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I need instructions for getting an asset 04/15/13 for $600 that had $300 bonus depreciation HY 200 DB 7 yr to give current depr $75 and prior $413 in a 2018 return?

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Level 1
last updated ‎April 02, 2020 7:19 PM
I had trouble with this last year, seems like it had something to do with bonus depreciation and assets purchased in 2016 or prior.
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Level 15
last updated ‎April 02, 2020 7:19 PM

You can't because the $27 is the correct amount of depreciation.  Accumulated deprecation as of Jan 1, 2018 should be $233 instead of $413.  DDB should be switched to SL in 2018.

I ran these numbers by hand but you will have the same numbers using the table as well.

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Still an AllStar
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Highlighted
Level 1
last updated ‎April 02, 2020 7:19 PM

Any idea why prior CPA has the other numbers?  I guess I have to override to get it to match, but not sure what to do for 2019 and beyond.  I have their next year depreciation sheet which I guess I could match for when I do the 2019 return but not sure if I should.  Do I  have to do any explanation on the return or should I just switch to the numbers proconnect is figuring?

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Highlighted
Level 1
last updated ‎April 02, 2020 7:19 PM

and the preparer before that was H&R Block, not sure where the discrepancy is coming from.

 

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Highlighted
Level 1
last updated ‎April 02, 2020 7:19 PM

The prior preparer was using ultratax

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Highlighted
Level 1
last updated ‎April 02, 2020 7:19 PM

Sorry for so many replies, lol.

I wouldn't care so much if it was just one asset, but there are about 10 that are coming up the same way.  

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Level 15
last updated ‎April 02, 2020 7:19 PM

Once you include the bonus depreciation, it is apparent that your client had claimed less depreciation than allowable.  If there are a number of assets, this could add up.  You may like to look up F.3115 and consider filing that for an adjustment.

If you are not making a change now, I'd switch to the table method, which would compute the correct amount of depreciation that should be allowed.

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Still an AllStar
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