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Federal input screens

Screen OthAsset - Depreciation Information (1120)

Form 4562 - Other Information

Enter the balance of information required to complete Form 4562 in this section. Amounts in this section appear on the summary Form 4562.
To calculate the amount of allowable section 179 expense for the current year and the carryover to the next year, the application follows Regulation 1.179-2(c)(3)(ii). Business income for S Corporations is the sum of net ordinary income (loss), net rental real estate income (loss) if the
Include net income or loss in calculation for Section 179 business income (S Corp)
 field is marked in the Rent or 4835 screens, net other rental income (loss), net royalty income (loss), net section 1231 gain (loss), and shareholder employee wages. In the
Total shareholder employee wages (S Corp / Force)
 field, enter the amount of wage expense used to determine business income for section 179. The default value for shareholder employee wages is the total of amounts entered in the
Officer's compensation
 field in the Inc screen for all officers designated as shareholders in the statement dialog.
Enter an amount in this field if you are not using the asset module or if you are using the asset module but want to override the calculated amount. For more information regarding the asset module, refer to depreciation procedures.
Force a maximum dollar limit by entering it here, otherwise the application uses the applicable limit based on the current tax law as the default limit.
Enter an amount to force the business income limitation amount used to calculate the section 179 expense deduction on Form 4562. Enter
0
 (zero) in this field if applicable. If this field is blank, the corporation's calculated business income is used.
This field applies to S Corporations that are enterprise zone businesses. The information prints in the Schedule K-1 statements line for section 179 deduction.

Election Out of Bonus Depreciation

These fields are marked when you select the election-out of percent additional depreciation for the applicable property class life in the asset module. To do this, select the Asset tab of an activity, choose Setup, Options, then select the Bonus Depreciation Elections button in the Calculation tab. In the Bonus Depreciation Elections dialog, select the Elect All button in the Qualified 60%/80%, Elect Out of Bonus Depr column to make the election for every class life of property, or individually select the checkbox for each applicable class life.
The election statement automatically prints when you elect out of bonus depreciation for all property classes.
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