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ray465
New Member

Should I see no ($0) Depreciation on Sch E Line 18 from the passive Rental Properties I purchased in 2018 though I entered Purchase Price, Land Value, Income & Expenses?

 
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DDollar
Expert Alumni

Should I see no ($0) Depreciation on Sch E Line 18 from the passive Rental Properties I purchased in 2018 though I entered Purchase Price, Land Value, Income & Expenses?

You should be seeing depreciation expense for the first year.  Residential rental property uses a mid-month convention whereby the depreciation is calculated starting with the mid-point of the month placed in service.

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3 Replies
KrisD
Intuit Alumni

Should I see no ($0) Depreciation on Sch E Line 18 from the passive Rental Properties I purchased in 2018 though I entered Purchase Price, Land Value, Income & Expenses?

What month was it placed in service?
ray465
New Member

Should I see no ($0) Depreciation on Sch E Line 18 from the passive Rental Properties I purchased in 2018 though I entered Purchase Price, Land Value, Income & Expenses?

There are 2 properties in 2018 (January and May in Service) plus one in 2017 (July) - not seeing  depreciation being added to expenses
DDollar
Expert Alumni

Should I see no ($0) Depreciation on Sch E Line 18 from the passive Rental Properties I purchased in 2018 though I entered Purchase Price, Land Value, Income & Expenses?

You should be seeing depreciation expense for the first year.  Residential rental property uses a mid-month convention whereby the depreciation is calculated starting with the mid-point of the month placed in service.

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