First, understand that by federal law you are required to depreciate rental property. So there is supposed to be an entry for the property itself in the Assets/Depreciation section. If it seems to have just "appeared" in that section without you specifically electing to update the Assets/Depreciation section and entering it there yourself, that's a good indicator that you purchased this property in 2019 and it has been rental property since your date of purchase/acquisition.
So if you purchased this property in 2019, at the beginning you were asked for things such as your purchase price and sales expenses. Assuming you entered everything correctly the program has figured your cost basis on the property and has set up depreciation for the first year "for you".
If you will work through the asset you will see where there's a "COST" which is what you paid for the property *after* deducting your sales expenses. The amount shown in the "COST OF LAND" box is that portion of the amount already entered in the COST box, that is allocated to the land. If you subtract COST OF LAND from COST, the answer is the value of the structure on that land. It's the value of the structure that is depreciated over the next 27.5 years. Land is not depreciated, ever.
The amount of the 1st year's depreciation is pro-rated based on the month you place the property "in service". That in service date is generally the first day a renter "could" have moved in. That in service date has to be the same as or any date after your purchase/acquisition date.
You with me so far? Any more questions?
