Schedule E Depreciation - State Identifier

[drbdrb]

My individual client was a NY resident for all of 2021. They owned two rental properties in NJ and one in VA. When entering the income/expense/depreciation for each rental, I code each item according to the state where the rental is located (NJ or VA). The diagnostic is giving me a message, "Depreciation asset #2 [a rental located in NJ]:  This asset is associated with a state that is different from the state identifier that is associated with the Schedule E. To change the state identifier for the asset, select the 'Assign entries to' box in the upper right of the Depreciation screen and choose the appropriate state [ref #20029689]". I selected New Jersey in the "Assign entries to" box. Must be doing something wrong and would appreciate assistance. Thank you.

[PhoebeRoberts]

If the depreciable assets are correctly coded, have you checked the Schedule E to ensure that it's also correctly coded?

[drbdrb]

Thanks for your reply. I'm relatively new to Lacerte. Where do I code the Schedule E? Should the entire Schedule E be coded for one state and if yes, should it be the state of residence? Or do I code Schedule E separately for each property according the state where the property is located?

[PhoebeRoberts]

I code all the entries in a given Sch E screen to the state the property is located in.

Multi-state is hard!