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This article applies to:

  • Product: Fixed Assets CS
  • Return type: 1040 Individual,1120 Corporation,1065 Partnership,1041 Fiduciary,990 Exempt Organization
  • Subject: Depreciation

Set up treatments for a client

To set up treatments
or
 change the treatment columns that are available for data entry in the
Depreciation
 tab of the
Asset Detail
 window, perform the following steps.
The treatments you choose apply only to the open client.
  1. Open the
    Asset List
     window for an activity.
  2. Select
    Setup
     then
    Treatments
    .
    note
    • The ACE treatment isn't available for 1040 clients.
    • If the checkbox for a treatment isn't marked in the
      Treatments
       window, the related column either doesn't display or isn't available on the
      Depreciation
       tab.
  3. Set up the Tax treatment:
    1. Select the Tax treatment and then select
      Options
      .
    2. In the
      Calculation
       tab, select the appropriate calculation options for the current treatment.
    3. Select the Sec 179 tab to override the application-defined section 179 limits.
    4. Select
      OK
       to return to the
      Treatments
       window.
    note
    If you enable the AMT, E&P, and/or ACE treatments, you can do the following tasks:
    • Set up the application to automatically generate amounts for these columns on an asset-by-asset basis.
    • Have the application generate amounts for all of a client's assets at once.
  4. Set up the Book treatment:
    1. Mark the checkbox for the Book treatment.
    2. With the Book treatment highlighted, select
      Options
       to change the calculation options and new asset defaults.
    3. In the
      Calculation
       tab, select the calculation options for the current treatment.
    4. Select the Sec 179 tab to override the application-defined section 179 limits.
    5. Go to the
      New Asset Defaults
       tab and mark or clear the checkboxes as necessary.
      note
      If the
      Make Treatment equal to Tax
       checkbox is marked at the top of the
      Treatment Options
       window for the Book treatment, all fields, options, and checkboxes on the
      Calculation
      ,
      Sec 179
      , and
      New Asset Defaults
       tabs aren't available.
    6. Select
      OK
       to return to the
      Treatments
       window.
    note
    If you enable the AMT, E&P, and/or ACE treatments, you can do the following tasks:
    • Set up the application to automatically generate amounts for these columns on an asset-by-asset basis.
    • Have the application generate amounts for all of a client's assets at once.
  5. Set up the E&P treatment:
    1. Mark the
      E&P
       checkbox.
    2. Select
      Options
      .
    3. In the
      Classify
       window, select
      Continue
      .
    4. In the
      Treatment Options
       window, you can change this treatment's compliance with section 168(k), if necessary. All other fields and options aren't available.
    5. Select
      OK
       to return to the
      Treatments
       window.
    note
    You can generate the E&P column on an asset-by-asset basis, or you can have the application calculate
    Earnings and Profits
     for all assets that were entered before the treatment was turned on.
  6. Set up custom treatments or state treatments:
    1. Select
      Add
      .
    2. In the Treatment Classification group box, do 1 of the following steps:
      • If you're setting up a state column, go to
        State
        and select the state from the dropdown.
      • If you're setting up a custom column, select the proper option.
      note
      If the current client needs to calculate depreciation for multiple states, you can set up a treatment for each state.
    3. Select
      Continue
      .
    4. If you chose any option other than
      State
      ,
      New York City
      ,
      Straight Line for PA
      , or
      NJ 30% bonus
       for the treatment, you'll need to enter a name for the treatment in the
      Title
       field at the top of the
      Treatment Options
       window. The title needs to be 6 characters or less.
    5. In the
      Calculation
       tab, set the correct calculation options for the treatment.
      note
      If you chose to use a custom treatment to calculate AMT or ACE for a treatment, all fields, options, and checkboxes in the Calculation, Sec 179, and New Asset Defaults tabs aren't available.
    6. Select the Sec 179 tab to override the application-defined section 179 limits.
    7. Select the
      New Asset Defaults
       tab and mark or clear the correct checkboxes.
    8. Select
      OK
       to return to the
      Treatments
       window.
    note
    The AMT and ACE treatments derive their values from the Tax treatment. You can't change these treatments.

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