Not used turbotax 2023, rental depreciation amount screwed in 2024

[mother2002chang]

Hi,

I have rental depreciable basis $315,881.  The depreciation amount is always $11,487. 

I did not use TurboTax in 2023, and the depreciation amount is changed to $2,793 for 2024 in TurboTax after I put down previous total depreciation amount $135,000. Date in Service is 10/27/2012.

How can I make the depreciation amount for 2024 to be $11,487?

Thanks

[MaryK4]

In TurboTax, do not enter the amount for previous depreciation- TurboTax calculated $128,747.  This will make your depreciation expense for 2025 $11, 486.

[mother2002chang]

Hi MaryK4,

Thanks for your answer.

May I know how this number of $128,747 is got?  And where does it show in TurboTax?

"TurboTax calculated $128,747"

"will make your depreciation expense for 2025 $11, 486".  Did you mean for 2024 tax? 

If I don't put down anything in the total previous depreciation, TurboTax auto generated total previous depreciation $73,571 and auto generated 2024 depreciation is $6564.

If I put down $0 for total previous depreciation, the 2024 depreciation becomes $11,080 instead of your print screen showed amount $11,486. The depreciation base $315,881 divided by 27.5 years should equal to $11,486.58.  Why TurboTax shows $11,080? And where did it go wrong?

Thanks

[MaryK4]

@mother2002chang  Can you clarify if you skipped one year for TurboTax and it had information from 2022?  

[mother2002chang]

I did not use TurboTax for 2023.

The TurboTax for 2024  did not copy any info from 2022.  Everything started from fresh.  I manually typed in all the information.

It's more weird for any my rental property depreciation.

The cost is $159,013. Date in Service is 4/1/2009. The depreciation for 2022 is $5,783. 

I put down the above cost amount and date in service and put $0 for previous total depreciation.  The depreciation for 2024 is $0. 

For testing purpose, I changed the date to be 4/1/2019, everything else is the same, the depreciation for 2024 is still $0.

Why is that?  How can I make it to be $5,783 for my 2024 depreciation for that property?

[mother2002chang]

It's more weird for any my rental property depreciation. ==> should read as It's more weird for another my rental property depreciation.

[MaryK4]

@mother2002chang Can you clarify if the $159,013 is a different property?  I want to sort out the first issue you have first.

[AmeliesUncle]

Are you entering a cost/value for land?

If so, when you enter your 'cost' for the home, you enter the TOTAL cost (building and land combined), which would mean you would enter $315,881 *PLUS* whatever the land cost.

[mother2002chang]

2024 depr when prev depr total 02024 depr when prev total turboTax givenscreenshot forbuilding land enteredscreenshot for filling in prev depr total 0

Fscreenshot Turbotax generated prev total amt

[mother2002chang]

Hi AmeliesUncle,

I just uploaded 5 screenshots:

1) building/land costs

2) TurboTax automatically generated previous years total depreciation $73,571.

3) TurboTax generated 2024 depreciation $6,564 if previous years total depr. is $73,571.

4) Manually filled previous years total depreciation $0.

5)  TurboTax generated 2024 depreciation $11,080 if previous years total depr. is $0.

Thanks.

[mother2002chang]

Hi AmeliesUncle,

Are you entering a cost/value for land?

If so, when you enter your 'cost' for the home, you enter the TOTAL cost (building and land combined), which would mean you would enter $315,881 *PLUS* whatever the land cost.

Prior to 2023, my number for the field of Cost/Cost basis is the building + misc costs ($315,881) and I entered $135,377 in the Cost of Land, and I got $11487 for every year depreciation. But I only stopped using TurboTax for 2023, I filled in the same number for Cost/Cost basis and Cot of Land, I could not get my 2024 depreciation as $11,487. I tried to fill $0 for the previous total depreciation or took TurboTax calculated previous total depreciation numbers, neither case could give me $11,487 for my 2024 depreciation.

Yesterday I uploaded 5 screenshots to explain what I filled and what I got in TurboTax.

[DianeW777]

Here is your statement from above: Placed in service 10/27/2012

• 2) TurboTax automatically generated previous years total depreciation $73,571. -- Should be $67,015
• 3) TurboTax generated 2024 depreciation $6,564 if previous years total depr. is $73,571. Depreciation is correct for 2024.

If we take the building less the land the amount should be $180,544   ($315,881 minus $135,337).  This will create $6,566 depreciation for 2024 or fractions make it $6,564.

This is the amount you have been taking each year for years 2-12 (give or take a couple of dollars. The first year would always be less because it was placed in service during the tax year.

The amount each year was not calculated at $11,000 - see the formula below.  Each year it was roughly the same amount with the exception of year one.

Using the 27.5 year chart here is the total prior depreciation for this rental building. 

• Year 1: $180,544 x 0.758% =$1,369
• Year 2-11: $180,544 x 36.36% = $65,646
  • Total depreciation before 2024 = $$67,015
• Year 12: See above for 2024.

See the chart below for verification. Correct your prior depreciation and all else is correctly calculated.

@mother2002chang 

[AmeliesUncle]

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@mother2002chang wrote:

Cost/Cost basis is the building + misc costs ($315,881) and I entered $135,377 in the Cost of Land,

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What is the FULL cost of everything (building and land combined)?

If it is $315,881, TurboTax is currently doing it correctly and I don't know what was going on with your prior tax returns.

If the full/combined cost is $451,258 ($315,881 for the building and $135,377 for land), then enter $451,258.