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July 4, 2020
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Rental Depriciation how to change

  • July 4, 2020
  • 1 reply
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Hi,

 

We have rental property which divided into 4 owner. 

One of the owner sell out his share April 2019. Currently everything should be divider by 3

How do I need to input inside the Turbo Tax? I have turbo Tax Premier.

I did manual input, however I can not changed the depreciation price.

 

Best Regards 

    Best answer by Anonymous_

    @Aan-1 wrote:

    One of the owner sell out his share April 2019. Currently everything should be divider by 3

    How do I need to input inside the Turbo Tax? I have turbo Tax Premier.


    You cannot input your entire one-third share into TurboTax so that the depreciation deduction is exactly your one-third share. You need to add the share you purchased from the owner who sold as a separate asset (which would presumably be residential rental real estate) since it will have a different purchase date (placed-in-service date for your share) and, most likely, a different acquisition price than the share you originally purchased.

     

    The foregoing assumes you have been reporting correctly and consistently throughout the years and not as a partnership with the other three individual owners.

    1 reply

    July 4, 2020

    @Aan-1 wrote:

    One of the owner sell out his share April 2019. Currently everything should be divider by 3

    How do I need to input inside the Turbo Tax? I have turbo Tax Premier.


    You cannot input your entire one-third share into TurboTax so that the depreciation deduction is exactly your one-third share. You need to add the share you purchased from the owner who sold as a separate asset (which would presumably be residential rental real estate) since it will have a different purchase date (placed-in-service date for your share) and, most likely, a different acquisition price than the share you originally purchased.

     

    The foregoing assumes you have been reporting correctly and consistently throughout the years and not as a partnership with the other three individual owners.