For a new LLC in service this year, where my property has been depreciated for 17 years already, How do I override the 27.5 years to get the proper depreciation amount?

[Bic3]

This is in turbo business software. How do I enter prior depreciation of an asset that was done outside of Turbotax software in previous years?

[IreneS]

You will have to add the asset manually in Forms Mode, rather than going through the interview.  When entering the asset, to keep the calculations correct,  you should put in the actual date of service (2000?) (even though it's before the LLC was formed).  If you do this in the interview, TurboTax will give you an error message that the date put in service is before the business start date and won't let you proceed. 

To enter the asset, please follow these steps:

1.  Go into Forms Mode by click on the Forms icon on the top right of your screen.  

2.  I'm assuming this is a residential rental since you mentioned the 27.5 yr life.  If the 8825 Worksheet appears in the Forms in My Return list, click it to open it.  

3.  If the 8825 Worksheet is not in the list, click on the Open Form icon at the top of the list.

4.  Type 8825 in the search box and hit Enter on your keyboard.

5.  In the search results, double-click 8825 Worksheet [not the form itself, but the worksheet].

6.  On the 8825 Worksheet, scroll down to the Depreciation QuickZoom Smart Worksheet (below line 13). 

 

7.  Click on the the QuickZoom at the end of Line A to go to an Asset Entry Worksheet.

8.  On the pop-up screen, enter a name for the asset and click Next.

9.  An Asset Entry Worksheet will appear.  Enter the information for the rental property: 

     (1) original date placed in service (2000?);

     (2) total cost;

     (3) value of land included in total cost;

     (4) type of asset:  I - Residential rental real estate.  

     (5) Further down on the form you can enter your prior depreciation.

10. To return to the interview, click on Step-by-Step at the top right of your screen.

[In case you're wondering why I didn't take you right to an asset entry worksheet instead of the 8825 I wanted to make sure that the asset was connected to the correct activity (rental income) rather than to the main form.]

[frank112]

Hi @IreneS 

How could I see the screenshots for your post?

They do not show up.

thanks!

[Irene2805]

I added screenshots to the original post.  We changed platforms and the original screenshots did not transfer--sorry!

@frank112