CCH Axcess Tax

Federal Depreciation and Amortization

Current year federal regular, AMT, and ACE depreciation, as well as amortization, is computed for each asset and Form 4562 is prepared, based on entries presentin this worksheet. The computed amounts carry to the appropriate forms throughout the return.

A federal depreciation and amortization detail report is prepared on an "Attachment Entity" basis for all assets to support the regular tax depreciation computations.

For Form 1120 returns, a separate federal "AMT/ACE" depreciation report is also prepared on an asset by asset basis to support alternative minimum tax and adjusted current earnings depreciation computations.

For Form 1120S returns, a separate federal "AMT" depreciation report is prepared on an asset by asset basis to support alternative minimum tax computations.

Note for Form 1065 returns: When "ACE" has been suppressedin General Options worksheet, or there are no corporate or partnership partners present in the return, an "AMT" report is prepared. Otherwise, an "AMT/ACE" report is prepared. These federal depreciation reports are prepared on an asset by asset basis to support the alternative minimum tax and adjusted current earnings (if applicable) depreciation computations.

Interview Form	Description
DP-1	Federal Depreciation and Amortization
DP-3	Listed Property, 4562 Questions, and Percent Excluded Information
DP-4	Federal ACE Depreciation (Form 1120 and Form 1065 returns only)

Use the state fields to enter state if different or book asset depreciation information.

Other Information

The asset number must be unique throughout the entire tax return. Up to 65,534 assets can be processed in a return. (Up to 65,533 assets can be processed for the parent and ALL subsidiaries in a consolidated return.)

Note: An asset acquired after the end of the tax year may be entered and will NOT be treated as a current year acquisition. A diagnostic will be issued indicating the asset was acquired after the end of the year. The asset will not calculate current year depreciation. Any Section 179 information will be ignored. Next Year depreciation will be calculated based on the half-year convention.

Consolidated Corporation Returns Only

Your entries on the Depreciation and Amortization worksheet will be accumulated from your separate company entries and depreciation will be recalculated at the consolidated level for:

Applicability of mid-quarter/half year convention
Section 179 cost limitation
Section 179 dollar limitation

If the return wide depreciation force option is elected on the Depreciation Options and Depletion Overrides worksheet at the separate company level it should also be elected with the consolidated unit. Depreciation detail entries should never be used with the consolidated return.

The maximum number of assets that may be entered with both the parent and all subsidiary returns is 65,553. All assets will be renumbered, starting with asset number 2, so that all assets are unique throughout the consolidation.

Mandatory Entries

Asset Number