Summary Of The New Features Included In The 2007/2008 Annual Update:

1. 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.
2. 2007 Version of Form 4562.
3. 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.
4. 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:

   1. None
   2. Auto-Luxury Limits
   3. Auto-No Limits
   4. Calculators & Copiers
   5. Carpeting & Drapes
   6. Computer Equipment
   7. Land
   8. Land Improvements
   9. Leasehold Improvements
   10. Listed Property-Other
   11. Machinery
   12. Office Equipment
   13. Personal Property-Other
   14. Real-Nonresidential
   15. Real-Residential
   16. Software
   17. SUV<=6000 Lbs
   18. 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.

5. 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.
6. 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.
7. 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.
8. A new field has been included on the Add/Edit Assets page to enter a vendor name.
9. 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.
10. The program will now allow you to enter a negative cost and will calculate negative depreciation for those special situations.
11. 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.