turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Does any know exactly how to calculate depreciation for a property used for rental purposes in CA? Now selling. I have filed CA taxes every year since purchase in 2009

Will I find the depreciation in a part of the CA tax forms?  If so which one? Thanks
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Does any know exactly how to calculate depreciation for a property used for rental purposes in CA? Now selling. I have filed CA taxes every year since purchase in 2009

If you have been taking depreciation for both Fed & state then save a PDF of the return with all the worksheets included to see the depreciation worksheets for both entities. 

 

If you have not been taking proper depreciation  then RUN to a local tax pro to get this fixed when you file the 2020 return. 

Carl
Level 15

Does any know exactly how to calculate depreciation for a property used for rental purposes in CA? Now selling. I have filed CA taxes every year since purchase in 2009

If you know for an absolute fact that you have not depreciated the property over the last 10 years, your issues can't be cleared up by simply doing now. You need to seek professional help, as a failure to depreciate rental property will make reporting the sale more complicated.

If you have been using TurboTax all this time then most likely you have been depreciating the property and it's perfectly possible you don't even realize it. If you have been entering data correctly over the years, the program has done it for you. If you report the sale in the SCH E section of the program then the program will take care of the recapture "for you".

To get the total depreciation taken you can use the IRS Form 4562 titled "Depreciation and Amortization Report" from the last year you actually rented the property out. Add together the amounts in the "Prior Year Deprec" column and the "Current Year Deprec" column and the sum will be the total of all depreciation taken on the property.

This gets a bit more tricky if in any single year you were required to take AMT (Alternative Minimum Tax) depreciation. Reporting the sale is also a bit more involved if your depreciation value was less than your actual cost basis. In such a case it would matter if you sold the property at a gain or a loss.

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies