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rental property moved from Schedule C to Schedule E

I started an LLC for a rental property I bought and built in 2016. I have had it rented since. I have always filed my business under Schedule C and just recently was made aware that I should have filed it on Schedule E. For 2023 I deleted my business under schedule C and added it under rentals which is Schedule E. I added everything from 2022's report of assets. Unfortunately I got an error of "the total of Section 179 carryover shown here does not match the sum of Section 179 carryovers on each individual activity."  I reviewed my entries and the assets (appliances) were entered as "E1 office furniture" but when i entered them now I put them in as "F rental furnishings". The E1 on previous years gave a life as 7 ys. I now see it says its only 5 ys and its now 6 yrs. Anyway I don't have a clue how to fix the problem. any help?

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1 Reply
DianeW777
Expert Alumni

rental property moved from Schedule C to Schedule E

The 7 year property should be entered as follows below. It's important to stick with the same depreciation method for your assets. The IRS does not allow a change unless you are making a correction or requesting a change in accounting method.

 

You can use the following steps to correct the depreciation for seven year property.

  1. Open your TurboTax Return > Search (upper right) > Type rentals > Click the Jump to... link >  Select the rental to edit
  2. Scroll to Select Assets > on Describe this asset select General Purpose tools, machinery, and equipment > Continue to enter the asset information
  3. On 'Tell us more about this Rental Asset' select 'I purchased this asset' > Select 'Yes, I've always used this item 100% of the time for business > Enter date you started using it
  4. Continue  to MACRS Convention >  Select the half-year (unless most of your assets that year were purchased in the last quarter of the year)
  5. Continue to see your accumulated prior depreciation > Continue to see the current year depreciation
  6. Check the box to Show Details - You will see 7 year property depreciation calculated. (See example below)

                                       

 

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