User's Manual - Drake Software

Depreciation
Drake Software User’s Manual
Stopping Depreciation on an Asset
Depreciating Sold Assets
To stop depreciation on an asset that was not sold, enter the asset’s remaining basis in
the Salvage Value field (fourth item on the left side of the 4562 screen). The asset will
be updated to next year. No additional depreciation will be taken since the accumulated
depreciation equals the depreciable basis.
To indicate the sale of an asset for depreciation purposes, complete the applicable
fields in the If sold section of the 4562 screen. (See Figure 5-55.)
Group Sales
To enter group sales in Drake:
1. Open a 4562 screen for the first asset of the group sale.
2. Complete the applicable fields for the asset, including Date sold and Property
type fields, and all fields under Group Sale Information (Figure 5-55).
Figure 5-55: Screen 4562 fields to complete for the first asset of a group sale
3. Open a 4562 screen for the next asset in the group sale.
4. Complete the applicable fields for the asset. In the If sold section, only the Date
sold, Property type, and Group sale number fields are required.
5. Repeat steps 3 and 4 for all assets in the group sale.
NOTE
Complete the Date sold, Property type, and Group sale number
fields for all assets in a group sale. The Group sales price and Group
expense of sale are required for only the first asset listed.
The sales price and the expenses will be pro-rated among the assets based on the cost/
basis of the assets and will flow to Form 4797, Sales of Assets.
Form 4797,
Sales of
Assets
If data is entered for Date sold and Property type, the asset data flows to Form 4797,
Sales of Assets. If only the Date sold field contains data, nothing flows to Form 4797.
For a Section 1250 property, an entry in the Form 4797, line 26d depreciation field
flows to that line of Form 4797. An entry in the Form 4797, other Part III depreciation
field flows to the appropriate line of Form 4797, depending on the property type.
170 Tax Year 2012