I inherited farmland in 2017 and 1099 misc for $4025 in cash rent entered on SCH E. It is depreciating the value of the land over 27.5 years. Why is it depreciating land?

[PaulaM · Accepted solution]

You are correct, it shouldn't be depreciating land. First, check that you followed the steps below.

Navigate back to the Property Profile section. Type 'schedule e' in the search box, then select the 'jump to' link. Then continue until reaching the Summary page. Select update next to the Property Profile section.

On the page 'What type of rental is this?' verify that you have marked the radio button for land. Continue to indicate if 2017 was the first year to rent, rented days, property ownership and participation and that you acquired the property through inheritance.

Enter the fair market value of the land when you made the land available for rent. On the page 'Enter Property Tax values', enter the land value. Verify that the depreciation results are 0.