diff --git a/src/encoder.c b/src/encoder.c
index 8c5a2298..2abf057c 100644
--- a/src/encoder.c
+++ b/src/encoder.c
@@ -349,11 +349,9 @@ encoder_control_t* kvz_encoder_control_init(const kvz_config *const cfg)
 
   encoder->lcu_dqp_enabled = cfg->target_bitrate > 0 || encoder->cfg.roi.dqps;
 
-  // When tr_depth_inter is equal to 0, inter transform split flag defaults
-  // to 1 for SMP and AMP partition units. We want to avoid the extra
-  // transform split so we set tr_depth_inter to 1 when SMP or AMP
-  // partition modes are enabled.
-  encoder->tr_depth_inter = (encoder->cfg.smp_enable || encoder->cfg.amp_enable) ? 1 : 0;
+  // NOTE: When tr_depth_inter is equal to 0, the transform is still split
+  // for SMP and AMP partition units.
+  encoder->tr_depth_inter = 0;
 
   //Tiles
   encoder->tiles_enable = encoder->cfg.tiles_width_count > 1 ||
diff --git a/src/search.c b/src/search.c
index 149be298..cd639fcd 100644
--- a/src/search.c
+++ b/src/search.c
@@ -533,7 +533,10 @@ static double search_cu(encoder_state_t * const state, int x, int y, int depth,
     } else if (cur_cu->type == CU_INTER) {
       // Reset transform depth because intra messes with them.
       // This will no longer be necessary if the transform depths are not shared.
-      int tr_depth = depth > 0 ? depth : 1;
+      int tr_depth = MAX(1, depth);
+      if (cur_cu->part_size != SIZE_2Nx2N) {
+        tr_depth = depth + 1;
+      }
       kvz_lcu_set_trdepth(lcu, x, y, depth, tr_depth);
 
       const int num_pu = kvz_part_mode_num_parts[cur_cu->part_size];