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dpraveen9
New Member

I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition

 
4 Replies
Critter-3
Level 15

I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition

There is no such thing for rental real estate ... it is a 27.5 year property period. And the land cost must be broken out of the total cost since land it not depreciated. 

Carl
Level 15

I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition

There is no accelerated depreciation for residential rental real estate. It's 27.5 years. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf on page 27, "Required use of ADS".

Required use of ADS. You must use ADS for the follow-
ing property.

Nonresidential real property, residential real property,
and qualified improvement property held by an elect-
ing real property trade or business (as defined in sec-
tion 163(j)(7)(B) of the Internal Revenue Code). For
more information, see Revenue Procedure 2019-8 on
page 347 of Internal Revenue Bulletin 2019-3, availa-
ble at
IRS.gov/irb/2019-03_IRB#RP-2019-08, as
modified by Revenue Procedure 2021-28 on page 5 of
Internal Revenue Bulletin 2021-27, available at

IRS.gov/irb/2021-27_IRB#RP-2021-28

tagteam
Level 15

I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition


@Carl wrote:

There is no accelerated depreciation for residential rental real estate. It's 27.5 years. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf on page 27, "Required use of ADS".


27.5 years is GDS, not ADS.

Carl
Level 15

I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition

27.5 years is GDS, not ADS

Thanks. I mis-read something somewhere. Can't find exactly where now. But from what I see in IRB 2019-03, Rev Proc 2019-08, ADS for rental property is 30 years, and applies to a foreign rental property.  Basically, 2019-08 changes the depreciation of foreign rental from 40 yrs to 30 yrs for foreign property placed in service after 2017.

 

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