Summary Of The New Features Included In The
2007/2008 Annual Update:
Depreciation Calculator has been updated to comply with the
new 2008 Economic Stimulus Tax Act which includes the new luxury auto
limits, higher Section 179 small business deduction amounts, and 50%
first-year bonus depreciation for assets acquired on or after 1/1/2008.
2007 Version of Form 4562.
A new field has been added to the Add/Edit Assets page to
accommodate the date placed in service. It has been added to recognize those
situations when you want to record the asset on the books, yet not start
depreciating the asset until it is actually placed in service. This date will
be used to determine when depreciation begins.
A new field has been added to the Add/Edit Assets page to
accommodate the property type. When a property type is selected from the
drop-down menu, the program will enter the typical depreciation method and
asset life typically associated with that property type. For example, if
Auto - Luxury Limits is selected, the program will enter the MACRS
depreciation method and a life of 3 years in the appropriate fields of the
Federal column.
The property types are:
None
Auto-Luxury Limits
Auto-No Limits
Calculators & Copiers
Carpeting & Drapes
Computer Equipment
Land
Land Improvements
Leasehold Improvements
Listed Property-Other
Machinery
Office Equipment
Personal Property-Other
Real-Nonresidential
Real-Residential
Software
SUV<=6000 Lbs
SUV>6000 <=14000 Lbs
When none of the property types apply, None or
Personal Property-Other can be selected and you can enter any depreciation
method and life that you want.
A feature has been added to the Add/Edit Assets page that
will allow you to copy everything from the federal column to the state and
books columns. Therefore, if the state and books are the same as the federal,
you can easily copy the federal amounts to the state and books columns by
using the Ctrl+K shortcut.
When an asset is sold, there is a new field to indicate the
IRS property code (Sections 1231, 1245, or 1250). The program will now
calculate the ordinary gain or loss and the capital gain or loss. For example,
if the asset is a section 1245 type property, ordinary gain will be recognized
to the extent of the recaptured depreciation, the excess gain will be reported
as capital gain. When section 1231 type property is selected, gains will be
shown as capital gain and losses will be shown as ordinary losses. Also, if the asset being sold was held 12 months or less, the
entire gain or loss will be shown as ordinary income or loss.
A feature has been added to allow you to edit the federal
annual luxury auto limitation table, state annual luxury auto limitation
table, and the section 179 annual limitation table. You will be able to make
changes to the tables yourself when the limitations change during the year.
A new field has been included on the Add/Edit Assets page
to enter a vendor name.
When you add a new company, you will now be able to
indicate the entity type by making a selection from a drop-down menu. The
choices are: C corporation, S corporation, partnership, LLC, LLP, individual,
estate, trust, or other.
The program will now allow you to enter a negative cost and
will calculate negative depreciation for those special situations.
A new schedule has been added to the bottom of the federal,
state, and books depreciation schedules to summarize the total additions and
deletions to the asset cost and accumulated depreciation for the current
year-to-date.