How is TurboTax calculating depreciation?

So 6164 looks correct. I have no idea about why TT does that.

This is a simple calculation. I have a rental, and the depreciation looks right, 1/27.5th of the non-land value. I'm guessing user input error, no offense.

are there depreciable items other than the house as a whole? Like maybe at some point new appliances or windows were put in with a different life?

I haven't use TT in over 15 years, so I can't say if this info is still current. But at one time, if the PRIOR accumulated depreciation number appeared too low, they would include a "make up" calculation that added a pro rated portion of the shortage to the CURRENT amount. That sort of makes sense, but I'm not sure it is truly an allowable method for tax purposes (I believe there is a Rev Proc that explains how to correct for prior year depreciation errors).

So I suppose I would check the accumulated depreciation amount to see if it appears correct, etc.

MTW

In another forum where the OP posted the same question, he posted the following additional information this morning.

"I spoke to the client this morning and it gets pretty complicated. Apparently they put the basement into service in '91, rented the entire house starting in '95, moved back in '04, then started renting it again mid-2007. Apparently TT took the remaining basis over the remaining ~10 years. Unfortunately, TT Online doesn't show any detail on the calculation. And for some reason, the back returns don't show a depreciation schedule when you download the PDF copies."

ok, never mind TT for this: how do you handle a rental, return to personal use, then return to rental. How do you handle the depreciation on the second turning to rental use? Take the adjusted basis and start at 27.5 years again?

"Pico Rico" wrote

Start depreciation, stop depreciation, resume depreciation. I would NOT restart the 27.5 year clock with the return of the property to rental use.

so you ultimately get the full 27.5 years of depreciation, assuming it is a rental for that total period of time?

How about a vacation home that you prorate the depreciation based on partial personal use? Can you ultimately get ALL the depreciation over a period longer than 27.5 years?

So basically, you still have the same basis (assuming no decrease in FMV below) and A/D that you continue to depreciate. I wouldn't necessarily say that the clock doesn't restart, just that you still use a 27.5 yr life. Basic SL rules should still apply, in this case taking $6164 per year. I don't believe TT was correct to pick up again at the next in-service date and take the remaining ~10 years. The fault may have been in using the original in-service date again, whereas maybe he should have used the 2007 date.