User's Manual - Drake Software

Drake Software User’s Manual
Depreciation
Land Cost
Use the Land cost field to enter cost/basis of the land. An amount entered here should
not be included in the cost/basis of the asset. For example, if the purchase price
including the land was $100,000 and the cost of the land was $10,000, you would
enter $10,000 for Land cost field and $90,000 for Cost/Basis at the top of the screen.
Depreciating Home Used for Business
Amortization
If a 4562 screen is to be associated with a Form 8829, Business Use of Home, select
8829 from the For drop list at the top of the screen. If the home was the taxpayer’s
main home, mark Main home for Form 8829 (in the Other Information section on
the left side of the 4562 screen).
Enter amortization codes in the Amortization code section field on the 4562 screen
under Amortization Information. To allow the extra $5,000 deduction in the first
year of amortization, select Elect additional first-year deduction.
State-specific Depreciation Information
All States
FL, KY, and
PA
For state-specific depreciation information, complete the applicable fields under
State-Specific Information section (near the bottom of the left column), ensuring that
all state rules and guidelines are followed. Note that State basis (if different) is an
override field. The default basis is the Cost/Basis from the top of the 4562 screen.
State-specific fields for Florida, Kentucky, and Pennsylvania returns are located on
screen 4562.
• Occurrence of Schedule field: Choose the occurrence of the state form or schedule
to which the asset relates (default is “1”). For PA entries, this field applies only
when the asset is sold.
• Schedule form data flow list: Select the state form or schedule to which the asset
data should flow. For PA, this field applies only when the asset is sold.
• Removal Method field (FL only): Press F1 to view valid entries. If left blank and
a 2012 Date sold is entered, the program uses the default “02 - FL Sold.”
Placed in Service (Overrides)
The 4562 screen has the following placed-in-service override fields:
• Force convention — MQ (mid-quarter) or HY (half-year). If MQ is selected, the
program calculates which quarter to use.
• Do not use MACRS % tables — Options include Qualified Indian Reservation
Property.
Tax Year 2012 169