Asset Keeper Discussion Board

[ProWareSupport]

The Auto Assign Section 179 wizard will automatically assign Section 179 deductions to your assets. The Section 179 deductions will be assigned using a preferred deduction method that will maximize your deductions even if the mid-quarter convention applies. The annual depreciation will be automatically re-calculated for any assets whose section 179 was changed, either increased or decreased.

The "preferred" deduction method will take Section 179 on assets that were acquired closest to the end of the year. This should result in the maximum deduction even if the mid-quarter convention applies. The first step of the wizard requires you to select the depreciation methods that you want auto assigned section 179. Additionally, you must select a "Master" method. All other methods will be auto assigned the same as the master method. The master method does not have to be one of the methods you are auto assigning. For example, if you manually enter section 179 for your Federal method and now want to use the Auto Assign Section 179 Wizard to take section 179 on the same assets for your AMT and ACE method, you would set the master method to your Federal method.

The next screen shows the amount of section 179 that will be auto assigned based on the total additions for the year and any section 179 carryover that may exist. The next screen will show the priorities for each class of assets that will be used when auto assigning section 179. Asset Keeper scans the new acquisitions in your file and groups them based on depreciable lives. It then assigns a priority code to each group. The priority codes are assigned so that the assets with the longest lives will be assigned Section 179 before those with shorter lives. This usually results in a larger overall depreciation deduction for the year.

Asset Keeper will attempt to eliminate the Mid-quarter Convention by assigning Section 179 to fourth quarter assets first. Additionally, it will assign Section 179 to assets with longer lives in the fourth quarter in order to maximize your deduction. The priority codes assigned to each group of assets can be changed to suit your preferences and particular situation. Groups of assets assigned the same priority code will be treated equally when assigning Section 179. If you assign a priority code of "0", no assets in that group will be assigned section 179. Note that the priority code assigned to luxury autos (Listed Code = "Y") is higher than any other assets. In many cases, taking Section 179 on luxury autos will result in a smaller total deduction.

After clicking "Auto Assign" the wizard will display a final screen showing the before and after results of assigning section 179 using the wizard. This option can be run as often as you like. If new assets have been added that are later in the year, and you run this option again, the section 179 will then be shifted to those assets and removed from assets acquired earlier in the year. For purposes of determining what assets can be auto assigned section 179, that is, personal property acquisitions, any assets a "Y" in the Qualified 179 field will be auto assigned.
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Pro-Ware Technical Support

[ProWareSupport]

Sounds like you're trying to recapture Section 179? Asset Keeper will not calculate Section 179 recapture. In our experience, it doesn't happen very often and when it does, it's simply a matter of reporting it on IRS Form 4797.

Should be fairly easy to identify assets requiring recapture by just printing the Current Year Disposed Assets Report. If the asset is sold before the end of its life and is NOT fully depreciated and Section 179 was taken, then there will probably be some recapture.

Once again, in our experience, most users don't report this anyway since it is very difficult to track.
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Pro-Ware Technical Support

[ProWareSupport]

The Section 179 deduction is not calculated automatically when you add assets. You will have to run 'Auto Assign Section 179' from the ASSETS menu after entering your acquisitions.
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Pro-Ware Technical Support