Do I need to enter depreciation twice for sale of home?

[ericsbcn]

We sold our primary home in 2020.  We used it as a rental for a few months in 2019 and claimed the income and depreciation on our 2019 return.  Now, I'm working on the home sale section in TT Deluxe and have a question...

I went through the EasyGuide to calculate the adjusted cost basis.  It asked me for the amount of depreciation taken, so I entered the amount there.  Then, later it asks the total amount of depreciation deducted after 1997.  Do I enter the same amount there?  If so, is TT going to calculate in my depreciation twice?

Thanks.

[MinhT1 · Accepted solution]

No. TurboTax is not going to count your depreciation twice. TurboTax asks that question to ascertain whether you can or cannot exclude any gain that may be attributable to depreciation. So in your case, you enter the same amount for the 2 questions.

The tax law changed in 1997 and you cannot exclude any gain that may be attributable to depreciation allowed after May 6, 1997.

[mikeonmars]

I have a similar situation, regarding entering the depreciation twice in the guide on the home sale. Entering it again in the "After May 6, 1997" screen increases the tax owed by another $4K. So what "adjustment" is TT making when you say it "doesn't count it twice"? Seems to be counting something twice!

[ColeenD3]

@mikeonmars

Do not make a basis adjustment prior to entering your figures.

[Frank MD]

You are right.

[DarlaMB64]

In 2021 You answered that turbo tax wont count it twice and to enter same both under rental and under area for after May 6, 1997 but it affected my 2022 taxes by over $150!  Do I have to enter it twice?  If not, which area should I enter it as it was primary home for last 2 years and on and off over the years but also rented out over the years intermittently to family and friends.

[RobertB4444]

If you have an active rental for 2022 then you will enter it under the rental real estate in order to get the deduction for your rental as well as on your itemized deductions.

@DarlaMB64