topic Entering rental depreciation and profit&loss in Investors & landlords

Entering rental depreciation and profit&loss

starfisht — Tue, 30 Mar 2021 01:27:49 GMT

The manager of my real estate investment is preparing a schedule E, form 8582 (profit & loss) and form 4562 (depreciation). Can I add this information to my existing turbotax file? How do I do it? Create a form and manually enter the information or use the step-by-step process? I have the Premier version.

Re: Entering rental depreciation and profit&loss

KrisD15 — Tue, 30 Mar 2021 01:41:43 GMT

If you have TurboTax Desktop, you can enter through Forms Mode or Step-by-Step.

For Online you may only use Step-by-Step. Go to Rentals (Schedule E) under Wages & Income

Re: Entering rental depreciation and profit&loss

starfisht — Tue, 30 Mar 2021 14:31:56 GMT

Thank you. I have Desktop.

So I created a schedule E (forms mode) and entered all of my information. It automatically generated form 8582 correctly. But no form 4562. I can manually create form 4562 but TT does not allow me to enter info into it. I just want to make entries into Part lll Section B (it's not a 4562 worksheet - it's the form itself). Am I not doing it right or is it not possible to do what I want?

Re: Entering rental depreciation and profit&loss

ColeenD3 — Tue, 30 Mar 2021 14:52:12 GMT

Did you purchase the asset in 2020? You can manually enter it through the depreciation screen and the program will create the form. You don't always need a Form 4562.

Use Form 4562 to figure your deduction for depreciation and amortization. Attach Form 4562 to your tax return for the current tax year if you are claiming any of the following items.

A section 179 deduction for the current year or a section 179 carryover from a prior year. See chapter 2 for information on the section 179 deduction.
Depreciation for property placed in service during the current year.
Depreciation on any vehicle or other listed property, regardless of when it was placed in service. See chapter 5 for information on listed property.
A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040).
Amortization of costs if the current year is the first year of the amortization period.
Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U.S. Income Tax Return for an S Corporation) regardless of when it was placed in service.

Re: Entering rental depreciation and profit&loss

starfisht — Thu, 08 Apr 2021 16:54:44 GMT

It was purchased in 2019. It's a multifamily property. I created a Sched E. I then opened a blank 4562 but TT does not permit me to make entries. Is there a wks version or can I use step by step mode?

Entering rental depreciation

starfisht — Fri, 09 Apr 2021 13:04:58 GMT

I can create a blank form 4562. TT won't let me enter data into it. There is no worksheet version.

I have TT Premiere, desktop version.

Re: Entering rental depreciation

HelenC12 — Fri, 09 Apr 2021 14:44:31 GMT

You're not doing it correctly. You'll have to manually set up the assets in order for TurboTax to automatically generate Form 4562 so it matches what your manager gave you.

See the TurboTax FAQ below on instructions to enter your rental. Eventually, you'll come to the Rental Summary screen, which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Your manager should also give you a Depreciation schedule that details:

what you are depreciating,
the depreciation basis,
purchase dates,
the method for depreciation and
how much depreciation has already been taken.

You'll need to enter these amounts when you initially set up the rental assets.

Since you purchased the property in 2019, you may need to amend your 2019 income tax return to account for this rental. See Do I need to amend?

To enter your rental income, expenses and assets, see Where do I enter income and expenses from a rental property?

Re: Entering rental depreciation and profit&loss

Carl — Fri, 09 Apr 2021 15:58:09 GMT

If you will use the program the way it's designed and intended to be used in step-by-step mode, things will be easier and simpler. A lot of the math the program will do "for you", provided you enter the "requested" information as you work through the screens.

Make sure you enter data from the "correct" form 4562 also. There are two of them and they both print in landscape format. One is titled "Depreciation and Amortization Report" and the other is "Alternative Minimum Tax Report". You'll primarily use data from the first one, unless you have a screen that specifically and explicitly ask for AMT data.