topic Rental Property Asset Depreciation in Investors & landlords

Rental Property Asset Depreciation

Rusty Gates — Wed, 25 Mar 2020 18:39:25 GMT

Turbo Tax Home & Business is indicating $0 depreciation on rental property purchased in 2012. Have entered required land purchase and building costs and date of acquisition. Next window required entering previous depreciation amount taken which I entered, software went into calculation mode and came up with $0 depreciation. My understanding is the depreciation schedule for this type of asset is 27.5 years. Has tax law changed regarding this, or is there another reason the depreciation I have received in prior years is not showing up?

Re: Rental Property Asset Depreciation

Carl — Wed, 25 Mar 2020 18:49:54 GMT

Your post appears to not be all inclusive.

What are you doing entering your acquisition costs on your 2019 return, if you purchased the building and started renting it in 2012? If you purchased it in 2012 and converted it to a rental in 2019, then where are you getting a "prior depreciation taken" from?

You've apparently left out of lot of "IMPORTANT" details here. We need more information. Or maybe you're working on a 2012 return? If that's the case, then you flat out can not use TurboTax for completing a tax return for tax year 2015 or older. It *WILL* be wrong, and you can not e-file it.

Re: Rental Property Asset Depreciation

Rusty Gates — Wed, 25 Mar 2020 19:09:03 GMT

Let me clarify. The rental property was purchased in 2012 and has been used as investment property since then. We have been depreciating the property since that date and on prior years tax forms we were receiving $6,478 in depreciation on the property each years. I'm filing this years taxes (2019) and Turbo Tax for Home & Business asks my costs for acquiring the land and building and when I acquired it, so I entered the acquisition costs as of 2012. I'm getting prior depreciation amounts from 2017 Tax form 4562. So, each year since the acquisition I have received depreciation, but this year it's telling me depreciation is $0 which makes no sense if the building is being depreciated over 27.5 years. Clearly, confused.

Re: Rental Property Asset Depreciation

AmeliesUncle — Thu, 26 Mar 2020 05:00:32 GMT

Did you enter any personal-use days?

Print the "Depreciation and Amortization Worksheet" (the sideways looking spreadsheet). Does the total cost, land cost, and prior depreciation numbers match up with what you think they should be?

Re: Rental Property Asset Depreciation

clandlord — Sun, 07 Feb 2021 04:14:45 GMT

I have a similar problem. Have a rental property from 2016. Currently filing returns for 2020. Until last year annual depreciation used to be 7k. However for 2020, I am see $0. Unable to understand the problem. Is it an issue with software or my mistake. Appreciate the help.

Re: Rental Property Asset Depreciation

AmeliesUncle — Sun, 07 Feb 2021 04:22:53 GMT

It is probably an issue with the software. There was a problem with transferring depreciable assets on Schedule E this year. I think you either need to re-enter all of the asset or start your 2020 return over by re-transferring everything from 2019 again.

There are a couple of Intuit-created articles about this problem on this forum somewhere, but the "search" feature on this forum is so bad I can't find them.