Depreciation: Make Book treatment equal to Tax treatment

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The asset cost entered in the Tax treatment will be used in the Book treatment by default in UltraTax CS and Fixed Assets CS. If you entered different values in the Book treatment and need to make Book equal to Tax, there are two ways to do this:

Method one: make Book equal to Tax in all existing and future assets

This will copy the Tax values into the Book treatment for all existing assets, as well as populating the Book treatment with the values entered in the Tax treatment when any additional assets are subsequently added.

  1. Open the Asset List Window, and choose Setup > Treatments.
  2. Highlight the Book treatment (Note: do  not unmark the checkbox), and click Options.
  3. Mark the Make treatment equal to Tax checkbox, then click OK.
  4. When prompted, click Yes to apply the Tax treatment values to the Book treatment for existing assets.
  5. Click OK to return to the Asset List window.

Method two: make Book equal to Tax only in existing assets

This will copy the Tax values into the Book treatment for all existing assets, but will not automatically populate the Book treatment with values entered in the Tax treatment when entering future assets.

  1. Open the Asset List Window, and choose Setup > Treatments.
  2. With the Book treatment highlighted, click Build
  3. Select Replace all assets with the following treatment's values: and then select Tax from the drop-down menu, then Click OK
  4. Click OK to return to the Asset List window.

Notes

  • You may select on an item-by-item basis to have other values entered in the Tax treatment transfer to the Book treatment during data entry by choosing Setup > Treatments > Book > Options > New Asset defaults. For example you may choose to have the cost and Section 179 expense in the Book treatment default to values entered in the Tax treatment.
  • Making the Book treatment equal to the Tax treatment will often eliminate unwanted Book\Tax difference adjustments on Schedule M-1 in 1120 and 1065 clients.
  • If your firm uses Fixed Assets CS you may make the Book treatment equal to the Tax treatment for multiple (or all) clients by using the Template client.

Related articles Depreciation: Make state treatment equal to tax treatment

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