Incorrect Depreciation Amount For New Roof

[bjhbowdoin]

Hi all,

I'm trying to enter the cost of a new roof that I put on a rental in October '22. It only cost $4,294 because I roofed it with my wife and a friend - but when I enter the cost into turbotax and proceed, it tells me that it will depreciate at a rate of $33/year over 27.5 years with straight-line depreciation. Is the system glitching or am I doing something wrong? The SL depreciation should be at $156/yr over 27.5 years in order to equal the cost of installing the roof.

Thanks!

[AnnetteB6]

Since the roof was placed in service in October 2022, the first year's depreciation is based on 0.0758% because it is only covering mid-October through December.  When this is calculated, the amount is $33.

Subsequent years, the depreciation will be based on 3.636% or 3.637%, depending on the year.  This calculates to be about $156 per year as you expected.  

If the information onscreen is saying it will be $33 per year for the remaining 27.5 years, that is incorrect.  Pay close attention to the amount calculated for your 2023 return, as it should show $156 instead of $33.

The screenshot below shows the depreciation table used to calculate your 27.5 year property:

[Carl]

The first year's depreciation will always be lower when placed in service at some point "during" the year. For you placing it in service in Oct, that first year will be quite a bit lower. $33 for 2022 is spot on for the roof being placed in service at any time in Oct.