Level 7

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How do I add $1 rounding to a fully amortized asset?

Forum|Forum|6 years ago
June 9, 2020
3 replies
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Re-fi costs on the depreciation schedule have a remaining balance of $1 due to rounding. Other than overriding, I don't see where I can enter this rounding adjustment in the Asset Entry Worksheet.

Does anyone know how to adjust amortization or depreciation in situations like this? Anytime I override a number it creates an e-file error and I can't e-file without canceling the override.

Thanks for your help.

ProSeries Professional

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Best answer by dkh

Do the override. When efiling that client's return, uncheck the Enable conversion error checking. Problem solved. I would be sure only this client is selected for efiling when you uncheck the conversion error checking box.

dkhAnswer

Level 15

Do the override. When efiling that client's return, uncheck the Enable conversion error checking. Problem solved. I would be sure only this client is selected for efiling when you uncheck the conversion error checking box.

D

david3Author

Level 7

Thanks for helping with this.

T

TaxGuyBill

Level 15

I've never seen that. If you make sure the "prior depreciation" is correct, the final year of the recovery/amortization period SHOULD automatically take the rest of it.

D

david3Author

Level 7

I've never seen that either. It appears to be rounding. The re-fi costs were $2,096 amortized over 5 years at $419/year. This is the fifth year and there is a remaining balance of $1. It appears that amortization was $419.20/year.

So it appears the $1 rounding is due to the .20/year amortization not recognized. You would think the program would automatically adjust that to $420 final year amortization.

Thanks.

T

TaxGuyBill

Level 15

Now that I think about it, amortization would probably do that, but depreciation wouldn't. Depreciation uses a formula that would use the rest of it in the final year.

Personally, I would just add a few bucks to the Basis/amortization cost to make it calculate that extra $1.

The_AntiTax_Man

Level 7

@david3 Orrrrr..., you can sell the asset for $0 on December 31. It will show up on the 4797 with the $1 loss, the asset will be off the depreciation schedule, and you do not have to override the PS depreciation calculation.

D

david3Author

Level 7

Thanks again for your help. I guess any of these recommendations is better than overriding?

dkh

Level 15

You could leave the $1 alone until after efiling the return. Then override the prior amount by a dollar so when return transfers to 2020 it will show full amount amortized. It is only $1 so not like client is losing out on a tax break.

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