Form 4562 and Form 3885A

[9month9wine]

Hi,

There are two set of form 4562 and 3885A in Federal and California Tax return. In the set of forms with title "Alternative Minimum Tax Depreciation Report", the last column is "Adjustments Preferences". My question is about the value in this column.

In my 2021 Tax return, the value in column "Adjustments Preferences" in both form 4562 and form 3885A are the same. But in my 2022 Tax Return, the value is big different in these two forms. Wonder, 

1) Is tax law changed in 2022 and impacted this value?

2) Is my answer somewhere in TurboTax different from 2021 and  impacted this value?

3) How is this value calculated in TurboTax? I could not find it anywhere.

In another way to ask this question, why the value of current depreciation in form 4562 and form 3885A is so different? What is the factor impacting this value? And why the depreciation changed from year to year?

Appreciate your help!

Thanks,

Belinda

[9month9wine]

Hi, 

I think I finally found the bug. In 2022 tax return, the depreciation life in form 4562 for Federal Tax return is 30 years, same as last year. BUT, the life changed from 30 years to 40 years in form 3885A for California tax return, this caused the big difference in depreciation value between the two forms. Is this a TurboTax bug? How to fix it?

Thanks,

Belinda

[AmyC]

There are differences between CA and Fed but they are consistent. You should not be seeing a 10 year difference suddenly. Page 10 begins the differences between CA and Fed here.

It sounds like you need to amend your CA return from last year if all other years match. See I need to amend my state return for help, if you do need to file an amended return.

[9month9wine]

Hi Amy,

My oversea residential rental property was put into service in 2019. My understanding is that, the depreciation life is 30 years for the service started after 2018. Please refer to the other TurboTax Community message response here, https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/foreign-rental-proper...

This is why I think it is wrong for TurboTax to change it from 30 years to 40 years in 2022 tax return.

If you think it should always be 40 years, can you please refer me to where it stated?    

If this is not TurboTax bug, do you know which page/question in TurboTax Wizard impacted the depreciation life? Maybe our answer is not consistent from last year. 

Thanks,

Belinda

[DaveF1006]

No, if it was placed in service in 2019, the depreciation should be 30 years and not 40. I have tested the program and used the same scenario as you situation. The program seems to be calculating correctly. 

Be sure to recheck your entries carefully.

@9month9wine