How to retire or dispose depreciable assets without a gain or loss in ProConnect Tax

This article will help you dispose of a depreciable asset, and stop depreciation, without recording a gain or loss. First, navigate to the depreciation screen using the instructions below for your return type.

• Individual, fiduciary, and corporate (1040, 1041, 1120):
  • Go to Input Return ⮕ Deductions ⮕ Depreciation
• Partnership and S-corporate (1065, 1120S):
  • Go to Input Return ⮕ Ordinary Income ⮕ Depreciation (4562)
• Exempt organization (990):
  • Go to Input Return ⮕ Expenses ⮕ Depreciation

1. Select the Details button on the desired asset.
2. On the left-side menu, select General Disposition Information.
3. Enter the Date sold, disposed, or retired [MANDATORY].

The program will automatically calculate depreciation for only the portion of the year before the asset was retired. The asset will not proforma (roll over) to next year's return.