Outsourced returns

[L.S.]

We out-sourced about 35 2010 returns which were completed with other software. I am going to rollover these returns into the 2010 program. My concern is next year when completing the 2011 returns - what happens with the depreciation. Does the rolling over process show the 2010 depreciation used or does the actual filing the returns through ATX show the depreciation used? What, if anything, will I need to do next year re: this depreciation? Thanks.

[Gail in Virginia]

When you roll the returns over, you must then open the return in the 2010 program. If you don't open it, then when you go to roll it over next year for 2011 the program will tell you that you don't have anything in the 2010 program because the return was never opened. I would also compare the return's depreciation with what the other firm used while you have it opened to check for assets added or removed or any discrepancies in how the depreciation was handled. I hope that I understood your question correctly.