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Bassetts eDepreciation
Asset Property Class
Simplify & Ensure Accurate Data Entry
IRS Publication 946 explains the use of depreciation
to recover the cost of business or income-producing property.
One of the key elements in determining the correct annual depreciation amount is
selecting the appropriate property class that is listed in Appendix B of this
publication to get the correct
recovery periods for both General Depreciation
and the Alternate Depreciation System.
Let's take a look at the Asset Class form.
This feature of Bassets eDepreciation provides a simple look up for the IRS
property classes.
You can scroll up and down the list to see all of the available asset classes.
As you select a class, the associated controls will reflect
the current values for recovery periods, methods and first-year conventions.
This is much easier than doing a manual look up in the IRS publication.
The selected asset class can then be linked to the appropriate asset g/l code
in your general ledger structure.
This ensures that every asset with this asset g/l
will consistently apply the same depreciation.
When you create a new asset, edepreciation combines this functionality
with our business rules that result in intelligent data entry.
You must enter a minimum of four critical pieces of information:
Description;
Purchase Price; Acquisition Date; Asset g/l
Bassets eDepreciation uses this information to determine the accurate
values for: Property Type;
Listed Property; Depreciation Method;
First-year Convention; Recovery Periods
As you can see, a click of the recalculate button displays the current
period depreciation amount.
By utilizing the IRS
property classes we can greatly simplify data entry while also
ensuring accurate and consistent tax depreciation information.
If you have any questions
or would like to see a full demonstration of eDepreciation, got to
bassets.net
and click on the contact us link.