Entering a depreciable asset in Lacerte

In this article, you can find information on entering a depreciable asset or overriding the current depreciation of an asset.

For more depreciation resources, check out our Tax topics page for Schedule C where you'll find answers to the most commonly asked questions.

Entering a depreciable asset:

1. Go to the Depreciation screen:
   • Screen 22 (Individual)
   • Screen 14 (Partnership)
   • Screen 21 (Corporate)
   • Screen 16 (S Corporate)
   • Screen 27 (Fiduciary)
   • Screen 39 (Exempt Organization)
2. Select Add on the left navigational panel to create a new asset.
3. Enter a Description of Property.
4. Select the applicable Form from the drop down menu.
5. Select the applicable Activity name or number from the drop down menu (if applicable).
6. Select the Category from the drop down menu:
   • 1= Automobile/ Transportation
   • 2= Furniture and Fixtures
   • 3= Machinery and Equipment
   • 4= Buildings
   • 5= Improvements
   • 6= Land
   • 7= Miscellaneous
   • 8= Amortization
7. Enter the Date Placed in Service.
8. Enter the Cost Basis.
9. Choose the appropriate Depreciation Method.
   • See here for information on Depreciation Methods
10. Scroll down to the Federal Depreciation section.
11. Locate the Regular Depreciation subsection.
12. Enter any prior year depreciation/ prior special depreciation / prior section 179 (as applicable). (Note- Section 179 is not allowed for Fiduciary returns.)
13. Repeat Steps 2-12 for each asset.

You can override the current year depreciation using the field Current depreciation/amortization (-1=non) [O].

For business returns (Partnership, S-Corporation, Corporation, and Exempt Organization), the program will automatically include the cost and current year depreciation in the ending balances of the balance sheet.

For a video tutorial, see here:

Want to learn more? Visit our online portal.

What's new for tax year 2025

The One Big Beautiful Bill brings many changes to Section 179 and Special Deprecation Allowance. Here are some of the key updates:

• Qualified production property placed in service after July 4, 2025, the construction of which began after January 19, 2025, may be eligible for a 100% special depreciation allowance.
• Section 179 deduction dollar limits have been increased, including the amount for SUV's.
• For certain qualified property placed in service before January 20, 2025, a phase-down of the special depreciation allowance is in place.
• Certain qualified property placed in service after January 19, 2025 may be eligible for 100% special depreciation allowance or you can elect to take 40%.
• Domestic research and experimental expenditures may be amortized over either a 60 month, or 10-year period. Different periods apply for foreign research.

For full details, review the 4562 instructions.

Instructions for entering this in Lacerte are coming soon. For more information, see Applying the One Big Beautiful Bill changes to Depreciation in Lacerte.