Whether you're trying to enter a depreciable asset or override the current depreciation of an asset, the following steps will help you.
Entering a depreciable asset:
- Go to the Depreciation screen:
- Screen 22 (Individual)
- Screen 14 (Partnership)
- Screen 21 (Corporate)
- Screen 16 (S Corporate)
- Screen 27 (Fiduciary)
- Screen 39 (Exempt Organization)
- Click Add on the left navigational panel to create a new asset.
- Enter a Description of Property.
- Select the applicable Form from the drop down menu.
- Select the applicable Activity name or number from the drop down menu (if applicable).
- Select the Category from the drop down menu:
- 1= Automobile/ Transportation
- 2= Furniture and Fixtures
- 3= Machinery and Equipment
- 4= Buildings
- 5= Improvements
- 6= Land
- 7= Miscellaneous
- 8= Amortization
- Enter the Date Placed in Service.
- Enter the Cost Basis.
- Choose the appropriate Depreciation Method.
- Click here for information on Depreciation Methods
- Scroll down to the Federal Depreciation section.
- Locate the Regular Depreciation subsection.
- Enter any prior year depreciation/ prior special depreciation / prior section 179 (as applicable). (Note- Section 179 is not allowed for Fiduciary returns.)
- Repeat Steps 2-12 for each asset.
You can override the current year depreciation using the field Current depreciation/amortization (-1=non) [O].
For business returns (Partnership, S-Corporation, Corporation, and Exempt Organization), the program will automatically include the cost and current year depreciation in the ending balances of the balance sheet.
See video below:
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