Rebuilding Depreciation Schedule

Forum|Forum|2 months ago
April 6, 2026
2 replies
13 views

I have a new client whose depreciation was butchered. They rented 50% of their property from 04 to 2012 and then 100% from 2013 to present. I want to split the asset in 2 showing the 50% from 04-12 and then the 100% from 2013. That should account for all of the depreciation year to date. Proseries won't allow me to dispose of the 50% asset as of 12/31/12 however. Any ideas how I can do this better? Should I just simply enter a single number for the prior depreciation taken up to 2024 and then depreciate as normal from 25 on?

ProSeries Basic

Best answer by TaxGuyBill

If you were preparing the 2012 return, yes, I would split it. But assuming you are starting off with preparing the 2025 return, I would just enter it as one asset with the total prior depreciation.

I would also scroll WAY down to the bottom of the Asset Entry Worksheet and check the box to use the IRS depreciation 'Tables".

IntuitAmyC2

Level 4

The split entry is a great idea with one modification. I would do the 50% from 2004 and continue using it. I would do a second entry of 50% starting in 2013. This gets you the correct depreciation and keeps the records clean. There is nothing wrong with the 2 parts since they equal a whole. You can use a single line entry, just be sure to enter the correct depreciation taken and verify the remainder is correct. I tend to be more cautious and think what is easier for me to explain and defend. The two entries are an easy defense.

You said butchered depreciation. You may need/ want to file Form 3115 for a change in depreciation. If the house was under- depreciated, you could take a catch up deduction in 2025. If they over- depreciated, you have to spread the correction over 4 years.

T

TaxGuyBillAnswer

Level 15

If you were preparing the 2012 return, yes, I would split it. But assuming you are starting off with preparing the 2025 return, I would just enter it as one asset with the total prior depreciation.

I would also scroll WAY down to the bottom of the Asset Entry Worksheet and check the box to use the IRS depreciation 'Tables".

T

taxes---taxesAuthor

Level 3

Thanks and they also started depreciating the property 1 year earlier so I plan on filing 3115 and then correcting the in service date with 2025 filing.

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