Options > Calculation tab

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Use this tab to customize depreciation calculation options for the open client. The options you set apply to the open client only.

To open this tab, choose Setup > Options in the Asset List window, and then click the Calculation tab. (Note that this tab is not available in the Setup > Options dialog when accessed through the Asset Detail dialog.)

Changing the period treatment after data has already been entered for the client could cause inconsistencies in the data. Therefore, if you change the period treatment, you must force the application to recalculate the depreciation for all of the client's assets. (In the Asset List window, choose Tasks > Calculate All Assets.)

Fields & buttons

Non-ACRS/MACRS calculation options group box

Select one of the following options from the drop-down list to determine the current depreciation for a non-ACRS/MACRS asset.

  • Based on months held in year of transaction: Click this option to determine the current depreciation based on the number of months held in the year of transaction for a non-ACRS/MACRS asset.
    • If the acquired date is in the first 15 days of the month, the application uses a full month for the month of transaction.
    • If the acquired date is in the last 15 days of the month, the application calculates from the following month.
  • Half-year of depreciation in year of transaction: Click this option to calculate depreciation based on a half-year's depreciation in the year of transaction for a non-ACRS/MACRS asset.
  • Full year/no depreciation based on transaction date: Click this option to calculate depreciation by either using a full year's depreciation or no depreciation at all in the year of transaction for a non-ACRS/MACRS asset. If the transaction happens in the first six months of the year, the application calculates a full year's depreciation. If the transaction occurs in the last six months of the year, the application calculates zero depreciation for that year.

The application automatically switches to straight-line method when advantageous. Mark this checkbox to turn this feature off and continue using the declining-balance method.

Note: Marking this checkbox has no effect on depreciation being calculated under MACRS/ACRS assets.

ACRS/MACRS calculation options group box

Mark this checkbox to limit depreciation for an ACRS/MACRS asset to its depreciable life.

Note: Regardless of whether this checkbox is marked, the application does not limit MACRS/ACRS assets for a short-year client or if the asset is a luxury auto.

For the MACRS accelerated method, you can use either the IRS tables or the formula from the Internal Revenue Code. The default is to use the formula in all calculations.

Calculation results based on the tables (which are rounded percentages) may be slightly different from those based on the IRC formula.

For the MACRS straight-line method, you can use a fixed rate applied to the cost or you can base the depreciation on the asset's remaining life applied to the net book value.

Calculation results for both methods should be the same, assuming that they are properly applied each year since the asset's purchase.

To calculate straight-line depreciation for the ACRS personal assets, you can use either the IRS tables or the formula from the Internal Revenue Code. The default is to use the formula in all calculations.

Calculation results based on the tables (which are rounded percentages) may be slightly different from those based on the IRC formula.

To calculate straight-line depreciation for the ACRS real assets, you can use either the IRS tables or the formula from the Internal Revenue Code. The default is to use the formula in all calculations.

Calculation results based on the tables (which are rounded percentages) may be slightly different from those based on the IRC formula.

Click this button to open the Bonus Depreciation Elections dialog, where you can choose which asset classes are electing out of the bonus depreciation per IRS Code section 168(k), 168(n), or 1400N by tax year.

Mark this checkbox to apply separate passenger auto limits when electing out of Reg. 1.168(I)-6. This setting applies only to like-kind exchanges that are entered after marking this checkbox.

Mark this checkbox to include depreciation from the original exchanged asset when calculating the disposition.

Mark this checkbox if the client's assets are located in the GO Zone.

Mark this checkbox to calculate vehicle depreciation limits per Rev. Proc. 2011-26.

Mark this checkbox if the client's assets are located in a Disaster Area.

Click the Available Dates button to enter an applicable date in this field.

Click this button to open the Select Applicable Federal Disaster dialog, where you can select an applicable Federal Disaster Area to enter the applicable date in the Date of applicable Federal Disaster field.

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