How do you stop depreciation on an asset?

[Skylane]

Enter   Business use as .01 %

[REEDER]

thank you..

[Just-Lisa-Now-]

If youre stopping because its been taken out of service, (like a rental converted to personal residence) then you enter the date it was taken out in the disposal section, that stops depreciation from that date.

[REEDER]

I am use to another software that would let you enter a date to stop the depreciation.  My clients are selling their rental property.  They sold the property on 1/4/2022.  The depreciation is showing 1405 when it should be much less or ZERO. I can't find where in ProSeries to make the adjustment or how to make the adjustment.  Thanks

[Just-Lisa-Now-]

You entered the date of sale on the asset entry worksheet in he disposal section? 

It should only give you depreciation for those first few days in January.

[REEDER]

I did enter the date 1/4/2022.

[TaxGuyBill]

Is the "prior depreciation" correct?

When it was a rental, has it always been 100% business usage?  Or did the business percentage vary (such as it was a very small percentage for a number of years.

With a disposal date in January, you still get a 1/2 month of depreciation.  What is the full-year depreciation amount?

[Skylane]

@REEDER if the property was sold you have to dispose Of the asset using the asset disposition section of the asset worksheet. The correct depreciation will be calculated and transferred to f4797 sale of business property where the transaction is recorded as Lisa and Bill said.

If you want to suspend depreciation because an asset has been taken out of service but not disposed of you use the method described earlier so that you can maintain a history of the asset basis in PS. 

[REEDER]

Thank you.

The depreciation for 2022 should be 38 but it is showing 1438 on the Schedule E.  The bldg was used 50% for business.

The schedule E is showing the $1438 as a loss on the 4797 when it shouldn't be.  

[REEDER]

Thanks.

I figured it out.  I entered disposition for the other assets that were being depreciated in the DISPOSITION section.  

I have the right figure now.

Thanks for all the help.   Enjoy tax season.