Home Depreciation

[SupremeMetalTree]

Hi,

When completing the depreciation schedule, I entered all the correct data but the current calculation for my renal home depreciation is approximately 1/2 of what the amount was for last year.  The method in TT is 27.5 years SL. If I take the value value of the home (the purchase price) and divide by 27.5 my depreciation should be around $3950 give or take. TT calculated it to be $2750 ish this year. I don't understand the significante difference since SL depreciation is used. 

Additionally, I put a new roof and I understand I need to depreicate that as well. How do you classify the entry in TT. The catagories are: rental real estate property, computer, video, photo..., tools, macheniry, equipment furnature..., and intangibles/other property? 

I put the roof on in 2021 but the depreciation in TT is far greater than the amount from last year. I seem to recall that a roof is depreciated over the same time period as the house, 27.5 years but not absolutely certain this is correct. 

Thanks.

[PaulaM]

Residential rentals are depreciated over 27.5 years, but also with a mid-month convention. See this IRS table A-6, page 71. That means no matter when during a month, an asset is acquired or disposed of, it's assumed to have been placed in service or disposed of in the middle of that month.

I'm not sure why you are having to recalculate depreciation if you have already been using TurboTax in prior years. It's a one-time entry when you first place the property in service, then the 2nd year will be greater and remain the same until the year you dispose of it where it falls back down. If you have used TurboTax prior, you should have a depreciation report in your saved return. 

If this is your first year to use TurboTax, then you will need to enter the prior date your property was placed in service and TurboTax will calculate the amount of depreciation that should have been taken, and calculate the amount going forward. 

As for the roof, it's depreciated over 27.5 years in the same manner as the property itself. Add it to the asset section under 'Rental Real Estate Property,' then 'Residential Rental Real Estate.'

[SupremeMetalTree]

This is the 3rd year I have used TT to file my return. I imported last year's return. The depreciation amount is wrong in TT and I have not been able to correct it. I am not sure if I have one of the imput's wrong but here is my data. 

Purchase date 05/24/1999, purchase price 108,000 excluding land. Land 27,000

Date placed in service 08/01/2018, accumulative depreciation up to and including 2022 is 17,347 since I began to depreciate the house. 

Using 27.5 SL the yearly depreciation should be 3,927. TT is telling me the estimated depreciation is 2,904. 

Any thoughts on the discrepancy and how to correct it? 

Thanks