• Community
• Topics
cancel
Showing results for
Search instead for
Did you mean:
##### Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

New Member

# When depreciating assets for a rental, why isn't depreciated amount = BasisForDepreciation / RecoveryPeriod? \$2395 for 5 yr HY 200DB = \$479, TurboTax calculated \$766?

1 Best answer

Accepted Solutions
New Member

## When depreciating assets for a rental, why isn't depreciated amount = BasisForDepreciation / RecoveryPeriod? \$2395 for 5 yr HY 200DB = \$479, TurboTax calculated \$766?

Since you are using a 200% declining balance depreciation, you have to multiply the straight line depreciation you calculated by 2 which would give you \$958.  However, you didn't own the asset the entire year.  My guess is that you bought it in March 2018.  Turbotax assumes it was bought in the middle of the month and pro-rates the depreciation by the number of days you actually owned the asset.  There are 292 days between March 15th and the end of 2018, so if you multiply \$958 by 292/365 you get \$766.40.  I hope that is clear enough.

2 Replies
New Member

## When depreciating assets for a rental, why isn't depreciated amount = BasisForDepreciation / RecoveryPeriod? \$2395 for 5 yr HY 200DB = \$479, TurboTax calculated \$766?

Since you are using a 200% declining balance depreciation, you have to multiply the straight line depreciation you calculated by 2 which would give you \$958.  However, you didn't own the asset the entire year.  My guess is that you bought it in March 2018.  Turbotax assumes it was bought in the middle of the month and pro-rates the depreciation by the number of days you actually owned the asset.  There are 292 days between March 15th and the end of 2018, so if you multiply \$958 by 292/365 you get \$766.40.  I hope that is clear enough.

New Member

## When depreciating assets for a rental, why isn't depreciated amount = BasisForDepreciation / RecoveryPeriod? \$2395 for 5 yr HY 200DB = \$479, TurboTax calculated \$766?

Thanks hhtaub .. I have a better understanding of depreciation calculations

#### Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

#### Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
v