Depreciation - out of service asset

Forum|Forum|2 years ago
February 2, 2024
3 replies
8 views

An asset has an undepreciated cost which should not have depreciation calculated since it was taken out of service.

Is there a way to keep an asset (which is not fully depreciated) listed on the Depreciation schedule but indicate that it is out of service? I don't want to override depreciation every year.

Lacerte Tax

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Best answer by abctax55

Use 99 for the method (Land or 'other')

And/ or send it to Form 17=Form 4562 only. The deprec schedule will still print but the numbers don't hit the ITR.

dkh

Level 15

Change business use % to zero

S

strongsilenceAuthor

Level 10

Maybe that works. This is a primary residence that was rented as a vacation home from 2010 to 2016 then, for some reason the CPA took it out of service. What I want to do is show the original cost and the "business" cost so that I have a record when the house is sold.

abctax55Answer

Level 15

Use 99 for the method (Land or 'other')

And/ or send it to Form 17=Form 4562 only. The deprec schedule will still print but the numbers don't hit the ITR.

HumanKind... Be Both

P

PamC

Level 6

I also use the Form code 17 = "Form 4562 only" to keep something on the depreciation schedule. Works well to hold an asset in limbo.

abctax55

Level 15

AND.... I think you get a critical diagnostic but it doesn't impact efiling. Or, I'm thinking of one I have that I send to a 'non-existent' Sch E (too long of a story 😉

HumanKind... Be Both

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