Asset depreciation features and calculations

Alerts and notices

See also: Depreciation tax assumptions

The following is a list of key asset depreciation features and calculations available in Fixed Assets CS.

  • Includes options that allow you to customize data entry for each client.
  • Replicates similar assets, if desired, to speed data entry.
  • Contains built-in drop-down lists of options for many fields to speed data entry.
  • Calculates the tax preference portion of depreciation automatically.
  • Handles up to three different prior fiscal year ends and short years.
  • Displays the formula used to calculate depreciation for any asset.
  • Depreciates assets using any of the following treatments: Tax, Book, states, AMT, state AMT, E&P, ACE, state ACE, and an unlimited number of custom treatments.
  • Enters AMT, E&P, and/or ACE information automatically.
  • Calculates ITC automatically (when appropriate) as assets are entered.
  • Accommodates asset trades and exchanges.
  • Calculates an unlimited number of state depreciation treatments per client for U.S. states, territories, and more.
  • Calculates ACRS straight-line depreciation based on either IRS tables or formulas.
  • Recognizes limitations on luxury automobiles (passenger) and listed property.
  • For 1040, 1065, 1120, and 1120S clients, calculates lease inclusion amounts for leased automobiles.
  • Recognizes limitations for section 179 expense amounts.
  • Maximizes section 179 expense for a current-year asset, if desired.
  • Recognizes limitations for start-up and organizational expenditures expense amounts.
  • Maximizes start-up / organizational expenditures for current-year assets, if desired.
  • Calculates section 168(k) and 1400N bonus depreciation when applicable.
  • Tests whether the mid-quarter convention applies and recalculates depreciation automatically based on mid-quarter convention rules.
  • Recalculates prior depreciation allowable, when requested, and allows you to print or view reports for prior years.
  • Calculates depreciation recapture for Form 4797.
  • Calculates low-income housing depreciation.
  • Calculates ITC (Investment Tax Credit) recapture for Form 4255.
  • Calculates a vehicle's business use percentage based on mileage information.
  • For 1040 clients, optimizes between actual costs and the standard mileage rate in the year that a vehicle is acquired.
  • Calculates for disposal methods of sold/scrapped, casualty/theft - replacement, casualty/theft - no replacement, out of service, retired, and like-kind exchange.
  • Method/Life Wizard that automatically enters the methods and lives for an asset based on the asset class chosen and the date placed in service.
  • Association Wizard that automatically fills in association fields based on a primary association that you set up.
  • Calculates for transfers between activities and associations.
  • Allows you to dispose of multiple assets for one sales price in a mass disposition.
  • Provides a table of MACRS asset lives, derived from Revenue Procedure 87-56.

Was this article helpful?

Thank you for the feedback!