Pro Series 1065 Partnership returns elect or not elect 163J and how does depreciation get auto recalculated?

Forum|Forum|5 years ago
March 14, 2021
2 replies
16 views

I'm using proSeries to file a 1065 partnership that has depreciation. Under the new tax rules for 163J do I need to change the depreciation for building from 27.5 years to 30 years and if so how do I do it? Pro series automatically continues using the 27.5 years even if I check off that I'm electing for 163J. Also should I elect 163J for all partnerships that benefit from depreciation to create losses?

I'm lost here. please guide me.

ProSeries Professional

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sjrcpa

Level 15

If you make the 163(j) election then the depreciable life becomes 30 years. You will need to change it manually.

You need to evaluate each client to decide upon the election. Extensions are good. (Also because in case a change is needed you can't amend BBA partnerships but you can file superseding returns.)

FWIW, we make the election on almost all real estate partnerships/LLCs with interest expense and losses.

The more I know the more I don’t know.

L

lou2Author

Level 2

How do you make the manual change? Is it on the asset entry worksheet? I use type of asset letter I for residential real estate however that is assigned to 27.5 year. Do you over ride the depreciation expense number? why wont proseries automatically recalculate on 30 years when you check box 23 as yes on schedule B.

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