How to enter depreciation history

[JulianF]

Instructions given in current posts do not correctly instruct on how to enter past depreciation history. I have a depreciation detail listing but TT does no have the selections instructed in the posts. Also, it does not allow me to enter a depreciation start date that is prior to the LLC start date.

[tagteam]

Your profile indicates you are using TurboTax Business.

If so, you can enter the placed in service date ("depreciation start date") in Forms Mode on the Federal Asset Entry Worksheet.

What type of depreciation detail are you attempting to enter? Do not use guidelines or information in posts that are applicable to TurboTax personal income tax products if you are using TurboTax Business.

[Carl]

Instructions given in current posts do not correctly instruct on how to enter past depreciation history.

Most likely that's because the posts you are referring to apply to the personal versions of the TTX program. My screen shows you're using the business version. That means the rental is owned by a separately reported entity of some type.

I have a depreciation detail listing but TT does no have the selections instructed in the posts.

That's because as stated above, those former posts don't apply to TurboTax Business most likely.

Also, it does not allow me to enter a depreciation start date that is prior to the LLC start date.

So that's my first clue that you have transferred a rental property to a multi-member LLC, from what in the past was a single owner that was a living, breathing person who reported it on SCH E as a physical part of their personal 1040 tax return. So you're completing a 1065 Partnership Return.

You're just confusing start dates.

The start date of the *BUSINESS* must be on or before the first day the first rental asset was placed "in service". It doesn't matter if that was 50 years ago either.

The start date of the "PARTNERSHIP" will be whatever day in 2019 that the original owner of the property (you I presume) took on a partner and either gave them or sold them an interest in the property.

[tagteam]

I would recommend entering the start date as the date the property was transferred to the LLC or whenever the LLC started managing the property or otherwise started conducting business operations; there is no place on the return to input the "start date of the partnership". 

You also want the box checked on Form 1065 indicating that this is the initial return for the LLC, which should happen automatically if the start date you select is within the current tax year.

[jimblaylock]

I am using TurboTax Business for the first time and have a problem with entering depreciation for prior years.  I purchase a computer system in June of 2016 and my accountant, at that time, took the bonus depreciation but not the standard 179 expense.  When i try to enter that information in TurboTax it calculates the previous depreciation incorrectly and says the asset has been fully depreciated.  However, when I do the calculation manually, it shows the table differently.  What am I doing wrong?

[ThomasM125]

You are asked to enter the prior depreciation when you enter the asset. You can calculate this manually or simply look on the previous year tax returns to see what depreciation was deducted.

When calculating depreciation, you must be mindful of factors such as bonus or section 179 depreciation allowances, asset categories, period of year conventions, methods of depreciation, etc...

It is sort of like preparing a tax return, two people will prepare a return based on the same information and come up with two different outcomes.

The best thing to do is look on previous year tax returns and enter the actual amount taken when instructed to in TurboTax.

[Dan411]

I'm using TTx Premier, Instructions given in current posts do not correctly instruct on how to enter past Rental Property Depreciation History. I have a depreciation detail listing but TT does not have the selections instructed in the posts.  I see no entry areas for this information... do I need to create / enter directly into Sched E?

TTx Premier advertises "Extra Guidance for Rental Property Income, Expenses and Refinancing.  

[PatriciaV]

@Dan411

You don't need to enter your prior depreciation history in order to take depreciation this year. When you add your rental asset to your rental property, TurboTax will ask for the purchase price and the date it was placed in service. From this information, TurboTax will calculate the amount of prior depreciation you should have taken as of the end of the last tax year. You have the option to adjust this value if it doesn't match your tax records. Going forward, TurboTax will calculate depreciation for this asset each year until you sell it or stop using it as a rental.

See also: How do I handle capital improvements and depreciation for my rental?