Code to Force Accountant Computed Depreciation on All Assets
With this entry, the current year depreciation entries for regular, AMT and/or ACE depreciation, as entered on
the Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, are used for all assets for federal, state and book depreciation.
If "Regular" is entered, the current year depreciation entries for regular depreciation, as entered on the Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, are used for all assets for both federal and state-if-different depreciation.
If"AMT" is entered, the current year depreciation entries for AMT depreciation, as entered on the Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, are used for all assets for both federal and state-if-different depreciation.
If "ACE" is entered, the current year depreciation entries for ACE depreciation, as entered on the Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section are used for all assets placed in service prior to January 1, 1994 for both federal and state-if-different depreciation.
If "Both" is entered, the current year depreciation entries for regular, AMT and ACE depreciation, as entered on the Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, are used for all assets placed in service prior to January 1, 1994 for both federal and state-if-different depreciation. For assets placed in service after December 31, 1993, the current year depreciation entries will be used for regular and AMT depreciation and the ACE depreciation will be calculated equal to AMT for both federal and state-if different depreciation.
If an entry to force is made and a current year depreciation amount for an asset is NOT entered on Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, current year depreciation for the asset will be computed based on the entries for method, life and date placed in service. If current year depreciation of zero is desired, enter a zero for the particular asset.
When accountant computed depreciation is entered and no force entry is present, a variance report is prepared indicating the computed current year depreciation amounts. However, the accountant computed amounts will NOT be used in the return.
If no entry to force is made here or on the individual asset entered on Business, Rent and Royalty, Farm/4835, Passthrough Items worksheets, Depreciation and Amortization section, depreciation is computed based on the entries for method, life and date placed in service.