Post on 20-Nov-2014
description
Asset Manager
Asset Manager Training
Session Topic• Introduction• Asset Tree and Management• Asset Detail Tabs• Asset Button Bar • Asset Tips and Tricks• Asset Questions and Answers
Approx. time
5 minutes
5 minutes
45 minutes
10 minutes
5 minutes
5 minutes
Asset Tree
• The Tree displays all assets and all forms containing assets
• Click the + icon to expand a form and display its assets in the tree
• Click on an asset to move to that asset and display the entry tabs
• Click on a form to see Asset Management (details on all assets for that form)
• Right click allows for many options
• Highlight indicates disposed assets
Asset Management
Asset Management• Sort assets by any column in ascending or descending
order (just click on the column header)• View totals for all assets or the current form• Double click on an asset to see that asset’s details• Tag all assets by clicking on the header in the tag
column• Click the Options button to select additional columns
to display or hide• Renumber assets by clicking on the Renumber button• Restore deleted assets by clicking the Recycle button• Delete assets by tagging one or more and clicking the
Delete button• Move assets by tagging one or more, clicking the
Move button, and assigning the new form information• Close the Asset Manager by clicking the Close button
Asset Detail Tabs• There are six detail input tabs: General,
Vehicle, Disposition, Florida, Michigan, and Other
• Calculated values appear in blue in shaded boxes
• Press F1 on any field to get field specific help
General Tab
• The General tab shows specific information about the asset
• It shows Federal and Alternative Minimum Tax Depreciation side by side
• Click the button to access state calculations• Allows for additional information about the asset
– Additional description detail– Alternate description (longer for reports)– Force options– Amortization information
• Enter a functional category, location, account code, and/or division code for report grouping options
General Tab
State Details• Use this screen to make
adjustments between state and federal depreciation rules
• Special depreciation is automatic
• Uncheck the box that says “State depreciation is the same as federal depreciation except for Federal Special Depreciation Allowance” to adjust 179 or make other adjustments
• Each state listed in the return that is not conforming to federal rules can be adjusted and will have a depreciation schedule and adjustments made on the appropriate form or schedule
Changes to Special Depreciation Allowance
• Generally not available for assets placed in service on or after January 1, 2005
• Exceptions are:– Long production period property and
transportation property– Non-commercial aircraft– Must be placed in service by 12/31/2005
• Use force option to calculate special depreciation allowance
New York Liberty Zone Benefits
• The Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York.
• 30% Special depreciation allowance• Increased 179 deduction• Leasehold improvement property is classified
as 5-year property
Qualified Liberty Zone Property
• Property placed in service after January 1, 2005 that otherwise would have qualified for the special depreciation allowance
• Used property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less
• Used water utility property which is either– Property that is an integral part of the gathering, treatment, or
commercial distribution of water– Any municipal sewer
• Used computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified
• Certain nonresidential real property and residential rental property– Rehabilitates property damaged or replaces property destroyed by the
terrorist attacks of September 11, 2001– Real property is only considered destroyed (or condemned) if the
entire structure was destroyed (or condemned)• Meets the other tests
Liberty Zone Property Other Tests
• Acquisition date test
• Placed in service date test
• Substantial use test
• Original use test
• Exceptions
Liberty Zone Increased 179 Deduction
• Only 50% of the cost (instead of 100%) is used when figuring the reduced dollar limit for costs exceeding $420,000
• $105,000 dollar limit is increased for qualified property to the smaller of– $35,000– The cost of section 179 property that is qualified
property
• Qualified property– Qualified Liberty Zone property– Property that would be qualified Liberty Zone
property except that it is eligible for the special depreciation allowance
Liberty Zone Leasehold Improvement Property
• Classified as 5-year property• Must use straight-line depreciation• Under ADS the recovery period is 9 years• Qualified improvements:
– In a nonresidential building in the Liberty Zone– Placed in service after September 10, 2001 and before January
1, 2007– No written binding contract effective prior to September 11,
2001– Improvement is made under or pursuant to a lease by the
lessee (sublessee) or the lessor of that part of the building– That part of the building is to be occupied exclusively by the
lessee (sublessee)– The improvement is placed in service more than 3 years after
the building was first placed in service– Some exceptions (can’t be to a common area, not an
elevator/escalator, or enlargement of the building)
Vehicle Tab
Vehicle Tab• The Vehicle tab gathers additional information about automobiles• Added detail for odometer beginning and ending mileage• Enter any business mileage, commuting mileage, and other
mileage– In an individual return,
click the Detail button(with the pin)
– Enter medical mileagefor this vehicle
– Enter charitable mileagefor this vehicle
– The totals for all vehicleswill carry to Form 1040 Schedule A
– The business use percent is automatically calculated based on the mileage entries
• Current year depreciation allowance for Standard Mileage Rate (SMR) will calculate based on business mileage
• Prior year depreciation allowance for SMR can be entered (it will update from year to year)
Vehicle Tab• Enter any necessary vehicle expense• Click the Detail button next to Other to enter additional information
– Property tax– Licensing fees– Registration fees– Insurance– Other expenses– If the property tax is an
ad valorem tax, check the box to carry the nonbusinesspercentage to the Schedule A
• In the first year an auto is placed in service in a 1040 return, the Asset Manager will optimize between SMR and actual automobile expenses
• Standard Mileage Rate is not allowed on business returns• If the automobile is exempt from the luxury automobile limitations on
depreciation, select the appropriate reason from the Options pick list• Answer automobile related questions on the Questions tab
Standard Mileage Rates
CATEGORY:Through August
After August
Business $0.405 $0.485
Charitable* $0.14 $0.14
Medical & Moving $0.15 $0.22
* Katrina related charitable miles
Time Period: Rate: Calculation:
08/25/2005 – 08/31/2005 $0.29 70% of $0.405 rounded up
09/01/2005 – 12/31/2005 $0.34 70% of $0.485 rounded up
Automobile LimitationsPassenger Autos
Placed In Service During Calendar Year 2005
Tax YearPassenger
AutomobilesTrucks and
VansElectric Vehicles
1st Tax Year
$2,960 $3,260 $8,880
2nd Tax Year
$4,700 $5,200 $14,200
3rd Tax Year
$2,850 $3,150 $8,450
Each Succeeding
Year$1,675 $1,875 $5,125
Disposition Tab
Disposition Tab• Choose from various types of disposition
– Sale (Form 4797)– Installment Sale (Form 6252)– Like-Kind Exchange (Form 8824)– Casualty and Theft (Form 4684)– Charitable Contribution (Form 8283)
• Group dispositions available for sales and installment sales, like-kind exchanges, and casualties and thefts
• Partial dispositions available for sales and installment sales
• Tracks required depreciation recapture• All disposition forms are generated within the Asset
Manager (no additional entries are necessary in the return)
Group Sale
Group Sale• Choose the primary asset in the group• Click the Group button on the Disposition tab• Enter the group description• Enter the type of disposition (sale)• Enter the disposition date• Enter the gross sales price• Enter any expenses associated with the sale• Select the part of Form 4797 to report the sale on (i.e. Part 3, Sec 1245)• Enter separate land information, if required• Tag the assets to include in the group
– The bold asset is the primary asset in the current group– The italicized assets are included in other groups– The date placed in service and cost columns have been added to help identify
the asset– If there are assets that are Section 1250 and Section 1245 property in the same
group, go to each asset in the carry to 4797 column and make the correct selection
• Click the OK button to save the group• Click the Remove Group button to remove a group sale• Click the Cancel button to return to the Sale tab without saving any
changes
Group Installment Sale
Group Installment Sale• Same as group sale
• Change type of disposition to installment sale
• Indicate amount of current year principal payments received
• Indicate amount of current year interest payments received
• Tag the assets to include in the group
• Click the OK button to save the group
Like-Kind Exchange Reg.• Temporary Regulation §1.168(i)-6T
• Effective for exchanges after Feb 27, 2004
• General Rule:– Exchanged basis (the basis in the replacement property that does not
exceed the basis in the relinquished property) is depreciated over the remaining recovery period of the relinquished property using the same MACRS depreciation method and convention as long as it has the same or a shorter recovery period or depreciation method
– The excess basis (boot) is depreciated using current MACRS rules
• No depreciation for time period between giving up the relinquished property and acquiring the replacement property
• An election out of the new rules is available, but the entire basis of the replacement property is depreciated as new property
Group Like-Kind Exchange
Group Like-Kind Exchange• Choose the primary asset in the group• Click the Group button on the Disposition tab• Enter the group description• Enter the type of disposition (like-kind exchange)• Enter the disposition date• Enter a description of the like-kind property received• Enter the date the received property was identified• Enter the date the property was actually received• Fill in other fields as required• Tag the assets to include in the group• Click the OK button to save the group• Note: The exchanged asset(s) will not be created. You
will have to manually add the new asset(s)
Group Casualty or Theft
Group Casualty or Theft• Choose the primary asset in the group• Click the Group button on the Disposition tab• Enter the group description• Enter the type of disposition (casualty/theft)• Enter the disposition date• Enter the classification• Tag the assets to include in the group• Indicate for each asset
– Any insurance or other reimbursements– The fair market value before the casualty– The fair market value after the casualty (if any)
• Click the OK button to save the group
Florida and Michigan Tabs• Florida Tab
– Used to generate Florida Tangible Tax return (Form 405-R)
– Enter the county and other key entries
– Age, year purchased, and original installed cost all carry from the General tab
• Michigan Tab– Generates Michigan C-8000ITC and C-8000D
– Enter the location and Michigan classifications
– Fill out the other information as required
Florida Tangible Tax• Prepare the header information on the Florida Form 405-R
• Open the Asset Manager
• Choose the asset to edit
• Click on the Florida tab
• Assign the county – Select from the pick list
– Start typing the county name
• Assign the location– Enter a number (1 – 99)
– Locations can be set up by using the Settings button
– Location number in settings (or as input) must correspond to location number entered on the 405-R input screen
• Assign the line number
• Enter the condition
Other Tab• Offers four additional options for
tracking depreciation• Uncheck the box to activate the column
and make necessary changes• ACE carries to 1120 returns• Book value will carry to the balance
sheet and M-1 on the business returns• Use the Other and What-If columns for
what-if scenarios• Access the state depreciation calculations
by clicking the pin button
Button Bar
• New Asset• Special Allowance• Calculator• Section 179
• Settings• Reports• Help• Close
New Asset• Allows for quick entry of asset
basics• Gathers the minimum amount
of data necessary to start depreciating an asset
• Expands as additional data is required
• Asset ID is optional and allows for alphanumeric entries
• Type is optional and allows for automatic assignment of the depreciation method
• Next button to quickly add the next asset
Special Allowance• Elect out of special
depreciation allowance• Elect 30% in lieu of
50% special allowance• Election is made for all
classes or on a class by class basis– 3 Year– 5 Year– 7 Year– 10 Year– 15 Year– 20 Year– Water Utility
Property– Depreciable
Computer Software– Qualified Leasehold
Improvement Property
Calculator• Access the TaxWorks
Calculator• Paste the value into any
numeric input field• The calculator can also be
accessed by hitting the plus key on the keyboard– It will take the number in the
current field and is then ready to add additional numbers to it
• Uncheck the box at the bottom if you do not want the results pasted into the program when you hit enter (equals)
Section 179• Display information
about any disallowed section 179 expense carryover
• Display a summary of section 179 expense reported on a K-1 from a partnership or S-corporation
• Override business income within the Asset Manager, if necessary
Settings• Enter functional category
information– Thirteen categories are pre-assigned– Add additional categories as needed– Applies to all clients
• Enter location information– Applies to current client only– Enter basic location information to
print on a report– Contact information available for
primary custodian• Enter account code information
– Applies to the current client only– Allows for a report to be grouped by
account• Enter division code information
– Applies to the current client only– Allows for a report to be grouped by division
• Sort any column in ascending/descending order by clicking on the column header
• Find in the current sort column by entering the text to search for in the Find box
• Insert or delete rows by clicking the appropriate button
Reports• Select which reports (depreciation
schedules) to print with the return• Preview the reports from the Asset
Manager (before printing them)• Disposition report gives detailed
breakout of group sales, sales, and installment sales
• Group reports by form or schedule, functional category, location, account code, or division code
• Sort each group by description, asset ID, or date placed in service
• Choose to break each group (section) onto a new page
• Print reports for Federal Depreciation, Alternative Minimum Tax Depreciation, State Depreciation, ACE Depreciation (1120 returns), Book Depreciation, Book Tax Difference, and Other Depreciation
• Print future reports for Federal, AMT, State, Book, and Other Depreciation• Print separate amortization schedules for assets that are amortized
Additional Report Options• Balance sheet
reconciliation– Defaulted to print on the
Federal depreciation and book depreciation schedules for the 1065, 1120, and 1120S
– Backs out any future purchases – Backs out any current year
dispositions– Should tie to the balance sheet
on page 4 of the tax return
• Subsection reports– Cannot be the same as the section– Year acquired– Form or Schedule– Type– Functional Category– Location– Account Code– Division Code
Help and Close• Help
– Feature helps for the Asset Manager
– Contains some examples and frequently asked questions
• Close– Close the Asset Manager
Tips and Tricks• Import assets from another return
• Export depreciation schedule to Excel
• When you delete a multiple in input mode, it will move the assets to the recycle bin and compress the remaining assets
• Use shift page up / shift page down to move through the assets in the order sorted on Asset Management grid