Duplicating original return to amend but cannot duplicate depreciation report

[AZ-Tax]

New client - amending 2006 (ext was filed in 2006) but cannot duplicate this one asset. All other assets match up.

PC cost basis: $2011
Placed in service: 4/12/2004
Bus use: 100%
Life: 5
Prior 179/SDA/DEPR: $603
200DB HY

Current (2006) depreciation on original return is $386 but I come up with $563.

What am I doing incorrectly?

[dsi]

Just use the correct amount as you calculate it to be. Forget what was on the original return, you are amending it.

[dtlee]

New client - amending 2006 (ext was filed in 2006) but cannot duplicate this one asset. All other assets match up.

PC cost basis: $2011
Placed in service: 4/12/2004
Bus use: 100%
Life: 5
Prior 179/SDA/DEPR: $603
200DB HY

Current (2006) depreciation on original return is $386 but I come up with $563.

What am I doing incorrectly?

Perhaps nothing. Perhaps something.

Generally, an asset placed in service in 2004 as you describe would have $402 in depreciation in 2004 and $644 in 2005 (totalling $1,046). If that occurs, the depreciation would be $386 in 2006. However, prior depreciation was only $603. If the prior depreciation was $603 because the percentage use was under 100%, you could probably coax the correct amount for 2006 from your software by using $1,046 as the prior amount.

However, if ADS Straight Line were chosen instead of MACRS in 2004, There would have been $201 in 2004 and $402 for 2005 (totalling $603). This would mean that the amount for 2006 should really be $402.

Hope this gives you some insight into what you might be seeing. My guess is that the depreciation method was actually Straight Line.

[Gary2]

Is it possible that the business use percentage varied from year to year? Wouldn't that change the accumulated depreciation in ways that you couldn't duplicate without more information?

[AZ-Tax]

Here we go again with amending 2007.

The 2007 Fed Depreciation Schedule from the original tax return has "Grand total depreciation" as $1341 which is the same amt I came up with when I transferred the original 2006 over to 2007 BUT on 2007 Sch C ln 13 (depreciation) it displays $1225. No assets were placed in service in 2007.

What is up with that?

[taxmom34]

maybe

maybe an asset was listed as 3 yr depreciation and depreciation was lower or it was fully depreciated in 2007??