Lacerte - OIH Simplified Option Short Year

[mactoolsix]

Office in the home simplified depreciation option for a short year - client moved on July 1 of the year, but Lacerte is calculating a full year for the simplified method (line 30); AND it continues to calculate regular depreciation for line 13. Entering the sale date only effects Sch C line 13 depreciation. Entering a "6" for Short Year cuts line 13 in half, but no effect on line 30. How can I get line 30 to reflect a part year, and stop the line 13 depreciation?

[taxea]

make an adjustment on the line.

[mactoolsix]

make an adjustment on the line.

So your'e saying Lacerte's Simplified Option for OIH does not work for a short year, and I should make the calculation manually, enter that as current depreciation and then enter mortgage interest and taxes on Sch A?

Easy enough, but it seems Lacerte should be able to do this automatically - I think maybe I'm missing something??

Thanks,
Mike

[mactoolsix]

For those interested, I think this is the solution:

I computed the simplified depreciation ($5 x 165SF x 6/12) = 413, entered that as current year depreciation.
I entered the date sold (7/1/15) on the depreciation screen.
Did not make any entry on the OIH 8829 for simplified method.
Worked & it did properly allocated mortgage interest & property tax between Sch C & Sch A.

I don't understand why Lacerte doesn't do this correctly . . . .

[kathyc2]

Office in the home simplified depreciation option for a short year - client moved on July 1 of the year, but Lacerte is calculating a full year for the simplified method (line 30); AND it continues to calculate regular depreciation for line 13. Entering the sale date only effects Sch C line 13 depreciation. Entering a "6" for Short Year cuts line 13 in half, but no effect on line 30. How can I get line 30 to reflect a part year, and stop the line 13 depreciation?

Not sure how Lacerte works, but for Pro you would do the following:

If using simplified and have 1/2 year use, use 1/2 the square footage. For example if 300 sq ft, for 1/2 year you would enter 150 sq ft.

If you are using either simplified or actual you would never have a deduction on line 13 of C. If using actual the HO depr would be on line 29 of 8829, and if using simplified it would not be anywhere.

In Pro you link the HO to the 8829 and not to the Sch C.

[mactoolsix]

Not sure how Lacerte works, but for Pro you would do the following:

If using simplified and have 1/2 year use, use 1/2 the square footage. For example if 300 sq ft, for 1/2 year you would enter 150 sq ft.

Kathy - thanks for that tip - it works better and is simpler to enter.
Mike

[TAXNJ]

Correct "link"

So your'e saying Lacerte's Simplified Option for OIH does not work for a short year, and I should make the calculation manually, enter that as current depreciation and then enter mortgage interest and taxes on Sch A?

Easy enough, but it seems Lacerte should be able to do this automatically - I think maybe I'm missing something??

Thanks,
Mike

Sounds like originally you missed the correct form and correct form "link" and found it after Kathyc2 recommended. For the cost of Lacerte it should perform correctly.

Good for you to continue questioning and found Kathyc2 to give you better experience and knowledge for the correct solution.