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Depreciation

Change like-kind Exchange settings

By default, the application follows IRS Notice 2000-4 and Regulation 1.168(i)-6 after 2/27/04 for Like-Kind Exchanges, but you can change this.
  1. Open your client.
    note
    You can only change these settings on a client-by-client basis in UltraTax CS, but you can change them for multiple clients in the Fixed Assets CS Template client.
  2. On the
    Asset List
    , select
    Setup / Treatments
    .
  3. Select a treatment to change, such as Tax, then select
    Options
    .
  4. Choose an option from the dropdown list to determine how the treatment will set up replacement assets from a
    Like-Kind Exchange
    .
    • Do not follow IRS Notice 2000-4 and Reg 1.168(i)-6
      .
      note
      The selected treatment for the replacement asset is set up so that the cost/basis is the original asset's adjusted net book value and depreciation begins on the disposal date. If you choose this and the trade happens after 2/27/04, the
      Treat entire basis as a current year acquisition (Election 1.168(i)-6(i))
       checkbox on the
      Disposal
       tab is marked. When this checkbox is marked, a statement will print with Form 4562.
    • Follow IRS Notice 2000-4; Reg 1.168(i)-6 after 2/27/04
      .
      note
      For all trades from 1/2/00 through 2/27/04, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to IRS Notice 2000-4. For all trades after 2/27/04, the selected treatment for a replacement asset that's depreciated using MACRS is set up according to Reg. 1.168(i)-6.
    • Follow Reg. 1.168(i)-6 after 2/27/04; do not follow IRS Notice 2000-4
      .
      note
      For all trades from 1/2/00 through 2/27/04, the selected treatment for the replacement asset is set up so the cost/basis is the original asset's adjusted net book value and depreciation begins on the disposal date. For all trades after 2/27/04, the selected treatment for a replacement asset that's depreciating using MACRS is set up according to Reg. 1.168(i)-6.
    • Follow Reg. 1.168(i)-6 after 1/2/00
      .
      note
      For all trades after 1/2/00, the selected treatment for a replacement asset that's depreciated using MACRS is set up according to Reg. 1.168(i)-6.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual,1120 Corporation,1065 Partnership,1041 Fiduciary,990 Exempt Organization
  • Subject: Depreciation

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