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Calculating depreciation for a short tax year in Lacerte

by Intuit•2• Updated 5 months ago

To create a short tax year for depreciation, utilize the input on the Miscellaneous Information screen on most return types. When the tax year information is complete complete, Lacerte will automatically calculate the correct depreciation for all of the assets.

Select the client on the Client List.
Open the Miscellaneous Information screen.

Module	Screen Name	Screen #
Corporation	Miscellaneous Information	4.1
S-Corporation	Misc. Info/ Other Info./ Amended	3.1
Partnership	Miscellaneous Informaiton	3
Fiduciary	Miscellaneous Information	2.1
Exempt Org.	Misc. (990-N, 990, 990-PF, 990-T)	4.1

Input each of the following items under Tax Year Information.
- Short tax year for depreciation (input sheet code 74)
- Beginning fiscal year [O] (input sheet code 1)
- Ending fiscal year [O] (input sheet code 2)
- Number of months if short tax year (for annualization) (input sheet code 3)

How to calculate short year depreciation for only specific assets?

To have Lacerte calculate short year depreciation on an asset by asset basis or for an Individual (1040) return there is an override available for each asset.

Select the client on the Client List.
Open the Deprecation input screen.

Module	Screen Name	Screen #
Corporation	Deprecation	21
S-Corporation	Depreciation (4562)	16
Fiduciary	Depreciation	27
Exempt Org	Depreication	39
Individual	Depreciation	22
Partnership	Depreciation (4562)	14

Select Additional Information on the Section list within the left-hand column
Input the Number of months in short year [O]. (Code 509)

Lacerte Tax

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