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Treatment Options > Calculation tab
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Use this tab to set calculations for the mid-quarter application, section 168(k), IRS Notice 2000-4 and Reg. 1.168(i)-6, and luxury auto limits.
To open this dialog, open the Asset List window or Asset Detail dialog, choose Setup and then Treatments, and in the Treatments dialog do one of the following steps.
- For a application-defined treatment, select the treatment, select the Options button, and select the Calculation tab.
- For an existing custom or state treatment, select the treatment, select Continue, and select the Calculation tab.
- For a new custom or state treatment, select the Add button, select the appropriate option in the Classify dialog, select Continue, and select the Calculation tab.
Fields & buttons
Mid-quarter application for current-year acquisitions group box
System evaluated / Force application / Halt application
- System evaluated:This option is marked by default because the application tests all assets purchased during the current year to determine whether they should be included in or excluded from the MACRS mid-quarter calculations. The application includes all MACRS personal property assets and 7-, 10-, 15-, 20-, or 25-year assets that have been forced as real property assets at their business cost.To exclude these assets, you must mark theExclude from mid-quarter determination (force)checkbox for each asset. To do this, select the asset's Other tab and then select the Mid-Quarter & Section 179 Force Options button.
- Force application:To force the application to calculate using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, select theForce applicationoption.
- Halt application:To stop the application from calculating using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, select theHalt applicationoption.
Miscellaneous options group box
Like-kind exchange
Select the desired option from the drop-down list to determine how the selected treatment will set up replacement assets from a like-kind exchange.
- Do not follow IRS Notice 2000-4 and Reg 1.168(i)-6:The selected treatment for the replacement asset is set up so that the cost/basis is the original asset's adjusted net book value and depreciation begins on the disposal date.noteIf this option is selected and the trade occurs after 2/27/04, the application marks theTreat entire basis as a current-year acquisition (Election 1.168(i)-6(i))checkbox on the Disposal tab. When this checkbox is marked, a statement will print with Form 4562.
- Follow IRS Notice 2000-4; Reg 1.168(i)-6 after 2/27/04:For all trades from 1/2/00 through 2/27/04, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to IRS Notice 2000-4. For all trades after 2/27/04, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to Reg. 1.168(i)-6.
- Follow Reg 1.168(i)-6 after 2/27/04; do not follow IRS Notice 2000-4:For all trades from 1/2/00 through 2/27/04, the selected treatment for the replacement asset is set up so the cost/basis is the original asset's adjusted net book value and depreciation begins on the disposal date. For all trades after 2/27/04, the selected treatment for a replacement asset that is depreciating using MACRS is set up according to Reg. 1.168(i)-6.
- Follow Reg 1.168(i)-6 after 1/2/00:For all trades after 1/2/00, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to Reg. 1.168(i)-6.
Apply luxury (passenger) auto limits
Mark this checkbox to apply luxury auto (passenger) and van and light truck limits to the current treatment for assets marked as luxury autos or vans and light trucks in the Vehicle/Listed tab of the Asset Detail dialog.
Otherwise, calculations for the State, Book, and/or custom (including Other) treatments treat those assets as listed property (rather than as luxury autos).
Use 100% for business use percentage
Mark this checkbox to use 100% as the business use percentage for the Book treatment. When this checkbox is marked, the Book treatment always calculates the assets at 100% business use, regardless of the business percentage being used by other treatments.
note
This checkbox is available only for the Book treatment.
Follow GAAP calculations for disposals
Mark this checkbox to have the Book treatment follow GAAP calculations for disposals.
note
This checkbox is available only for the Book treatment.
Vehicle optimization follows Tax
Mark this checkbox if the current treatment should use the same method of optimization (in the Vehicle/Listed tab) as the Tax treatment.
note
This checkbox is available only for 1040 clients. If this checkbox is not marked, the difference from federal will only be transferred to the following UltraTax CS states: MA, CA, WI, and PA.
MD manufacturer coupled with federal
For assets placed in service after 12/31/2018 in tax year 2019 or later, mark this checkbox to conform to federal Section 179 and bonus depreciation limits.
note
This checkbox is available for 1065 and 1120 clients only.
Follows 1031 Pre TCJA
Mark this checkbox if the current treatment should follow the 1031 exchange law pre TCJA.
Follows 1031 Pre TCJA after 1/10/10 - Less than 250,000/500,000
Mark this checkbox to indicate the client has less than $250,000 for a single filer or $500,000 for a joint follower and is allowed like-kind exchanges for 1245 property after 1/10/19.
note
This checkbox is only available for the CA treatment for 1040 clients for 2019 and after tax years.
Excise Tax Credit button
Select this button to open a dialog in which you can choose the tax years for which the basis is adjusted or not adjusted for the excise tax credit.
note
This checkbox is available only for the HI treatment.
Bonus group box
2000 - 2001
Mark the checkboxes for the years that the current treatment should comply with section 168(k) bonus depreciation.
note
These checkboxes only appear for the Tax and AMT treatments.
30% Bonus (Placed in svc 9/11/01 to 5/5/03)
Mark this checkbox if the current treatment should calculate 30% bonus depreciation for assets placed in service from 9/11/01 to 5/5/03.
note
This checkbox only appears for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.
50% Bonus & 30% election (Placed in svc 5/6/03 to 12/31/04)
Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets placed in service from 5/6/03 to 12/31/04.
note
This checkbox only appears for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.
50% GO Zone bonus (Placed in svc 8/28/05 to 12/31/07)
Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets marked as located in the GO Zone and placed in service from 8/28/05 to 12/31/07.
note
This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.
50%/100% bonus (Placed in svc 1/1/08 to 12/31/19)
Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets placed in service from 1/01/08 to 9/8/10 or 1/1/12 to 12/31/17, calculate 100% for assets placed in service from 9/9/10 to 12/31/11, calculate 40% for assets placed in service from 1/1/18 to 12/31/18, or calculate 30% for assets placed in service from 1/1/19 to 12/31/19.
note
This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.
50% Disaster Area bonus
Mark this checkbox if the current treatment should calculate 50% bonus depreciation for assets marked as located in a disaster area.
note
This checkbox appears only for the Book treatment, the Other treatment, the E&P treatment, and treatments that are set up to calculate AMT or ACE for a treatment.
AZOrig treatment
The AZOrig treatment is used to calculate the catch-up adjustment for Arizona.
When this treatment was first created, the AZ treatment was copied to the AZOrig treatment. If prior depreciation is ever recalculated for the AZOrig treatment, it will calculate following the same bonus depreciation calculations as the AZ treatment.
IAorig treatment
The IAorig treatment is used to calculate the catch-up adjustment for Iowa.
When this treatment was first created, the IA treatment was copied to the IAorig treatment. If prior depreciation is ever recalculated for the IAorig treatment, it will calculate following the same bonus depreciation calculations as the IA treatment.
WIorig treatment
The WIorig treatment is used to calculate the add back amount of the difference between the adjusted basis at the beginning of the 2014 tax year of the WIorig treatment and the Tax treatment.
When this treatment was first created, the WI treatment was copied to the WIorig treatment.
WIAMTo treatment
The WIAMTo treatment is used to calculate the add back amount of the difference between the adjusted basis at the beginning of the 2014 tax year of the WIAMTo treatment and the AMT treatment.
When this treatment was first created, the WIAMT treatment was copied to the WIAMTo treatment.