CCH Axcess Tax

2024 Percent Excluded

If the business or investment use of an asset is other than 100 percent, enter the percentage of current year expense to be excluded. Only enter the non-business portion. The federal depreciation and amortization detail report prints a line "Less Exclusion" and the computed non-business depreciation amount for each asset.

Note: Enter the "2024 Percent Excluded" as a percentage. For example, enter 25 percent exclusion as "0.25."

A percent entered in this field is applied to "Accountant Forced Depreciation" and overrides all other computations of percentage to be excluded. Enter "0.0" to use the mileage boxes for print purposes only on Form 4562, Page 2.

Note: The "Percent Excluded" is treated as current year percentage of non-business use. If you leave the "2024 Percent Excluded" field blank, the default is business miles vs. total miles, then prior year percent excluded, in that order. Thus, if the 2024 business percent differs from last year, you must enter a "2024 Percent Excluded" or mileage entries to prevent the default to last year's percentage.

Business Use 50 Percent or Less

If the business use changes from last year, dropping to 50 percent or less, or if a new asset's business use is 50 percent or less, the straight line method is used to compute depreciation, regardless of the method entered in the "Method"field. The straight line method is applied over a recovery period of 5 years for 3 year property, 12 years for 5 year property, and 25 years for 10 year property for ACRS assets. A diagnostic message is also issued. The "Code to Force" option overrides this treatment.

If the business percent is 50 percent or less in the current year, the half-year convention applies, and the method is for double-declining balance (M, MT), the recapture of Section 179 and/or Section 280F depreciation for the asset is computed for MACRS assets with a class life of 3, 5, 7, and 10 years. For ACRS assets, the computation is made for assets with a life of 3, 5, and 12 years. The recapture amount is shown as current year income in the appropriate area of the return. Use the Additional Taxes/Summary taxes worksheet to override the recapture computations for "Other" depreciation. A diagnostic message indicating the Section 179 and/or the 280F depreciation recapture is also issued.