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Change of Use when Electing 163(j)(7)(B) or (C) dialog

Use this window to calculate change of use for prior year assets for an activity that has made the election under code section 163(j)(7)(B) or (C). Follow these steps to open the
Change of use when Electing 163(j)(7)(B) or (C)
 window. Make sure that you have marked the activity as making the election under 163(j)(7)(B) or (C).
  1. Open the Asset List window for an activity.
  2. From the Asset List window, select the desired asset and select Modify to open that asset's record in the Asset Detail window.
  3. Select Tasks, Change of Use when Electing 163(j)(7)(B) or (C). This opens the
    Change of Use when Electing 163(j)(7)(B) or (C)
     window.
Real property trade or business
The
Change of use when Electing 163(j)(7)(B) or (C)
 window will be available to you for any prior year MACRS real property assets that are not fully depreciated. You'll need to use ADS for the following types of assets.
  • Nonresidential real property
  • Residential real property
  • Qualified improvement property
Farming business
The
Change of use when Electing 163(j)(7)(B) or (C)
 window will be available to you for any prior year MACRS asset with a recovery period of 10 years or more that are not fully depreciated.
Displays the tax year that you made the election under code section 163(j)(7)(B) or (C). Choose Setup, the Activities screen to elect the activity.
Mark this box to prevent the treatment from calculating the change of use for the asset.
This column displays the original life used to depreciate each treatment.
This column displays the original life used for depreciation for each treatment.
This is the Net Book Value of the asset on the first day of the tax year in
Tax year of change of use
. You can change this amount, and if you do then Fixed Assets CS will use the value you entered for its calculations.
Displays the new method that is being used for the asset. It will always be MACRS SL ADS.
This column displays the new life of the asset.
This column displays the new ADS life of the asset. You can change the default selection here by entering your own value. These are the default lives that Fixed Assets determines based on the asset.
  • All MACRS 10 year life ADS life ADS life 15
  • MACRS SL Class life 15 year life ADS life 39
  • All other MACRS methods 15 year ADS life 20
  • All MACRS 20 year life ADS life 25
  • All MACRS 25 year life ADS life 50
  • All MACRS 27.5 year life ADS life 30
  • All MACRS 31.5 year life ADS life 40
  • All MACRS 39 year life ADS life 40
This column displays the remaining life left for this asset using the new ADS life. You can change the calculated life in this box.
Select this to reset the table with the system calculated values and remove any values that you entered.
When you select OK to close this window, you will receive a warning alerting you that if you that the asset will be updated to use the values in the Change of use when
Electing 163(j)(7)(B) or (C)
 window. There is not a way to change the Tax treatment back to the original values. The asset treatments will now have the method of MACRS SL ADS and the new ADS life. The depreciation calculation will use the NBV at the date of change and the remaining life to calculate the current depreciation amount. Select
Yes
 in the warning to change the use on the asset, or select
No
 to not make any changes.
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