I'm working on a trust return using TT Business. The trust acquired a residential rental property in August 2018. I entered this as an Asset under Schedule E.
Type of asset I, basis $1.2M, land $44k.
TT Business selected MACRS R SL MM, and came up with $7060 in depreciation.
But manually I come up with $15,768 based on using 1.364% for August from:
https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp
What accounts for this difference?
You'll need to sign in or create an account to connect with an expert.
" Yes, this is in the USA, under IRS rules. It is a trust so form 1040 using TT Business."
I am getting $15,764 on a test return when plugging in your numbers (see first screenshot).
What can happen is the depreciation allocation can get out of whack where the trust is retaining a portion of the depreciation expense while a portion is being allocated to the beneficiary(ies).
You can change that allocation in Forms Mode in the depreciation allocation section on Sch E (see second screenshot).
" Yes, this is in the USA, under IRS rules. It is a trust so form 1040 using TT Business."
I am getting $15,764 on a test return when plugging in your numbers (see first screenshot).
What can happen is the depreciation allocation can get out of whack where the trust is retaining a portion of the depreciation expense while a portion is being allocated to the beneficiary(ies).
You can change that allocation in Forms Mode in the depreciation allocation section on Sch E (see second screenshot).
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
dmwessner
New Member
obeteta
New Member
NeUnhappy
New Member
bruced63
New Member
frank790628
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.