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Is Turbotax calculating the depreciation on my rental correctly? I'm pretty familiar with it - I cant figure out how they came up with their number

I did a manual calculation for my rental property, and im coming up with a completely different number than turbo tax. Can any verify or provide insight on why this may be happening? Details are below

Asset: Rental Property
Acquired: 2011 (for personal use)
   - Switched to100% business use on 6/15/16
Cost: 149000
Land Cost: 37697
Cost Basis (Cost - Land Cost): 111303
Depreciation Methods:
     - Years to fully depreciate: 27.5
     - MACRS Convention: MM (Mid Month)
     - Depreciation Method: SL

Since its over 27.5 years, 1/27.5 = 3.636% per year.

For 2021, I use:
$111,303 X 3.636% = $4047

Somehow, turbo tax shows $4848
(No special 179 deductions)

Any ideas? Appreciate your response in advance!
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2 Replies

Is Turbotax calculating the depreciation on my rental correctly? I'm pretty familiar with it - I cant figure out how they came up with their number

Are you entering an amount for the "prior depreciation"?  If so, what are you entering (it may be wrong)?  You may consider leaving that BLANK.

 

Carl
Level 15

Is Turbotax calculating the depreciation on my rental correctly? I'm pretty familiar with it - I cant figure out how they came up with their number

Check the total of the prior year's depreciation already taken. Looks to me like that may be low by about $801, which is darn close to 2 months of depreciation. Another possibility is that the in service date got changed somehow, when it shouldn't have.

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