How do I report in Proseries, Spec Dep in 2019 on 2018 improvement property, now allowed per Cares Act without amending 2018? Manually enter on 4562?

[Nancy9]

I already checked yes for apply CARES act.  I already changed to J5 property.  I already entered the special depreciation net of previous depreciation taken on the asset entry worksheet.  But it doesn't flow over to the form 4562.  I also started the 3115 form.  Working in 1120 return.

[TaxGuyBill · Accepted solution]

If you are filing Form 3115 to correct it, you enter a "481(a) Adjustment" as an "other" expense.

On the Asset Entry Worksheet, you would just enter the amount of Bonus depreciation taken 'last year', so this year's depreciation will show up as zero.

It would not show up on Form 4562.

Personally, I think it would be easier to amend 2018 than to file Form 3115 with 2019.

[Nancy9]

Thank you! Thank you! Thank you!