topic Rental real estate depriciation in Get your taxes done using TurboTax

Rental real estate depriciation

charles2831 — Wed, 29 Jan 2020 21:37:53 GMT

I'm using TurboTax Premier for the first time and on both of my rental properties the TurboTax calculation for depreciation if off by some amount:

One of my property the cost is : 295,010 and Land is: 44252

So, according to previous accountant tax return the figure is : 9118 ((295,010-44252) / 27.5

However TurboTax has it as 9101

The other one cost is: 315,369 Land: 47305

So, (315,369 - 47305) / 27.5 = 9747

Turbotax has: 9759

This should be a simple calculation from Turbotax. So, what is happening?

Re: Rental real estate depriciation

VictorW9 — Wed, 29 Jan 2020 22:28:38 GMT

These rounding differences usually occur with different pieces of software. These are usually the results of the dates you entered on the two pieces to arrive at the calculation. Not to worry, it's normal.

Re: Rental real estate depriciation

Anonymous_ — Wed, 29 Jan 2020 22:34:58 GMT

@charles2831 wrote:
This should be a simple calculation from Turbotax. So, what is happening?

I get exactly the same numbers you reported, or almost (9118, not 9101 and 9748, not 9759) when I plug your numbers into TurboTax.

Note that the prior depreciation that is calculated can have an impact on the current depreciation calculated by TurboTax.

Re: Rental real estate depriciation

Chung11358 — Wed, 19 Feb 2020 16:28:12 GMT

I have this house own by 2 family and the CPA depreciation value 350000 - 50000 land = 300000

(300000 / 30 years ) = 10000 per year depreciation and CPA slip 50% for each taxpayer. On Turbo taxes I can not divide for 2 or split 50% for each taxes. and the formula on Turbo taxes (300000 / 27.5 yrs) Line 18 depreciation can not calculation to 50% for each . Because all the expenes already divide 50% by turbo tax software but the only line 18 depreciation can not divide 50%.

Re: Rental real estate depriciation

Anonymous_ — Wed, 19 Feb 2020 16:37:20 GMT

@Chung11358 wrote:

....the formula on Turbo taxes (300000 / 27.5 yrs)

I am not sure why your CPA used 30 years, but the general recovery period for residential rental real estate located in this country is 27.5 years.

Re: Rental real estate depriciation

Chung11358 — Thu, 20 Feb 2020 00:02:22 GMT

Can you split 50% depreciation expense for each taxes?