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TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

Using TurboTax Premium.  Rental house, sched E.  Entered my ownership share as 50% and then full amounts for all values (income, expenses, etc.).  Looking at the TTax Schedule E worksheet it properly applies the 50% to all values except mileage (as expected as this differs for each partner) and depreciation, which is carried over fully (50% not applied).  In reading the IRS rules it seems the depreciation should be split by partner according to ownership percentage (in this case, 50 / 50).  

 

Do I understand this correctly?  If so, I guess the only resolution is to manually alter the value in the TTax depreciation worksheet.  However, if I do that and then import it next year I wonder what the effect on 2024 depreciation will be?

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Accepted Solutions
RobertB4444
Employee Tax Expert

TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

You will need to alter the actual value of the property that was entered.  The system doesn't divide the depreciation - you need to enter 50% of the value of the property so that it will depreciate only your share.

 

@rf78801 

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3 Replies

TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

UPDATE:  it won't let me change the depreciation value on the worksheet or any other form where it appears.  It appears I must file with a known error.  Does anyone know how to  report a TTax bug?

RobertB4444
Employee Tax Expert

TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

You will need to alter the actual value of the property that was entered.  The system doesn't divide the depreciation - you need to enter 50% of the value of the property so that it will depreciate only your share.

 

@rf78801 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

That worked!  Thanks!

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