sec 754 depreciation

Forum|Forum|2 years ago
January 4, 2024
2 replies
13 views

I have a partnership with sec 754 assets. Pro Series does not have a depreciation option for sec 754 assets so how do I get that depreciation properly reported on the K-1?

ProSeries Professional

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Best answer by Jim-from-Ohio

I have a 1065 wtih 754 assets.. on the asset entry worksheet select code Z on the Type of asset. then scroll way down to the Additional Asset Details.. select Amortization for Deprecation type and the Recovery period. That should propertly amortize it. I am looking at the 2022 program right now, in Professional and it then should populate an expense in Box 13, Code W. There may be one more tweak to the K-1 that you have to but this should get you started.

dascpa

Level 11

In 2022 Form 1065, go to Page 4, Line 13(G)((c) It lists Section 754 depreciation. Fill in code W and then the amount. In the Special Allocation box next to it I put in "1". Then I went to the Schedule K-1 Worksheet for that specific partner and By Ratio in Special Allocations I list next to #1 "100.00000" for the percentage. Remember, in the questions on page 2 of the 1065 to fill in line 10a, b and c.

Jim-from-Ohio

Answer

Intuit Community Champion

I have a 1065 wtih 754 assets.. on the asset entry worksheet select code Z on the Type of asset. then scroll way down to the Additional Asset Details.. select Amortization for Deprecation type and the Recovery period. That should propertly amortize it. I am looking at the 2022 program right now, in Professional and it then should populate an expense in Box 13, Code W. There may be one more tweak to the K-1 that you have to but this should get you started.

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