Level 5

Entering depreciation information from another software into ProSeries.

Forum|Forum|1 year ago
January 23, 2025
3 replies
25 views

I have acquired a new client with multiple depreciable assets. I have been transferring the information from the prior tax year (2023), which I believe was generated in Lacerte. The asset is a personal residence being deducted on schedule F, depreciated over a period of 39 years with the SL method. My problem is I haven't been able to select a type of asset that specifies residential. The "other" asset type does not offer a recovery period of 39 years. The closest option that offers 39 years is non-residential rental real estate. Residential rental real estate only offers 27.5 years...and it is NOT rental. Does anyone have a suggestion?

ProSeries Tax

IRonMaN

Level 15

If the property is being used in a business, it isn't residential.

As a side note, since you said it is a personal residence, why are you depreciating it? Or are you only depreciating a portion of it for business use?

Slava Ukraini!

pacofordAuthor

Level 5

Thanks for your reply. We are depreciating a small percentage as business use.

abctax55

Level 15

Schedule F indicates - being used for business....

That is then business property so 39 years is correct.

IF it's being rented out, but not being used on the FARM it goes on Sch E and is residential rental so 27.5 years would be used.

If I had $ 10 for every time I've seen OIH depreciation using 27.5 instead of 39 years (yeah, it's a house, but it's used for *business*.... I'd buy a used Delorean.

HumanKind... Be Both

pacofordAuthor

Level 5

Thank you for your input. It is NOT being rented out. The primary income for this client is farming. A small percentage is used to perform office duties, etc. for the farm. Therefore, it is residential and not rental, but ProSeries Basic does not allow me to take all of these pertinent factors. This account is on its 4th year of depreciation using the straight line method with a recovery period of 39 years. I will reiterate that this is the first year that I prepare this clients return and am recording depreciation per the books of another preparer.