.

[AmeliesUncle]

Where it asks for the "prior depreciation", don't use the amount that automatically shows up.  You need to change it to the amount you SHOULD have taken.