CCH Axcess Tax

Tax Preference (TP) Code

Enter a code of "F," "L," "R" or "P" as described below to correctly compute certain depreciation tax preference items.

A code of "A" is used to designate additions and improvements to a home used for business for proper presentation on Form 8829.

F - Retail Motor Fuels Outlet and Land Improvement Property. Enter an "F" and the straight line method will be used to calculate the Alternative Minimum Tax depreciation for 15 year property.

L - Personal Property Subject to Lease. Enter an "L" and the difference between regular and tax preference depreciation on pre-MACRS personal property subject to lease carries to the AMT depreciation report and to Form 6251. The computation result is limited to positive amounts and a diagnostic message is issued. For proper computation, enter the life in years.

R - Real Property. Enter an "R" and the difference between regular and tax preference depreciation on pre-MACRS real property carries to the AMT depreciation report and to Form 6251. The computation result is limited to positive amounts and a diagnostic message is issued. For proper computation, enter the life in years.

P - Amortization of Certified Pollution Control Facilities. Enter a "P" and the difference between regular amortization and preference amortization on pollution control facilities carries to the AMT depreciation report and to Form 6251. The computation result is limited to positive amounts on facilities placed in service before 1987. For proper computation, enter both the "Life" and "AMT Life" in months.

A - Additions and Improvements - Form 8829. Use this code if this is an addition and/or improvement to a home used for business purposes. This will produce the required depreciation supporting statement for Form 8829, line 40.

Valid codes for these fields:

F	Retail motor fuels outlet and land improvement property
R	Real property pre-MACRS
L	Personal property subject to lease
P	Amortization pollution control facility
A	Additions and improvements - Form 8829