Tax Return Amounts are not being annualized/pro-rated for short-year return

[daleoempire]

I am preparing a short year tax return for a C-Corporation. I entered the beginning and ending fiscal year dates on Screen 4.1 - Miscellaneous/Other Information. I ticked the box for short tax year for depreciation. I entered the number of months in the short year. However, nothing on the return has changed. The income and expense amounts are still for the total amounts for the entire year. Is it supposed to prorate these amounts?

UPDATE: I just realized you have to enter income and expenses for the short-year only. I thought you can enter income and expenses for the 12 month period and Lacerte automatically pro-rates the income and includes only the prorated income and expenses for the short year only.

[daleoempire]

UPDATE: I just realized you have to enter income and expenses for the short-year only. I thought you can enter income and expenses for the 12 month period and Lacerte automatically pro-rates the income and includes only the prorated income and expenses for the short year only.

[George4Tacks · Accepted solution]

For depreciation you should enter a sale date for each asset. DO NOT enter a sales price. That will calculate the depreciation for that short year.

[daleoempire]

Yes very good point, hadn't thought of that. 

[Accountant-Man]

A short-year return's income is not the same as pro-rating the annual income. 

Jan-Mar. income might not be the same as 1/4 of 12 months' worth of income.