If I convert a farm rental from share crop to cash rent, and use schedule E instead of 4835, will Turbo Tax still automatically calculate the depreciation

[tagteam]

TurboTax will not automatically "carry over" the accumulated depreciation from one to the other; the asset worksheets are listed under the two different forms.

However, the program will calculate depreciation for the current year if you add the asset in the Schedule E module and will calculate the accumulated depreciation based upon the acquisition date but that figure could be erroneous and you may have to make a manual adjustment.

[Carl]

If I convert a farm rental from share crop to cash rent, and use schedule E

Actually, farm income including farm rental income from a farm is reported on SCH F - not SCH E.

[tagteam]

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@Carl wrote:

Actually, farm income including farm rental income from a farm is reported on SCH F - not SCH E.

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Farm income is reported on Schedule F only if the taxpayer materially participates in the management or operation of the farm. Otherwise, the income is reported on Form 4835 (if based on crop or livestock shares) or Schedule E (if based on a flat charge).

Form 4835 to report rental income based on crop or livestock shares produced by a tenant if you didn't materially participate in the management or operation of a farm. This income isn't subject to self-employment tax.

[asendelbach]

Do I therefore add the asset to schedule E by opening and completing form 4562 (which Turbo Tax says is being worked on and is not available yet)?  I presume I then delete the 4835 associated with that farm so there is not a double entry for depreciation.  You mention the figure could be erroneous, how can I verify that?

[tagteam]

I would not recommend adding this asset (or any asset) until the requisite forms are available. 

You would add the asset in Assets/Depreciation in the Rental Properties and Royalties (Sch E) section.

The accumulated depreciation figure can be verified in the Form 4562 Depreciation and Amortization Report that you can access in Forms Mode (or download as a PDF).

[Carl]

Basically, you have to wait until the forms are available. As it stands right now, you can't enter assets because the form 4562 is not yet available.

When you enter the asset on the SCH E you will enter the "original" in-service date you used on the SCH F. You'll also have to manually figure and enter the total prior year's of depreciation taken on SCH F, to include the 2019 depreciation taken up until the time you "closed" the SCH F business. (you will need to file a "final" SCH F to show the disposition of any and all assets reported on the SCH F).

[Boyd Mc]

If I quit farming and rent  my land, fences and buildings to a tenant, and use schedule E, will Turbo Tax automatically convert my depreciation on by buildings, etc to E from the F I have been using?

[tagteam]

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@Boyd Mc wrote:

If I quit farming and rent  my land, fences and buildings to a tenant, and use schedule E, will Turbo Tax automatically convert my depreciation on by buildings, etc to E from the F I have been using?

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No, you will have to indicate that you disposed of the property if you were engaged in farming operations and reported on Schedule F and then re-enter any assets in the Rental Properties and Royalties section (Schedule E) of the program; TurboTax will not automatically do the conversion for you.