ACE Book Defaults
ACE and the ACE adjustment, which fall under the AMT rules, are no longer required. AMT is repealed for corporations under the Tax Cuts and Jobs Act of 2017 for tax years beginning January 1, 2018 and later.
If your business no longer needs to use the AMT Book or related ACE book, you can close these books. The existing data in the books will remain and the books can be re-opened if desired. To close a book, enter No in the Open Book field. If you choose to use the AMT and ACE books for a different purpose and you wish to copy data from another book, the AMT and ACE books can be selected as a destination books for the Copy Book feature.
The system automatically displays the defaults for the ACE book based on the Tax book entries, ADS Life field, and the AMT book, if applicable, as needed to calculate Adjusted Current Earnings.
The default depreciation method in the ACE book for property placed in service after 1993 is NO. You can change the ACE book to emulate the AMT book default information for post-1993 property. On the Book Defaults tab of the New Company window or the Edit Company window, select the AMT: Post-1993 option in the Emulate Book field of the ACE column. Whether you accept the default of NO as the depreciation method in the ACE book or change the default to emulate the AMT book, the result is the same: a zero ACE Depreciation Adjustment amount for post-1993 property when you run the Corporate AMT Worksheet. These are simply two different approaches with the same end result.
Business-Use Percentages and Their Effective Dates
For these fields, if the Tax book and the ACE book have the same fiscal year end and short years, the system copies the entries in the Tax book to the ACE book as the defaults. If not, the business-use percentage defaults to 100%.
Section 179 or Bonus
The system copies the Section 179 or bonus field entries from the Tax book.
Depreciation Method and Estimated Life
The system sets the defaults for these fields as shown in the following table. For more information, see Depreciation Methods and Estimated Life and ADS Life .
| ACE Book Defaults | |||
|
Asset Property Type |
Tax Book Depreciation Method (Rate) |
ACE Book Depreciation Method (Rate) |
ACE Book |
| Personal (P, Q) luxury auto (A), vintage accounts (V), and amortizable assets (Z | MF, MT placed in service before 1/1/90 | MF (150%)/RV* | ADS life** |
|
|
AD placed in service before 1/1/90 | AD | Tax book** |
|
|
MF, MT, AD placed in service after 12/31/89, before 1/1/94 | AD | ADS life |
|
|
MF, MT, AD, MI placed in service after 12/31/93 | NO | Not applicable |
|
|
AA, MA, MR placed in service after 9/10/01 | NO | Not applicable |
|
|
AT, SA, ST (ACRS property) | Tax book/RV*** | Tax book/ADS life*** |
|
|
All other methods | Tax book | Tax book |
| Real property (R, S, C, E, F) | MF, MT, AD placed in service after 12/31/89, before 1/1/94 |
AD | 40 years |
|
|
MF, MT, AD, MI placed in service after 12/31/93 | NO | Not applicable |
| AA, MA, MR placed in service after 9/10/01 | NO | Not applicable | |
| AT, SA, ST (ACRS property) | Tax book/RV*** | Tax book/ADS life*** | |
|
|
All others | Tax book | Tax book |
* Method MF 150 is used through the close of the last tax year beginning before 1990, at which time depreciation is calculated using method RV. (For additional information, see ACE Book.)
** The ACE calculation is based on the remaining ADS recovery period as of the close of the last tax year beginning before 1990.
*** Tax book method is used through the close of the last tax year beginning before 1990, at which time depreciation is calculated using method RV with the asset's remaining ADS life. (For additional information, see ACE Book.)