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jbbuell
New Member

Why won't TurboTax business let me show depreciation on rental house as a trust expense. It allocates to the beneficiaries on K-1.

Have a special needs trust that owns a rental property.  In prior year's taxes (done by CPA), the depreciation is allocated to the trust.  However, TT won't do that.  It only allocates to the beneficiary.  Per this topic (https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/why-won-t-turbotax-bu...) it says to manually change the info on the Depreciation Smart Worksheet (after setting the allocation % to 0).  TT won't let me edit the fields.  Has something changed since 2019?  How do I get the depreciation allocated to the trust and not the beneficiary?!?

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1 Reply
M-MTax
Level 12

Why won't TurboTax business let me show depreciation on rental house as a trust expense. It allocates to the beneficiaries on K-1.

If you can't do what you want (as your CPA did), then you would have to do an override and print and mail your return.

 

By default, depreciation deductions follow income from the asset being depreciated and that, apparently, is how TurboTax Business is programmed to handle this scenario.

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