sec 754 depreciation

[cpahdr]

I have a partnership with sec 754 assets. Pro Series does not have a depreciation option for sec 754 assets so how do I get that depreciation properly reported on the K-1?

[dascpa]

In 2022 Form 1065, go to Page 4, Line 13(G)((c) It lists Section 754 depreciation.  Fill in code W and then the amount.  In the Special Allocation box next to it I put in "1".  Then I went to the Schedule K-1 Worksheet for that specific partner and By Ratio in Special Allocations I list next to #1 "100.00000" for the percentage.  Remember, in the questions on page 2 of the 1065 to fill in line 10a, b and c.

[Jim-from-Ohio · Accepted solution]

I have a 1065 wtih 754 assets.. on the asset entry worksheet select code Z on the Type of asset. then scroll way down to the Additional Asset Details.. select Amortization for Deprecation type and the Recovery period.  That should propertly amortize it.  I am looking at the 2022 program right now, in Professional and it then should populate an expense in Box 13, Code W.  There may be one more tweak to the K-1 that you have to but this should get you started.