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Level 1
posted Apr 28, 2023 11:31:59 AM

MM macrs depreciation on rental real estate purchased in 2021

I need to use mm depreciation, but this option is not available even though it is described thru the help button. The calculation will only work for mid year or mid quarter. How do I get turbotax to depreciation with the mid month convention?

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1 Best answer
Level 15
Apr 28, 2023 12:39:43 PM

You will need to work thru the asset entry section correctly if you need to manually enter it if it was not transferred in from the year before.   I highly recommend you delete that asset and start over again and make sure to choose the real estate option as this will put you into the 27.5 year MM SL option automatically ...

 

3 Replies
Level 15
Apr 28, 2023 12:39:43 PM

You will need to work thru the asset entry section correctly if you need to manually enter it if it was not transferred in from the year before.   I highly recommend you delete that asset and start over again and make sure to choose the real estate option as this will put you into the 27.5 year MM SL option automatically ...

 

Level 1
Apr 28, 2023 12:47:43 PM

Thank you; will do this

Level 15
Apr 28, 2023 6:20:59 PM

When working through the Rental & Royalty Income section for the first time, it's important to pay attention to the small print on every single screen. If entered correctly, the program (not you) will automatically set up residential rental real estate for 27.5 year depreciation.

Even after doing so, make sure you double-check in the Assets/Depreciation section that it is "in fact" entered there correctly. I've seen situations where they enter all the information, and then there's absolutely nothing in the assets/depreciation section.