I know I have done this before, but cannot recall how. I am using Proseries. I have a client who was a Lahaina Fire Victim. She, her mom and Dad and Grandma lost everything...2 houses and all possessions. My client owns a rental property on the other side of the island that was not effected by the fires. Mom and dad and Gramma moved into the rental property with my client and her husband. So the property did not collect "rent" for the 2024 year. The family pooled money and there were remodels and upgrades done on the rental property. So no rental income in 2024. The intent is to return to rental property in 2026...as they are all still living in it in 2025. On the 2024 return...How do I get the depreciation to not take place? There are Many items that depreciate....but none should for the time they are residing in it. My brain is just not absorbing how to do this....I indicated it was NOT rented at all in 2024...zero income....but the depreciation still is there.
In Lacerte we enter a date of sale only. No sales price or anything else. That stops the depreciation when it goes out of service.
That is the same way to do it in Proseries.
Since they plan to start the rental back up in the near future, I would make sure I print out or have access to the 2023 depreciation schedules, so I have the correct numbers if and when they start renting again.
Instead of "selling" and having the assets disappear on 2025, enter business pct use as 0.0000001%. Then there will be zero depreciation and the assets will transfer to next year(2025).
The business pct use as 0.0000001% would give no depreciation for the year. The "sale" date gives depreciation up to the date of sale.
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