2022 Proforma to 2023 - Depreciation Does Not Transfer ‘-1’ for SDA, State if Different

[IntuitAlicia]

This unexpected behavior was originally identified in the Individual Tax Module, in late November and quickly addressed in a program update available November 29, 2023 (Version 43.1129).
Later it was discovered that this same behavior was experienced in the Corporate module, and was then addressed in a program update for both Corporate and S Corporate Tax Modules available January 17, 2024 (Version 44.0117).

This behavior was specific to any depreciation asset that contained prior SDA for federal and -1 for state in 2022 (sample below).

2022 Lacerte Client

When transferring the client to 2023 using the Proforma feature, the Prior special depreciation allowance for the Federal (10,000 in the image above) is transferred to 2023. However, the -1 for state is not transferred.

Next Step - Client Files Transferred Prior to Program Updates:

You may want to either;

1. Re-proforma any clients impacted by this behavior from 2022 to 2023.
   • This action will overwrite any changes already made to the 2023 file.
2. Manually adjust the 2023 depreciation input by entering a ‘-1’ in the state if different column for the Prior special depreciation allowance field.

Additional Information:

States that do not conform to Federal SDA which are more likely to include the ‘-1’ proforma’ed item:

Arkansas                        Illinois                    New Jersey
Arizona                          Indiana                   New York
California                       Kentucky               Pennsylvania
Connecticut                  Massachusetts      Rhode Island
District of Columbia    Maryland               South Carolina
Florida                           Maine                      Texas
Georgia                         Michigan                Virginia
Hawaii                            Mississippi             Vermont
Idaho                             New Hampshire    Wisconsin

New! Diagnostics will be added to the program with Version 44.0222 release which will generate when the client file contains one of the non conforming states and Prior Special Depreciation is present for Federal.

• Individual Ref. # 60011
• Partnership Ref. #60012
• Corporate Ref. #60006
• S Corporate Ref. #60013
• Fiduciary Ref. #60014
• Exempt  Ref. #60015

To view program update details in-program:

1. Select Lacerte Updates from the Tools dropdown menu.
2. Click the link in the Lacerte Updates window Click here to view detailed information on all available Lacerte updates.

You can subscribe to this community post to receive email notifications when any new items are added by using the gear icon located in the upper right corner of the screen.

To quickly review the Prior Year Special Depreciation fields in the Depreciation screen:

1. Go to the Depreciation input screen.
2. In the left column, select All to make sure you're viewing all assets regardless of which activity they are linked to.
3. In the first depreciation asset, locate the Prior Year Special Depreciation input field for state.
4. Using your Ctrl + down arrow keys, continue to hold down control and hit your down arrow to view this specific input field as you go through your list of assets. (avoiding the need to scroll each time)

Using Shortcuts in Lacerte

[IntuitAlicia · Accepted solution]

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[IntuitAlicia]

Edited 2/12 to include steps to use the shortcut keyboard feature in Lacerte to review the depreciation items quickly.

Edited 2/21 to strike out IL and to include details regarding a newly introduced diagnostic to help identify client files that may be affected.