TurboTax is computing residential rental depreciation greater than 27.5 year SL, with an element entitled
"AMT Adjustment/Preference"
And putting the over-correct(?) amount on Schedule E. I've never seen this before. Am I missing some change in tax law?
(Retired EA)
You'll need to sign in or create an account to connect with an expert.
Is this depreciation for a new asset you entered this year? Are you subject to AMT?
Also, which version of TurboTax are you using: TurboTax Online or TurboTax for Desktop? Windows or Mac? If Online, which browser?
My son was using TT Deluxe, acquired on-line but accessible from his computer. I think it's "on-line" because I had a much harder time selecting forms from the return to print from his computer than with my copy of TT, that I had installed from the cloud -- purchased from Costco.
I discovered the issue: By entering an (low) incorrect "prior depreciation" amount, the program seemed to generate additional depreciation for the current year, but labeled it misleadingly as something to do with AMT. (Screenshot available upon request.)
(Fortunately, the property is owned equally by two domestic partners; we prepare both returns. The partner's return bore no irregularity. Tracing the differences led to discovery of our error. (I'm still puzzled why the error led to TurboTax generating some form of AMT adjustment!) (It doesn't hurt to have a retired EA for a father!)
BTW I found
Correcting the "prior depreciation" entry resolves the issue..
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
dirtroad
Returning Member
The Good Son
Level 2
Lorie
New Member
hno4
New Member
donnalcop
Level 2