Schedule E depreciation calculation

[glendiver]

The depreciation calculation for the rental property does not appear correct.

The rental started in the 12th month and was previously owner occupied, so 30 days rent and 335 days personal use, about 8% business use.  When I put the information in the asset entry worksheet it takes 8% of the basis then uses the depreciation rate from the tables for the 12th month.

It should just multiply the basis by the rate for the 12th month.

Then when the calculated depreciation numbers are carried forward to the Sch E worksheet, Column (a), it's multiplied by the 8% business use again in column (c), which is the amount you get to claim.

Program is using the business use percent twice, when in fact it shouldn't be using it at all because the depreciation rate tables automatically adjust the first year depreciation month placed in service.

I have input 30 days business use and 330 days personal use (8%) on the schedule E worksheet.

On a $169,000 home using the depreciation rate for the 12th month of .00152 the depreciation deduction should be $257.  The program calculates $22 and then multiplies that again by the business percentage of 8%.

[Taxprohere]

Without doing a test myself, I think putting the 330 days is what's causing this problem.  Placed in service in 12th month, 30 days rental and 0 personal days during that time. That's I how enter it. That question pertains to vacation home and loss limitations.  Once the rental started, unit had no personal use. 

[glendiver]

Thanks, That was my next option

[Norman2001]

27.5 years = 330 months to fully depreciate

$169,000 / 330 = $512.12 per month for depreciation

Rental started in Dec, so half month depreciation = $256.06

30 days/365days = 8.22% business use

$256.06  * 8.22% = $21.05 

When I enter your data, I get depreciation = $21 

[TaxGuyBill]

As was mentioned above, you only enter personal days for AFTER it was converted to a rental property.