New client with foreign rental property, new green card holder and resident of the US.
The old convention for depreciation on a foreign rental property was 40 years, changed to 30 years in 2018. I'm trying to utilize the 30 year SL depreciation of the property but Proseries doesn't seem to allow for this. In the Asset Entry Worksheet near top of the page is "Asset Type". If I chose Asset Type "I" residential real estate, it automatically uses the standard 27.5 year SL / MM depreciation method. If I select "O" other, I still run into the same problem when entering "all the data" toward the bottom of the wks.
Toward the bottom of the Asset Entry Wks there is a section for manual entry (depr type / asset class / method / MACRS convention / Recovery period). In this section you must choose from "asset class" drop down menu otherwise get an error. However in the drop down menu the only selections do not allow for a 30 year recover period. If I chose "no entry" no depreciation is calculated. If I chose "residential real estate" again the standard 27.5 years is used. If I chose residential real estate and OVERRIDE the recovery period to 30 years, it does calculate depreciation properly, BUT I still have an error AND the depreciation is shown on Form 4562 Depr and Amort in the tax return on line 19h with recovery period of 27.5 yrs. The main issue seems to be the "asset class" drop down menu not having the proper choices. This should be captured in Section C on From 4562 with a 30yr recovery period......
Interestingly, if you select "I" residential in the TOP part of the asset entry wks, it has recovery period 27.5/40. Would suggest there are two recovery periods available. But even if I wanted to use the pre 2018 convention of a 40yr recovery period for the foreign assets, Proseries won't allow based on my discussion above.
Please help if you know the answer or have a workaround solution.
Regards,
