How can I edit schedule E Line 18? i am trying to change the allowable rental depreciation

[JamesG1]

To edit depreciation expense on Schedule E, you would access the depreciable assets within the rental activity on Schedule E Supplemental Income and Loss.

At the screen Your Property Assets, select Edit to the right of the asset to be reviewed.

What is the nature of the change to be made?

[rjcmbstxs]

morning.  when i bring up that form and try to change the value it does not allow me to change the depreciation value on line 18.  when i created the asset (rental house), the program automatically assigned a depreciation number.  

[DavidD66]

The program didn't assign a depreciation value, it calculated a depreciation value based on the information you entered when you created the asset.  You can't change the amount of depreciation.   If you make changes to the asset (e.g. enter a different cost basis or change the asset type) it will change the depreciation calculation, but it will also recalculate the accumulated depreciation expense.  If 2024 was the first year the rental property was in service, making changes isn't a big deal.  If it was placed in service prior to 2024 it's not a good idea to make changes.

Why do you want to change the amount of depreciation expense?  

[rjcmbstxs]

I open up the menu path and click edit, it only allows me to input a depreciation amount from previous years. through the complete menu path, i am never ask to input current year depreciation anywhere. 

so then i open up the schedule E form, it will not allow me to edit line 18 for current year $$$$

[rjcmbstxs]

we were told in order to catchup on depreciation (15 yrs), we need to file form 3115.  we had a cpa do this and she came up with a different depreciation schedule with a different amount.

i'll go back and create a new asset and see possibly where i errored.

thank you

[PatriciaV]

Yes, if you didn't take depreciation on this rental property when you should have, you'll need to file Form 3115 and adopt a change in accounting method: This option allows you to go back as far as you need. Make the adjustment on your current year tax return to expense the missing depreciation.

• Why am I adopting a change in accounting method? Not claiming depreciation in two or more years indicates that you've chosen an accounting method without depreciation. In this case, you must now elect to change your accounting method to include depreciation.

See this post for complete instructions: What should I do if I didn’t take depreciation on my rental property?

Note that under IRS rules, residential rental property assets are depreciated over 27.5 years for an equal amount each year. See IRS Publication 946 How To Depreciate Property Table A-6.