How do I correct depreciation in 2020 on assets put in service in 2018 for the Cares Act?

[FSUCPA]

Preparing a 2020 partnership return. In 2018, assets were placed in service using straight line over 15 years and electing out of bonus depreciation. The box on the Info worksheet was checked yes to assume there was going to be a technical correction allowing a 15 year life for QIP.

Fast forward to 2020 and I want to revoke the 2018 election to not claim bonus depreciation on Form 3115 and write off the remaining balance of the asset in 2020. How do I get ProSeries to calculate the correct depreciation? Or does this have to be done manually?

[sjrcpa]

"I want to revoke the 2018 election to not claim bonus depreciation on Form 3115 and write off the remaining balance of the asset in 2020."

I don't think you can do that.

I think you can amend 2018, for this particular circumstance, and claim bonus depreciation.

@TaxGuyBill  may know for sure.

[FSUCPA]

Rev Proc 2020-25 made this possible. Form 3115 must be filed but the change in depreciation method is considered a change from an impermissible method to a permissible method. Just can't figure out how to record this in Proseries.

[FSUCPA]

I'm working on a 2020 partnership. Rev Proc 2020-25 gives partnerships the opportunity to file Form 3115 instead of amending the partnership returns for prior years. The depreciation not claimed in previous years can be deducted in the current year instead.

[TaxGuyBill]

Assuming you are correct that you are allowed to do the combination of revoking the election and claiming it on the 2020 return, you need to do things manually.

For the Asset Entry Worksheet, you enter the full amount of the Basis as Prior Depreciation/Prior Bonus Depreciation.  That will result in $0 of depreciation.

For the 3115, you need to manually calculate things, and enter the "§481(a) Adjustment" as an 'other' deduction.