Asset Class (tffam1135m000)

Use this session to determine the life of the assets in the class, either by determining a single life value, or by providing a range of values from which the life might be selected. This determines the life of the assets in the class.

If you select ADR as the account type, you enter the Lower Life, Midpoint Life, and Upper Life for ADR Vintage accounts. If you select MACRS as the account type, you enter the Alt. Depreciation Life, General Depreciation Life, and Class Life for the MACRS Group accounts. The life of an asset affects its recovery period.

Note

Once an asset class is in use by a vintage/group account, it cannot be edited.

 

Asset Class
A unique identifier for the tax code class for the assets in the vintage/group account. The class determines the available life range for ADR assets or the actual life for MACRS group assets. The life set in the ADR book for all assets in the account must be the same as the life set for the account.
Description
The description or name of the code.
Account Type
Indicates whether the account can be used to track ADR Vintage Account assets or MACRS group assets.
Note

If you select ADR, Lower Life, Midpoint Life, and Upper Life are applicable. If you select MACRS Group, Alt. Deprec Life, Gen. Deprec. Life, and Class Life are applicable.

Alt. Deprec Life/ Lower Life
Lower life is the minimum life for ADR Vintage Account assets. The lower class life is typically 20% lower than the class midpoint. It is available only for vintage accounts with an account type of ADR.

The Alternative Depreciation Life (Alt. Deprec Life)is the number of years the assets in the MACRS group accounts can depreciate using the alternate methods of depreciation (such as Alternative Minimum Tax preference calculation. This is required for some IRS Federal - U.S. tax regulations, and is available only for group accounts with an account type of MACRS.

Gen. Deprec Life/ Midpoint Life
Midpoint Life is the point from which the federal tax lower and upper class lives are measured. In some cases, the midpoint life only is allowed for an ADR account. It is available only for vintage accounts with an account type of ADR.

The General Depreciation Life (Gen. Deprec Life) is the number of years the assets in the MACRS group account can depreciate using the standard depreciation expense allowed by IRS Federal tax - U.S. regulations. It is available only for group accounts with an account type of MACRS.

Class Life/ Upper Life
The Upper Life is the maximum number of years the ADR Vintage Account asset can depreciate. The upper class life is typically 20% higher than the class midpoint. Available only for vintage accounts with an account type of ADR.