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Applying short tax year depreciation in ProConnect Tax

by Intuit•1• Updated 1 month ago

You can calculate a short tax year for depreciation in all return types.

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

For individual returns

For individual returns (Form 1040), you can apply short year depreciation on an asset-by-asset basis.

  1. Go to the Input Return tab.
  2. Select Deductions.
  3. Select Depreciation.
  4. Select Details on the desired asset.
  5. Select the Auto & Additional Info. tab.
  6. Under the Additional Information section, enter the Number of months in short year.
  7. Select the Back to Quick Entry tab.
  8. Repeat steps 4–6 for additional assets.

For business returns

For business returns (Forms 1065, 1120, 1120-S, 990, and 1041), you can fill in tax year information so that the program calculates a short year for all assets.

Select any return to learn how to apply short tax year depreciation.

  1. Go to the Input Return tab.
  2. Select General.
  3. Select Miscellaneous Information, then select the Miscellaneous tab.
  4. Scroll down to the Tax Year Information subsection.
  5. Select the box Short tax year for depreciation.
  6. Enter the Beginning fiscal year [Override] date.
  7. Enter the Ending fiscal year [Override] date.
  8. Enter the Number of months, if short tax year.
  1. Go to the Input Return tab.
  2. Select General.
  3. Select Miscellaneous Information, then select the Miscellaneous tab.
  4. Scroll down to the Tax Year Information subsection.
  5. Select the box Short tax year for depreciation.
  6. Enter the Beginning fiscal year [Override] date.
  7. Enter the Ending fiscal year [Override] date.
  8. Enter the Number of months, if short tax year (for annualization).
  1. Go to the Input Return tab.
  2. Select General.
  3. Select Miscellaneous Information, then select the Miscellaneous tab.
  4. Under the Short Tax Year Information subsection, select the box Short tax year for depreciation.
  5. Enter the Beginning fiscal year [Override] date.
  6. Enter the Ending fiscal year [Override] date.
  7. Enter the Number of months, if short tax year (for annualization).
  1. Go to the Input Return tab.
  2. Select General.
  3. Select Misc. (990-N, 990, 990-PF, 990-T).
  4. Scroll down to the Tax Year Information subsection.
  5. Select the box Short tax year for depreciation.
  6. Enter the Beginning fiscal year date [Override].
  7. Enter the Ending fiscal year date [Override].
  8. Enter the Number of months, if short tax year (for annualization).
  1. Go to the Input Return tab.
  2. Select General.
  3. Select Miscellaneous Information, then select the Miscellaneous tab.
  4. Under the Estate/Trust Information section, select the box Short tax year for depreciation.
  5. Enter the Beginning fiscal year date [Override].
  6. Enter the Ending fiscal year date [Override].
  7. Enter the Number of months, if short tax year (negative to annualize).

You must enter all the listed items for each type of return in order for the program to correctly calculate short-year depreciation amounts.

Related topics:

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