How to Adjust Asset Basis When Vendor Credit Is Received After Claiming Bonus + Regular Depreciation on Software?

[Nikhil]

I need some guidance on handling an asset basis adjustment in Intuit ProSeries.

In 2024 , our client purchased new software and we added it as a depreciable asset. We claimed both special (bonus) depreciation and regular depreciation on it in that year.

In the following year 2025, the client received a credit related to that same software purchase.

I would like to confirm the correct treatment and ProSeries entry method:

• How should we adjust the asset basis in ProSeries after a vendor credit is received?

• Should we reduce the original cost in the depreciation worksheet or enter a basis adjustment?

• Do we need to recognize any depreciation recapture or other income because bonus depreciation was already claimed?

• Is it better to adjust in the current year or amend the prior-year return?

Any step-by-step guidance within ProSeries would be greatly appreciated.

[sjrcpa]

Was it fully depreciated in 2024?

If not, I'd just reduce the cost basis in 2025 and leave the prior depreciation as is.

[Nikhil]

Nope it is not fully depreciated.