Residentail Rental Property Depreciation

[Yardley CPA]

New Jersey Resident. Taxpayer has Florida single family home that they began renting on 1/25/2014.  Basis (net of Land) is $72,380.  In ATX I loaded the information on the Asset Screen as:

R - Real Property

4-27.5 Res Rental Rel Estate

New Asset:  Yes

B-Bldgs and other depreciable asset

Bus percent  100

Recovery Basis is $72,380

Recovery Period: 27.5 years

I've chosen 200DB Method, MM Convention for Federal.

I've chosen 200DB Method, MM Convention for Federal AMT

Ive chosen SL/GDS Method, MM Convention for New Jersey

Fixed Asset screen calculates the same current year depreciation for all three methods, $2,522.  Is that correct?

By Choosing R-Real Property and 4-27.5 Res Rental Real Estate, shouldnt the system automatically choose the correct Method and MM for Federal, AMT and State????

Any input is greatly appreciated.  

 

 

Edited October 3, 2015 by Yardley CPA

[Abby Normal]

You shouldn't override the depreciation method. 27.5 real estate is SL/GDS MM, and yes, the depreciation is the same for AMT and state.

[Yardley CPA]

Thanks for the reply.