I have a rental loss that I am not allowed to deduct in full because of the income limits. I wonder if I can reduce the depreciation-save it for the future years thus able to fully deduct the rental loss. It will mean I will have to keep track of the actual depreciation and come up with correct values for next year's tax calculations. If anyone have the experience with the software, please let me know if this will work without issues.
Yes, TurboTax will track the actual depreciation taken on a rental property, but once you start your depreciation on a rental, you can't change it without requesting permission from the IRS.
If this is the first year of rental use, you can make some choices to reduce the amount of depreciation you take each year.
The amount of depreciation is on the building only, so you can estimate the land value a little on the high end to reduce your depreciation. Keep in mind you may have to defend your figures at some point, so the figure must still be reasonable.
Yes, TurboTax will track the actual depreciation taken on a rental property, but once you start your depreciation on a rental, you can't change it without requesting permission from the IRS.
If this is the first year of rental use, you can make some choices to reduce the amount of depreciation you take each year.
The amount of depreciation is on the building only, so you can estimate the land value a little on the high end to reduce your depreciation. Keep in mind you may have to defend your figures at some point, so the figure must still be reasonable.
Thank you @JulieS ! This is not the first year so I need to be careful changing the depreciation. Guess I do not have any avenue to deduct my rental loss fully in this case. Appreciate your quick response to the question.