Special Depreciation Allowance Direct Input 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.

The program will automatically calculate special depreciation allowance when applicable if the asset is entered in the Depreciation input screen. If entering in the Direct Input screen for Depreciation, follow these steps to enter.

For Individual, Corporate, and Fiduciary returns:

1. From the Input Return tab, go to Deductions ⮕ Direct Input (4562) ⮕ Direct Input (continued).
2. Enter the Description of property.
3. Use the Form (Click on arrow to select from list) drop down input to select the applicable form for this depreciation asset.
4. Use the Activity name or number drop down input to select the applicable business activity for the asset.
5. Enter the Date placed in service.
   • Note: The date placed in service must be in the current year to allow special depreciation. If the date is not a current tax year date, the special depreciation allowance amount will not flow to the 4562 line 25.
6. Enter any other applicable information such as Cost or basis, Depreciation deduction, etc.
7. Use the Special depreciation allowance input to enter the special depreciation for the current year.

For Partnership and S-Corporate returns:

1. From the Input Return tab, go to Ordinary Income ⮕ Direct Input (4562) ⮕ Direct Input (continued).
2. Enter the Description of property.
3. Use the Form (Click on arrow to select from list) drop down input to select the applicable form for this depreciation asset.
4. Use the Activity name or number drop down input to select the applicable business activity for the asset.
5. Enter the Date placed in service.
   • Note: The date placed in service must be in the current year to allow special depreciation. If the date is not a current tax year date, the special depreciation allowance amount will not flow to the 4562 line 25.
6. Enter any other applicable information such as Cost or basis, Depreciation deduction, etc.
7. Use the Special depreciation allowance input to enter the special depreciation for the current year.

For Exempt Organization (990) returns:

1. From the Input Return tab, go to Expenses ⮕ Direct Input (4562) ⮕ Direct Input (continued).
2. Enter the Description of property.
3. Use the Form (Click on arrow to select from list) drop down input to select the applicable form for this depreciation asset.
4. Use the Activity name or number drop down input to select the applicable business activity for the asset.
5. Enter the Date placed in service.
   • Note: The date placed in service must be in the current year to allow special depreciation. If the date is not a current tax year date, the special depreciation allowance amount will not flow to the 4562 line 25.
6. Enter any other applicable information such as Cost or basis, Depreciation deduction, etc.
7. Use the Special depreciation allowance input to enter the special depreciation for the current year.