Treatment calculation options

Use the Calculations 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.

Follow these steps to make changes to your treatments.

  1. Open a Fixed Assets project.
  2. Click the Settings button, then choose the Treatment tab.

For an existing custom or state treatment, select the treatment and click the Calculation tab or for a new custom or state treatment, click the Add button, enter the relevant information, click Continue, and click the Calculation tab.

Mid-quarter application for current-year acquisitions group box

  • When you choose System evaluated, Onvio Fixed Assets 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.
  • Choose force application to calculate using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, and o stop the application from calculating using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, choose Halt application.

Like-kind exchange

Select the desired option from the field 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.

Related topic

Treatment options


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