Fiduciary depreciation not flowing to Schedule C, E, or F in ProConnect Tax

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

This article will help determine why the depreciation isn't flowing to Schedule C, E, or F, when selected under Depreciation, and is instead shown as a statement on Line 9 of the K-1.

Depreciation for an estate return should flow to the beneficiaries/estate as the same percentage as ordinary income. 

Per the 1041 instructions, for a decedent's estate, the depreciation deduction is apportioned between the estate and the heirs, legatees, and devisees on the basis of the estate's income allocable to each."

To reflect the depreciation for a specific client:

1. Go to Input Return ⮕ Beneficiary/Grantor Information.
2. Select Schedule K-1 Distributions Options.
3. Enter a 1 in Depreciation: 1=in fiduciary, 2=prorate to beneficiary [O].