We converted our primary residence to a rental this year and it seems like TurboTax is calculating depreciation differently than I have read it should.
Our cost basis at purchase (minus land price) is 147,979, so using straight line depreciation at 27.5 years I calculate that depreciation should be 5,381 dollars per year. Since we put it into service June 15th for 54% business use it should be 2,905 dollars of depreciation this year, but TT suggests 1,586. Any idea why?
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Don't enter 54%. It was 100% business use from the date you "placed it in service".
The "placed in service" date already prorates things, so by entering 54% you are essentially prorating it TWICE.
Thank you, that was exactly what I needed to know!
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