2623544
Hello
I sold my rental house on May 2021 and I bought it for rental house since 2012.
On Federal
Depreciation of year 2021 is $1533
Prior Depreciation is $35,746
total Depreciation is $37,299 that Fed subtracted from my Expense of sale
=========================================
on Arizona Form 140
17 Total federal depreciation ......................... 1,553
26 Recalculated Arizona depreciation .......... 1,553
=========================================
My question is on Turbo Tax interview on Arizona State
Depreciation Adjustment
Enter your depreciation adjustment for property sold or disposed of during 2021
Depreciation adjustment ________________
can I add $35,746 from "Prior Depreciation " to Depreciation adjustment box ?
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Yes, however if you claimed "Bonus Depreciation" you would subtract that from the 35,299.
Bonus depreciation could only have been used for assets added to the rental, such as appliances.
According to the State of Arizona:
"For assets placed in service in taxable years beginning before December 31, 2012, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year, calculated as if you had elected not to claim bonus depreciation for eligible properties for federal purposes.
For assets placed in service during taxable years beginning from and after December 31, 2012 through December 31, 2013, the amount of the subtraction for these assets depends on the method used to compute the depreciation for these assets.
For assets placed in service in taxable years beginning from and after December 31, 2013 through December 31, 2015, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.10) of the amount of federal bonus depreciation pursuant to IRC § 168(k). For assets placed in service in taxable years beginning from and after December 31, 2015 through December 31, 2016, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.55) of the amount of federal bonus depreciation pursuant to IRC § 168(k). For assets placed in service in taxable years beginning from and after December 31, 2016, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26."
thank you for your reply
I sold the house without any new appliance or upgrade.
I guess with my case, I cannot use Depreciation Adjustment.
Thank you for your reply
I sold the house without any new appliance or upgrade.
I guess with my case, I cannot use Depreciation Adjustment.
I thought prior depreciation $35,746 should be taken out from the capital gain on AZ
but thank you
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