Client's 1065 return's depreciation expense is different from 1120-S depreciation expense

[witzlibatcltd]

I created a 1065 for a client.  They showed me a letter from the IRS accepting S-Corp status.

Ok, that's easy, file a 1120-S, amend 1065.

Here is the problem.

The depreciation reported on the 1065 

Date:  06/01/2025 

Cost $2994.00

7 Year Property Half-year

Depr Exp $428  (14.29% first year depreciation)

Same information for the 1120-S

Date 06/01/2025

Cost $2994.00

7 Year Property Half-year

Depr Exp $321.00  (10.72% first year depreciation)

Why is the S-Corp depreciation less?  I can find no differences in the depreciation option screen.

[IRonMaN]

The second version is computing the depreciation under the mid quarter purchased in the third quarter.  I would play with the date a little to see if that fixes your issue.

[witzlibatcltd]

Thank you.

I will also look at the "starting dates"

[IRonMaN]

You betcha!