This unexpected behavior was originally identified in the Individual Tax Module, in late November and quickly addressed in a program update available November 29, 2023 (Version 43.1129).
Later it was discovered that this same behavior was experienced in the Corporate module, and was then addressed in a program update for both Corporate and S Corporate Tax Modules available January 17, 2024 (Version 44.0117).
This behavior was specific to any depreciation asset that contained prior SDA for federal and -1 for state in 2022 (sample below).
2022 Lacerte Client
When transferring the client to 2023 using the Proforma feature, the Prior special depreciation allowance for the Federal (10,000 in the image above) is transferred to 2023. However, the -1 for state is not transferred.
Next Step - Client Files Transferred Prior to Program Updates:
You may want to either;
Additional Information:
States that do not conform to Federal SDA which are more likely to include the ‘-1’ proforma’ed item:
Arkansas Illinois New Jersey
Arizona Indiana New York
California Kentucky Pennsylvania
Connecticut Massachusetts Rhode Island
District of Columbia Maryland South Carolina
Florida Maine Texas
Georgia Michigan Virginia
Hawaii Mississippi Vermont
Idaho New Hampshire Wisconsin
New! Diagnostics will be added to the program with Version 44.0222 release which will generate when the client file contains one of the non conforming states and Prior Special Depreciation is present for Federal.
To view program update details in-program:
You can subscribe to this community post to receive email notifications when any new items are added by using the gear icon located in the upper right corner of the screen.
To quickly review the Prior Year Special Depreciation fields in the Depreciation screen:
Best Answer Click here
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See this help article: Stay informed with account and product changes.
For more Lacerte News and Updates, click here.
You can also subscribe to the "News and Updates" board and get notified of posts via email.
See this help article: Stay informed with account and product changes.
Edited 2/12 to include steps to use the shortcut keyboard feature in Lacerte to review the depreciation items quickly.
Edited 2/21 to strike out IL and to include details regarding a newly introduced diagnostic to help identify client files that may be affected.
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