Treatment Options > Calculation tab

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Use this tab to set calculations for the mid-quarter application, section 168(k), IRS Notice 2000-4 and Reg. 1.168(i)-6, and luxury auto limits.

To open this dialog, open the Asset List window or Asset Detail dialog, choose Setup > Treatments, and in the Treatments dialog do one of the following steps.

Fields & buttons

Mid-quarter application for current-year acquisitions group box

  • System evaluated: This option is marked by default because the application tests all assets purchased during the current year to determine whether they should be included in or excluded from the MACRS mid-quarter calculations. The application includes all MACRS personal property assets and 7-, 10-, 15-, 20-, or 25-year assets that have been forced as real property assets at their business cost.

    To exclude these assets, you must mark the Exclude from mid-quarter determination (force) checkbox for each asset. To do this, click the asset's Other tab and then click the Mid-Quarter & Section 179 Force Options button.

  • Force application: To force the application to calculate using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, click the Force application option.
  • Halt application: To stop the application from calculating using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, click the Halt application option.

Miscellaneous options group box

Select the desired option from the drop-down list to determine how the selected treatment will set up replacement assets from a like-kind exchange.

  • Do not follow IRS Notice 2000-4 and Reg 1.168(i)-6: 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.

    Note: If this option is selected and the trade occurs after 2/27/04, the application marks the Treat entire basis as a current-year acquisition (Election 1.168(i)-6(i)) checkbox on the Disposal tab. 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: 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 is 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: 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 is depreciating using MACRS is set up according to Reg. 1.168(i)-6.
  • Follow Reg 1.168(i)-6 after 1/2/00: For all trades after 1/2/00, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to Reg. 1.168(i)-6.

Mark this checkbox to apply luxury auto (passenger) and van and light truck limits to the current treatment for assets marked as luxury autos or vans and light trucks in the Vehicle/Listed tab of the Asset Detail dialog.

Otherwise, calculations for the State, Book, and/or custom (including Other) treatments treat those assets as listed property (rather than as luxury autos).

Mark this checkbox to use 100% as the business use percentage for the Book treatment. When this checkbox is marked, the Book treatment always calculates the assets at 100% business use, regardless of the business percentage being used by other treatments.

Note: This checkbox is available only for the Book treatment.

Mark this checkbox to have the Book treatment follow GAAP calculations for disposals.

Note: This checkbox is available only for the Book treatment.

Mark this checkbox if the current treatment should use the same method of optimization (in the Vehicle/Listed tab) as the Tax treatment.

Note: This checkbox is available only for 1040 clients. If this checkbox is not marked, the difference from federal will only be transferred to the following UltraTax CS states: MA, CA, WI, and PA.

Click this button to open a dialog in which you can choose the tax years for which the basis is adjusted or not adjusted for the excise tax credit.

Note: This checkbox is available only for the HI treatment.

Bonus group box

Mark the checkboxes for the years that the current treatment should comply with section 168(k) bonus depreciation.

Note: These checkboxes only appear for the Tax and AMT treatments.

Mark this checkbox if the current treatment should calculate 30% bonus depreciation for assets placed in service from 9/11/01 to 5/5/03.

Note: This checkbox only appears for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.

Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets placed in service from 5/6/03 to 12/31/04.

Note: This checkbox only appears for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.

Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets marked as located in the GO Zone and placed in service from 8/28/05 to 12/31/07.

Note: This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.

Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets placed in service from 1/01/08 to 9/8/10 or 1/1/12 to 12/31/17, calculate 100% for assets placed in service from 9/9/10 to 12/31/11, calculate 40% for assets placed in service from 1/1/18 to 12/31/18, or calculate 30% for assets placed in service from 1/1/19 to 12/31/19.

Note: This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.

Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets marked as located in a disaster area.

Note: This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.

The AZOrig treatment is used to calculate the catch-up adjustment for Arizona.

When this treatment was first created, the AZ treatment was copied to the AZOrig treatment. If prior depreciation is ever recalculated for the AZOrig treatment, it will calculate following the same bonus depreciation calculations as the AZ treatment.

The IAorig treatment is used to calculate the catch-up adjustment for Iowa.

When this treatment was first created, the IA treatment was copied to the IAorig treatment. If prior depreciation is ever recalculated for the IAorig treatment, it will calculate following the same bonus depreciation calculations as the IA treatment.

The WIorig treatment is used to calculate the add back amount of the difference between the adjusted basis at the beginning of the 2014 tax year of the WIorig treatment and the Tax treatment.

When this treatment was first created, the WI treatment was copied to the WIorig treatment.

The WIAMTo treatment is used to calculate the add back amount of the difference between the adjusted basis at the beginning of the 2014 tax year of the WIAMTo treatment and the AMT treatment.

When this treatment was first created, the WIAMT treatment was copied to the WIAMTo treatment.

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