For Foreign rental property depreciation, Turbo tax is using 27.5 instead of 40. We have listed the property as Foreign and are using the Premier edition. Any advice?

[Carl]

You missed a detail on one of the screens. Work through the Property Profilie section again. When you come to the screen titled, "Is your property in any of these designated areas?" you must select the one that reads, "Assets for this property are located outside the United States or United States possession". Then finish working it through and that will set it up to depreciate over 40 years as it should.

[ausie75]

Thank you so much Carl. That fixed my problem.

[tina160]

Hi Champ, 

    Could you please help me here. I have the same problem. But I did choose "Assets for this property are located outside the United States or United States possession". But the last one "None of the above" will automatically be checked. I tried to uncheck "None of the above". and hit the "Continue" button. When I go back to check again, the "None of the above" has been checked again. I couldn't uncheck the option. That makes the depreciation calculated wrong. Could you please help?

[Carl]

I did choose "Assets for this property are located outside the United States or United States possession".

The issue occurs if 2019 is not your first year reporting this rental property with TurboTax. So assuming it is *in fact* your first year, delete the rental property entirely, save your changes, exit the program and restart it. Then start the Rental & Royaly Income (SCH E) section of the program again.

Foreign residential rental property placed in service in 2017 or before is depreciated over 40 years. If place in service 2018 or after it's depreciated over 30 years. This is not true for "COMMERCIAL" rental property.

[DN76]

how do I get it to calculate depreciation for 40 years if I’m placing it in service for first time in 2018?

[Carl]

how do I get it to calculate depreciation for 40 years if I’m placing it in service for first time in 2018?

You don't. Foreign residential rental property placed in service in 2018 or after is depreciated over 30 years.

[DN76]

Ah, should’ve said.it was in service for first time in 2018 in terms of reporting. It was physically being rented before then but I wasn’t doing US taxes back then. 

[Carl]

Ah, should’ve said.it was in service for first time in 2018 in terms of reporting.

That's fine, and 2018 is the year you will report on your 2018 tax return if 2018 was the first year you are required to file a U.S. tax return. The property will be depreciated over 30 years. Not 40.