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How do I enter the 30 and 40 yr depreciation rules for FOREIGN residential rental properties in turbo tax?

The most recent (2025) version calculates the depreciation with 27.5yrs

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2 Replies
ThomasM125
Expert Alumni

How do I enter the 30 and 40 yr depreciation rules for FOREIGN residential rental properties in turbo tax?

You can only use the 27.5 year straight-line method for residential rental real estate in TurboTax.

 

For the most part, you must use the modified accelerated cost recovery system (MACRS) to depreciate residential rental property put into service after 1986. That is the method TurboTax uses. You can learn more in this IRS article

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How do I enter the 30 and 40 yr depreciation rules for FOREIGN residential rental properties in turbo tax?

Hi Thomas, not quite. I figured it out. One has to click "foreign address" under the basic info of the property and click "our property is outside of the US" under the Rental Porperty Info. As a result it pulls either 40 years (for properties put into service prior to 2018) or 30 yrs for put into service after 2018.

Thank you, though.

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