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Depreciation

Enter assets when filing Form 1120-PC, Schedule B

Schedule B reports the taxable investment income of the property and insurance company.
If you're using the Asset module and enter all of the assets of the insurance company in the asset module (i.e., assets related to both investment and non-investment income), follow these steps for assets related to non-investment income to ensure depreciation and the gain or loss on the sale of a non-investment asset is reported properly.
  1. In the
    Tax
     column on the Depreciation tab, select
    Memo
     from the
    Method
     dropdown for the tax depreciation. This prevents the depreciation from assets not related to investment income from transferring to Form 4562 and Form 1120-PC, Schedule B.
  2. In the
    Book
     column on the Depreciation tab, select the depreciation method for book depreciation. The cost and accumulated depreciation for the asset transfers to the balance sheet on Form 1120-PC.
  3. In the Disposal tab, enter the disposal information. Select
    Not reported on Form 4797
     from the
    Type of property
     dropdown. This prevents the gain or loss on the sale of a non-investment asset from transferring to Form 4797 and Form 1120-PC, Schedule B.
If you're not using the asset module, enter the depreciation for assets related to investment income in the 4562 screen and enter the disposal information for assets related to investment income in the Sale screen. Then enter the cost and accumulated depreciation for all the assets of the insurance company in the L screen in the Balance Sheet folder.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1120 Corporation
  • Subject: Depreciation
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