Section 197 Intangible Assets deduction is not transferring to balance sheet on TurboTax Business

[K80Kid]

I am hoping that someone can either explain or confirm a possible bug in TurboTax Business.

Our business purchased the copyright to some software this year. We want to depreciate the copyright per Section 197 as an Intangible Asset over 15 years. 

Using the Federal Taxes/Deductions/Depreciation of Assets we enter the information and it correctly calculates the depreciation amount and displays the Form 4562s. Unfortunately, it does not seem to transfer the deduction to the summary page, or the balance sheet, after hitting the "Done" button. (Tangible Assets do work properly.)

Is this a bug or a feature?

[Anonymous_]

For some reason, I cannot seem to reproduce your result in TurboTax Business.

If you provide more details, perhaps someone will be able to assist you.

[K80Kid]

Okay. I have concluded that TurboTax shows zero on the summary page, because it only seems to include depreciation amounts. I know that intangible assets are considered amortization, but the summary page is confusing since it appears to ignore the asset.

Thanks to anyone that tried to help!

[ThomasM125]

The deduction for the section 179 intangibles is called amortization expense, not depreciation. As such, it shows up on form 4562 (Depreciation) in part VI, line 44.

Since it is not depreciation, it will be reported as an Other Expense item on your business income tax return, not as a component of depreciation. I'm not sure what business return you are preparing, but on the balance sheet you should see an entry for Accumulated Amortization, which is a contra entry to your Intangible Assets, which should appear in the assets section of your balance sheet.

[bfalter]

On Schedule M-1 the per books shows the per books depreciation+amortization on the depreciation line.  The per tax return shows only the depreciation, the amortization line shows the correct amortization but the difference column does not calculate an amortization delta.  So Turbotax is stating I have an error to correct.  In forms, Sch M-1, I added a zero to the per books amortization line and it calculated the difference solving the issue.