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Fiduciary depreciation not flowing to Schedule C, E, or F in ProConnect

SOLVEDby IntuitUpdated 1 month ago

This article will help determine why the depreciation isn't flowing to Schedule C, E, or F, when selected under Depreciation, and is instead shown as a statement on Line 9 of the K-1.

Depreciation for an estate return should flow to the beneficiaries/estate as the same percentage as ordinary income. 

Per the 1041 instructions, "Depreciation. For a decedent's estate, the depreciation deduction is apportioned between the estate and the heirs, legatees, and devisees on the basis of the estate's income allocable to each."

To reflect the depreciation for a specific client:

  1. Go to Input Return Beneficiary/Grantor Information.
  2. Select Schedule K-1 Distributions Options.
  3. Enter a 1 in Depreciation: 1=in fiduciary, 2=prorate to beneficiary [O].

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