To set up treatments or change the treatment columns that are available for data entry in the Depreciation tab of the Asset Detail dialog, perform the following steps.

Note: The treatments you choose apply only to the open client.

1. Open the Asset List window for an activity.
2. Choose Setup > Treatments. The Treatments dialog opens.

   Notes

   • For more information, see Treatments that calculate by default for each entity type.
   • The ACE treatment is not available for 1040 clients.
   • If the checkbox for a treatment is not marked in the Treatments dialog, the associated column either does not appear or is not available on the Depreciation tab.

3. Perform the following steps to set up one or more treatments.

   Set up the Tax treatment

   1. Highlight the Tax treatment and click the Options button.
   2. In the Calculation tab, select the appropriate calculation options for the current treatment. For details on any of the fields or options in this tab, see the Calculation tab overview.
   3. Click the Sec 179 tab to override the application-defined section 179 limits.
   4. Click OK to return to the Treatments dialog.

   Tip: If you enable the AMT, E&P, and/or ACE treatments, you can do the following tasks.

   • Set up the application to automatically generate amounts for these columns on an asset-by-asset basis.
   • Have the application generate amounts for all of a client's assets at once.

   Set up the Book treatment

   1. Mark the checkbox for the Book treatment.
   2. With the Book treatment highlighted, click the Options button to modify the calculation options and new asset defaults.
   3. In the Calculation tab, select the appropriate calculation options for the current treatment. For details on any of the fields or options in this tab, see the Calculation tab overview.
   4. Click the Sec 179 tab to override the application-defined section 179 limits.
   5. Click the New Asset Defaults tab and mark and clear the checkboxes as appropriate. For detailed information on each checkbox, see the New Asset Defaults tab overview.

      Note: If the Make Treatment equal to Tax checkbox is marked at the top of the Treatment Options dialog for the Book treatment, all fields, options, and checkboxes on the Calculation, Sec 179, and New Asset Defaults tabs are not available.

   6. Click OK to return to the Treatments dialog.

   Tip: If you enable the AMT, E&P, and/or ACE treatments, you can do the following tasks.

   • Set up the application to automatically generate amounts for these columns on an asset-by-asset basis.
   • Have the application generate amounts for all of a client's assets at once.

   Set up the E&P treatment

   1. Mark the E&P checkbox.
   2. Click the Options button.
   3. In the Classify dialog, click Continue.
   4. In the Treatment Options dialog, you can change this treatment's compliance with section 168(k), if desired. All other fields and options are not available.
   5. Click OK to return to the Treatments dialog.

   Note: You can generate the E&P column on an asset-by-asset basis, or you can have the application calculate Earnings and Profits for all assets that were entered before the treatment was turned on.

   Set up custom treatments or state treatments

   1. Click the Add button. The Classify dialog opens.
   2. In the Treatment Classification group box, perform one of the following steps.
      • If you are setting up a state column, choose the appropriate state from the drop-down list for the State field.
      • If you are setting up a custom column, click the appropriate option. For detailed information on each option, see the Classify dialog overview.

      Note: If the current client needs to calculate depreciation for multiple states, you can set up a treatment for each state.

   3. Click Continue.
   4. If you chose any option other than State, New York City, Straight Line for PA, or NJ 30% bonus for the treatment, you need to enter a name for the treatment in the Title field at the top of the Treatment Options dialog. The title must be six characters or less.
   5. In the Calculation tab, set the appropriate calculation options for the treatment. For detailed information on any of the fields or options, see the Calculation tab overview.

      Note: If you chose to use a custom treatment to calculate AMT or ACE for a treatment, all fields, options, and checkboxes in the Calculation, Sec 179, and New Asset Defaults tabs are not available.

   6. Click the Sec 179 tab to override the application-defined section 179 limits.
   7. Click the New Asset Defaults tab and mark and clear the appropriate checkboxes. For detailed information on any of the checkboxes, see the New Asset Defaults tab overview.
   8. Click OK to return to the Treatments dialog.

   Note: The AMT and ACE treatments derive their values from the Tax treatment. You cannot modify these treatments.

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