Vintage/Group Account (tffam7170s000)
Use this session to maintain the vintage/group accounts used to track and maximize the tax deduction for assets subject to ADR and MACRS group depreciation. Assets in a vintage or group account are depreciated as a group, and are subject to different disposal rules than assets that are not part of these accounts. All assets associated with the same accounts must share the same parameters because they depreciate together.
In order to add a vintage or group account to the Fixed Assets module, you must have first set up an ADR book in Default Book (tffam0110m000) because only the ADR book is depreciated. You cannot delete or modify a vintage or group account that is associated with an asset.
Field Information
- Vintage/Group Account
-
A unique identifier for the vintage/group account.
- Description
-
The description or name of the code.
- In Service Year
-
Year of service for the vintage/group account and its assets.
- Account Type
-
Indicates whether the account can be used to track ADR Vintage Account assets or MACRS group assets.
- Property Class
-
Indicates whether the vintage/group account can contain assets with real or personal property type classes. The asset property type must match the type specified for the account.
- New
-
If this check box is selected, the vintage/group account contains new assets. You can only add assets to the vintage or group account that have the same setting, New or Used, as the account.
- Asset Class
-
Indicates 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 must be the same as the account for all assets in that account.
- Description
-
The description or name of the code.
- Dummy Label
-
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. It is available only for vintage accounts with an account type of ADR.
The Class Life is available only for group accounts with an account type of MACRS.
- Dummy Label
-
Midpoint Life is the point from which the federal tax lower and upper class lives are measured. 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.
- Dummy Label
-
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 you can depreciate the assets in the MACRS group accounts by using the alternate methods of depreciation (such as Alternate Minimum Tax preference calculation). This is required for some United States IRS Federal tax regulations, and is available only for group accounts with an account type of MACRS.
- Life (in months)
-
Life for the vintage/group account and all assets it contains. The system prevents you from adding an asset to the vintage/group account if it does not match the life specified for the account.
- Depreciation Code
- Description
-
The description or name of the code.
- Depreciation Frequency
-
Indicates the new depreciation frequency for the selected account. Depreciation frequencies identify when depreciation must be run and recorded for assets and their related books. This is editable only in the first year of a vintage/group account.
Default value
The current depreciation frequency for the selected account.
- Description
-
The description or name of the code.
- Deprec Below Salvage
-
Indicates whether the vintage/group account can depreciate below its salvage value. If this check box is selected, the vintage or group account can depreciate below its total salvage value. You can only add assets to the vintage or group account if they have the same setting for the Depreciate Below Salvage check box as the account.
- Current Cost
-
Current cost of the vintage/group account's assets in their ADR or MACRS group books. When you add an asset to the vintage or group account, LN adds its cost to the account total. If you remove an asset from the account, LN removes its cost from the account total. The cost is added to the vintage account total when an asset is capitalized.
Note: Certain restrictions are imposed by the IRS governing the removal of assets from vintage and group accounts. You must consider these restrictions when removing assets from vintage or group accounts. For more information, see your federal tax depreciation guidelines. - Current Cost
-
From the Tools menu, choose Rotate Currency to switch home currencies.
- Salvage Value
-
The salvage value of the vintage/group account.
- Last Depreciation Date
-
End date of the last period on which depreciation was run for the vintage/group account in the selected book. LN resets the last depreciation date each time you calculate depreciation for the account and book.
- Accumulated Depreciation
-
Total depreciation accumulated for the vintage/group account's assets in their ADR or MACRS group books since the assets went into service. When you add an asset to the vintage or group account, the system adds its accumulated depreciation to the account total when capitalized. If you remove an asset from the account, its depreciation is removed from the account total.
Note: Certain restrictions are imposed by the IRS governing the removal of assets from vintage and group accounts. You must consider these when removing assets from vintage or group accounts. For more information, see your federal tax depreciation guidelines. - YTD Depreciation
-
Total depreciation accumulated for the vintage/group account's assets in their ADR or MACRS group books since the beginning of the current fiscal year. When you add an asset to the vintage or group account, LN adds its year-to-date depreciation to the account total. When you remove an asset from the account, its depreciation is removed from the account total.
Note: Certain restrictions are imposed by the IRS governing the removal of assets from vintage and group accounts. You must consider these when removing assets from vintage or group accounts. For more information, see your federal tax depreciation guidelines.