How to make Proseries do catch-up depre in accordance with a Form 3115 DCN 107?

[jblynch]

Hello.  From a prior question on the subject of a client missed residential rental property improvement not previously included in the return, on entry of same, how do I have Proseries do the catch-up calculation for the lump-sum current year for past depre in accordance with the Form 3115 and 481(a) forms?  Thank you-Jeff Lynch!

[TaxGuyBill · Accepted solution]

You need to manually do it.

If there were undepreciated improvements that were made AFTER the "placed in service" date, you need to manually calculate the missed depreciation from the incorrect Accounting Method (that calculation is part of Form 3115).

You then enter that manually calculated amount, usually titled a "Section 481(a) deduction", usually as an "other" expense on the Schedule E. 

[jblynch]

Thanks for the response!  I was hoping that this would not be a kind of over-ride that might preclude e-file.  This is a really screwed-up and unusual situation!  I wouldn't even want to be on the other end of an examiner trying to explain and justify it.  That part will be very clearly conveyed to this client.  In the meantime, thanks!  jl