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Had a farm client die Feb 22, 2023....is there a way to calculate short year depreciation for assets that still have a basis using proseries or do I need to use my pencil and paper and override?
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Thats what I did but it calculates a half year.....should it only be for 2 months depreciation since he passed in February? This is 5 and 7 year property.
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per 2023 1040 quickfinder handbook page 10-9: disposition of macrs property: under macrs, a depreciation deduction is allowed for year of disposition using the applicable convention: 1.) residential rental and nonresidential real property: a mid-month convention is used. 2.) ALL OTHER PROPERTY: EITHER A HALF-YEAR OR MID-QUARTER CONVENTION IS USED, depending on the convention used when the property was placed in service. hope this helps. there is more information in quickfinder and taxbook and us master tax guide, so research it further.