Depreciation tab (Fixed Assets)

Use the Depreciation tab to enter a description, assign a situs, enter relevant dates, and modify detailed depreciation information for the asset.

Open an asset in Onvio Fixed Assets. The asset will open in the Depreciation tab.

Notes:

  •  The oldest allowable date is 01/01/30. Onvio assumes that dates from 01/01/00 to 12/31/29 are in the 21st century.
  • When you mark the Used checkbox Onvio will not calculate bonus depreciation if the asset was placed in service prior to 9/28/17.

Treatments

For a new client, the Tax and AMT columns appear in the Depreciation tab automatically. To make the other treatment columns available for data entry, see Set up treatments for details. By default, Onvio automatically duplicates amounts you enter in the Tax column in the state column (except for section 179 expense). However, you can make changes in the state column if you need to enter special depreciation data for a state.

Method/Life Wizard

Click to open the Method/Life Wizard, which automatically fills in the methods and lives for an asset. You can choose from a list of asset classes. Then, based on the asset class that you choose and the date the asset was placed in service, Onvio Fixed Assets automatically enters the appropriate methods, lives, and, if applicable, ADS lives for all treatments that are being calculated.

Sec 179 Expense

Enter the section 179 amount expensed, or click to apply the maximum Section 179 expense on the asset. Onvio Fixed Assets notifies you if an asset causes the current maximum section 179 amount to be exceeded.

If you enter a section 179 expense for a luxury auto that exceeds the luxury auto depreciation limit, the section 179 expense amount is limited to the current year's luxury auto depreciation limit.

Prior Depreciation

When adding an asset placed in service in a prior year, enter the amount of the asset's accumulated depreciation or cost recovered. You cannot enter an amount that is larger than the asset's basis.

This amount is automatically calculated if you choose Actions > Prior Depreciation Comparison or select the Calculator icon which appears when you click in a treatment's Prior Depreciation field. The amount in this field is automatically updated whenever you close to a new fiscal year.

If you took bonus depreciation, include this amount in this field as well as in the Bonus Depreciation field.

Current Depreciation

Unless you want to override a depreciation amount, you do not need to enter an amount in this field. When you close the asset Onvio will calculate and display the asset's applicable depreciation for the current period in this field. This field includes the section 179 expense amount in the asset's first year.

Regardless of whether you took the correct depreciation in prior years, the application still calculates the correct current depreciation according to the method you specify. However, if you select MACRS accelerated depreciation based on the formulas rather than IRS tables, the current depreciation depends on the amount of prior depreciation taken.

If you took incorrect depreciation in a prior year, the application does not adjust the current depreciation so that the ending accumulated depreciation is correct.


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