Roof installed on rental apt in 1991: cost $3,962. Every year TT calc depr at $144. (3,962/330 months X 12). 2016 depr is 1,204. Wrong! How do I fix it? Thanks!

[TaxGuyBill]

Has it always been used 100% for a rental?
What did you enter for the "prior depreciation"?

[czarnowski]

Yes... it has always been used 100% for rental.  I never entered anything for "prior depreciation" as I've always used TurboTax and it always picked up amounts from the prior year correctly. I checked 2015 TT Depreciation and Amortization and there is nothing in the prior depreciation column,  just like 2016, but for 2015 it calculated depreciation correctly at $144.  for 2016 it calculated 1204...  Obviously I must have accidentally clicked something incorrectly,  but what?  Thanks!

[TaxGuyBill]

Print out the "Depreciation and Amortization Worksheet" (it's the sideways looking spreadsheet).  Is it showing $1204 for the "current depreciation?  Tell me ALL of the numbers that it shows for the roof asset.

[czarnowski]

2016 Depreciation & Amortization Report

Description: Roof
Code:  Blank
Date in Service:  10/1/91
Cost: $3,962
Land: 0
Bus Use: 100%
Sec 179: Blank
Special Depr Allow: Blank
Depreciable Basis: $3,962
Life: 27.5
Method/Convention: SL/MM
Prior Depr:  Blank
Current Depr: $1,204

The 2015 Report is identical except the "Current Depreciation" was $144.

[TaxGuyBill]

I just tested it and am getting the same result.  I see what the problem is and will report it to the Moderators.

Are you using the CD/downloaded version?  If so, I can tell you a work-around.  Otherwise, you will need to wait until it is fixed.

[czarnowski]

I'm using the downloaded version of Home & Business.  I can just plug in the correct number $144 if that's the work-around.  Out of curiosity and without wanting too much detail, what is the problem?

Thanks for telling me it's a TT issue and I'm not losing my mind!

[czarnowski]

Thanks.  As I figured,  reducing the depreciation amount by correcting the TT issue has me paying a few hundred more in taxes,  but what the heck, it's only money.  Thanks again.

[TaxGuyBill · Accepted solution]

The problem is that the program is entering zero for the Prior Depreciation, rather than leaving it blank.

If you are using the CD/downloaded version, you can go into the "Forms" mode (in the upper, right-hand corner).  On the left-hand side, look for the "Asset wks", for the the roof.  On Line 9 of that worksheet, delete the zero, and it should calculate correctly (it took me a couple of times until it would let me delete the zero).