1120-S short year depreciation

[michele]

Prepared the 1065 for short year and they switched to and Scorp mid year. I got the partnership to calculate the correct depreciation. I have filled in the short year for the 1120S on the miscellaneous screen and also short year in the depreciation screen. It is still calculating full year depreciation. Business has way to many items to do all this by hand. I was at least able to import the depreciation schedule from the partnership to the 1120S and that was a chore checking all the items. I figure I must be missing something if the 1120S is not calculating.

thx

Michele

[TaxGuyBill]

Maybe I'm wrong, but S-corporations don't have the step-in-the-shoes depreciation like Partnerships do, right?

In other words, doesn't the S-corporation start depreciating just like any other new property, with the current Adjusted Basis and the current date (not the previous Partnership's date) as the "placed in service" date?

Or am I wrong about that?

[michele]

I am glad you said something. I almost forgot to change the date in service to July 1. I was concerned at getting their cost and previous deprecation. I wanted to do a carryover basis  and not a capital contribution as we did not sell off the assets in the partnership. When you are dealing with so many assets the the asset export transfers their cost and previous depreciation well but need to go thru and change the in service dates.

Michele