Treatments options

• System evaluated: This option is marked by default because the application tests all assets purchased during the current year to determine whether they should be included in or excluded from the MACRS mid-quarter calculations. The application includes all MACRS personal property assets and 7-, 10-, 15-, 20-, or 25-year assets that have been forced as real property assets at their business cost.

  To exclude these assets, you must mark the Exclude from mid-quarter determination (force) checkbox for each asset. To do this, click the asset's Other tab and then click the Mid-Quarter & Section 179 Force Options button.

• Force application: To force the application to calculate using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, click the Force application option.
• Halt application: To stop the application from calculating using MACRS mid-quarter calculations regardless of whether the normal conditions have been met, click the Halt application option.

Select the desired option from the drop-down list to determine how the selected treatment will set up replacement assets from a like-kind exchange.

• Do not follow IRS Notice 2000-4 and Reg 1.168(i)-6: The selected treatment for the replacement asset is set up so that the cost/basis is the original asset's adjusted net book value and depreciation begins on the disposal date.

  Note: If this option is selected and the trade occurs after 2/27/04, the application marks the Treat entire basis as a current-year acquisition (Election 1.168(i)-6(i)) checkbox on the Disposal tab. When this checkbox is marked, a statement will print with Form 4562.

• Follow IRS Notice 2000-4; Reg 1.168(i)-6 after 2/27/04: For all trades from 1/2/00 through 2/27/04, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to IRS Notice 2000-4. For all trades after 2/27/04, the selected treatment for a replacement asset that is depreciated using MACRS is set up according to Reg. 1.168(i)-6.

Mark this checkbox to apply luxury auto (passenger) and van and light truck limits to the current treatment for assets marked as luxury autos or vans and light trucks.

Otherwise, calculations for the State, Book, and/or custom (including Other) treatments treat those assets as listed property (rather than as luxury autos).

Mark this checkbox if the current treatment should use the same method of optimization as the Tax treatment.

Select the options for Bonus depreciation for assets placed in service in within a certain date.