Hello,
I bought a property [SFH] in TX in 2024, under 400k.
I am using the Turbotax Premium software, I see it used SL as depreciation method and MM as the MACRS convention and I see lower than expected depreciation [seeing around 8k] when is much lower than I expected. Was expecting around 11k, based the following article: https://turbotax.intuit.com/tax-tips/rental-property/tax-deductions-for-rental-property-depreciation/L8tf7BPWz
Please clarify.
thanks !
You have not provided enough information about your situation to be able to clarify the calculation.
However, keep in mind that the basis for depreciation may be lower than you expect. It is not the cost of the property, it is the cost of the property minus the cost of the land (which is not depreciated).
The table below will give you the percentage used to calculate the depreciation for the first year based on the month the property was placed in service. If you placed it in service in March, for example, look at the percentage under column 3.
Additionally, here is a link to further information about depreciation from the IRS: