Designating an asset as real property

Alerts and notices

The application automatically designates any asset as real property if the asset falls into one of the following categories.

  • MACRS method of depreciation and an asset life of greater than 20 years
  • ACRS method of depreciation and an asset life of 15 years (if acquired after 1980 and before March 16, 1984), 18 years, or 19 years
  • ACRS method of depreciation and 15-year low-income housing, regardless of the date placed in service

For these assets, the Tasks > Designate as Real Property command, which is accessible when the Asset Detail dialog's is open, is automatically selected and cannot be changed.

Complete the following steps to designate as real property any other asset that has a life greater than five years.

  1. Open the desired client and, if necessary, click an activity folder.
  2. Select the asset you want to designate as real property and click the Modify button.
  3. In the Asset Detail dialog, choose Tasks > Designate as Real Property. A checkmark appears next to the command, indicating that this designation is selected.

Note: If MACRS property (5, 7, 10, 15, 20, and 25 year) that has been forced to be real property (via the Tasks > Designate as Real Property command) is to be included in the mid-quarter calculation, you must mark the Include in mid-quarter determination (force) checkbox, which is located in the Mid-Quarter & Section 179 Force Options button in the asset's Other tab.

Tip: To remove the designation, repeat this procedure.

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