1041 Schedule C depreciation

[Steve3461]

Hi everyone...

I had to download Professional because i have to do one 1041 return which I normally never do. It should be simple BUT when  I'm on Schedule C depreciation line and then set up an asset when the asset worksheet is done nothing shows up on the Depreciation line on Schedule C other than 0.

How do I get the depreciation number to show up on the depreciation line on Schedule C. The asset is the house and I tied into previous tax return number done by previous preparer.

Thanks in advance for any help you can give me!

[ajp]

We need more information.  Is this a trust or an estate? Typically, Schedule C isn't on a 1041.  Why is there one for your client? 

[Steve3461]

Thanks for getting back to me. Previous years used a schedule C for rental rather than schedule E. last year’s Schedule C had depreciation on the depreciation line. The asset worksheet that I established tied into previous year’s depreciation deductions.

it is a simple trust.  One beneficiary who is also the trustee of the trust.

thank you!

[ajp]

Interesting!

Maybe someone else will chime in, but since a Schedule C is for self-employment, resulting in self-employment tax, it doesn't really work well for a trust.  I would keep that part on the person's personal return unless income is being reported specifically for trust property.  If the property is in the trust's name and is still being rented, I would move the rental income to a schedule E on the trust return.

I'm interested to hear other responses.  I understand that certain rental stuff (ie AirBnB) is usually on schedule C if it falls on a personal return.  I know I've read something in regard to its treatment within a trust, but I can't seem to pull out a proper reference!

Amy

[kathyclubb]

 I am having the same issue with a trust having a schedule E rental and the depreciation does not show up on the schedule E rental expense.  I called support and they told me to force it and then file a paper return.  I know the depreciation should be showing on line 18 of the schedule E rental but this program will not allow it.  It is frustrating!!!!!

[ajp]

It will do it.  

How did you access the asset entry page?  I have found it to work best if I jump to it through the smart worksheet.  

Then you have to see where it is being allocated.  If it is allocated to the beneficiaries, it won't show up on line 18.  You can see this inside the smart worksheet box as well. 

I hope this helps!

Amy