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wilder84
New Member

Rental Property Depreciation Removed.

My mother rented her house in Feb 2017 when she moved to an independent living facility. When I entered all of her expense and income information into TT Premier, it calculated a depreciation. But, when I went back to recheck everything, the depreciation was removed. This occurred under the Rental Info section when I moved from the page asking if the house was in a specific "Designated Area" to the page "Tell Us About the Property." I did not make any new entries. (I have repeated this several times.)  Now no depreciation is listed on the relevant forms. Why was depreciation removed?  I understand the IRS will count the depreciation when we sell the house even if we didn't get the deduction during the rental years. Thanks for any help.

1 Best answer

Accepted Solutions
AmandaR1
New Member

Rental Property Depreciation Removed.

To take depreciation you'll need to add the house as asset. This isn't done under the Property Info/Basic Profile section. It sounds like you have it set up properly and you just need to add the asset for depreciation. 

To do so: Edit the Rental > Answer questions till you arrive at Summary of your XYZ Rental > Scroll down and click Start/Edit next to Assets/Depreciation > Answer the questions to add the house as an asset. 

Please let me know if this resolves your issue or if you still have questions. 

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2 Replies
AmandaR1
New Member

Rental Property Depreciation Removed.

To take depreciation you'll need to add the house as asset. This isn't done under the Property Info/Basic Profile section. It sounds like you have it set up properly and you just need to add the asset for depreciation. 

To do so: Edit the Rental > Answer questions till you arrive at Summary of your XYZ Rental > Scroll down and click Start/Edit next to Assets/Depreciation > Answer the questions to add the house as an asset. 

Please let me know if this resolves your issue or if you still have questions. 

wilder84
New Member

Rental Property Depreciation Removed.

I'm still having problems.  I think the house is entered correctly.  I have spent hours reading and checking all of the numbers manually and got the same result as TT Premier.  Basis $136,854, Land $31,322, Percent Use for this First Year = 87.5%, Depreciation $3358 per year (lower in first year).  

However, I left off $2315 in Improvements before it was rented.  When I try to add them, Premier deletes the previous numbers and recalculates the Depreciation to only $300 per year.  It appears that it has something to do with the "Allocation between Land and Improvements" on the New Rental Worksheet.  The Depreciation Worksheet now recalculates Cost as $9419 and Land as $127,435 and Depreciation Basis as $9419.  I can manually change the numbers, but it doesn't give me much confidence.  I am frustrated that there are no help links that explain the allocations and why the numbers changed.  Can you give me some help?
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