Rental depreciation off by a few dollars

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loveeatingpizza
Posts: 82
Joined: Mon Jan 13, 2020 9:41 pm

Rental depreciation off by a few dollars

Post by loveeatingpizza »

Not sure if I'm overthinking this.

I'm using turbotax for the first time and my rental depreciation is off by a few dollars. $3,002 For turbotax vs in the prior years TaxAct was giving $3,000. Doing a manual macrs calculator, TaxAct is more accurate. I have both the house and improvements depreciation, which is off by $1 each, hence the $2 discrepancy.

I've been using the taxact figure for the past few years in my returns, not sure if its problematic to have a slightly different figure this year. Thanks.
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nedsaid
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Joined: Fri Nov 23, 2012 11:33 am

Re: Rental depreciation off by a few dollars

Post by nedsaid »

This is a common problem when people switch tax programs or switch tax preparers. One reason you want the depreciation schedules, so that you can get things to match. Somehow, I don't think the FBI will raid your home at 3 a.m. because your depreciation was off a few bucks.

One thing that I do is pull the IRS publication that has the depreciation schedules and I will construct a manual spreadsheet to reconcile the differences between the old program and the new program. It helps you understand how depreciation works and how it is calculated. You only need to do this for items you cannot match.

In your case, it sounds like rounding.
A fool and his money are good for business.
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neurosphere
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Re: Rental depreciation off by a few dollars

Post by neurosphere »

loveeatingpizza wrote: Sun May 16, 2021 10:27 am I've been using the taxact figure for the past few years in my returns, not sure if its problematic to have a slightly different figure this year. Thanks.
Wait for the IRS to notice, and when (IF!) they notice they may correct it for you and ask you to pay an extra dollar or two (or extra refund). In a case like this, let THEM do the work. :)
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes" (even in taxable accounts).
spectec
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Joined: Mon Jul 14, 2014 8:00 am

Re: Rental depreciation off by a few dollars

Post by spectec »

IRS won't notice.
It's a de minimis item.
Go with whatever your current software uses and don't worry about it (unless the difference is substantial).
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
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