Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
thersum
New Member

My real estate rental property has been using a 40 year SL depreciation schedule for many expenses whereas your schedule is for fewer years. Will the IRS let me swap?

 
1 Reply
HelenaC
New Member

My real estate rental property has been using a 40 year SL depreciation schedule for many expenses whereas your schedule is for fewer years. Will the IRS let me swap?

You can enter your 40 year Straight Line depreciation. If you placed the property in service before 1981, TurboTax will prompt you to enter the Depreciation Method. See the screenshot below.

If you placed rental property in service before 1987, you are using one of the following methods.

  • Accelerated Cost Recovery System–(ACRS) for property placed in service after 1980 but before 1987.

  • Straight line or declining balance method over the useful life of property placed in service before 1981.

  • Generally, you must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate residential rental property placed in service after 1986.


****Swapping from 40 year to 27.5 year requires a change in accounting method. You would need to file IRS Form 3115, Application for Change in Accounting method and get approval by the IRS.****


See IRS Publication 527,  https://www.irs.gov/publications/p527/ch02.html, for additional information. 

Dynamic AdsDynamic Ads
Privacy Settings
v