I am having a bit of trouble converting the asset in TurboTax.
Am I supposed delete the asset from TurboTax asset summary or just mark it as disposed?
I have been going through trial and error here are the problems:
a) If I keep the asset on the books and enter in total prior year depreciation (under the deductions tab), my net income is wrong. The net income ends up increasing by the amount of prior depreciation.
b) If I keep the asset on the books but do not enter total prior year depreciation, then my net income is correct but an error pops up because I put down 0% for business use.
c) If I delete the asset altogether, everything will balance and I don't get the error about % of business use.
When checking the balance sheet, do I input the remaining basis amount (the amount of the vehicle that was not yet depreciated) into property distributions to partners? Or was I supposed to put the original purchase amount of the vehicle?
My Journal Entries in Quickbooks were Credit Assets $10,000, Debit Accumulated Depreciation $6,000 and Debit Owner Equity $4,000. The $4,000 is the remaining amount that has not yet depreciated. Is that correct or is there another step that I missed?
