4562 (Depreciation and Amortization) UPDATED - claim that accelerated depreciation !!!!!!

Forum|Forum|3 months ago
February 21, 2026
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TurboTax Form 4562 (Depreciation and Amortization) has been updated for 2025

Updated depreciation calculations for Schedule E (Rental Properties) are now available as of February 20, 2026.

Claim that accelerated depreciation !!!!!!

dcv115

Level 2

Unfortunately, even with the 2/20 update, the Form 4562 does not generate accurately if you have more than one rental property from the online/computer interface. Although there should be a separate Form 4562 for each property, when questioning the TurboTax AI assistant, it states that TurboTax generates a single Form 4562 that compiles data for all properties. Unfortunately, the single Form 4562 that is generated only has the data for Property A from the Schedule E. All appropriate data for Property B is represented accurately on the Schedule E (particularly Line 18); however, that data is not compiled on the Form 4562. That is, Line 17 on Form 4562 only has the data for Property A from Line 18 of Schedule E. Additionally, the business/activity identified at the top of the form is only that of Property A. This bug directly impacts the state return that uses Form 4562 directly as well. I spent more than an hour with a nice and helpful tax expert where we exhausted all plausible troubleshooting. She brought in a tech specialist who had me delete all cache/cookies and even download a different browser, clear the cache/cookies, and regenerate the review forms. All the same problems exist. Please correct this bug in the code to ensure that all data from multiple rental properties are represented on 4562 forms and let the community know when complete! Thank you!

ConfusedInCA

Level 2

As of 3/20 I am having this same problem. Two Schedule Es with depreciation, no new assets but the 4562 only prints for property A on Schedule E. Neither property had any added assets in 2025 so I'm unclear why there's only one 4562 for Property A and nothing for Property B or one 4562 with both added together as it has been in the past. I don't have a state issue, just trying to explain to a client why there's only one 4562 and I don't have a good answer. Per some of the responses I've found, no 4562 should be printed at all for either property since there were no current year additions.

PatriciaV

Level 15

Form 4562 also reports depreciation for certain assets placed into service in tax years before the current year (basically, any assets other than vehicles). If this is the only value on Form 4562, you can trace the amount to the Schedule E Worksheet Line 18a.

It's possible that one property had prior year assets with depreciation and the other did not. You might compare these worksheets from your prior year return.

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DianeW777

Level 15

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions: (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number.
- Enter your email used for TurboTax > Enter your code > Send
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.
- *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')

We will be able to see exactly what you are seeing and we can determine what exactly is going on in your return to provide you with a resolution.

@dcv115

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dcv115

Level 2

Thank you very much!! My Token # is 1332829

I have two states that require a return, CA and PA. I've noticed that the federal Form 4562 error directly impacts the CA Form 3885A that uses the federal Form 4562 directly. I have not determined whether or not the PA return is also impacted, so I'd greatly appreciate if you could determine that and fix if necessary. Thanks so much!

DianeW777

Level 15

When I look at the return, the depreciation is correct and there is one Form 4562 for each property as well as depreciation. Since you did not have any new assets placed on depreciation in 2025, this form is not actually required to be filed with the tax return.

Likewise both Schedules E have the appropriate depreciation listed on Line 18. Notice the income for property A does allow a loss of the same amount ($2,228 -$2,338) creating a zero income for Schedule E for the federal return.

California (CA): Based on my quick review, CA follows the same passive activity rules as federal since 2015. The Form 3801 correctly allows the same loss as indicated for the federal return.

California generally follows federal conformity for Passive Activity Loss (PAL) rules under Internal Revenue Code (IRC) Section 469. This means that, like the federal rules, California limits your ability to use losses from "passive" activities (like most rental properties or businesses you don't actively run) to offset "active" income like your salary.
However, because California has different rules for some underlying items—most notably depreciation—your total allowable loss for California will often differ from your federal amount.
IRS Form 8582: Calculating Passive Activity Losses (PALs) for Real Estate

Pennsylvania (PA): PA law has never changed. They recognize the loss of income within a category of income, however no loss in one category can offset any income in another category.