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wilder84
New Member

Problem with Rental Property Depreciation.

I'm still having problems getting the proper depreciation for my mother's house she is renting out.  Calculating rental depreciation manually, I get the same result as Premier. Basis $136,854, Land $31,322, Percent Use for this 1st Year = 87.5%, Depreciation $3358 per year (lower the 1st year).   However, I left off $2315 in Improvements added before it was rented.  When I try to add them in the program, Premier deletes the previous numbers and recalculates the Depreciation to only $300 per year.  It appears that it has something to do with "Allocation between Land and Improvements" on the New Rental Worksheet.  The Depreciation Worksheet now recalculates the Cost as $9419 and Land as $127,435 with Depreciation Basis as $9419.  I can manually change the numbers, but it doesn't give me much confidence to do that when the program gives me such a different number.  I am frustrated that there are no help links that explain the allocations and why the numbers changed.  Can anyone give me some help?  I'm sure I must be doing something wrong, but can't find what it is.

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1 Best answer

Accepted Solutions

Problem with Rental Property Depreciation.

Stop trying to add the improvements to the home ...instead make a separate asset entry for them. 

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2 Replies

Problem with Rental Property Depreciation.

Stop trying to add the improvements to the home ...instead make a separate asset entry for them. 

wilder84
New Member

Problem with Rental Property Depreciation.

Thank you for that help.

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