2021 Form 4562 (Depreciation & Amortization) not showing prior depreciation for 27.5 yr SL/MM items

[dcdenizen]

My 2021 Form 4562, as calculated by TurboTax shows prior depreciation for active depreciating assets EXCEPT for assets being depreciated over 27.5 years on a Single Line Mid Month (SL/MM) convention.  The Form does, however, show figures for the Current Depreciation.

The three items being depreciated on the SL/MM basis were put into service in the years 2004, 2005, and 2006 in the dd/mm/yr  date format under the Date in Service column.

The 2021 4562 shows the other depreciating assets with prior and current depreciation figures listed. 

When I imported my 2020 Turbo Tax return it was the .tax2020 file and not the .pdf that I had also saved.

I have gone back to look at recent tax year 4562s and discovered that it appears to me that the 27.5 SL/MM files showed no prior depreciation every other year. 

Is there a way to manually enter the prior year depreciation figures so that TurboTax does not characterize them as overrides? Alternatively, is there a way to manipulate the tax software so that it updates the data correctly?

Accurate figures are of course extremely important as 25% of depreciation has to be recaptured on sale of the property. 

Thanks.

[Carl]

Is there a way to manually enter the prior year depreciation figures so that TurboTax does not characterize them as overrides? Alternatively, is there a way to manipulate the tax software so that it updates the data correctly?

Yes. First, work through that specific asset so that you can write down and label the dates and numbers it has.

Once you've done that, completely delete that specific asset from the assets/depreciation section.

Next, back in the assets summary page click "Add an Asset" and add the asset back in. MARCRS classification will be Residential Rental Real Estate. When you enter the in-service date, the program will automatically "assume" the prior depreciation taken. Then when you finish entering that asset, on the last screen select to see the details. Those details will include the total amount of prior depreciation taken.

If things seem "a little off" you can click the back button to go back and adjust the prior year depreciation taken as necessary.

Please let me know how that works out for you. I'm curious, as your situation does occur sometimes. But it's very rare.

[dcdenizen]

Carl,

Before I do that (and thanks for the detailed explanation as to how to go about it) I sent a separate question (not having seen your answer here) to the effect that prior depreciation does show on the assets worksheets.  Notwithstanding that, it does not transfer to the 4562. 

I am wondering because my income is much higher this year if AMT calculations could have something to do with this? I am not, however, subject to the AMT tax this year.

Thank you.

[Carl]

Are you referring to the two form 4562's that print in landscape format? Understand that those are not official IRS documents. They're provided more "for your records" really. But still, I would expect the total prior year's depreciation to show there.

Understand that there are two 4562's that print in landscape format. Now I've never been subject to AMT. So the one titled "Alternative Minimum Tax Depreciation" shows zeros across the board. But the one titled "Depreciation and Amortization Report" is the only one that matters to me, and all it's numbers in all columns are correct and what I expect them to be. It's the only one I really care about.