How do I set up a residence that is being used as a rental for depreciation reporting purpose?

[cmeder5-gmail-co]

Residence is being used for rental.  Where do I set it up for initial year reporting?

[IRonMaN]

You probably want to start by entering the house as an asset for depreciation.  But always remember, part of the cost is for land and that isn’t depreciable.

[cmeder5-gmail-co]

Hi and thank you for the reply.

Yes, I understand that I need to enter the house as an asset for depreciation... I also need to add a washer/dryer and some window treatments I want to take the Section 179 deduction on.  I'm a former IRS auditor so I understand also that land is not depreciable... It's my first time using ProConnect software and the issue is I can't figure out where I go to enter these assets?

[cmeder5-gmail-co]

Specifically... where to go in the software.  I'm having a brain freeze.

[IRonMaN]

It was 20 below last night, but I think I did successfully avoid brain freeze.  But since I use ProSeries, I can't point you in the right direction on that one.

[cmeder5-gmail-co]

Thanks for trying.

[PhoebeRoberts]

Depreciation screen is under Deductions. In Lacerte (which looks a lot like ProConnect), it's the first item under Deductions.

There's also a Depreciation link at the top of the Sch E input screen that will take you to the same place.

[rbynaker]

If Phoebe's help doesn't get you there, maybe @George4Tacks can help.

For Section 179, doesn't the rental activity need to rise to the level of a trade or business in order to qualify?  Either way, be consistent with 179, QBI, 1099s.

[George4Tacks]

Start by entering the Rental - I assume 1040 Schedule E https://proconnect.intuit.com/support/en-us/help-article/form-1099-misc/common-questions-entering-re... should have all you need

Depreciation https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/entering-depreciation-new-cli...

First item entered is Description, then FORM (3 for Schedule E), then ACTIVITY NAME OR NUMBER (1 for 1 rental, 2 for 2nd, but you will see those descriptions you used in set when you click the down arrow)

https://proconnect.intuit.com/support/en-us/help-article/fixed-assets/depreciation-methods/L7qfgF8FA... Shows the codes for methods 99 for Land, etc. 

This should get you up and running. 

Here a few helpful hints:

If you want a zero, use -1 (negative 1). 0 and blank are the same = NOTHING. The only way to say you TRULY WANT A ZERO is to enter -1

When you go to check return, you can view the forms. If you want to enter something on a particular line or in a box, click that line or box and you will jump to the input, or at least close to it. 

See this sample image. Red circle shows where you can start a search for a form or a word that will get you to an input area. Often the input grids will offer several sub screens, accessible by clicking the wording, such as Misc/Sec. 179 [O]. Notice [O] - Entering in a field with this is an OVERRIDE. If it is [A], then this is an adjustment to be added to or subtracted from the enter.

Welcome to one of the more confusing softwares out there. Works well, but awkward. 

[George4Tacks]

Thanks Rick, this woke me up this morning, I needed that.

[rbynaker]

Thanks George.  I picked the right username this time, much easier than saying Beetlejuice 3 times.