Real estate acquired 12/31/70 or earlier - used (CA treatment)

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The following table provides information about how the CA treatment will be built for real estate acquired 12/31/70 or earlier - used.

When the Tax method is CA treatment will be set up as
Straight Line

Method: Straight Line

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
125% DB

Method: 125% DB

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.

150% DB or

200% DB

Method: 150% DB

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
Years Digits

Method: Years Digits

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
Land

Method: Land

Life: Uses the life entered in the Life field for the Tax treatment.

Assumption

Real property assets with a Tax life of 31.5 or 39 or greater than 40 are considered commercial and industrial assets. All other real property assets are considered residential rental assets.

After building the CA treatments, you should review and modify the CA treatment lives for the following assets.


Related topic

How Fixed Assets CS determines the appropriate method and life

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