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Home   Help for Accountants   Training and Resources   Archive: ProSeries Basic  
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01/26/2012 at 02:08PM PST
We’ve seen a scam e-mail regarding Intuit tax information floating around today. This e-mail was not sent or authorized by Intuit. If you ever wonder whether an e-mail from Intuit is real or fake, please refer to the link below.

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newark
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03/25/08 1:42pm PDT

Need help on 50% depreciation calculation on Schedule E

I use ProSeries Basic this year. The client has 50% ownership on a rental property. I choose to click "M" line on Sch E - Check to Allociate Income & Expense using Ownership Percentage and Click "N" and enter 50% on Enter Ownership Percentage space.All income and expenses I entered on column "a" are automatically calculated and transfer half of the amount to column "c" Reported on Schedule E.The depreciation on column "a" however transfer the whole amount to column "c".Do I need to enter only half of the cost of the asset in Asset Entry Worksheet so that my cleint can claim the whole amount of depreciation shown on column "c"?The way my client's previous tax preparer did was to enter 100% of Income and Expenses on Schedule E, including 100% of the cost of an asset, then on line 22 of Sch E, she used the total expenses from line 21 x 0.5000. I don't know which tax program the preparer used and how I can try the same way to show the total income on line 21 and times 0.5000.Any input will be appreciated!

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03/26/08 9:52am PDT

I would think that since your client is a 50% owner, that you would enter 50% of the the total basis on the asset entry worksheet.

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04/23/08 2:43pm PDT

I would agree with taxman37!

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It might be easier to take the rental property information and split everything up 50/50 and then on each individual owner';s share as 100% on their respective tax returns. The % ownership boxes on the Sch E worksheet I thought had more to do with the rental % when the taxpayer owned the entire building and used a portion as a residence as in a double.

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