5000 DEDUCTION OF ORGANIZATION COST

[michaelmars]

anyone know how to get this deduction in the program without overriding? I see how to make the election statement but i can't get the deduction on the 4562.

-thanks

[ILLMAS]

anyone know how to get this deduction in the program without overriding? I see how to make the election statement but i can't get the deduction on the 4562.

-thanks

Did you select the proper codes when you capitalized the asset? e.g Amort, ### Organizational Cost, 5 yrs .......

[michaelmars]

yes, its an election but there is no way to imput it

[lsowers]

I think I put the deduction in the Section 179 field on asset entry when I had to do it.

[jainen]

>>i can't get the deduction on the 4562<<

The election is to EXPENSE up to $5000 of organizational costs. You only amortize amounts exceeding that. The election is only available on corporate returns, not Form 1040.

[ILLMAS]

yes, its an election but there is no way to imput it

I just check one I put in recently under Asset Entry and I used # 9 under asset subcategory. You might have to manually change the recovery period to 5 yrs, Method is SL and

convention code to FM.

[RoyDaleOne]

The "deduction", not the amortization, goes on the appropriate form under the miscellaneous or other deductions. The deduction should not entered in the asset input screen.

[ILLMAS]

The "deduction", not the amortization, goes on the appropriate form under the miscellaneous or other deductions. The deduction should not entered in the asset input screen.

Thats correct, it should flows into line 26 "Other Deductions" under Amortization. ATX doesn't suprise me if it doesn't flow automatically, instead of over riding it, try linking it from your 4562 to the other deduction page. There is a paper clip icon, highlight the amount under form 4562, click on the paper clip icon to start the link, then go to the other deduction page and click the paper clip icon again and it should link the amount. Hope this helps.

MAS

[michaelmars]

maybe i am not clear, atx is calculating normal amortization and flowing it properly, it doesn't have an option anywhere to take the elected $5000. as a current deduction.

[jklcpa]

I think RoyDaleOne was giving the correct answer. Here are the 3 steps:

1) Enter the $5,000 as a deduction in the detail of line 26. Use a description such as "Organizational Cost Deduction under 248(a)"

2) Enter the balance of corp organiz costs as the cost basis to be amortized on pg 2 of 4562 by using the asset input screen.

3) Add the election statement, click on the 1120 tab & select the election for the $5000 deduction under 248(a).

I'm assuming that this is an 1120 you are preparing. I also assumed that the total costs are below the $50K limitation.

[michaelmars]

ah-got it thanks, i figured it would work more like sec 179 and all be input on the asset entry somehow. - thanks