IL 4562 - LINE 10 WRONG

[farmtaxbrad]

If you use Lacerte and have some clients that you keep depreciation using Lacerte's internal depreciation module. It seems that the IL 4562 Line 10 is not correct. It should be the 2022 depreciation calculated as if no 100% special depreciation was claimed on that specific asset in 2021 or 2022. It seems to be grabbing the bonus depreciation that was claimed in the 2017 - 2020 tax years and creating a subtraction for these years also, which I think is incorrect (since there was no IL addition in those years). The subtraction for 50% special depreciation (line 7A) seems correct. The only solution I have found is to go through the Prior Special Depreciation assets and for the 2017-2020 year assets only move the amount from "Prior Special Depreciation" to "Prior Bonus Depreciation" (federal column, St if Diff is blank). Leave the older assets where 50% special depreciation was used unchanged. I have never understood the difference between these 2 boxes in Lacerte, bonus and special are the same word to me, but there must be some issue or maybe the coding in the software uses one and not the other. Of course Lacerte's customer support was a joke.

[kostovcpa]

Hi, I noticed the same issue, my client took bonus depreciation for assets purchased and put in service in 2021 and then sold them in 2022. In 2021 Lacerte added the bonus depreciation back to IL on form IL-4562 Step 2 Line 1, took the regular depreciation as a subtraction on Step 3 line 8, so far so good, but now in 2022 when the assets were sold it did not reverse the bonus depreciation on Step 3 line 12 and did not add back the prior and current regular depreciation taken on the sold assets on Step 2 line 3, which is per IL-4562 instructions and which is the correct math, to allow on the IL  tax return to write off the adjusted basis of the sold asset.

It is a lot of overwriting and manual work to do, my client sold over 500 trailers in 2022 that he purchased and put in service in 2021 and took bonus depreciation for them in 2021.

I know how to calculate and overwrite the IL-4562. But please provide any solution how to be done automatically in Lacerte. A lot of tax professionals will miss those calculations I bet and Lacerte should do something about.