PROSERIES FIXED ASSETS UPDATE

[ashokcpa]

There is a problem with correct calculation on 2023 assets for vehicles. It is showing zero for 2024 depreciation, only ones with bonus depreciation like luxury cars.

Proseries help line did not help. Request update for Fixed Assets just like Proseries software.

[Steve W1]

The 2023 luxury auto depreciation calculation is NOT working correctly for both Fixed Asset Manager OR in ProSeries.  I will not get into specifics, but the calculation will either say -0- depreciation for the current year or roughly 9% (should be at least 32% up to the limit) of the depreciable basis.  

As a side note, I spent about 5 hours between both FAM and ProSeries help line to try and get it corrected or at least noted it was a problem.  The answer of "we are not tax professionals" and the "It's in What's New" are not acceptable answers when it is clearly wrong.

[TaxGuyBill]

"should be at least 32% up to the limit) of the depreciable basis."

Not if the vehicle was under 6000 pounds and you used Bonus Depreciation.

The weird rules of §280F(a)(1)(B) can drastically reduce the depreciation for years 2 through 6.

Simplified example:  Vehicle cost was $50,000.  The 80% Bonus depreciation is $40,000, even though it is limited to $20,200.  The other $19,800 can't be used until year 7. 

In the meanwhile, only $10,000 can be depreciated from years 2 through 6.

If the business percentage of the vehicle drops from 2023 to 2024, it could result in $0 depreciation because ProSeries the mathematical method to calculate depreciation, rather than using the "tables" (unless you specifically tell it to use the "tables").