new client with several items on depreciation schedule - is there a shortcut to enter?

[lyndaj0331]

I have a new client that has a depreciation schedule that is several pages long.  Is there a shortcut to entering these items or do i need to do a separate asset entry worksheet for each item?

Thank you.

[Just-Lisa-Now-]

No shortcuts that Im aware of, unless the previous accountant used ProSeries or the taxpayer was a DIY that used TurboTax Desktop and can give you and tax file that you can transfer in.

[Jim-from-Ohio]

i have experienced this.. if there are a ton of assets that are fully depreciated I have added up those particular assets and created one asset for the totals.. items that are not fully depreciated i entered individually..

now one shortcoming of this method if the company sells one of the assets fully depreciated you will not be able to mark that one "composite" asset as being sold.. you could at that point though carve out that one asset and create an asset for the item being sold.. but you would not know the cost unless client knew or you can keep the "old" depreciation schedule to find the cost there. 

i know this is not the best method but it can be a workaround and as far as these old assets, i have not seen clients selling old assets.. it could very well be that some of those old assets don't even exist anymore and were never taken off of the fixed asset listing. 

[Just-Lisa-Now-]

Ive had clients go through the list, many times there's old stuff that's been junked long ago or stuff they dont even recognize anymore and can be removed, and the list can be whittled down to something more manageable.

[Jim-from-Ohio]

i have seen depreciation schedule with such vague descriptions, like F & F, EQUIP, etc.. and they are repeated over and over. 

[rbynaker]

We have an annual Business Personal Property Tax here in VA so it's usually pretty easy to coax clients into giving a good description.  "Do you want to keep paying the county tax on this "EQUIP" forever?  Or maybe we can give it a better description so when it goes in the dumpster in 3 years you can stop paying tax on it?"

I would take Jim's approach.  If it's fully depreciated keep a paper (or scanned) copy of the old depreciation schedule for reference.  If it's still depreciating enter it and let the software do the work.  If you have some summer interns next year, have them enter the fully depreciated assets into the software.

Rick

[Jim-from-Ohio]

Personal property tax.. this brings back thoughts to when Ohio used to have this tax.. this tax got clients mad than any other tax.. they could not understand why they had to pay tax on their profits and then pay more tax on furniture, inventory, and equipment.. thankfully ohio ditched this tax.

[PATAX · Accepted solution]

Sometimes when I get in a situation like that, I just immediately put the nose to the grindstone and start plowing away. And you can usually get it done in the time you spend spinning your wheels trying to figure out an alternative. 

[Just-Lisa-Now-]

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@Jim-from-Ohio wrote:

Personal property tax.. this brings back thoughts to when Ohio used to have this tax.. this tax got clients mad than any other tax.. they could not understand why they had to pay tax on their profits and then pay more tax on furniture, inventory, and equipment.. thankfully ohio ditched this tax.

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CA still has it, they just extended it to short term rentals, so yes, starting in 2024, they want people with AirBnBs to give each county a list of all the items in their STRs and pay personal property tax on it each year...SMFH

[rbynaker]

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@Just-Lisa-Now- wrote:

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CA still has it, they just extended it to short term rentals, so yes, starting in 2024, they want people with AirBnBs to give each county a list of all the items in their STRs and pay personal property tax on it each year...SMFH

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I saw that ridiculous form (in draft anyway).  Do they really expect people to remember when they bought their beds, chairs, lamps, etc. and how much they paid for them?

[PATAX]

SMH indeed.. reminds me of Pennsylvania, or should I say Taxsylvania, where they apparently sit around and think of new ways of squeezing money out of hard-working people and producers so they can give it to the Perpetual bums with their hands out. When the takers become the majority and the producers become the minority then the country will be finished. What a joke.

[Just-Lisa-Now-]

"I saw that ridiculous form (in draft anyway).  Do they really expect people to remember when they bought their beds, chairs, lamps, etc. and how much they paid for them?"

I guess so, its crazy.   

They've had the Business Personal Property Tax for as long as I can remember, but I only have a few businesses that get these from the county each year now.  Seems like there used to be more.   I use their asset list, if its not on there, screw 'em!  LOL  They also want the $$ amount of supplies on hand as of the end of the year, and I usually take their total supplies for the year and divide by 12, I don't know how else to give them an "on hand" $$ amount.

If you call the county and ask them how they compute this "tax" they cant tell you how it's computed, the whole thing is crazy.  I remember my old boss going down there and razing a ruckus, thankfully it was pre cell phone days or he woulda went viral as "crazy old Danish man causes scene in county building"   Im pretty sure security ended up escorting him out  LOL

[rbynaker]

Here it is:

https://www.caltax.com/files/cat/BOE-571-str.pdf

Be sure to dig up the receipt for that toaster, those knives, and don't forget the blow dryer!

[Just-Lisa-Now-]

Yea, Im not getting involved in this one!  They've got it laid out pretty self explanatory for people, none of that is spelled out on the tax return, I don't need to be involved.

[lyndaj0331]

Thank you!

[PATAX]

You're welcome.

[scottamtax1]

Control+M (when on the asset screen) will bring you to the quick entry screen. You can then enter all the assets sequentially vs needed to pull up a new asset screen for each asset. 

Not exactly a shortcut but it does save some time!