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Depreciation

Depreciation options

Use this Organizer to select compute and print options for depreciation. The options selected on this Organizer apply to the entire return, not just to individual activities.
In Organizer, select
Income and deductions
Deductions
Depreciation and amortization
Depreciation options
.
You can select any of the options that apply:
  1. Select the option to transfer unadjusted federal depreciation to all state returns to ensure the depreciation transfers to all state returns.
    note
    This option prevents automatic state depreciation adjustments.
  2. The option to use the SL table rates for ACRS assets for tax preference computations on all ACRS assets.
  3. The option to calculate MACRS SL as the basis divided by remaining life. Select this option to use formulas, not IRS tables, to determine the basis.
  4. The option to compute book depreciation and amortization.
  5. The option to reduce the book basis for Section 179 expenses, special depreciation allowance, and investment tax credit.
  6. The option to include amortization expense when calculating the ACE and the ACE adjustment.
  7. The option to use formulas instead of the IRS tables.
  8. The option to suppress computation of special depreciation allowance.
  9. The option to retire all assets (depreciation and amortization).
  10. Enter the number of years for which projected depreciation is desired. This entry will cause the system to project tax, AMT, ACE, and book depreciation for the number of years entered.
  11. The option to compute depreciation for short year terms, enter an override amount (if necessary) for the number of months to compute depreciation for short year returns.
note
MACRS property straight-line computations are calculated as depreciable cost/life. An entry in step 5 causes the system to consider accumulated depreciation when calculating the asset basis divided by the remaining life of the asset. A selection in step 3 applies to all assets. Use the lowest level data entry Organizer to select calculations for individual assets.

Print

  1. Under
    Print Options > Print depreciation detail
    , select whitepaper categories to print depreciation details according to the white paper categories entered on the asset detail Organizer.
  2. To suppress detail printing for specific portions of the white paper, select the appropriate option under
    Suppress white paper detail for
    .
  3. To suppress all depreciation detail printing, select the
    Suppress all depreciation detail print
     option.
  4. Select the appropriate under
    Print See Depreciation Detail on:
    .
  5. Select the appropriate under
    Print with Federal Return for States that do NOT adopt Special Depreciation
    .
  6. Enter the data under
    Section 168(k) Election
    .
  7. Enter the data under
    Section 195(b) Election
    .
    note
    There are 7 predetermined codes and 4 optional codes for printing white papers. The option in step 1 is available only for general trade or business depreciation. It is not available for rental, farm, pass through, or depletion depreciation. The system automatically print subtotals for each category when the white paper option is selected.

Select MACRS Convention Over

Under
MACRS Convention (override)
, select the override method (if any) from each year's list. The application of the mid-quarter convention is automatically determined for each year of MACRS property. To override the automatic calculation, enter HY or MQ for the applicable year. Convention can also be overridden on a per asset basis. On the lowest level asset detail Organizer, or by class on the summary overrides Organizer.

Enter AMT default life override amounts

  1. Under
    AMT Default Life Overrides
    , enter the override amount for each applicable property type.
  2. Override the MACRS property for all returns on the
    General Information
     Organizer.
  3. These entries override the AMT lives on all applicable MACRS property for this return only.

Reset or delete depreciation

  1. Under
    Reset General Depreciation
    , use the button to reset the general depreciation folder.
  2. Under the
    Delete all Depreciation
     section, use the appropriate button to delete all depreciation Organizer data.

This article applies to:

  • Product: ONESOURCE Income Tax

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