Discussion:Alternative Depreciation System

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Discussion Forum Index --> Tax Questions --> Alternative Depreciation System

Mshelden (talk|edits) said:

January 6, 2006
Has anyone used the Alternative Depreciation System (ADS) for assets? The General Depreciation System is what I have always used, These are both part of MACRS. ADS can be an election or its also mandated for several categories including tax-exempt use property. The class lives are in section 168(g)(3) and Pub 946. I have a non-profit health clinic as a client and Lacerte does not input the depreciation amounts on line 20 of Form 4562. It ends up on line 16. Does your program input it right?

Mshelden (talk|edits) said:

January 11, 2006
I have my answer from Lacerte support:

MACRS depreciation assets that are placed in service in the current year and are marked "Alternative depreciation system (ADS)" on Screen 22, Depreciation, will appear on line 20 of the Form 4562. If a 4562 is generated and there are ADS assets from a prior year, they will show up on line 17. The asset must have a MACRS method and the box checked for "Alternative depreciation system (ADS)" under the Additional Information section.

I was giving the assets a method of Non-recovery Straight Line (91 in Lacerte). If I change the method to any straight-line MACRS method and then give it the proper class life and check the box for ADS, then it works! Imagine that! Although, more than three assets don't get listed separately. Just FYI for you Lacerters out there. :)

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