CCH Axcess Tax

Tax Preference (TP) Code

Enter a code of "F," "L," "R," or "P" as follows to correctly compute certain depreciation tax adjustment and preference amounts:

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/ACE (or AMT for Form 1120S returns) depreciation report and to Form 4626 or Schedule K. 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/ACE (or AMT for Form 1120S returns) depreciation report and to Form 4626 or Schedule K. 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 tax preference amortization on pollution control facilities carries to the AMT/ACE (or AMT for Form 1120S returns) depreciation report and to Form 4626 or Schedule K. The computation result is limited to positive amounts on facilities placed in service before 1987. For proper computation, enter both the "Life" and "AMT/ACE Life" in months.

Small Business Exemption Codes(1120)

For 1120 returns only, enter a code of "X", "Y" or "Z" as follows to force the AMT calculation for assets that previously qualified for the small business exemption:

X - Force AMT For Asset Previously Qualified. Enter an "X" to force the AMT calculation for asset placed in service after December 31, 1986.

Y - Amortization Pollution Control Facility and Force AMT For Asset Previously Qualified. Enter a "Y" to force the AMT calculation and carry the difference between regular amortization and tax preference amortization to the AMT/ACE deprecation report and to Form 4626 or Schedule K.

Z - Retail Motor Fuels Outlet and Land Improvement Property and Force AMT for Asset Previously Qualified. Enter a "Z" to force AMT to calculate and to use the straight line method for 15 year property.