Turbo Tax & Rental Depreciation

[Brad Fletcher]

There’s a question on Turbo Tax that we’re stuck on. Do we take all depreciation this first year as an expense or depreciate over the useful life? Not sure if I’m even asking the question properly but it says in Turbo Tax to consider the answer carefully and that it’s difficult to go back and “undo”. 

Any advice and/or guidance is greatly appreciated. I have a screenshot but don’t see an option to include in this post. 

[Arlan Potter]

@Brad Fletcher

Turbo tax will handle it fine. When you enter the Asset on a Schedule E, you tell the program that it is residential rental property and it will calculate the depreciation.  On a 27 1/2 years basis

No big deal.  I use TurboTax for over 100 properties. It is a pain because TurboTax limits the schedule E's  to around 45 so I started Using one Schedule E for all properties bought within a year.

Cpa's earn their money but they charge too much. It is aggravating that the federal tax system is so complicated that an entire industry has been created to try to sort it out.  CPA's are indirect government employees.