Here's a visual navigation and configuration step-by-step guide Supademo link.
Step 1: Determine Depreciable Assets 🏗️📊
Identify all income-producing properties (e.g., rental properties, land, or equipment) that require depreciation.
Ensure that assets qualify for depreciation under IRS rules (e.g., used for business or rental purposes, has a useful life of more than one year).
Step 2: Enter Property Details in TaxWise 🖥️📑
Log in to TaxWise Online – Access your TaxWise account and open the relevant tax return.
Click the + icon to add the form Schedule E Pg 1 - Rent and Royalty Income or Loss
Enter the property’s acquisition date, cost basis, and other relevant details, such as the type of property (e.g., residential 🏠 or commercial 🏢 rental).
From here, add all the properties you would like to depreciate by entering their address information.
Then, enter the property type once you confirm by referencing on the list of cods above.
Once that's done, click here to confirm the days of your property rental.
Step 3: Enter Depreciation Information 📉📝
Now. let's add the depreciation form.
Then, link the Depreciation Form to Sch E Pg 1 that has the property that you want to depreciate.
Here, enter the activity of the asset that are trying to depreciate.
Scroll down to item no.6 then click the gray arrow to add the asset worksheet to depreciate the asset.
Then, add the description of the asset.
Once done, choose the applicable asset type and for this example, we are choosing Real property residential rental.
Next, enter the date when your property was placed in service.
After that, scroll and go to item no. 1 to enter the cost or basis of the asset.
Scroll down and choose the applicable convention type on your asset.
Step 4: Adjust for Prior Depreciation 🔄📆
If the property was previously depreciated, ensure that any prior depreciation taken is accurately reflected in the depreciation schedule.
TaxWise will carry over any accumulated depreciation and apply it to the new tax year’s calculations.
Step 5: Review and Submit ✅📤
Review the depreciation entry to confirm accuracy, ensuring all property details are correct and the correct method is selected.
Ensure that Schedule E reflects the correct depreciation deductions for the taxpayer's rental income or business assets.
Submit the return to the IRS after verifying all entries are correct.
By properly entering depreciation on Schedule E, you can help maximize deductions for rental and business properties while complying with IRS rules. 🚀💼