I have a question that I just cannot get my head around today. I am working on the depreciation module of a rental property that I have been doing for the last 10 years and I just printed off the 2021 Asset Life History. I noticed that the 'depreciation for the year" is not the same as the depreciation taken on the Schedule E worksheet. And the "depreciable basis" increased on the Asset Life History report from the prior year. I should no this, but I am having a brain freeze.
Here are the facts: the 2020 Asset Life History shows Depreciable Basis at $600,384 and year 10 depreciation of $21,832, but depreciation on the return was only $18,368. Business use was 70.33%. Depreciation carryover was $54,388.
The 2021 Asset Life History shows Depreciable Basis at 676,4464 and year 11 depreciation of $24,598, but depreciation on the return was only $22,623. Business use was 79.24%. Depreciation carryover included the $54,388 from last year and now the $22,623 from this year.
Having the computer do these calculations is great, but I should know how it came up with it. I can't seem to reconcile the numbers. Thanks for your help in advance. - Alan
