I've had a rental property for 5 years now and have always seen the "Residential Rental Real Estate" property asset show up in list of depreciable property assets. I see all my other items listed there, but not the actual property. Do I need to re-enter all of the info to add it back in? Or is this just a temporary glitch with TurboTax?
I show the IRS Form 4562 as "available" on the webpage at https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html
Most likely it's because everything was not present in the program at the time you started your return. It's also possible there was a one-time glitch on the import. I see you're using the online version of Premier. The simplest thing to do is to clear the return and start over. This will force you to import from last year's return again. After import, the first thing you do is check that all imported information was in fact, imported.
Do I need to re-enter all of the info to add it back in?
You can. But understand it's not that simple and re-entering it. A fair amount of manual math on your part is necessary in order to get the numbers right without losing the depreciation history on the asset. The simplest way is to simply start over and import all the data again.
Are other assets for the same rental property imported? (Assuming you have other assets for the same rental property.)
Note that if on the 2019 tax return if you marked the asset as converted to personal use, sold, removed from service, etc, that "could" be a reason it's not imported. It shouldn't be a reason. But it "could" be.
If you have the means to open the .tax2019 file, you need to check the status of that asset. Sounds to me like it was marked as no longer being a rental asset at some point during the 2019 tax year. You could have marked it as sold, given away, converted to personal use or any number of things that would make it no longer be a business asset.
For example, if when working through that asset last year on your 2019 return, if you were presented a screen that asked "Special Handling Required"? on that particular asset, that would indicate that you either sole it, converted it to personal use, gave it away, are something else. It wouldn't matter if you answered the "Special handling required?" question with a yes or a no either.
If you have a printout of the IRS form 4562 from the 2019 return, that would let you know it's status also. There are three 4562's for that property. One prints in portrait format and that's not the one you want to look at. The other two print in landscape format, and you want the one titled "Depreciation and Amortization Report".
If the numbers in the "Cost (Net of Land)" column and the "Depreciation Basis" column for that asset do not match, then the property was not "in service" as a business asset at the end of the 2019 tax year, and you have a possible error/problem on your 2019 tax return concerning that asset also.
Thanks for the replies and detailed instructions. I was able to download my full 2019 tax return and looked at landscape Form 4562. My "Residential" line has the exact same amount for "Cost (Net of Land)" and "Depreciable Basis". I also compared the "Current Depreciation" value for 2019 and 2018 and both are identical values, as I would expect.
No idea why it's not importing just that one single asset then. But here's what you can do, with details on how to "get it right" with a manual entry. You'll use the data for that asset from the 2019 form 4562. I'm "going into detail" here on stuff you probably are already aware of. But hey, even experienced airline pilots use a checklist "every" "single" "time" they fly.
Do this will create an "assumed" depreciation history. Generally that history will be spot on. But if it's off by a few bucks that's really no big deal. $1 to $5 off makes absolutely no difference what-so-ever in the tax liability. Not a single penny.
In TTX 2020 enter the asset manually.
- The "describe this asset" enter it exactly as shown on the 2019 form 4562 in the Asset Description column.
- For "cost" add together the amounts on the 2019 form 4562 in the "cost (net of land)" and "land" columns. The total is entered in TTX 2020 in the "cost" box.
- Enter the amount in the 2019 form 4562 "land" box in TTX 2020 in the "cost of land" box.
- Date Purchased or Acquired should be the same as *OR* before what's in the "Date in Service" column.
- Select "purchased new" and select "used 100% for business" (I assume this is true)
-For date you first started using it in the business, this should match the date in the "date in service" column of the 2019 Form 4562.
Here you see displayed the total amount of depreciation taken on this specific asset "before" 2020. To confirm this is correct, on the 2019 from 4562 add together the amounts in the "Prior Depreciation" column and the "current depreciation" column. That is the total of all depreciation taken "before" 2020. If it's off by a few bucks (less than $5) that's okay. You can change it to match exactly if you want.
Here's you'll see the depreciation for 2020. Select the "more details" option to check all the detailed information against the 2019 form 4562 to make sure you've got the right MACRS convention and depreciation method.
This issue is fixed. There are two different links for you to use, depending on whether or not you have already filed your return.
FAQs for people who have already filed their return:
FAQs for people who have not filed their return:
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