1041 Depreciation issue

[OtterfromWI]

This is more for Intuit programmers to look at.  

Ok, a Dynasty Trust was created in 2024 and the LLC's were transferred over to the trust.

So, the parents will record their portion of the rental properties on their returns for Jan - Sep.  

The Dynasty trust will record their portion of the rental properties for Oct - Dec.  (Form 1041)

Here is the information that I entered:

Refrigerator, 

Dated placed in Service 06/01/2021

Type of Asset:  F (Rental Appliances)

Next, select the Quickzoom to Asset Life

First tax year is 2020.  (The asset was acquired in 2021)

Note, in Part II of the Information worksheet I selected short year beginning date 10/1/2024 Ending Date 12/31/2024.  Maybe this is the cause of the problem?

Thank you for any assistance.

OtterfromWI

[sjrcpa]

Between the 1040 and the 1041 there should be a full year of depreciation.

The 1041 picks up where the 1040 left off.

You will probably need to override to get the correct result.

[OtterfromWI]

I agree an adjustment was made, but I posted an issue that I encountered earlier in the year and Intuit fixed the problem.  

If an asset is acquired in 2021, in most cases the asset should not have tax year 2020 be the first year of depreciation.

Maybe it will be fixed/adjusted and maybe not.

But Intuit was responded very quickly to my prior issue, hopefully they can duplicate the issue and I think fix the issue.

Otter

[IntuitGabi]

Hi @OtterfromWI, 
If you haven't already, contact us for help and send your expert a sanitized file. From there, they will note your experience and pass it along to get it reported if it needs correction. Also see Submission requirements when challenging a calculation in ProSeries for additional details that may be requested. 
*****
See what's trending for ProSeries on Hot topics 

[JNW1]

Check out the section "Fiscal and Short Year Filers." in the Tax Help for the asset entry worksheet.

"If the current tax year is a short tax year beginning on any day other than January 1, calculations assume that all prior tax years were fiscal years. If prior short tax year(s) are included in an asset's actual life history (service life), depreciation calculated by the program will need to be adjusted."

[BobKamman]

For anyone who is wondering, a "Dynasty" trust is an irrevocable living trust that costs an extra $1,000 because of the higher marketing costs of selling it to people who just like the sound of the name.  

[sjrcpa]

That name has been around a while, but the lawyers keep thinking up new names. SLAT seems to the flavor of the month now.

I keep remembering that there are revocable and irrevocable trusts. Everything else is a variation.