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Returning Member

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

Like I need to manage rentals full time
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Level 7

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

No, there aren't restrictions to depreciate a rental property (assuming it is a rental property for more than one year).

In some circumstances, being able to deduct a loss could be limited, but any unallowed losses would be carried forward to future years (or until it is sold) until they can be used.

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10 Replies
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Level 15

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

You are asking from TT Business, which is used to file C Corp, S Corp and Partnership returns. Which entity actually owns the rentals?
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Returning Member

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

Property is in name of our trust. I have another business that I run as sole proprietorship butRentalproperty is filled as self in turbotax
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Level 15

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

Is the trust  revocable or irrevocable ?
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Returning Member

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

It is revocable trust. How can I check Turbotax did the right things to depreciate the property for my situation ?
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Level 7

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

No, there aren't restrictions to depreciate a rental property (assuming it is a rental property for more than one year).

In some circumstances, being able to deduct a loss could be limited, but any unallowed losses would be carried forward to future years (or until it is sold) until they can be used.

View solution in original post

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Level 7

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

Let me add one more "restriction":  It does need to be a for-profit rental.  You can't be renting it to friends or family members at below market rates.
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Returning Member

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

How do I know if Turbotax deducted loss or was it unallowed and is being carried forward?
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Level 7

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

If this Revocable Trust is a Grantor Trust that is entered on your 1040, the depreciation is shown on Line 18 of Schedule E.  You would have needed to enter the home, improvements, and furniture as "assets" in TurboTax.

Your profit or loss is shown on Line 17 of Form 1040.  If you have carryover losses, they are reported on Form 8582.
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Returning Member

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

In my tax form I see loss mentioned in line 21 of schedule E instead of line 22 and I did not file 6198?
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Level 15

Is there any condition to qualify to be able to use rental property depreciation in tax returns?

You would, generally, only have to file 6198 if you had invested an amount in your rental for which you are not at risk.

See https://www.irs.gov/instructions/i1040se/ch01.html#d0e169