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How to enter prior depreciation in UT

Cristina DeFranco

Hi, I'm pretty new to UT and I need some extra guidance on how to enter the depreciation report from the prior preparer. Here is what I'm entering and here is what I've entered and wanted to check if somebody could help me with the entry, I'd greatly appreciate it. I can also move this question to another group if suggested. 

I looked at prior year 2022 and the bus. exclusion is .5833 and for 2021 TY bus. exclusion is .3333. If client did not rent the cabin in 2024, used it only 8 days for personal use, do I mark it inactive? 

VacationRentalSample.pdf

For the House

Flooring

Septic System

Thanks for any collaboration you could give me. 

Parents
  • +1
    Thomson Reuters Thomson Reuters staff member

    Hi Cristina, Since no one has answered yet, I took your question and attempted to get our AI tool to answer it. Let me know if it's correct 

    To enter prior depreciation for a cabin in UltraTax CS that was not rented in 2024 and used only 8 days for personal use, follow these steps:

    1. Navigate to the Asset tab for the property.
    2. Select Setup, then Activity, and choose Vacation Home Percentage.
    3. Enter the vacation home usage information:
      • Enter "8" in the Number of days home used personally field.
      • Enter "0" in the Number of days home rented field.
      • The system will calculate the total days of property use and the depreciation percentage allowed for rental activities. Since there were no rental days, the depreciation percentage for rental use will effectively be zero.
    4. In the Asset tab, select Modify to adjust the existing asset details.
    5. In the Asset Detail window:
      • Under the Depreciation tab, ensure the Cost/Basis and other depreciation-related fields are accurate.
      • Under the Vehicle/Listed tab, select Other business & personal from the Type of property dropdown.
      • Verify the Bus use pct field reflects the correct business usage percentage (likely 0% for rental use in this case).
    6. To enter prior depreciation, go to Tasks in the Asset Detail window and select Prior Depreciation Comparison. Enter the prior-year business use percentages in the Asset's business use percentages field.

    You do not need to mark the cabin as inactive. Instead, accurately reflect its usage for the year and enter the prior depreciation details in the appropriate fields.

    Retrieved urls

    1. vacation home percentage dialog
    2. Enter vacation rental information
    3. screen rent3 rent royalty property vacation home 1040
Reply
  • +1
    Thomson Reuters Thomson Reuters staff member

    Hi Cristina, Since no one has answered yet, I took your question and attempted to get our AI tool to answer it. Let me know if it's correct 

    To enter prior depreciation for a cabin in UltraTax CS that was not rented in 2024 and used only 8 days for personal use, follow these steps:

    1. Navigate to the Asset tab for the property.
    2. Select Setup, then Activity, and choose Vacation Home Percentage.
    3. Enter the vacation home usage information:
      • Enter "8" in the Number of days home used personally field.
      • Enter "0" in the Number of days home rented field.
      • The system will calculate the total days of property use and the depreciation percentage allowed for rental activities. Since there were no rental days, the depreciation percentage for rental use will effectively be zero.
    4. In the Asset tab, select Modify to adjust the existing asset details.
    5. In the Asset Detail window:
      • Under the Depreciation tab, ensure the Cost/Basis and other depreciation-related fields are accurate.
      • Under the Vehicle/Listed tab, select Other business & personal from the Type of property dropdown.
      • Verify the Bus use pct field reflects the correct business usage percentage (likely 0% for rental use in this case).
    6. To enter prior depreciation, go to Tasks in the Asset Detail window and select Prior Depreciation Comparison. Enter the prior-year business use percentages in the Asset's business use percentages field.

    You do not need to mark the cabin as inactive. Instead, accurately reflect its usage for the year and enter the prior depreciation details in the appropriate fields.

    Retrieved urls

    1. vacation home percentage dialog
    2. Enter vacation rental information
    3. screen rent3 rent royalty property vacation home 1040
Children
  • 0 in reply to Nageshwaran Gopal

     Thanks for your response through AI. It looks like I had done many of the entries at different times as questions popped up, but I came back to review these steps and found that maybe I had missed proper entries. So, I appreciate it. The end result is that this should not even show in Sch E due to the vacation rental rules. The client only rented it one day and used it personal 2 days. However, I wanted to enter the depreciation as in prior years. I can't seem to get the exact depreciation schedule as presented to me from prior preparer. Here is why: prior depreciation shows 

    House ADS HY 19.75 from 11/24/08 and a bus excl of .6667 for 2023. 

    Now, what do I do if the prior preparer entered this method and number of years for depreciation? Do I even try to fix that going forward? 

    Here is what I've entered, and here is the prior preparer's schedule I'm trying to match. I don't have 2019 tax year for the % calculation. 

    Thank you again for any guidance.