Drake Tax - 4562 Screen and Screens 6-9
Article #: 11794
Last Updated: November 06, 2024
Generally, you should use the 4562 detail screen to enter assets rather than the override screens 6 - 9. Use screens 6 - 9 as override screens if you complete your depreciation outside of Drake Tax and want to enter it directly on the form.
Important Do not duplicate entries on an override screen and on the 4562 screen.
Multi-form codes on screen 4562 connect to the instance of the schedule selected in the For field.
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When pointed to a Schedule C, multi-form code 2 indicates the second Schedule C in View mode.
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In the case of Schedule E, the multi-form code refers to the properties as they are listed on Schedule E. As there are three properties on each Schedule E, multi-form code 2 would be the second property on the first Schedule E, and multi-form code 4 would be the first property on the second Schedule E.
Where the asset appears on Form 4562 depends on how it is entered on screen 4562. Look at the form in View/Print mode and see what each section reports.
To stop depreciation on an asset, enter in a date sold under the If Sold area (if it was sold) or enter a date taken out of service IF NOT SOLD under the Additional Asset Information section of the 4562 screen. If you enter in any further information in the If Sold portion, such as the property type, the software will generate Form 4797.
For information on entering group sales, see Drake Tax - Group Sale. For information on Installment Sales, see Drake Tax - Installment Sale Definition. For information on a Group Sale Installment Sale, see Drake Tax - Group Sale Installment Sale.
Note
You cannot take depreciation for an asset bought and sold in the same year, or over a period of less than a year.
Only one screen 6, 7, 8 or 9 per Form 4562 is allowed per return. No additional statement is produced if a second screen is entered and pointed to the same business, return, or main form.
Caution Information entered on screens 6 - 9 is not used for Section 199A UBIA and QBI calculations. If the basis of these assets should be included in the UBIA amount, an adjusting entry must be made on the K screen > Other Information tab > line X to report the UBIA amount, as applicable. See Drake Tax – QBI: Unadjusted Basis Immediately After Acquisition (UBIA) for details on UBIA.