Should You Enter Depreciation from the Trial Balance in Lacerte?
No. Enter the assets on screen 16, Depreciation, and let Lacerte compute the deduction from them and from Form 4562. Typing the book depreciation figure into a deduction field as well deducts it twice. The difference between book and tax depreciation is a Schedule M-1 adjustment, not something to force into agreement.
- Detail
- Screen 16, Depreciation
- Asset detail
| Trial balance account | Lacerte screen and field | Lands on |
|---|---|---|
| Depreciation expense, per books | Do not post to a deduction field | Schedule M-1 as a book to tax difference |
| Fixed assets | Screen 16, Depreciation, one asset per row | Form 4562, then page 1 and Schedule L line 10a |
| Accumulated depreciation | Computed from screen 16 | Schedule L line 10b |
| Section 179 election | Screen 16, on the asset | Form 4562 part I |
| Asset sold or scrapped | Screen 16, mark as disposed. Do not delete the asset | Form 4797 and Schedule L |
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Try it freeShould You Enter Depreciation from the Trial Balance in Lacerte? on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense (the account this page is about) | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Example journal entries
| Account | Debit | Credit |
|---|---|---|
| Depreciation expense | 21,500.00 | |
| Accumulated depreciation | 21,500.00 |
The one account you do not import
Nearly every line on a trial balance should end up in the return. Depreciation is the exception, because the software computes it from the asset detail and Form 4562.
Mapping the book figure to a deduction field on top of that produces two deductions for one expense. It is easy to miss, because both numbers are plausible and neither triggers a diagnostic.
The assets are the input, not the expense
Screen 16 holds the asset detail: cost, date placed in service, method, life, and any section 179 or bonus election. From that, Lacerte produces the current year deduction, Form 4562, and the fixed asset figures on Schedule L.
Which means two things on the balance sheet side. Equipment and accumulated depreciation are computed, so manual overrides on the balance sheet screen fight the asset module rather than correcting it. And beginning accumulated depreciation has to come from the depreciation schedule or the prior year return, because it appears nowhere on the current year trial balance.
Book and tax will not agree, and should not
The client books might use straight line over a useful life somebody chose. The return uses MACRS lives, section 179 and bonus depreciation. The two numbers are different by design, and the difference belongs on Schedule M-1.
Forcing the books to match the return, or the return to match the books, destroys information for no benefit. Enter the assets, let the software compute, and reconcile.
Disposals: mark them, do not delete them
When an asset is gone, record the disposal on screen 16 rather than deleting the asset. Deleting removes the history, leaves the gain or loss unreported, and on some software creates exactly the kind of Schedule L imbalance that takes an hour to find.
The symptom worth knowing: accumulated depreciation close to or above the gross asset total usually means disposals were never properly recorded over several years.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | Page 1 line 14 from Form 4562, with the book difference on Schedule M-1 |
| Form 1065 | Page 1 line 16a from Form 4562 |
| Form 1120 | Page 1 line 20 from Form 4562 |
Common questions
Should I enter depreciation from the client trial balance?
No, not when the assets are in the depreciation module. Lacerte computes depreciation from screen 16 and Form 4562. Entering the book figure as a deduction as well deducts the same expense twice, and nothing flags it.
Where does accumulated depreciation come from on Schedule L?
From the asset detail on screen 16. Intuit own balancing procedure is to remove manual entries for ending accumulated depreciation and check the calculated figures before re-entering any correction. Beginning accumulated depreciation has to come from the depreciation schedule or the prior year return.
What if book depreciation and tax depreciation differ?
They usually do, because the books use a chosen useful life and the return uses MACRS with section 179 and bonus depreciation. The difference is a Schedule M-1 adjustment. Forcing either side to match the other loses information without improving the return.
How should I record an asset the client scrapped?
Mark it as disposed on screen 16 rather than deleting it. Deleting the asset loses the history and leaves the gain or loss unreported, and it is a known cause of a balance sheet that will not tie.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 17, 2026.