ATX Get to Know. Asset Depreciation. How is Asset Depreciation Tracked in ATX? Using the Fixed Assets Form to Enter Assets
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1 Get to Know ATX 2013 Asset Depreciation How is Asset Depreciation Tracked in ATX? ATX s Fixed Assets form lets you to enter assets and auto-calculate depreciation amounts for those assets. The Fixed Assets form, which is like a worksheet, is automatically added to the return when you add Form 4562, Depreciation and Amortization. When you enter assets on the Fixed Assets form, asset depreciation flows automatically to Form The Fixed Assets form also enables you to generate asset depreciation reports for the current year, future year, and AMT depreciation through the The Fixed Assets form is a very basic version of our Fixed Assets Manager (FAM) product a time-saving, easy-to-use depreciation tracking program. If you are a FAM customer, FAM works in conjunction with ATX, feeding your asset information from FAM into tax returns in ATX. For more about the FAM product, see FAM Capabilities later in this document. Using the Fixed Assets Form to Enter Assets To access the Fixed Assets form, do one of the following: Add the 4562 to your return (which adds Fixed Assets by default); or Jump to the Fixed Assets form from the depreciation line of a schedule or form P Calculates prior and current year depreciation ATX s Fixed Assets Form Basic Tool Capabilities P Tracks gains and losses from dispositions P Compares standard vs. actual deduction for listed luxury autos P Quickly tracks Federal, AMT, and State depreciation P Automatically generates one or more copies of the 4562 as well as depreciation reports, based on the assigned business activity.
2 Page 2 of 6 Adding 4562 and Fixed Assets Forms to Returns When you add the 4562 to the return, the Fixed Assets form is also added automatically. NOTE: If you re rolling a return from last year and the 4562 is already in the return, the Fixed Assets form will already be in the return. 1. On the ATX toolbar, click on the Add Forms icon. 2. When the Add Forms dialog appears, select (Both the 4562 and the Fixed Assets forms will be added to the return.) 3. When the 4562 opens in ATX, click on the Fixed Assets form. The Fixed Assets form opens, with the Asset Entry tab open. Most asset data entry and depreciation occurs on the Asset Entry tab: 4. Enter basic asset information, such as description and date in service. NOTE: Assets will not be saved without a description or date in service. 5. Select an activity (such as Sch C) to associate with the asset (see highlighted field). This field lists all activity forms included in the return. (NOTE: If you do not select an activity, the asset information will not flow to the 4562.) 6. Select a category and sub-category for the asset. 7. Under Depreciation and Section 179, enter the asset cost. (ATX will automatically calculate the Special Allowance deduction, if applicable, and will also enter the recovery period, method and convention fields.)
3 Page 3 of 6 NOTE: In order for the system to automatically calculate depreciation, you must complete the following information: Description, Date in Service, Category, Sub- Category, and Cost. If Category and Sub-Category are not completed, you must manually enter Recovery period, Method, and Convention as well as the fields mentioned previously in order for the depreciation to be calculated. Making Bonus Elections ATX will calculate the depreciation for Federal, AMT, and State treatments. Use the Asset Global Settings tab to make bonus depreciation elections for each year:.or choose different states:
4 Page 4 of 6 Handling Prior Year Asset Entry If you re using ATX for the first time or entering a return from another preparer, you may need to enter prior year assets for the first time in the current year. Prior year assets can be entered in the Depreciation and Section 179 section of the Asset Entry tab. Jumping to the Fixed Assets Form from the Depreciation Line of a Schedule or Form 1. Click in Line 13 of the Schedule C. The green JumpTo arrow appears: 2. Click the JumpTo arrow. The Jump To dialog appears: 3. Select the Fixed Assets form. The Fixed Assets form opens, with the Asset Entry tab open. 4. Enter assets as described in Steps 4-7, above. What has Changed? Since last year, we have enhanced ATX asset management in the following ways: An explanation of how depreciation is calculated is now available. To see this: 1. In the Fixed Assets form, click on any field on the Asset Entry tab. 2. Press CTRL+SHIFT+F12 to display the dialog with the explanation. Like Kind Exchange: When you enter a Like Kind Exchange disposition, ATX automatically creates a record for the asset received in the exchange.
5 Page 5 of 6 FAM enhancements: The following enhancements were made to the standalone version of FAM: Ability to populate all new assets with the maximum section 179 deduction; Ability to tie two or more files together for a consolidated return. The Benefits of Using the Fixed Assets Form Simple & Easy to Use Like most busy tax offices, you need a simple and efficient asset depreciation tool. The Fixed Assets form can automatically calculate your depreciation with minimal data entry. Quick and Efficient Depreciation for hundreds even thousands of assets is calculated quickly and efficiently. Fully IRS and State Compliant As long as you consistently update the product, you can be sure that your depreciation program is compliant with current tax law. Save Time The ability to roll or pro forma assets to the next year is a huge time saver. Additionally, the program updates the prior and current depreciation fields automatically and no further work is needed for rolled assets. Integration with the Fixed Asset Manager (FAM) Module For preparers who do heavy asset management work, our separate Fixed Asset Manager (FAM) product has all the capabilities of the Fixed Assets form and more! FAM lets you track asset changes through the year; and because FAM is works seamlessly with our ATX system, asset changes that are tracked using FAM are automatically reflected in the client s tax return in ATX. For more information on this robust asset management system, see the Fixed Asset Manager page on our website.
6 Page 6 of 6 Fixed Asset Manager (FAM) Capabilities All the capabilities of the Fixed Assets form, plus these Advanced Capabilities P Add more than one state treatment P Use 17 standard detailed reports to track and analyze asset activity; or, create your own custom reports P Print asset reports to ATX PaperlessPLUS P Transfer asset information to Client Accounting Suite (CAS) for financial reporting purposes P Combine clients for consolidated returns P Duplicate or split assets, or group assets into a multiple asset account P Quickly maximize your 179 deductions for new assets with the Maximize 179 feature P Set up Groups, Locations, and G/L accounts NOTE: For FAM customers, if you prepare a tax return in ATX for a new client using Form 4562 for their depreciation, a corresponding client will be automatically set up in FAM. What Should I Use? FAM or the Fixed Assets Form Additional Items to Note The Fixed Assets form that s embedded in the ATX product allows you to do basic depreciation and run basic asset reports. Although you don t need to purchase a FAM license to do basic depreciation, FAM contains more robust features than are available in ATX. Refer to the Advanced Capabilities in the Fixed Asset Manager (FAM) box to determine which tool is right for you. To make sure that you have the most current depreciation calculations, please be sure to keep current with your ATX form and program updates. An update to Fixed Assets is a program update and may contain regulatory changes or calculation refinements. The release notes will comment on any Fixed Assets changes, if applicable. The Fixed Assets form has many automatic calculations based on selection of a Category and Sub-category. Although you don t have to select a Category and Sub-Category for the depreciation calculation to be correct, selecting a Category and Sub-Category ensures that automatic information for recovery period, method, and convention is calculated according to the tax laws. It will also save data entry time. While the Fixed Assets form is a terrific tool, we understand that some users want to do it themselves. For those users, they can discard the Fixed Assets form from the return, and enter depreciation directly on the Customers who discard the Fixed Assets form lose the benefits of an automated asset management system, such as the tracking of future depreciation, reporting and the rollover of assets. NOTE: The separate stand-alone version of FAM does not link to a Direct Input 4562.
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