CCH Axcess Tax

Amortization, Section 179 Carryover and Computer Software

A. Amortization. Enter an "A" if the asset is amortizable property.

Caution: The life must be entered in months.

Current year amortization carries to Form 4562, Part VI. (See instructions for the "IRC Section" field for additional information.) For "C" Corporations, enter IRC Section 248 in the "IRC Section" and the organizational expenses carry to the Form 4626 ACE worksheet.

Note: If the life entered is left blank with a method of "A" the program defaults to 180 months.

A197. Amortization of Section 197 Intangibles. Enter a method of "A197" if the asset is amortizable Section 197 intangibles. Current year amortization carries to Form 4562, Part VI. A full month of amortization is included for the month the asset is placed in service and none is calculated for the month of disposition.

Caution: The life must be entered in months.

FILM- Amortization of Film, Theater, and Television Productions. Enter a method of "FILM" if the asset is a film, theater, or television production and can be amortized over a 15 year period. This asset will qualify for bonus depreciation if placed in service after 9/27/2017. Current year amortization carries to Form 4562, Part VI. A full month of amortization is included for the month the asset is placed in service and none is calculated for the month of disposition.

Caution: The life must be entered as 180 months.

CO. Section 179 Expense Carryover. Enter a method of "CO" for any prior year Section 179 expense carried over from prior tax years due to the business income limitation. Enter the prior year amount in the "Section 179" field. The amount carries to the "Carryover of disallowed deduction from 2018" line of Form 4562.

Note: The prior year Section 179 carryover is subject to the expense limitation, the cost of property limit, and the current year business income limitation. Prior year Section 179 carryover disallowed in the current tax year is available for carryover in future tax years. The amount of the carryover is printed on the Carryover Sheet for Form 1120 Returns. The amount of the carryover is printed in a diagnostic message for Form 1120S and Form 1065 Returns.

CS. Computer Software and Mortgage Servicing Rights. Enter a method of "CS" if the asset is computer software or mortgage servicing rights. Enter a life of 3 years for computer software and 9 years for mortgage servicing rights. A full month of depreciation is included for the month the asset is placed in service and none is calculated for the month of disposition. The amount of depreciation carries to Form 4562, Part II.