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DepreciationDrake Software User’s ManualAsset & Department NumbersThe Asset number and Department number fields on the 4562 screen are for trackingpurposes in the Fixed Asset Manager (see “Fixed Asset Manager” on page 277)and can be used in reports.Land CostThe Land cost field on the 4562 screen is for the cost/basis of the land. The amountentered here should not be included in the cost/basis of the asset. For example, if thepurchase price including the land was $100,000 and the cost of the land was $10,000,you would enter $10,000 in the Land cost field and $90,000 in the asset Cost/Basisfield at the top of the screen.Depreciating Home Used for BusinessAmortizationState-specific InformationIf a 4562 screen is to be associated with a Form 8829, Business Use of Home, select8829 from the For drop list at the top of the screen. If the home was the taxpayer’smain home, select Main home for Form 8829 (in the Other Information section onthe left side of the 4562 screen).Enter amortization codes in the Amortization Code field on the 4562 screen underAmortization Information. To allow the extra $5,000 deduction in the first year ofamortization, select Elect additional first-year $5,000 deduction.All StatesFL and PAComplete the applicable State, Asset Type, ITC Code, and State basis (if different)fields, 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 ofthe 4562 screen.State-specific fields for FL and PA returns are located on the 4562 screen.• Occurrence of Schedule field: Choose the occurrence of the state form or scheduleto which the asset relates (the default is “1”). For PA entries, this field appliesonly when the asset is sold.• Schedule Form Data Flow list: Select the state form or schedule to which theasset data should flow. For PA entries, this field applies only when the asset issold.• Removal Method field (FL only): Press F1 to view valid entries. If left blank anda 2008 Date sold is entered, the program uses the default “02 - FL Sold.”The state-specific fields described above are new in 2008.144 Tax Year 2008