AndyReynolds
Level 2

This has happened to me 3 or 4 times over the past 10 years. I just picked up a client and they are using a 30 year straight line method for deprecating residential  rental property. The prior accountant did this in Excel, and at times the calculations were wrong. My plan is to attempt to add the prior year accumulated depreciation. In this example they have $50,000 of improvements on 1/1/97 using 30 yrs straight Line... I get $1,667and they used $936 and they have accumulated depreciation on 12/31/19 of $34,052... So I try to use Code 0 other (you must enter all data) So I add prior on the worksheet as 34,052 and add $1,667 Deprecation Deduction. I then get error codes so at the bottom. It forces me to use MACRS for  Depreciation , Type, asset code R, and I select SL for method, and it auto fills Year as 24 MACRS convention as MM, Recovery Period is forced (no way to change) 27.5 recovery period, and ABOVE where I had $1,667 (30 yr straight line ) it now has hard wired $3,511 as the current deprecation. I click on "History" and the current Depreciation shows as $1,818with a prior depreciation of 39,922... So what does one do to try to keep the book deprecation keep on being used on the tax return? Or how do other Pro Series preparers handle this? I have probably side stepped this in the past, but I am determined to get this right... I need help here.. Thanks

 

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