Common questions about Form 990 and 990-T depreciation 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.

In this article you can find solutions to frequently asked questions about entering Form 990, Return of Organization Exempt From Income Tax, and Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under section 6033 (e)) in the Exempt Org. module of ProConnect Tax.

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How do I enter rental information for Form 990/990-T?

1. Go to Input Return ⮕ Expenses ⮕ Depreciation.
2. Enter the Description of property.
3. Enter the following fields under the General subsection:
   • Category (MANDATORY)
   • Date placed in service (negative date=various)
4. Select Details for the asset.
5. Under the Book Depr. (990/990-PF) subsection, enter the following fields:
   • Form
     • Select Rental activity from the dropdown menu.
   • Activity name or number
   • Cost or basis.
   • Method
6. Under the Unrelated Business Depr. (990-T) subsection, enter the following fields:
   • Form
     • Select Rental activity from the dropdown menu.
   • Activity name or number
   • Cost or basis
   • Method 
7. Enter the Prior bonus depreciation or Prior depreciation, if applicable.
8. Enter any other applicable fields.

If the depreciated asset is linked to a rental activity for Form 990 and linked directly to Form 990-T for unrelated business activity, the depreciation will be doubled on the Rental Income Worksheet.

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Why has the depreciation doubled and the balance sheet is out of balance by the same amount on the 990/990-EZ?

Overrides you enter in Balance Sheet may cause:

• The depreciation to double on the Rental Income Worksheet, and
• The balance sheet for Form 990/990-EZ to become out of balance by the amount of depreciation.

You'll need to check for overrides to resolve this issue.

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Why are several assets missing from the depreciation schedule for Form 990-T?

If you want assets to appear on the depreciation schedule for Form 990-T, you should enter them in Depreciation in either the Book Depr. (990/990-PF) subsection or the Unrelated Business Depr. (990-T) subsection.

Refer to the "Directly connected expenses" section under Appendix A of the Instructions for Form 990-T for information on which assets qualify as a deduction.

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