40 year overseas property depreciation

[timco76]

How do I input an overseas rental property that results in the 40 year depreciation being used instead of the 27 years standard for US property?

[DoninGA]

Using the Home and Business Edition -

• Click on Business
• Click on Business Income and Expenses
• Click on I'll choose what I work on
• On Rental Properties and Royalties (Sch E), click the start or update button

Follow the interview for the Rental Properties and Royalties.  On the screen Is This a Rental Property or Royalty? select Rental Property.  Indicate that the Location is a Foreign Country.  Complete the page and continue.  Follow the interview until you are on the screen Is Your Property in Any of These Designated Areas?  Select Assets for this property are located outside of the United States or United States possessions and All of the assets for this property are located outside of the United States or United States possessions and continue.

After entering the rental property costs there will be the screen Depreciation Results.  The screen will show the amount of depreciation to be taken over the next 40 years.  Continue with this section until it completes.

[alaurain85]

It's not the case for me? I still see 27.5 years and the calculation is over 27.5 years

[fabtheradman]

Same here.

[DawnC · Accepted solution]

Once you complete the property profile interview, TurboTax will update the depreciation recovery period to 30 years (The TCJA shortened the time period from 40 years to 30 years).  But you have to make all of the indication that Champ DoninGA described above before the update will occur.   You must mark the location as Foreign Property and then also mark the boxes that say Assets are located outside the US and All assets are located outside of the US.  Then you must complete the remainder of the property profile.  

@timco76

@fabtheradman

[Critter · Accepted solution]

Prior to the 2017 Tax Cuts and Jobs Act, the length of time was 40 years.... it has changed to 30 years.

[Carl]

Foreign residential rental property placed in service after Dec 31 2017 is depreciated over 30 years - not 40.

[fabtheradman]

Solved, it worked. Thank you!

[stevetinsley01]

I have followed the steps suggested however, it still states 30 years

[stevetinsley01]

I have followed the steps suggested but it still states 30 years - can I overwrite this ?

[DianeW777]

Depending on when your foreign property was placed in service TurboTax is calculating the depreciation correctly (40 years for property placed in service before 2018 and 30 years for property placed in service after 2017).

The images below will assist you in the flow of the questions and specific key areas to review.