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mid-quarter v. half-year

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mid-quarter v. half-year

Singing Tax Lady

This is going to set me apart as a class-A geek, but...

Am I the only one who has noticed that ProSeries doesn't do depreciation correctly (or at least not the way I learned it)?

It doesn't allow for MQ depreciation.

I entered a new client's stuff, and prior year depreciation, and there was something really wonky going on, and when I looked, I figured out why. It had been purchased in November, and was being depreciated under MQ (as I learned it should be), but ProSeries was trying to "correct" it to HY. I couldn't figure out for the life of me how to change it to MQ. That just doesn't seem to be an option at all.

So, did I miss some IRS bulletin and the rules changed? Or does PS just figure it doesn't really matter in the grand scheme of things?

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2 Comments
Just-Lisa-Now-
Level 15
Level 15

Scroll all the way to the bottom of the asset entry worksheet, you can change it to MQ down there I think.

TaxGuyBill
Level 14

Being "placed in service" in November does not automatically mean MQ.  The MQ only applies if 40% of asset Basis was placed in service in the last quarter.

For new assets for the current year, ProSeries figures that out for us.  But when you enter a prior year asset, it assumes HY unless you tell it otherwise.

As Lisa said, if you go WAY down on the Asset Entry Worksheet, you can change it.

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