Question
Client's 1065 return's depreciation expense is different from 1120-S depreciation expense
I created a 1065 for a client. They showed me a letter from the IRS accepting S-Corp status.
Ok, that's easy, file a 1120-S, amend 1065.
Here is the problem.
The depreciation reported on the 1065
Date: 06/01/2025
Cost $2994.00
7 Year Property Half-year
Depr Exp $428 (14.29% first year depreciation)
Same information for the 1120-S
Date 06/01/2025
Cost $2994.00
7 Year Property Half-year
Depr Exp $321.00 (10.72% first year depreciation)
Why is the S-Corp depreciation less? I can find no differences in the depreciation option screen.
