TT does not calculate depreciation right based on "accumulated" depreciation

[Anonymous]

Hi - I have a rental house; I input "accumulated depreciation) before 2023 for TT to calculate my 2023 depreciation. The number is $300 less than what it should be based on a 27.5-year (330 months) straight-line depreciation schedule. 

Please help - can I manually input the correct depreciation number, and if so, how? I bought the house in 2017. So, the number from last year should be the same for 2023. I am on TT Desktop.

[KrisD15]

To clarify, when you entered the rental, what basis did you give to the building and how much to the land?

Any other assets listed such as roof or appliances? 

Was it rented all of 2023? 

[Anonymous]

@KrisD15 - basis for building: $203.4k. Depreciation should be $7,397, but I get $7,090. When I bought the house in 2017, depreciation was for part of year - ($203.4k/330*8.5) = $5,240 - maybe it causes lower number as TT may not recognize partial depreciation for year 1 (property bought in April)?

Please advise how to go about it here.....

[KrisD15]

Did you enter 203,400 as the cost and also an amount for the land? 

The program will reduce the basis of the building for the land. 

In Desktop, switch to forms and look at the Depr Report under Schedule E to see what the program picked up for the values.

[Anonymous]

@KrisD15 - I needed to mention that I get the SAME depreciation number as you IF I mark that I did not sell the house last year. If I select that as "sold," then I get the lower depreciation (initially provided). It is strange for me. Could you please explain what drives this? 

[AmyC]

I took a calculator, input $203,400 and divided by 27.5 years to get the same depreciation as Kris. Her sheet is for a full year while you sold yours so it is not the full year amount. The first year and last year will be reduced since neither was for a full year. The program should be calculating those parts. If there is a discrepancy, you are given a spot to enter the correct amount of prior depreciation.