754 Deduction and Pro Series

When imputing the 754 depreciation deduction on line 13 of the K1 worksheet code W in Pro Series the program does not take the deduction any where. Appears you have to manually enter the figure.

Any one else have this problem? Where are you entering the deduction? The only place I'm thinking is on the supplemental business expenses worksheet line 9?

Pet Peeve warning: "754 deduction"
There is no 754 deduction. The specially allocated deduction that is potentially generated when a 754 election is in effect is usually a 743(b) adjustment.

To your point, I've seen several preparers note this special allocation under 13W, but in 2020 it should be noted as 13V. I'm relatively certain this is new in 2020. I'd guess that it will show up as you expect if you entered it in Box 13V in your software.

I'm relatively certain this is new in 2020.

No, sir. See the 2019 F1065 instructions.

When imputing the 754 depreciation deduction on line 13 of the K1 worksheet code W in Pro Series the program does not take the deduction any where. Appears you have to manually enter the figure.

Have a client same circumstances. Proseires subtracted the depreciation directly from the box 2 rental income and put the net on Schedule E p2. Did for several years. In 2018 IRS sent a notice saying 1040 E p2 income did not match their K-1 box 2 records. Got a transcript and IRS only lists K-1 income, no deductions. Had to explain Proseries did the deduction and put net on E p2. They accepted my explanation and no tax bill. If I had to do again( no longer use Proseries) I would use 2 K-1's to show the Gross K-1 box 2 income and separately the 754 deduction so both show on E p2.

I'm relatively certain this is new in 2020.

No, sir. See the 2019 F1065 instructions.

New in 2019...I was WAY off, my apologies.

When imputing the 754 depreciation deduction on line 13 of the K1 worksheet code W in Pro Series the program does not take the deduction any where. Appears you have to manually enter the figure.

Have a client same circumstances. Proseires subtracted the depreciation directly from the box 2 rental income and put the net on Schedule E p2. Did for several years. In 2018 IRS sent a notice saying 1040 E p2 income did not match their K-1 box 2 records. Got a transcript and IRS only lists K-1 income, no deductions. Had to explain Proseries did the deduction and put net on E p2. They accepted my explanation and no tax bill. If I had to do again( no longer use Proseries) I would use 2 K-1's to show the Gross K-1 box 2 income and separately the 754 deduction so both show on E p2.

I experienced the same in 2018. Must have been a glitch in their matching.

Thanks to all who replied. Changing the code to V worked.