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How to resolve Lacerte diagnostic Ref 2009689

SOLVEDby IntuitLacerte Tax5Updated July 27, 2021

The following Critical Diagnostic generates for Individual returns:

Depreciation Asset #X: This asset is associated with a state that is different from the state identifier that is associated with the Schedule. 

The most common cause of this error message is if the depreciable asset is sourced to the wrong state. Review the assets on Screen 22 to make sure the Assign entries to: box in the upper right of the is correct.

To resolve this diagnostic if the State is not correct on the Depreciable asset:

  1. Go to Screen 22, Depreciation.
  2. Select the Asset from the left navigation panel.
  3. Select the State from the dropdown window under Assign entries to:
    • If the incorrect State is already listed in the Assign entries to: select Federal from the dropdown menu, then select the correct State again.
    • Click Yes when prompted with "You currently have amount set to (State) for the Asset. Do you want to change the state for those amounts on this Asset from (state) to (state)?" 

To resolve this diagnostic if the State is correct for the Depreciable Asset, but is not correct on the Activity:

  1. Go to the Input Screen that the Activity is coming from.
    • Screen 18, Rental and Royalty Inc. (Schedule E)
    • Screen 19, Farm Income (Schedule F/4835)
    • Screen 20, Passthrough K-1's
  2. Select the Activity from the left navigation panel
  3. Select the State from the dropdown window under Assign entries to:
    • If the incorrect State is already selected in Assign entries to: select Federal from the dropdown menu, then select the correct State again.
    • Select Yes when prompted with a message that reads: "You currently have amount set to (State) for the Asset. Do you want to change the state for those amounts on this Asset from (State) to (State)?"
  4. If this is a multi-state situation make sure the state that the Schedule and depreciation assets are set for the same state. 

If all states are sourced correctly:

  • This diagnostic will also generate for vehicles if there is no basis entered for that asset.
  • All states must have at least $1 of income reported.

Changing the Assign Entries To: option will do so for all entries on the return. If this is a multi-state return review, the state returns for accuracy.

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