how do i switch the online software to single line depreciation method

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I forgot to depreciate my property so I had to amend my return last year using the desktop software and mail in hard copies. I now know my yearly depreciation amount, but I'm wondering how to claim it in the online software. thanks

TurboTax Online

DianeW777Answer

Alumni - Intuit

It depends. If you haven't added your property to your rental activity that is the first step. Add your property as an asset on your rental activity. Be sure to use the information from your amended return for last year.

The steps for entering the asset property will display and carry the amount to your Schedule E.

Select Rental Properties and Royalties > Update/Edit > Select 'None of the above' for Real Estate Pro
Select Edit/Pencil beside Property one > Select Update/Revisit/Add another asset beside Assets > Continue > Continue
Enter the Name, Date Purchased/Acquired, Date Placed in Service, Cost > Select asset category Rental Real Estate Property
Description is Residential Real Estate > Land value (can be found by using your tax assessment) > Continue to finish
Select Done with Rental Property > Continue until you reach Rental and Royalty Summary

Please update if you have more questions or need additional assistance.

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DianeW777Answer

Alumni - Intuit

The steps for entering the asset property will display and carry the amount to your Schedule E.

Select Rental Properties and Royalties > Update/Edit > Select 'None of the above' for Real Estate Pro
Select Edit/Pencil beside Property one > Select Update/Revisit/Add another asset beside Assets > Continue > Continue
Enter the Name, Date Purchased/Acquired, Date Placed in Service, Cost > Select asset category Rental Real Estate Property
Description is Residential Real Estate > Land value (can be found by using your tax assessment) > Continue to finish
Select Done with Rental Property > Continue until you reach Rental and Royalty Summary

Please update if you have more questions or need additional assistance.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

d_flewellingAuthor

Level 2

thank you! I was able to do this. However, I now have another question. Because I had to manually request to change accounting method for depreciation using desktop software in year 2025 (for 2024), the online version of Schedule E for 2024 does not list my depreciation amount, which means my totals in line 21are incorrect and my losses in 26 are greater than what is currently on the form. Does this matter? Is there something else I need to do? Turbotax keeps asking me about "at risk rental losses" and regular and QBI tax carryovers. I have no idea...thanks

ThomasM125

Alumni - Intuit

You do not have to do anything about the 2024 return. The depreciation adjustment will appear on your 2025 return as a miscellaneous expense item.

A passive and QBI loss carryover would only occur if you had losses that could not be deducted in prior years. Generally, you are allowed to deduct up to $25,000 of rental losses against ordinary income, unless your income was over $150,000. If you had such loss carryovers, TurboTax would enter those automatically on the next year's tax return.

"At Risk" means that you are not deducting losses equal to more than your net investment in the property. For instance, if you purchased a rental house for $300,000 and had a loss of $50,000, you would have $250,000 at risk in the property.

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