Entering depreciation information from another software into ProSeries.

[pacoford]

I have acquired a new client with multiple depreciable assets. I have been transferring the information from the prior tax year (2023), which I believe was generated in Lacerte. The asset is a personal residence being deducted on schedule F, depreciated over a period of 39 years with the SL method. My problem is I haven't been able to select a type of asset that specifies residential. The "other" asset type does not offer a recovery period of 39 years. The closest option that offers 39 years is non-residential rental real estate. Residential rental real estate only offers 27.5 years...and it is NOT rental.  Does anyone have a suggestion? 

[IRonMaN]

If the property is being used in a business, it isn't residential.

As a side note, since you said it is a personal residence, why are you depreciating it?  Or are you only depreciating a portion of it for business use?

[abctax55]

Schedule F indicates - being used for business.... 

That is then business property so 39 years is correct.

IF it's being rented out, but not being used on the FARM it goes on Sch E and is residential rental so 27.5 years would be used.

If I had $ 10 for every time I've seen OIH depreciation using 27.5 instead of 39 years  (yeah, it's a house, but it's used for *business*.... I'd buy a used Delorean.

[abctax55]

Maybe some bones & vertebrae to provide details as to how the 'house' is being used on the farm would help? 

[IRonMaN]

Someone has been reading about the Intuit remake of the What About Bob movie.

[abctax55]

Nope, not me 😉

[pacoford]

Thanks for your reply. We are depreciating a small percentage as business use. 

[pacoford]

Thank you for your input. It is NOT being rented out. The primary income for this client is farming. A small percentage is used to perform office duties, etc. for the farm. Therefore, it is residential and not rental, but ProSeries Basic does not allow me to take all of these pertinent factors. This account is on its 4th year of depreciation using the straight line method with a recovery period of 39 years. I will reiterate that this is the first year that I prepare this clients return and am recording depreciation per the books of another preparer. 

[abctax55]

".. it is residential "

But it is a 'residence' being USED for business.   So 39 years is the correct method.

[pacoford]

I realize 39 years is correct. My question is HOW do I enter it into ProSeries since the only option I have that recognizes the 39 year recovery is NON-RESIDENTIAL REAL ESTATE...and it is NOT a rental. I have not been able to come up with any other types of asset in the software to define this situation.

[IRonMaN · Accepted solution]

Use the 39 year non-residential real estate option.

[abctax55]

You'll need a PS user to help with that, I'm a Lacertian.   You'll have to find the 'code' for business asset, not a residential asset.

@IRonMaN

@Just-Lisa-Now- 

(Edit... and I see Jeff already has.  Thx)

[pacoford]

Got it...I was complicating it...we're only using 3% of the residence for business but regardless...it's business. Thank you all!!!

[pacoford]

Thank you...guess I fall a bit into the oih depreciation category??? LOL