Schedule E is not correctly showing Depreciation and the total expenses are capped at the same amount of Rental Income. How do you fix this?

I've entered all Rental Income and Expenses. Turbo Tax is showing only the amount of expenses up to the income -- so its not allowing for any loss. Secondly the Depreciation amount is far less than what the 27yr value should be. How do you update the values through TurboTax?

755

Expert Alumni

Mar 21, 2022 2:45:18 PM

This usually happens when you have personal use of the property. If you use the property for personal purposes for more than 14 days during the year or 10% of the time the property is rented, whichever is more, then you can't deduct expenses in an amount greater than the rental income. Your deduction will also be similarly limited if you rent the property for less than the fair market value of rent. So, you need to go back through TurboTax and review your entries to see how you responded to the questions regarding personal use and fair market value of the rent received.

Level 1

Mar 30, 2024 1:57:40 PM

Thank you for this post, it helped me understand.

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Schedule E is not correctly showing Depreciation and the total expenses are capped at the same amount of Rental Income. How do you fix this?