Depreciation: Using the memo method
The Memo method doesn’t calculate depreciation and allows the cost basis of an asset to be inputted for tracking purposes without depreciation being calculated or the cost basis being included on reports and forms. By default, memo assets:
- Don’t appear on the Balance Sheet report in Fixed Assets CS.
- Appear on the Federal Asset report in UltraTax CS.
- Don’t affect the Balance Sheet in UltraTax CS.
- Always appear on Personal Property Tax (PPT) returns and Property Detail reports, allowing the method to be used to report De Minimis assets.
- Always be included in the activity and grand totals that appear at the bottom of the asset list.
note
In business returns memo assets can result in a difference between the total cost/basis at the bottom of the asset list and the amount on the Balance Sheet.
Change reporting
There are 2 options available on the
Other
tab in the asset detail that changes the reporting of memo assets:- Include memo asset on balance sheetMark this checkbox to include this asset in the Balance Sheet Detail report if Memo is selected as the treatment's depreciation method.
- Exclude memo asset from non-PPT reportsMark this checkbox to exclude memo assets from non-PPT reports. This checkbox is available if any treatment on theDepreciationtab has the method of memo. The asset is only excluded from non-PPT reports for a treatment if the method is memo. The asset is included on the Property Detail report when this option is marked.
The following table summarizes the effect of each of these options in UltraTax CS (UT) and Fixed Assets CS (FA).
Option | Balance Sheet (UT) | Balance Sheet Report (FA) | PPT Reports (both) | Non-PPT Reports (both) | Federal Asset Report (UT) |
|---|---|---|---|---|---|
Default (neither option marked) | No | No | Yes | Yes | Yes |
Include memo asset on balance sheet | Yes | Yes | Yes | Yes | Yes |
Exclude memo asset from non-PPT reports | No | No | No | Yes | No |
Both options are marked | Yes | No | No | Yes | No |
