Where do I find Prior Year's Depreciation ?

[writermom3]

I have a second home that we sometimes rent out. TurboTax (desktop, Mac, 2024) asks for prior depreciation on the home's assets. When I pull up last year's taxes (2023) and look at Form 4562, I get confused about which column to refer to. There's Prior Depreciation, Current Depreciation, and Adjustments Preferences. For 2024 taxes, do I take 2023's Current Depreciation and subtract it from Prior Depreciation?

[LeticiaF1]

Your basis for depreciation generally doesn't change. A percentage is applied each year to calculate your current depreciation. ‌The amount that TurboTax is asking for is the amount that has been depreciated so far.‌ You wouldn't be able to get this amount by subtracting 2023 current depreciation from your prior depreciation.

‌If you started renting your second home during 2023, then on Form 4562 you will be able to get most of the information from Section B. You can get the date when it was placed in service, the basis for depreciation, and the prior year depreciation.  If this is the case then your prior depreciation would just be the amount it was depreciated in 2023.  

If you started depreciating the home before 2023, then you will need the worksheet on your return that has all of your depreciation asset details. Form 4562 just lists depreciation for the current year and doesn't have the item's details.

If you file with TurboTax you can access up to 7 years of your records. See the TurboTax help article below for more information on how to access your previous return.  

How do I view, download, or print a prior-year tax return?

[writermom3]

Thanks for explaining. I "think" I understand. For the vacation home assets, Form 4562 says prior depreciation is $2,635; Form 8582 says the building's prior depreciation is $46,036. I'm assuming I use these two figures in this year's 2024 TurboTax.

[DianeW777]

When you look at last year's taxes you want the total depreciation used in total for all years before 2024 for each asset. If you imported last year's data, then TurboTax already has this information when you go through each asset in your vacation rental. Check Form 4562 and any depreciation worksheets in last year's return. The prior depreciation you show seems reasonable ($2,635) from your Form 4562.

• How do I transfer last year's return into 2024 TurboTax software for MAC?

Form 8582 does not show a depreciation amount, this form is calculating passive activity losses and does not separate out depreciation figures. Rather it is calculating the allowed and carryover losses of net rental loss on the property.

@writermom3 

[writermom3]

I wish I could transfer all this info from last year's taxes but unfortunately, I can't find the file on my computer. I have exhausted all avenues but I only have the PDF file from 2023.

Now, on to your answer....

On Form 4562, the $2,635 is the current depreciation for the building. It looks like the "life" of all the other assets (dishwasher, stove) is over, so the depreciation is "0."

[RobertB4444]

You were correct in using the prior depreciation amount stored in the pdf from last year for the accumulated depreciation for this year.  Do not use that figure from form 8582.  That is the prior year losses that you haven't been able to deduct yet.  That will come into play later.  For depreciation you should have a form 4562 in last year's return.  Find that to get the accumulated depreciation from.

@writermom3