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I have a rental building that has 6 months left of depreciation on its 27.5 year class life. That final depreciation amount is not showing up on Sch E and the depreciation tables. Why?
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Does the prior depreciation indicate it is already fully depreciated?
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The "Prior Depreciation" amount is less than the Cost Basis amount; with the difference being the final half year amount. Yet the "Current Depreciation" column shows zero.
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Weird. And you've confirmed that this is the last year (it would not calculate if for some reason last year was the last year)? Double check the "placed in service date".
Otherwise, it seems to be a rather bizarre glitch.
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Placed in service 4/1/1993
Cost Basis: 217,950
Prior Dep: 213,990
Method: S/L MM 27.5yrs
Curr. Dep : 0.
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Just override it to the correct amount.
The more I know the more I don’t know.
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How would I go about overriding it? Thanks.
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@catax wrote:
Placed in service 4/1/1993
27.5 years ended in 2020. That is why there is no depreciation this year.
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Agreed. But that does not explain why there is still a difference between basis and prior depr. I just followed @sjrcpa 's suggestion and forced the remaining amount onto the depreciation table to close it out.
Thanks for the feedback.
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You can't claim depreciation after the Recovery Period, so you are not allowed to do that.
So either your "prior depreciation" is wrong, or somewhere some depreciation was missed (and that can only be fixed by amending that year that it was missed, not claiming it in the current year).