Discussion:Lacerte does not calculate K-1 bonus deprec or Sec. 179 deprec. add-back for states
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Discussion Forum Index --> Basic Tax Questions --> Lacerte does not calculate K-1 bonus deprec or Sec. 179 deprec. add-back for states
Discussion Forum Index --> Tax Questions --> Lacerte does not calculate K-1 bonus deprec or Sec. 179 deprec. add-back for states
| 11 April 2009 | |
| Some states do not conform to federal bonus depr. or sec. 179. They add back the difference between regular MACRS depr and the bonus/sec. 179.
Lacerte does not calculate it (even when done internally from S-corp K-1 to 1040 import feature). At the very least, Lacerte should print a warning diagnostic stating that K-1s need to be done manually for state add-back of bonus/179 depreciation adjustment. | |
| April 11, 2009 | |
| Are you talking about partnerships or S-corps?
I just checked one of mine (S-corp) and it is doing it correctly. | |
| 14 April 2009 | |
| an S-corp that claims section 179 and is passed thru on K-1 to 1040 taxpayer does NOT get picked up on Maine tax returns for the add-back adjustment.
Maybe Lacerte is doing it properly for your state and not Maine? | |
ReadMyLips (talk|edits) said: | 14 April 2009 |
| It works correctly for my CA s-corps. | |
| 14 April 2009 | |
| PRoSeries did the same thing to me as well. I am not sure others are understanding you correctly.
The S-Corp is doing it correctly and showing a difference between fed and state. This shows as an adjustment on the K-1. When entering into the 1040 program, there is no area on Lacerte, or on Proseries where you can enter the difference between fed and state depreciation that shows on the K-1. What I did for NYS was to call up the form where this would be entered, in this case either the IT-398 or IT-399 and entered the equipment and the difference there. This created the entries I needed for the return to be filed properly. I am actually quite surprised that there is not a data entry screen in either of these programs that allow us to enter this difference as it is not an uncommon issue. Maybe, I just missed the input device. Who knows, irregardless <;-)>, the return got filed. | |
| 14 April 2009 | |
| Another item of concern is when a client has k-1s with p/y disallowed bonus depreciation to be deducted currently on certain state returns (on NC returns you deduct the add-back from 02-04 over 5years starting in 2005), you have to enter the amount on the state modification screen, which is an override. This causes the py disallowed bonus depreciation on their sch c, sch e, etc..,that was added back, not to be picked up, so you must input the total deduction (k1s + any other) on the state modification screen. | |
Sharon1221 (talk|edits) said: | 14 April 2009 |
| I don't have Lacerte, but my program doesn't automatically adjust the PA state returns for section 179 or bonus depreciation either. However, when running the alerts, it DOES prompt me to check the figures, and enter any adjustments manually. | |
