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How do I set up a residence that is being used as a rental for depreciation reporting purpose?

Residence is being used for rental.  Where do I set it up for initial year reporting?
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10 Comments 10
IRonMaN
Level 15

You probably want to start by entering the house as an asset for depreciation.  But always remember, part of the cost is for land and that isn’t depreciable.


Slava Ukraini!

Hi and thank you for the reply.

Yes, I understand that I need to enter the house as an asset for depreciation... I also need to add a washer/dryer and some window treatments I want to take the Section 179 deduction on.  I'm a former IRS auditor so I understand also that land is not depreciable... It's my first time using ProConnect software and the issue is I can't figure out where I go to enter these assets?

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Specifically... where to go in the software.  I'm having a brain freeze.

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IRonMaN
Level 15

It was 20 below last night, but I think I did successfully avoid brain freeze.  But since I use ProSeries, I can't point you in the right direction on that one.


Slava Ukraini!
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Thanks for trying.

PhoebeRoberts
Level 11
Level 11

Depreciation screen is under Deductions. In Lacerte (which looks a lot like ProConnect), it's the first item under Deductions.

 

There's also a Depreciation link at the top of the Sch E input screen that will take you to the same place.

rbynaker
Level 13

If Phoebe's help doesn't get you there, maybe @George4Tacks can help.

For Section 179, doesn't the rental activity need to rise to the level of a trade or business in order to qualify?  Either way, be consistent with 179, QBI, 1099s.

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George4Tacks
Level 15

Start by entering the Rental - I assume 1040 Schedule E https://proconnect.intuit.com/support/en-us/help-article/form-1099-misc/common-questions-entering-re... should have all you need

Depreciation https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/entering-depreciation-new-cli...

First item entered is Description, then FORM (3 for Schedule E), then ACTIVITY NAME OR NUMBER (1 for 1 rental, 2 for 2nd, but you will see those descriptions you used in set when you click the down arrow)

https://proconnect.intuit.com/support/en-us/help-article/fixed-assets/depreciation-methods/L7qfgF8FA... Shows the codes for methods 99 for Land, etc. 

This should get you up and running. 

Here a few helpful hints:

If you want a zero, use -1 (negative 1). 0 and blank are the same = NOTHING. The only way to say you TRULY WANT A ZERO is to enter -1

When you go to check return, you can view the forms. If you want to enter something on a particular line or in a box, click that line or box and you will jump to the input, or at least close to it. 

See this sample image. Red circle shows where you can start a search for a form or a word that will get you to an input area. Often the input grids will offer several sub screens, accessible by clicking the wording, such as Misc/Sec. 179 [O]. Notice [O] - Entering in a field with this is an OVERRIDE. If it is [A], then this is an adjustment to be added to or subtracted from the enter.

Screenshot 2023-01-30 080637.jpg

Welcome to one of the more confusing softwares out there. Works well, but awkward. 


Answers are easy. Questions are hard!
George4Tacks
Level 15

Thanks Rick, this woke me up this morning, I needed that.


Answers are easy. Questions are hard!
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rbynaker
Level 13

Thanks George.  I picked the right username this time, much easier than saying Beetlejuice 3 times.