I have a client who has a Schedule C that is for a short year (5 months). We need to prorate the depreciation to only claim 5/12 of the total. I have searched the depreciation input worksheets as well as the Schedule C input. I cannot find a check box or field that would let me input that it is a short year. I know I can override the depreciation, but I would rather not have to do it for all the assets.
Under normal circumstances, that would be true, however this is a short year for the business (only 5 months). The depreciation for the short tax year should be 5/12 of the total allowed. The date purchased and placed in service are identical. I need it to only take depreciation for the months he owned the business, not for the half-year as normal.
I've never heard of a short year Schedule C, are we sure that's a thing? The (1040) tax return covers the entire calendar year so it's not a short year return.
That's true, however, the depreciation rules state you can only take depreciation for the part of the year you own the business. I realize the rules were written mostly for entities other than Schedule C (this is a single member LLC). I have gone back and forth in my mind about how this should be reported.
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