AMT depreciation deduction on my schedule E instead of regular depreciation

[Jennmcclary]

I am finishing up my 2024 taxes using TurboTax Desktop. For my residential rental property TT is using AMT depreciation deduction on my schedule E instead of regular depreciation. The MACRS uses the same percentage 3.636 for years 2 - 9 so my depreciation should be the exact same dollar amount for years 2-9. Taxes were done by a CPA for every year up until 2023 and 2024 is year 6. On my returns year 2 through 4, the regular depreciation was used and was the same value every year. In 2023, year 5, TT started doing the AMT depreciation but I didn't catch it. The AMT depreciation is higher than the regular depreciation. Mathematically the AMT depreciation will reach the depreciable basis prior to 27.5 years. TT is calculating the regular depreciation correctly so all the data was entered the right way. How can I fix this so the regular depreciation amount is used on my Schedule E?

Maybe I should mention that I do not owe AMT.  I read IRS publication 527 which basically describes using the MACRS tax tables.  If I go into an Asset Worksheet, line 43 is a yes no question that asks to use IRTS tables for MACRS property.  Turbo tax has this checked No for my rental properties.  Why?  It should be a Yes.  If I change it to a yes, the AMT section removes the adjustment and shows AMT depreciation to match regular depreciation.  However, the actual Schedule E still shows the AMT depreciation.  Maybe I need to restart things to let the math work all through the system?

[MonikaK1]

I've been advised today by management that programming work on the depreciation section of TurboTax is continuing and expected to be completed with an update coming the evening of Thursday, February 19th.

[Jennmcclary]

On the 2024 desktop version?  

[AmyC]

2024 is fine. You do want your 2023 and 2024 forms to show the same values as the prior years, using the same basis and depreciation system. The depreciation worksheets showing the AMT is not a surprise but since you stated that you do not qualify, the AMT amounts should match your regular depreciation.

If the entry doesn't match what the program thinks is correct for prior year, it can throw a curve ball. Sch E line 18 can affect the line 43 you mentioned. You have moving parts.

The best way to move forward would be to delete the assets. Close out of the program and let it rest a little while. Go have a drink or take a nap. Come back in, update the program for 2024 - it should be updated, then enter your data again. These steps should let the program know things have changed.

If you have many assets and are trying to avoid that option:

1. you can verify line 43 is yes on the asset entry worksheet. This could solve the AMT issue.
2. you probably need to deal with the AMT issue. 
   1. Look for depreciation report in Forms mode. 
   2. Look for AMT adjustment column. 
   3. If there is a value there, go back to the asset entry worksheet 
   4. look at AMT section of the worksheet. 
   5. Your prior AMT must match your prior regular depreciation.
   6. go through each asset entry worksheet