for rental property, the depreciable amount is $147197. Turbotax is calculating depreciation deduction as $839. this doesn't seem right. Shouldn't the amount be $5352 ?

[DianeW777]

It depends. If this is the first year placed in service the amount can be significantly less. The amount you show is for a full year of depreciation. 

For example: If the property was placed in service in November, 2024 then the rate would be more like 0.455% for the first year. Each full year is either 3.636% or 3.637% depending on the year. See the chart below and in IRS Publication 946.

[mihir_3967]

Thanks DianeW for responding to my question.

The property was rented out in August 2024.

Based on depreciable value of $147197.00 in 27.5 years basis  the amount should be $5352.61.

But as property was rented for only 5 months of 2024, I was expecting the amount to be ~$2200.00 ?

Not a financial / tax expert. So please pardon my  ignorance if any.

[DianeW777]

Not at all.  The amount starting in August, 2024 would be calculated on a rate of 1.364% and should be right around $2,007. Double check your entries and make sure you selected Residential Rental Property as the asset type and that you are reporting this on Schedule E.

[mihir_3967]

It is on Schedule E.

The depreciable amount list is $61332.00  and rent out month / year: 08/2024

and as you have mentioned below the rate will be 1.364% as property is not rented for full year.

So 1.364 % of 61332.00 turns out $836.00 and this is not a correct amount.

Rather it should be 1.364% of 147197.00 --> 2007.76

[KrisD15]

You entered the depreciable amount, the program does not determine this amount.  

If the depreciable amount listed is 61332, please go to the asset/depreciation section of the rental and look at how you entered the cost/basis.

The depreciation will only be computed on the value of the building since land is not depreciated. 

Did you split the 147,197 cost as 61332  building and 85865 land? 

[mihir_3967]

Here is the Cost Basis and Depreciable basis calculation shown by Turbo tax:

Cost Basis: Building: $147197.00

Land: $148553.00

Toal: @$295750.00

Depreciable basis:

building: $147197.00

Land: n/a

Total: $147197.00

But at the end it calculates the depreciation for 2024 (5months) based on $61332.00

Will be really helpful if you can provide some input and where should I check to fix this?

May be there is some glitch in TurboTax software ??

[PatriciaV]

If you're using TurboTax Desktop, you can review the Asset Entry Worksheet for this building using Forms Mode. This worksheet displays the calculations that resulted in the depreciation expense you see. 

If you're using TurboTax Online, you can create a PDF of all forms and worksheets in your return for download. See How do I get a PDF of my return?

@mihir_3967