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JEW4
Level 1

Depreciation

Why is Turbo telling me my prior depreciation on a rental property is too large?

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3 Replies
Anonymous
Not applicable

Depreciation

did you use TT in prior year? 

Carl
Level 15

Depreciation

You changed something that you should not have changed most likely. Now if 2019 taxes is your first time using TurboTax, then you did not enter the correct information from the 2018 tax return. Specifically the 2018 IRS Form 4562 that prints in landscape format and is titled "Depreciation and Amortization Report"

Another possibility is that you entered the wrong cost basis for an asset, and the cost basis you entered was lower than it should have been.

Another possibility is that you incorrectly claimed personal use days.

As you can see, there's all kinds of possible reasons for this. So you need to provide more details. Just asking "why" doesn't provide anyone with any facts to work with.

 

Depreciation

Has the business percentage varied from year to year?

 

If you did not use TurboTax in prior years, make sure you have the "asset" categorized correctly.  And make sure the "prior depreciation" is correct (if you leave it blank, the program will automatically assume you took the correct prior depreciation).

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