How to Reconcile the 4562 in Sage Fixed Assets

Created on 10-10-2013 | Last modified 01-21-2021

Summary

  • How to reconcile the 4562 to the TAX Expense report?
  • How to tie out the 4562?
  • Depreciation and Amortization Report is missing assets
  • Form 4562 Part III line 19A 3 year property
  • Depreciation and amortization report line 44
  • Does line 22 from page 1 add into line 44 of page 2 on Form 4562?
  • How to calculate form 4562 line 44
  • 4562 numbers are incorrect
  • On 4562 Line 19 is wrong

Resolution

This article is intended as a GENERAL GUIDELINE to determine if the correct information is appearing of the 4562.

In Sage Fixed Assets:

Create groups in Group Manager using the criteria for each line below, and the run the Depreciation Expense report using each group.

Note Depreciation Methods:

  • MACRS General Depreciation (GDS) methods: MAMFMRMIMT, and SF or SB (If Property type is P with a 3 year life. See How to enter software assets? (17957) for more information)
  • Alternative Depreciation System (ADS) methods: ADAARMRH
  • Accelerated Cost Recovery System depreciation (ACRS) methods: ATSAST
  • Straight Line depreciation (GAAP) methods: SLSF (if the life is not 3 years see above), SD, SH, RV
  • The Declining-Balance depreciation (GAAP) methods: DBDCDDDEDH, DI
  • The Sum-of-the-Year’s Digits depreciation (GAAP) methods: YDYHYD

For asset information to appear for a year-end of December, the Current through date will need to represent this date.

Line 2 Tax Expense Report – Acquired Value

  • Placed in Service is between 1/1/2020 and 12/31/2020
  • Tax Book 179 Qualified? is T

Line 14 Tax Expense Report – 168 Expense

  • Prop Type is P
  • Prop Type is R
  • Placed in Service is between 1/1/2020 and 12/31/2020

Line 16 Tax Expense Report – Current YTD

  • Prop Type is P
  • Prop Type is R
  • Sort by Depreciation Method: Depreciation Method is Non-MACRS

Line 17 Tax Expense Report – Current YTD

  • Prop Type is P
  • Prop Type is R
  • Placed in Service is less than 1/1/2020
  • Sort by Depreciation Method: Depreciation Method is MACRS GDS and ADS

 Line 19 Tax Expense Report – Current YTD

  • Prop Type is P
  • Prop Type is R
  • Placed in Service is between 1/1/2020 and 12/31/2020
  • Depreciation Method is MACRS (MF, MA, MT, MI, MR)
  • Sort by Estimated Life

Note: If taking 100% Bonus Depreciation please note your total will NOT appear on line 19. The 168 amounts will appear in Line 14. If it is listed property (A, T, Q, S) it will appear in Line 25.

Note: Part III, 19 i Nonresidentaial real property must meet three conditions:

  • Property type R
  • Depreciation method MF100
  • Estimated life 39 years

Line 20 Tax Expense Report – Current YTD

  • Prop Type is P
  • Prop Type is R
  • Depreciation Method is AD
  • Depreciation Method is AA
  • Depreciation Method is RM
  • Depreciation Method is RH
  • Placed in Service is between 1/1/2020 and 12/31/2020
    Sort by ADS life

Line 23 Manual Entry – §263A capitalized inventory

In the Report Dialogue for the 4562 box, Choose the Additional Information button at the bottom. The amount is manually entered in Part IV-§263A amount – capitalized inventory

Line 25 Tax Expense Report – 168 Expense

  • Prop Type is A
  • Prop Type is Q
  • Prop Type is T
  • Prop Type is S
  • Placed in Service is between 1/1/2020 and 12/31/2020

Line 26 Tax Expense Report – Acquired Value and Current YTD

  • Prop Type is A
  • Prop Type is Q
  • Prop Type is T
  • Prop Type is S
  • Placed in Service is less than 1/1/2020

Line 42 Tax Expense Report – Current YTD

  • Prop Type is Z
  • Placed in Service is between 1/1/2020 and 12/31/2020

Line 43 Tax Expense Report – Current YTD

  • Prop Type is Z
  • Placed in Service is less than 1/1/2020