How to Add an Asset to a Tax Return

How to Add an Asset to a Tax Return

This article will walk through the process of adding an asset through the asset manager within the program.

Assets can be linked to the following Schedules C, E, & F. Those schedules should be added to the return before adding assets.

  

Multiple Methods to access the asset manager within the program.

  1. Selecting "Depreciation" within the GENERAL attached Forms
  2. Selecting "Form" from the command list & selecting "Depreciation"
  3. Ctrl+N will also bring up the asset manager

 

Linking the asset to Schedule C, E, or F & Identifying the Class Code

  1.  Double click the business activity to open the "Business Activity Asset" window
  2. Click New Asset
  3. In the Description box, enter a name for the asset
  4. In the Date Placed in Service box, enter the date the asset was placed in service
  5. Select the appropriate "Business Asset Class" and click OK

 

 

Setting the Original Cost or Basis & Verifying Depreciation

  1. On the General Tab, enter the original cost or basis of the asset in the Original Cost or Basis box
    • If the original cost or basis includes land, enter the value of land in the Salvage Value box
    • If claiming the Section 179 deduction, enter the amount elected for the Section 179 deduction in the Sec 179 Expense box (not to exceed business use %)
      • Example: 50 % business use and the cost is $5000 it will not allow more than $2500 for section 179
  2. If the asset has prior year depreciation amounts, click the Depreciation Tab and enter the prior year depreciation in the Adjusted Depreciation box