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11595: Schedule E - Adjustment Needed when Screens 6 - 8 are Used


1040 Individual

How do I enter depreciation for multiple properties on Schedule E using screens 6-8?

 

Screens 6-9 are override screens only. Use these screens if you complete your depreciation outside of Drake Tax and wish to enter it directly on the form. Do not duplicate entries here and on the 4562 screen. It's generally easier to use the 4562 screen with Schedule E, where you can use the multiform code to direct depreciation to the correct properties.

If you use screens 6, 7 and 8 for multiple properties, you will have to adjust line 18 on the E screen for each property to reflect the correct depreciation.

Example:

The total depreciation for three properties is $700. The depreciation for property A is $300, property B is $250 and property C is $150. After entering the information on screens 6, 7 and 8, property A on the Schedule E shows a depreciation allowance of $700, while properties B and C show $0. To adjust the amounts for each property:

  1. On the Schedule E screen, Income/Expenses tab for property A, enter an adjustment of -$400 on line 18, Depreciation ONLY.
  2. On the Schedule E screen, Income/Expenses tab for property B, enter $250 on line 18.
  3. On the Schedule E screen, Income/Expenses tab for property C, enter $150 on line 18.

Note: When an amount is entered on line 18 for Depreciation ONLY, a depreciation adjustment for AMT must also be entered (even if $0).


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