Understanding Asset Depreciation Reports
Asset depreciation reports available in UltraTax CS provide a comprehensive overview of all assets, including the bonus depreciation report, the depreciation adjustment report, and the future year depreciation report. These reports detail the asset number, description, date in service, cost basis, business use percentage, and more.Formula
(Tax + Book + AMT + ACE (1120))/Number of YearsHow do I calculate the asset depreciation report?
It is best to calculate asset depreciation report using either Sourcetable or another spreadsheet. To calculate the asset depreciation report, use the following formula: (Tax + Book + AMT + ACE (1120))/Number of Years. This will yield the exact amount of depreciation reported each year.
What is Fixed Assets CS?
Fixed Assets CS is an application that calculates depreciation for assets using the MACRS method.
What is MACRS?
MACRS stands for Modified Accelerated Cost Recovery System, and is a method of calculating depreciation for assets.
Does Fixed Assets CS calculate bonus depreciation?
Yes, Fixed Assets CS calculates bonus depreciation.
How does Fixed Assets CS calculate depreciation for current-year acquisitions differently after entering a current-year asset?
Fixed Assets CS calculates depreciation for current-year acquisitions differently after entering a current-year asset using the following formula: Acquisition cost - Salvage value/Useful life in years.How does Fixed Assets CS calculate depreciation for a short year when clients change their fiscal year end?
Fixed Assets CS calculates depreciation for a short year when clients change their fiscal year end using the following formula: Cost of asset x (1 - (days used/total days in year)).How does Fixed Assets CS calculate depreciation for a client who began a business after the beginning of the current year?
Fixed Assets CS calculates depreciation for a client who began a business after the beginning of the current year using the following formula: (Cost of asset x (1 - (days used/total days in year)))/Years in business.
Key Points
How do I calculate asset depreciation report?
(Tax + Book + AMT + ACE (1120))/Number of Years
Double-Declining Balance Method
The double-declining balance method is an accelerated depreciation method. It is used to calculate the depreciation of an asset over time by multiplying the asset’s cost by a fixed rate each year. This method allows for the asset’s depreciation to be accelerated, meaning that more of the asset’s cost is depreciated in the earlier years of the asset’s life.
