Ekhaterina
Level 3

I missed setting up my stepped-up basis for inherited farm property in 2020.  To correct that, I am filing Form 3115 "Application for Change in Accounting Method with my extended 2024 tax return.  Accordingly, I am supposed to currently expense the entire amount of depreciation for years 2020-2024 within the 2024 tax return.  I am having difficulty figuring out how to get the ProSeries software to allow me to adjust the current 2024 depreciation deduction to include the amount for all of those missed years, then to continue with the depreciation as it should be in future years.  It wants to only use the current 2024 amount for the 2024 return, and does not allow me to change that figure.  The "Asset Life History" is showing a perfect 150DB/HY depreciation schedule at this time.  I starts out with 150DB/HY convention, then switches to straight line  in the 9th year as it should; and it brings the schedule to zero at the end of the asset life as it should.  Has anyone run into this situation before, and do you know how I can get the software to show a current expense for the first several years of depreciation, but still maintaining an accurate depreciation schedule going forward?  It just occurred to me that I might just show the "prior depreciation" as an "other expense" on Schedule F.  Then I think the software will continue as it should, so long as I show that prior depreciation within the Asset Entry Worksheet.  Is this a feasible alternative that IRS would find acceptable?

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