How do I enter Section 754 depreciation and amortization in a 1065 return using worksheet view in CCH Axcess™ Tax and CCH® ProSystem fx® Tax?
Section 754 depreciation and amortization can be entered using the following methods:
- Method 1: Detail Depreciation Input
- Method 2: Totals Depreciation Input
- Method 3: Totals Override Input
Method 1: Detail Depreciation Input - [Return]
- Go to the Income/Deductions > [Entity/Activity] worksheet.
- Select the section for Depreciation and Amortization.
- Click Detail located in the upper left corner of the grid.
- Select Section 1 - General.
- In Line 55 - Ratio ID for Special allocation or 754 - 1065 ONLY, enter a unique ratio ID.
- Select Section 1 - General.
- Go to the Special Allocations > Special Allocations worksheet.
- Select Section 3 - Ratio Allocation.
- In Line 1 - Ratio ID number, enter the same ratio ID number as entered in Line 55 above.
- In Line 11 - Ratio Allocation (grid), enter the following:
- In Partner Number (column), enter the partner number.
- In Ratio 1 (column), enter the amount or percentage to be allocated.
- Select Section 3 - Ratio Allocation.
- Calculate the return.
Method 2: Total Depreciation Input - [Return]
- Go to the Income/Deductions > [Entity/Activity] worksheet.
- Select the section for Depreciation and Amortization
- Click Totals (tab) located at the top of the section next to the section name.
- Select Section 5 - Tax Adjustment and Preference Items.
- In Line 4 - Section 754 depreciation - 1065 only, enter amount.
- Select Section 5 - Tax Adjustment and Preference Items.
- Note: Repeat this step for additional business entities / activities.
- Go to the Special Allocations > Special Allocations worksheet.
- Select Section 2 - Special Allocation Detail.
- In Line 1 - Code Lookup - Federal, use the drop-down to select the applicable code.
- Code 5207 - 13zz: Section 754 depreciation - Trade or Business
- Code 7609 - 13zz: Section 754 depreciation attached to Trade or Business activity
- Code 7603 - 13zz: Section 754 depreciation attached to Rental Real Estate activity
- Code 7605 - 13zz: Section 754 depreciation attached to Other Rental activity
- Code 7607 - 13zz: Section 754 depreciation attached to Portfolio
- Code 5213 - 13zz: Section 754 amortization
- In Line 4 - Special Allocation Detail grid, enter the following:
- In Partner Number (column), enter the partner number.
- In Allocation (column), enter the amount or percent to be allocated.
- In Line 1 - Code Lookup - Federal, use the drop-down to select the applicable code.
- Select Section 2 - Special Allocation Detail.
- Calculate the return.
Method 3: Totals Override Input - [Return]
Note: Using this method will override all other 754 depreciation for each income property activity.
- For Trade or Business activities, do the following:
- Go to the Income/Deductions > Business worksheet.
- Select Section 7 - Deductions.
- In Line 10 - Depreciation - Section 754 - override, enter the total amount for business property.
- Repeat this step for any additional business entities and activities.
- Select Section 7 - Deductions.
- Calculate the return.
- Go to the Income/Deductions > Business worksheet.
- For Rent or Royalty activities, do the following:
- Go to Income/Deductions > Rent and Royalty worksheet.
- Select Section 3 - Expenses.
- In Line 14 - Depreciation - Section 754 - override, enter the total for this Rental property.
- Select Section 3 - Expenses.
- Calculate the return.
- Go to Income/Deductions > Rent and Royalty worksheet.
- For Schedule K activities, do the following:
- Go to the Income/Deductions > Schedule K - Other Income/Deductions worksheet.
- Select Section 3 - Schedule K - Other Deductions.
- Click Detail located in the upper left corner of the grid.
- In Line 1 - Description, enter the description.
- In Line 3 - Amount, enter the amount.
- To allocate the Section 754 amount, do one of the following:
- To allocate using Partner Numbers, in Line 4 - Partner Number, enter the partner number. Or,
- To allocate using a Ratio ID number, in Line 5 - Ratio ID, enter a unique ratio ID number.
- Go to the Special Allocations > Special Allocations worksheet.
- Select Section 3 - Ratio Allocation.
- In Line 1 - Ratio ID number, enter the same ratio ID number as entered in Line 5.
- In Line 11 - Ratio Allocation grid, enter the following:
- In Partner Number (column), enter the partner number.
- In Ratio 1 (column), enter the amount or percentage to be allocated.
- Select Section 3 - Ratio Allocation.
- Calculate the return.
- Go to the Income/Deductions > Schedule K - Other Income/Deductions worksheet.
Solution Id | 000165731/How-do-I-enter-Section-754-depreciation-and-amortization-in-a-1065-return-using-worksheet-view-in-CCH-Axcess-Tax-and-CCH-ProSystem-fx-Tax |
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