Transferring Depreciation and Amortization from Turbo Tax Premier to Turbo Tax Business

[carroll-j-1]

I have been using Turbo Tax for a number of years. I have a rental property and last year (2021) I was using Turbo Tax Premier and was filing a Form 1040 Schedule E and had Depreciation and Amortization Form 4562. This tax year (2022) I started an LLC to limit my liability. I plan on using Turbo Tax Business. I do have new improvements to enter for Depreciation and Amortization but is there a way to have the previous schedule automatically enter into the new software?

[CarissaM]

If you transferred 2021 into Turbo Tax 2022, the depreciation schedule will transfer as long as you used the .tax file. If you used the .pdf, the schedule may not transfer. 

Please let us know if we can further assist you, or click here to speak with us by phone. 

[carroll-j-1]

I'm trying to transfer from the Premier to Business. That's just Business, not Home and Business. I needed the Business software because of the multimember LLC.

[Carl]

You can not import or transfer into TurboTax Business, from any other version of TurboTax.

I assume this is a multi-member LLC that you will be filing a 1065 for.

Just print out the latest 4562's and the form 8582 from the most recent personal return you have.  The 4562's I'm referring to print in landscape format. One is titled "Depreciation and Amortization Report" and is most likely the only one you will need. The other is titled "Alternative Minimum Tax Report" and you'll need that one only if the Business program asks you for AMT amounts.

The Form 8582 shows your PAL carry overs. If you don't have a form 8582 that's fine. It just means you don't have any carry over losses.

When entering the property and it's other assets into the business program, all the data you need is on the 4562's. I.e.; in service date, cost, cost (net of land), business use percentage, method/convention, etc.

The program (not you) will figure the prior year's depreciation automatically, based on the in service date and other data that you enter.

[carroll-j-1]

I have been renting this property out for a number of years. This year I started an LLC to limit my liability. I transferred the property title to the new LLC. I have depreciation and amortization from previous years for the same property. I did print the latest Form 4562's from TurboTax Premier 2021.

I have entered the start date of the LLC as 01/01/2022 in TurboTax Business. I have assets on my Form 4562 with date in service prior to 01/01/2022. The problem I have is the program will not allow me to enter any data from the Form 4562 earlier than 01/01/2022. 

How can I work around this?

[Carl]

Is this a multi-member LLC? If no, stop reading now. Nothing below applies to your situation.

If yes. Are the owners/partners of the multi-member LLC exactly the same as the owners of the property before anything was transferred to new ownership?

If yes, then it's physically impossible for a business to own assets, before that business existed. The start date of the multi-member LLC *must* be on or before the date the first asset was placed "in service". 

Assuming the same people listed on the title before the transfer are the same people that own the LLC, that means you don't have a reportable transaction on the tax front. Just make the start date of the multi-member LLC on or before the first asset is placed in service, and it will all work out fine, as it should.

[Annchen]

@carroll-j-1 were you able to figure out how to enter in depreciation to TurboTax Business for a recently formed LLC? I am running into the same problem. TurboTax Business won’t accept a service date earlier than when the LLC was formed. 

[Carl]

TurboTax Business won’t accept a service date earlier than when the LLC was formed.

That is correct. You can't possibly place a business asset in service before said business was formed. I suspect I know the issue here.
You were asked for the date the business was stated/opened/established (something like that)

Then you were asked for the date the corporation (or partnership) was formed. Those does do not necessairly have to be the same.

In the case of filing form 2553 to treat a single member LLC "like an S-Corp" for tax purposes, it's perfectly possible the LLC was established well before you incorporated. Therefore your "business started" date could be Jan 1, 2003 for example, while your incorporation date could be July 1st, 2023.

So if the asset was in service since Jan 1, 2023, that's the date you enter and it won't accept any date earlier than that.

[tagteam]

@Annchen 

You can change the date in Forms Mode on your Federal Asset Entry Worksheet.