How do I describe residential rental property using TurboTax home and business version?

Forum|Forum|7 years ago
June 6, 2019
2 replies
47 views

I'm trying to describe my residential rental property in turbotax and it only allows for nonresidential real estate, retail, restaurant, or leasehold improvement. None of these apply. I input rent, interest, management fees, and tried to enter this year's depreciation amount from my manager's summary. The turbotax is somehow coming up a different depreciation amount. The list indicates it is using a 15 year depreciation life, but my manager's summary lists 27.5 years for the building and 15 years for improvements.

Am I using the wrong product?

Should I just go with the depreciation amount the turbotax is indicating? ($4368 vs. manager's amount of $1486)

I also don't understand what MACRS convention is.

TurboTax Home & Biz Windows

Rick19744

Level 13

Not sure why you are not able to reflect residential real estate, but the correct life is 27.5; so don't use the current default. Try and go back through the interview process to see if something was either missed or accidentally answered incorrectly.

MACRS conventions are terminology for when depreciation starts; there is half year convention and mid-quarter convention for personal property and then mid-month convention for real property.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Level 8

your rental summary

Property Profile

A.rental income

B.expenses

C.assets <---------<<<<< here click update

D. Vehicle Expenses

At the property asset summary screen for your property; click the edit..Answer question to set up properly in the tax program

X rental real estate property

X residential rental real estate