Greetings. I've been using the Deluxe, and Premier versions for years. We have rental properties, as well as our one home. But the rentals stuff is the main reason for using those versions.
But now that the standard deduction is higher than my itemized deductions, can I simply use the 1040EZ or whatever the standard simple form is?
Or do I need to continue to use the premier version so I can continue to depreciate the rental expense over the useful life of the property.?
My initial thought is, that since the standard deduction is higher than my itemized, which includes that rental depreciation, it would be okay to use the simple 1040. But I'm not sure if that will impact me once we sell the property, from a tax standpoint.
Please advise.
Rental depreciation is reported on Schedule E (of Form 1040), along with your rental income and other rental expenses. It is unrelated to the standard deduction and is not reported as an itemized deduction.
In order to calculate depreciation on rental property (or rental assets) and prepare Schedule E, you will need at least the TurboTax Premier program..