I have a foreign residential rental property purchased in 2021. Turbotax Desktop shows the depreciation period to be 30 years for federal depreciation (correct) and 40 years for California. I understood California generally follows Federal depreciation. Maybe turbotax desktop is using the pre-2018 40 years for CA and needs updating to 30 years. Is this an error? Thanks in advance for your feedback
IRS depreciation for foreign residential real estate changed
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Apparently for foreign residential property, California takes into consideration the depreciation method of the country the property is located in.
According to the State of California:
(B) The original use of which commences with the taxpayer. In the case of residential rental property located within a foreign country, the original use of which commences with the taxpayer, if the allowance for depreciation provided under the laws of such country for such property is greater than that provided under subdivision (a) of this section, but less than that provided under subdivision (b) of Section 24349, the allowance for depreciation under subdivision (b) of Section 24349 shall be limited to the amount provided under the laws of such country.
Thanks for your reply. The property is located in a country that does not have any depreciation of residential rental property.
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