Rental Property destroyed in 2020 Fed declared disaster. Was advised on forum to enter prior year as date of loss on asset entry worksheet to prevent depreciation accruing in 2021. But, this causes an error (date not valid) preventing efile of 2021 return. Also error using the 2020 date causes error on the 1033 deferred Gain from involuntary conversion form. But that is valid date. Rebuild almost complete in May 2022 which will be date of replacement.
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One simple solution is to change the date to 1/1/2021. Then write an attached statement in the details explaining what the actual date was and why you chose it, but are filing it in 2021.
Alternatively, if you want to file with a 2020 date, you probably need to file an amended 2020 return, etc.
I did try to change the date to 1/1/2021
That added one day of depreciation to the 2021 return.
So, I tried to manually correct the depreciation.
That created another error regarding the depreciation.
the 1033 form had and detailed explanation and the Fed disaster designation info.
So I just mailed it in with my phone number highlighted.
Wish me luck.
Thanks for your recommendation.
I can only hope Intuit make dealing with disaster claims easier by the time I have to finalize this in 2022.
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