Conversion Problem with Depreciation

[Tax Prep by Deb]

Ok I have done the conversion with from ATX to Drake and I am definitely running into an issue with depreciation.  Everything looks like it came over OK except that it is not on the tax return.  In other words when I do a depreciation report everything is there and appears to be correct, however when I go to take a look at it on the proper schedule in this case E it's not showing up.  I have one client with 10 rental properties and about half of them shows up, the other half does not.  I was able to see that it did not carry over the form selection, so I did go and map that out, but it still isn't flowing to the appropriate schedule.  Am I missing something?

[jklcpa]

On the 4562 screen at the top, for each asset, you must specify the form it goes to (Sch E in your case above), and then in the "multi-form" box, you would enter "1" for the first property on Sch E, "2" for the second Sch E property, "3" for the third, and so on...for each asset.

[Max W]

If you click on form 4562, you will get a grid pop-up. The first column  should show "E" in the form column, which is the 1st column.  Then in the next column 'MFC" put in the number of each property.  All the assets of a particular property should have that number.   Property 1, prop 2, etc.

This is similar to what Judy suggests, but faster, as all assets will be on the pop-up rather than having to go to each asset page.

If that doesn't work, call customer service and they will have it solved in minutes.

[jklcpa]

Exactly what Max was saying. It should look like the image below except that yours should have "E" in the Form column and the number of the property that the asset relates to in the MFC column. You can enter on that screen for any that are missing too without having to open the asset detail.

[Tax Prep by Deb]

Yep, already did that and depreciation shows up for all except 3 properties.  I already did the mapping and everything shows up ok on the depreciation report and next year depreciation, but is not showing up on the actual schedule E.  My Drake 2017 return differs from ATX 2017 and the only thing missing is the depreciation for those three properties.

[Tax Prep by Deb]

Ok, I went back and took a look at the # assigned the asset, and it turns out, for who knows what reason the numbering was out of sequence in ATX.  So I went back into Drake, put everything in numerical order and everyone is happy!

Question though.  ATX will always include a W2 worksheet even if not needed.  I never delete them, so the W2 I guess was sent over with this return and it is telling me it can't be e-filed because there is no info on the W2.  (I don't need to e-file this return, it's already been done) but how do I get rid of the W2 so that the warning will go away?

[jklcpa]

Ah, glad you figured it out!

For the W2 deletion, open that screen and then right click. A pop-up box will appear with lots of choice. About mid way down is "delete screen" and it will ask if you are sure.  You'll see there are keyboard shortcut for each selection too, so another method is Crtl-D.   Once you delete the W2 input screen and the system takes you back to the main screen, that input screen should have turned black in the list. The ones in use appear in blue.

[Tax Prep by Deb]

Perfect, I knew there had to be a way.  Now one more question.  On my personal return, I have always used the mileage deduction for my business use of my auto.  When it rolled over it is giving me both, mileage and it is also showing depreciation.  I have double checked and the box to force mileage is checked, but I can not get rid of the amount of depreciation.  This is the only asset I currently have that would be being depreciated if not using mileage.  When I look at the form 4562 my car shows up twice, yet there is only one entry.

[jklcpa]

1 hour ago, Tax Prep by Deb said:

Perfect, I knew there had to be a way.  Now one more question.  On my personal return, I have always used the mileage deduction for my business use of my auto.  When it rolled over it is giving me both, mileage and it is also showing depreciation.  I have double checked and the box to force mileage is checked, but I can not get rid of the amount of depreciation.  This is the only asset I currently have that would be being depreciated if not using mileage.  When I look at the form 4562 my car shows up twice, yet there is only one entry.

At the top of the 4562 screen, make sure that the form shown in the "For" box says "AUTO" and not the Sch C.  Also, do not enter the business use % on the 4562 screen.  You shouldn't have to force the mileage but you can.  Once you have the 4562 linked to the auto worksheet, the 4562 should not be produced since the entries won't appear there if the mileage is higher, but the depreciation amount and the business % should show up on the auto worksheet for inclusion in the comparison of mileage vs actual and pick the higher of the two.  The Sch C shouldn't have an entry on the depreciation line, only on the auto line if mileage is higher. Try it without forcing first to see if it works.

This video from Drake's KB may also be helpful.  The result in the video is that actual expense is higher than mileage so there are entries on both the auto and deprec lines of the sample Sch C and the layout of the auto exp worksheet has changed slightly since this video was made, but the input and concepts are still valid. https://www.drakesoftware.com/service-learning/videos?video=70

[Tax Prep by Deb]

Thank You!  That took care of the problem.  It's amazing how many times you can look at something and not see the obvious.

So far I really like Drake!

[Terry D EA]

Just one more thing. A short cut for deleting a form/screen click CtrlD. You will be prompted with a question like "Are you sure". Click delete and the form is gone.

[Tax Prep by Deb]

14 hours ago, Terry D said:

Just one more thing. A short cut for deleting a form/screen click CtrlD. You will be prompted with a question like "Are you sure". Click delete and the form is gone.

Love it!  Thanks for the info!