The depreciation of my rental house is showing 39 years. Where should I change it so it says 27.5? Thank you

[novisadllc-gmail]

I dont see the option as it looks its considering it a commercial property.

[ColeenD3]

Look at the set-up section shown in the first screenshot and then go to the asset section and double check your entries. When entering information about the house, you would have been asked questions about conversion to rental and living in a multi unit.

[ColeenD3]

I just had another question who actually wanted the 39 year. Make sure that you did NOT do what I am about to describe.

In the depreciation section, do not select Rental Real Estate Property, choose Intangibles, other property. Next, choose other asset type. Enter the information in the next two screens and When you get to the Asset Class Screen, in the drop down box, choose 39 years.

[Carl]

First, if the rental property was placed "in service" in 2019 or before, you can't just go arbitrarily changing it on your 2020 tax return. You *will* totally mess up the MACRS depreciation history and in time the IRS *WILL* audit you on that.

If 2020 is the first year this property was placed in service, then changing/correcting it isn't a big deal.

If the rental property is "RESIDENTIAL" rental property, located in another country, and was placed in service "BEFORE" 2018, then 39 years is correct.

If the rental property is residential rental property, located in another country and place in service in 2018 or *AFTER*, then it should be 30 years.

If the rental property is residential rental property, located in the U.S., then it should be 27.5 years regardless of when it was placed in service.

[AmeliesUncle]

Are you reporting this in the rental section? 

Or are you reporting it in "business" section (and if you are reporting it as a "business", what is your reason for doing that ... are you providing "services", such as maid service or meals, to the tenants)?