@Delbert wrote:
AmeliesUncle, I don't think that is the proper way. IRS Pub. 946 says to:
1. Reduce the current adjusted basis, in my case $$20,958 by the $3,000 excess reimbursement. Year 2019 then starts with an adjusted basis of $17,958. Then,
2. Depreciate the remaining $17,985 evenly over the remaining life of the asset using the manual method in Pub. 946.
Hmmm. I think you are right.
I think you should be able to add a new "asset" (and delete the old asset) and get the program to do it correctly.
- Use the Adjusted Basis after the casualty ($17,958).
- Use the ORIGINAL "placed in service" date.
- When it asks for "Prior Depreciation", enter ZERO.
- Make sure you are using Straight-Line depreciation and elected out of Bonus Depreciation and Section 179.
That should hypothetically make the program "Depreciate the remaining $17,985 evenly over the remaining life of the asset".
