Bees - ProSeries

[Gretel]

Bees,

Since I know you use ProSeries, you might have an answer for me on this one. Depreciation for non-profit should be straight line. Now, if I have land improvements with an asset class of 15/20 years it should be depreciated over 20 years, straight line, right. ProSeries just goes by 15 years. Is this correct?

If so, would this mean 20 years is just for AMT purposes and 15 years for all other straight line depreciation? I always thought the second number (20 in this case) is for all straight line depreciation.

Thanks,
Gabriele

[Bees Knees]

Non-profit organizations are not allowed to use MACRS. They can only use the ADS class life, which is always straight line over a longer period.

The reason the program is giving you 15 years is probably because there is nothing to indicate that your client is a non-profit. I would just overide the system and make it use ADS.

[Gretel]

Non-profit organizations are not allowed to use MACRS. They can only use the ADS class life, which is always straight line over a longer period.

The reason the program is giving you 15 years is probably because there is nothing to indicate that your client is a non-profit. I would just overide the system and make it use ADS.

Thanks, Bees, this is what I did. Somehow I thought doing a form 990 already indicates that I deal with a non-profit corporation and the software should act accordingly.

[Bees Knees]

Somehow I thought doing a form 990 already indicates that I deal with a non-profit corporation and the software should act accordingly.

One would think that to be the case. I don't have the 990 module, so I don't know.

TTB, page 9-13 under ADS says it is mandatory for tax-exempt use property. Maybe the software allows it because not everything on the 990 return is necessarily tax-exempt. For example, property used by a non-profit organization that is subject to Unrelated Business Income Tax.