Discussion:Proseries Depreciation when you have a new client

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Discussion Forum Index --> Tax Questions --> Proseries Depreciation when you have a new client


Chase (talk|edits) said:

15 March 2007
H have been meaning to ask this for a long time. I have a new client and am entering all of the assets onto Asset Enty WS. I enter the prior depreciation off of the PYTR on the appropriate box there in the WS. Proseries calculates an amount of depreciation for me. However, when you look to the asset life history schedule, the depreciation is different.

When you add the prior A/D to that amount calculated for the current year by the system, if the following years are going to use the amounts as per the asset history schedule, then the item will not fully depreciate. How can I ensure that the amounts entered here will calculate correctly for the remainder of the asset?

Deback (talk|edits) said:

March 15, 2007
Be sure to enter everything exactly as it was originally entered..dates, methods, lives, etc. The depreciation should then be the same.

Chase (talk|edits) said:

15 March 2007
It still is not correct. Everything is entered EXACTLY as shown on the 2005 Depreciation report. And this is a simple one -- no bonus or 179 ... just straight PY depreciation.

Glmpllc (talk|edits) said:

15 March 2007
could be many things...could have been subject to a differing convention, maybe an intervening short tax year, tables vs. formula...maybe the prior accountant screwed up...practical approach is to tell Proseries to use the formula, not the tables when computing depreciation...technically correct approach may be a 3115, assuming p/y dep'n is wrong.

Deback (talk|edits) said:

March 15, 2007
Check everything at the bottom left of the asset worksheet. I wouldn't mess around with a 3115. If the difference is minimal, forget about it. If it's major, keep looking for differences in your inputs vs the original schedule.

Death&Taxes (talk|edits) said:

15 March 2007
Is it possible that some of the assets were subject to mid-quarter rules when bought?

Chase (talk|edits) said:

15 March 2007
I thought about that. Normally the prior depreciation reports will indicate that. I tried that too. It's a small asset so I'm not worried about the difference in this case but if it was a larger asset I would be worried. Perhaps the prior depreciation was off. I don't usually have this problem which leads me to think something is screwy with the prior depreciation perhaps.

Basis is 2378, life of 7 years on the PYTR (even though it is rental furnishings - carpeting), 200DB on PYTR, A/D = $998, PIS 10/13/2003, HY convention. Anybody else want to try to see what you get....just for fun?

Deback (talk|edits) said:

March 15, 2007
I'm getting $394 for current year and the deprec sch doesn't agree with $998. So, I'd agree that the prior deprec schedule is incorrect for some reason. The actual prior deprec should be $1,338 at the end of 2005.

Death&Taxes (talk|edits) said:

15 March 2007
I just put it on a 2005 return and get 2003 - 340 2004 - 582 2005 - 416 using the Asset Life with Depn projected at 297 for 2006

TAXESIDO (talk|edits) said:

15 March 2007
Make sure the asset was not put into service in a year where there was bonus deprec taken. If it was make sure to list the bonus deprec taken.

Deback (talk|edits) said:

March 15, 2007
D&T - My amounts were after entering $998 as the prior depreciation in the 2006 program.

Death&Taxes (talk|edits) said:

15 March 2007
I just did it on a 2006 return and came up with identical numbers to my previous ones.....I am coding it G to force the seven year life. Our difference is $340, the amount of the 2003 depreciation. Using Mid-quarter I get depreciation for 06 at 334 and p/y of 1208.

Glmpllc (talk|edits) said:

16 March 2007
hey Deback, where's Kevin and why is he not jumping on your a** for recommending not messing with the 3115? Image:wink.jpg

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