S-Corporation client has sold equipment. For book purposes, depreciation has been calculated using salvage values. Over the years, Lacerte has properly calculated book depreciation by reducing the assets by their salvage values.
Now the assets are being sold, and Lacerte appears to incorrectly be using the salvage value as a reduction in basis in calculating book gain or loss. I say this because the adjustment on Schedule M-1 is off by the amount of the salvage value (so, Schedule L is also out of balance by this amount).
I have confirmed that Schedule L has the value of the equipment without reduction for salvage value.
I can override accumulated book depreciation on Form 30. I put the correct figure here, and that did not help. (I assume because the issue is salvage value, not accumulated depreciation.)
How do I fix this?
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