Turbotax is not calculating SL depreciation correctly on 6 rental properties. Hrs with 2 specialists EA

[KSheperek]

How can I talk to someone higher than EA?

[AmeliesUncle]

I don't work for Intuit, but I'm an EA that is extremely knowledgeable about depreciation.  If you post the details on this forum thread, I may be able to help you.

[Carl]

A few things to check, assuming everything was 100% business use with no personal use.

Work through each asset in question and check.

- Business use percentage is ONE HUNDRED PERCENT.

- Days of personal use is ZERO (if asked for that)

- Days of business use is the entire year. (if asked)

- Percentage (not days) of business use is one huncred percent (if asked)

- Percentage (not days) of personal use is zero percent (if asked)

[Carl]

Oh one more thing. If this is a case of you are renting out a room or part of your primary residence, chances are I know "exactly" what the problem is. So if this is your case, provide the details and I should be able to tell you how to deal with it in the TurboTax program. (It's a program "quirk" that enter the programmers have chosen to ingore my complaints about, or programming limitations prevents them from actually "fixing" the problem.)

[AmeliesUncle]

My first suspicion is the "prior depreciation".  Try leaving that BLANK to see if it calculates as you expect it should.

If that does it, I can guide you further in that regard.  If it doesn't do it, I can guide you if you provide further details.

[nagarajupalla]

Hello Carl, 

I've a similar situation. Let's say I've rented 50% of my home from February 1st and it is the first year of rental, paid 1000$ in real estate taxes and 100000$ was the building cost. 

Turbotax seems to be doing correct calculations and deducting real estate taxes - 50% X 1000 = 500$ 

The home depreciation, given that I've rented from February 1st, turbotax is doing 100000 X 3.182% = 3182$ but doesn't seem to account for the fact that only half of the home is rented... I was thinking it will do 50% of 3182 = 1591$.

Can you help what I may be doing wrong?

[Carl]

@nagarajupalla the root of the issue is this.

You have to work through the asset in the Assets/Depreciation section. (no other section). There's a screen that will ask the question "Percentage of time I used this item in this business in 2020 (e.g. 80%)"

It's asking the wrong question. The correct question it should be asking is.

"Percentage of floor space I used in this business in 2020"

So enter the percentage of floor space there, and all should be fine.

The program already knows the percentage of time, based on the date you placed it in service, which you entered on a prior screen. Yes, I know it asked even earlier for percentage of floor space. But from what I can gather, that particular number isn't used where it "needs" to be used.