topic TurboTax Business 2021 miscalculating residential real estate depreciation starting in August 2021 in Investors & landlords

TurboTax Business 2021 miscalculating residential real estate depreciation starting in August 2021

jmeltzer — Mon, 09 Mar 2026 04:55:42 GMT

I placed in service a residential single family home on August 26, 2021. There appears to be a bug in the desktop version of TurboTax 2021 Business when calculating depreciation.

To use nice simple numbers, I tried using the following:

Purchase Date: 08/26/2021

Cost/Basis: $300,000

First year expense deduction claimed (Section 179): zero

Land value: $100,000

Amount to be depreciated over 27.50 years: $200,000

According to the IRS Pub 527 putting the property in service in August should mean depreciating 1.364%, or $2,728. But TurboTax calculates it as $3,140.

Interestingly, if I change the service date to 9/1/2021, the software calculates correctly at 1.061% (rounded up to $2122).

Anyone know how to get this fixed or work around it to override the calculated value??

Re: TurboTax Business 2021 miscalculating residential real estate depreciation starting in August 2021

Critter-3 — Fri, 25 Feb 2022 22:34:35 GMT

Look at the depreciation worksheet ... did you enter any other assets into service this year ?

Switch to the forms mode to see that worksheet and the form 4562.

Re: TurboTax Business 2021 miscalculating residential real estate depreciation starting in August 2021

jmeltzer — Fri, 25 Feb 2022 22:37:37 GMT

No other assets entered into service. It is a new business this year.

The fact that the calculation comes out correct when I enter for Sept 1, but not for a date in August, makes me think it can't be something I'm doing wrong.

Re: TurboTax Business 2021 miscalculating residential real estate depreciation starting in August 2021

Critter-3 — Fri, 25 Feb 2022 22:40:45 GMT

Please contact support via phone for assistance with this situation ... contact details can be found here