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.
dmarchello
New Member
CMG414
New Member
lydiagp7090
Returning Member
frank1618
Level 2
mishelk
New 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.