How can I get depreciation expense to show 2/3 of total like the other expenses? There is a question that says Percentage of time the property was used as a business in 2018 which is not the same as percentage of the property that was used as a business If I change this from 100% to 67% ( 2 out of 3 apartmments) my annual depreciation expense drops from $12,500 to $800 so I don;t think this is right
You'll need to sign in or create an account to connect with an expert.
I would treat it as two (or three) separate rental properties.
Enter one with 2/3 of the Basis (or two assets with 1/3 of the Basis) for the existing rentals.
Then another one with 1/3 of the Basis, then show it was converted to personal use on whatever date it was no longer a rental.
TurboTax uses the mathematical method of depreciation, and when you change business percentages like that it gives weird results like you saw. Treating it as separate rental properties will avoid that.
Just keep in mind that whenever the building is sold, you will need to account for the depreciation that was claimed on your personal unit when it was a rental property.
I would treat it as two (or three) separate rental properties.
Enter one with 2/3 of the Basis (or two assets with 1/3 of the Basis) for the existing rentals.
Then another one with 1/3 of the Basis, then show it was converted to personal use on whatever date it was no longer a rental.
TurboTax uses the mathematical method of depreciation, and when you change business percentages like that it gives weird results like you saw. Treating it as separate rental properties will avoid that.
Just keep in mind that whenever the building is sold, you will need to account for the depreciation that was claimed on your personal unit when it was a rental property.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
lupecvega1957
New Member
insurancelady86
New Member
haydanielle39-gm
New Member
elli42952
New Member
obeteta
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.