best software for rental property

[Loon11]

Hoping for an easy to use way to keep up ahead of my year end tax compilation. for years I have used Turbo Premier but next year I am facing a lot of new deductions and changes in a rental we have had for 27+ yrs. the depreciation has run out on the original basis. we went ahead and did a major renovation of around 103K of which 10K was repairs. Also, many trips back and forth and extra costs, ie, utilities while the work was being done, and on and on. We also put up a shed and will be putting up a fence.
So we should have a lot of deductions to offset the doubling of rent. I want to be proactive in crossing all my t's etc as far as IRS is concerned. So, I am not trusting turbo to help with this much. I have noticed that it is getting more difficult to track what Turbo is doing (looking for source often is grayed out)
Anyone out there have a recommendation on a user friendly software for landlords that will also help figure new depreciation, etc? I may end up making an excel spreadsheet but would rather have something else.

[arkerr123]

I think once you leave turbotax, you venture into some overpriced tax professional.

Sorry.

[HouseStark]

You may benefit from paying for a properly priced tax professional, possibly only for a consultation, at least to understand the principals behind whatever options you may have on handling expenses and future depreciation. Turbotax can probably handle it, but if you don't understand how it SHOULD be handling things, how can you have confidence it is?

In any case, if you have $93k in capitalized improvements and that amount is all depreciated straight-line over 27.5 years that's only $3382 in annual depreciation, so your increased rental income may well exceed your increased deductions. You should make sure you considered the possibilities for shorter depreciable periods for some components of your renovations.

[Loon11]

Thanks HouseStark. I am reading the Landlord's guide and compiling all my things I can depreciate over various other time periods ie., all the new appliances - 5 yrs, I put in a new shed, some other things like ceiling fans, a kitchen island, etc. Maybe turbo can do it but wish I had a program that would calculate the various items and their respective time periods. But I can probably handle it with an excel spreadsheet and careful documentation.

[PacNorWest]

In any case, if you have $93k in capitalized improvements and that amount is all depreciated straight-line over 27.5 years that's only $3382 in annual depreciation, so your increased rental income may well exceed your increased deductions. You should make sure you considered the possibilities for shorter depreciable periods for some components of your renovations.

TurboTax will do that. . .but it's important to read the information panels when deciding what to depreciate and what to claim as repairs.
Plus, it's helpful to read the TurboTax community forum for additional like-minded questions - or post your own question.

TurboTax falls down though. . .when you find that you are required file a 1099 on a sub-contractor.
TurboTax "Premier" claims to be for Rentals - but it will not provide the 1099 when needed. Instead TT reports that you must purchase the "Business" version of TT !!!

[Loon11]

PanNorWest:
I did not know that! That really is disappointing. I already know I need to do 2 different 1099s. wonder if I can do them from the IRS website. sure seems like turbo would offer that small amenity.
I have never used quicken for anything - wondering if it helps here.

[Sally]

If you have owned rental for many yr, you may want to consider switching to Turbotax Business which covers rentals in more detail...take a look at the website or call them....especially since everything will transfer nicely if you use it!

[Loon11]

thanks Sally - have bought premier for past few yrs but will give Business a try next yr.

[abuss368]

Quicken Rental Properties