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I took on a new client that had prior depreciation on rental property. The current year depreciation calculation is higher than it should be. Yet when I run the Asset Life History report it shows the correct amount of depreciation. Why is the asset showing the wrong amount?
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@VandeK wrote:The current year depreciation calculation is higher than it should be.
Is the "prior depreciation" what it should be? ProSeries uses the mathematical method of depreciation, if the "prior depreciation" was less than it should be, it calculates a higher depreciation for the current year. It does a similar thing if the business percentage varies from year to year.
You can manually calculate the "prior depreciation" to see if it is too low, and then enter the correct amount that SHOULD have been taken. Or you can just leave it BLANK and the program will assume the "prior depreciation" was correct based on the current year's information.
