WHERE DO I ENTER PRIOR SPECIAL DEPRECIATION ?

Forum|Forum|5 years ago
March 24, 2021
2 replies
32 views

I have a new client who brought in his depreciation schedule and received PRIOR SPECIAL DEPRECIATION on equipment. There is a field to enter prior depreciation but not PRIOR SPECIAL DEPRECIATION. Technical support couldn't assist me and read me all kinds of things from the IRS website which I read myself. The schedule he brought in from HRB has a column for PRIOR SPECIAL DEPRECIATION. I dont know how to proceed. Has anyone dealt with this before?

ProSeries Professional

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T

TaxGuyBill

Level 15

Right above the "prior depreciation" is the line you want to enter the prior Special Depreciation.

J

j_ellamaaAuthor

Level 3

Is that prior though? It lists it under the special depreciation column on the depreciation schedule BUT doesnt specify PRIOR so I just want to make sure I allocate it properly. And thank you for responding to my post I greatly appreciate your time!

T

TaxGuyBill

Level 15

Special depreciation only applies to the first year. Entering it there will do what you want it to do.

As a side note, if you check the box that the asset is Qualified Property for the Special Depreciation Allowance, it will automatically turn that Special Depreciation box pink to make you enter it there.

T

taxfaks

Level 3

I know this is an old post and I don't know if it got answered. However, I had the same issue in the 2022 version. I finally figured out the solution. If the client has prior bonus depreciation or prior section 179 expense, you have to add up all prior depreciation and enter the total in the 'Prior depreciation' field.

For instance, if the client has $5,000 in prior depreciation, $7,000 in prior section 179 & $2,000 in prior bonus -- you would enter the total of $14,000 as Prior Depreciation. Hope this helps!

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