Why hasnt turbo tax generated a form 4562 for depreciation?

[Pauldina]

Has TurboTax updated the depreciation worksheet for rental property. When I try to enter expenses and new depreciation items I get a message that the IRS has not yet updated the worksheet and TurboTax will update when received. My software has been downloading updates but this update has not occurred. What is the fix?

[MichelleLO]

If you are using the TurboTax CD/Download software then you may want to try manually updating your software. The below TurboTax help article will assist with this.

Manually Update TurboTax for Windows Software (Basic, Deluxe, Premier, Home & Business)

If you continue to have issues please reach out to a TurboTax representative for assistance. 

What is the TurboTax phone number?

@Pauldina

[Pauldina]

MichelleO, Thank you for your reply however, I have tried to manually update and I am still getting the message that the IRS has not finalized the tables/form yet. I then did call TurboTax and the representative told me to wait as TurboTax has not been able to update the depreciation and amortization forms/table for rental properties (schedule E). I am surprised by this given it is now approaching March 1st.

    If this is incorrect please let me know what I can do, given the date. I was hoping to finish my taxes by now . 

[DoninGA]

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@Pauldina wrote:

MichelleO, Thank you for your reply however, I have tried to manually update and I am still getting the message that the IRS has not finalized the tables/form yet. I then did call TurboTax and the representative told me to wait as TurboTax has not been able to update the depreciation and amortization forms/table for rental properties (schedule E). I am surprised by this given it is now approaching March 1st.

    If this is incorrect please let me know what I can do, given the date. I was hoping to finish my taxes by now . 

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I am using the 2021 TurboTax Premier desktop CD/Download edition for Windows and have both a Form 4562 and the Depreciation and Amortization Report available in Forms mode.

Exactly what type of problem are you having with the rental property section of the program?

[gd28]

Not the OP, but will chime in with a similar complaint and some details hoping to illustrate what sounds like the same problem.   In my case, foreign property (so 40 yr, SL, MM) with a prior interruption in depreciation requiring me to change checkbox on the depreciation asset worksheet line 43, forcing TT to use tables rather than calculation so that I can enter my own prior depreciation. This has worked successfully for maybe 10 years, setting and prior value is imported forward every year.    This year it will not calculate depreciation, instead gives me what I think is the same message as OP gets-- IRS forms not ready (which is very not true!).

If I delete the property and reenter without that worksheet line 43 changed, using standard formula rather than forcing depreciation table,  it proceeds (with incorrect depreciation, of course).  Checking that line 43 box  then causes the result to disappear and be replaced by the OP's message.  I believe that *unchecking* the box does NOT then make it work again, but not absolutely certain of that.

Edit to note: downloaded deluxe version.  And the superpatch in manual update link above didn't fix it.

[Anonymous_]

I presume you are aware that the ADS recovery period changed for the 2018 tax year.

Could that be causing the issue?

[Carl]

Only changed for property placed in service in 2018 and after, I do believe.

[Anonymous_]

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@Carl wrote:

Only changed for property placed in service in 2018 and after, I do believe.

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Except @gd28 wrote that there was a "prior interruption in depreciation". If the asset had been placed into service prior to 2018, taken out of service, and then placed back into service thereafter, that might be problematic.

[Carl]

If the asset had been placed into service prior to 2018, taken out of service, and then placed back into service thereafter, that might be problematic.

I don't think so. But it does require some manual math outside of the program. The cost basis would have to be adjusted by subtracting the prior depreciation taken, and the new basis entered in the COST box. The land value would remain unchanged. Then the program will figure on the 30 year schedule with the new structure value, starting all over from year 1.

It can be a pain, because it's up to you to remember the prior depreciation taken before converting back to rental, since that has to be included in recapture when sold. If you sell years down the road and forget about that prior depreciation, then it's included in the capital gain and taxed at the capital gain tax rate.

If the capital gain is excluded under the "2 of 5" rule, then you're not paying any tax on it, and the IRS would have an issue with that if/when they caught it.

[Anonymous_]

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@Carl wrote:

I don't think so. But it does require some manual math outside of the program.

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It would be problematic if the user were trying to continue with the 40-year recovery period.

Regardless, there have been issues relating to foreign rental property and Form 1116 so that might be the issue.

[gd28]

Apologies to Pauldina if I'm hijacking the thread.  I *was* able to add a new depreciation item during my test as long as it was conventional, and am noting that I seem to have the problem because of this unusual asset worksheet line 43 setting I use for only one of several depreciated assets.  I'm finding no other complaints online about TT delays for depreciation forms, so found this one and am thinking my experience is a clue that  Pauldina might have some other subtle effect complicating things.

I'm pretty confident my problem is a turbotax bug introduced this year regarding the table lookup setting.  After first entering this asset 10-15 years ago with my special conditions, it calculated correctly without intervention until this year.  IRS has not changed this area afaik, and I believe it's just a lookup table to back up the calculation normally used.  I've uninstalled, reinstalled, updated repeatedly, deleted & re-entered assets.  Changing asset worksheet line 43 shuts me down- after working for years.    If my problem continues past the last 1116 update on 3/3 that I'm also waiting for (sigh...), I'm just moving on from TT.  Unfortunate, but gotta get my taxes done.

Final update on my thread hijack:  after 3/3/22 update, I can get my depreciation working again AFTER deleting the property and re-entering it entirely (and again I manually select tax tables from depreciation asset worksheet line 43).  Anyone still with the mystery "IRS forms not available yet" message might try deleting and re-entering the property.

next final update, an hour later-- stopped working again.  no clue why, maybe after saving, maybe after closing and reopening, maybe after putting info in elsewhere.  15+ year turbotax customer, that's it.   olt.com here I come!

[Michael764]

Does anyone know a good attorney?  We have been using Home Business CD software.  We have continually asked for help with this form 4562 being under construction.  Turbo Tax has only sent us in circles with no fix.  I see everyone else is still having same problem for last two months.  We need to file a class action suit against  Intuit for leaving us all in the dark.  The customer service is not supporting any of us.  This is ridiculous. 

[AmeliesUncle]

If the software isn't working for you, ask a supervisor for a refund and have your tax returns prepared elsewhere.  Nothing is forcing to you use TurboTax.

[Michael764]

Thanks, Will be doing that.  It's just a shame all the time for all the different items of depreciation used over the years and how the program worked so good that Turbo Tax can't fix this bug.  Will mean a lot of time re-entering so much information in a new software, but just not getting the support here anymore.  So many others in the community that have stated they had to leave to a different software under this subject and similar subject related to this form 4562 issue is just a shame.   

[phil-]

I posted a complicated work around here:

https://ttlc.intuit.com/community/taxes/discussion/re-turbotax-says-the-irs-is-still-working-on-the-...