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posted Mar 9, 2021 8:40:35 AM

I have depreciated the property over 40 years not 27.5 years. How do I change to get a depreciation of $93934/40 or $2348 per year

how do a change from 27.5 to 40 years depriciation?

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3 Replies
Expert Alumni
Mar 9, 2021 9:21:03 AM

You will have to indicate that it is foreign property to get 40 year depreciation. This is in two areas of the rental section.

 

 

Level 15
Mar 9, 2021 10:48:46 AM

@ColeenD3 If the user does this to get the system to work, but the property is actually not a foreign one, will that cause the system to require the filing of Foreign Asset disclosures, etc?

Level 15
Mar 9, 2021 10:58:48 AM

@farmor 

How did you previously depreciate property over 40 years, as you can see it is difficult to do in Turbotax.

 

US commercial property is depreciated over 39 years, except residential rental, which is 27.5 years.

 

If you previously depreciated commercial property over 40 years using another tax software or doing it yourself, then just let Turbotax do 39 years, it's not worth the effort to fix.

 

If you previously depreciated residential rental over a 40 year schedule (using another tax software or doing it yourself) the only way to fix that is to file a form 3115 with the IRS, that form is not supported by Turbotax and usually requires a CPA to complete since it is so complicated.

 

I don;t believe you can voluntarily choose 40 years instead of 27.5 years, I think you have to fix your old mistake.