- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Hi community,
Client has a single-family residential property that has been rented for 4 years. In 2022, client took it back and converted to primary residential property and planned to live in there for some time.
Suppose that client would live in the house for 3 years and rented it out again afterwards. Would this 3-year personal use time be included in 27.5-year SL depreciation time? Thank you very much!
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The 27.5 years starts again, using the lower of (a) the Adjusted Basis and (b) the FMV.
And manually keep track of the prior depreciation for whenever it sells.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you!
To delete deprecation expenses regarding the rental property for 2022 I found two ways to do it in Lacerte. One is to override current depreciation/amortization (screen 22) by inputting -1; the other is to input 1=delete this year in Additional Information (scroll down screen 22).
Do you know the difference between these two methods?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Sorry, I'm a ProSeries user, not a Lacerte user. But maybe a Lacerte user will come along and answer that for you.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you anyway!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Delete this year will delete the asset. It won't rollover to next year.
-1 will give it -0- depreciation this year but leave it in the software.
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The override current depreciation would allow the assets to proforma to next year.
The delete this year will delete this year. No proforma to next year,
Answers are easy. Questions are hard!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Lol thank you! Wish you the same.😄
