Entering Section 754, 743(b), and other specially allocated depreciation in ProConnect Tax

This article will help you enter section 754 or section 743(b) basis adjustments, or other depreciation and allocate it to partners 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.

Follow these steps to enter specially allocated depreciation in the Partnership module:

1. Go to the Input Return tab.
2. From the left of the screen, select Ordinary Income and choose Depreciation (4562).
3. Enter all applicable information in the Quick Entry:Depreciation (4562) grid.
   • Only the following Form selections can be specially allocated:
     • 3=Form 8825, Rental Real Estate
     • 5=Rental other than Real Estate
     • 6=Form 1065, Schedule K
4. Select Details to expand your input screen.
5. Under the Asset Information section, locate the Regular Depreciation subsection.
6. Select the appropriate Special allocation (Click on arrow to select from list).

Once you've entered this information in the Depreciation screen, you can use the Special Allocations tab at the top of your screen to allocate by amounts or percentages. Refer to this article to learn how to use special allocations in the program.

Related topics

• Entering and allocating partners' guaranteed payments in ProConnect
• How to specially allocate capital accounts in ProConnect
• Generating Form 4562 in ProConnect Tax