TCJA 2017 ADS method on remaining basis over remaining life

Question

Hello, Does anyone know the steps necessary and the depreciation key to use to convert the exisiting real property and qualified improvement property to ADS method on remaining basis over remaining life? I found the attached articles on SAGE release 2019.1 statingthere will be two new methods that is addressing the need for special handling on
ADS method to calculate on remaining basis over remaining life for mid month or HY/MQ but it does not state which two methods/ keys are actually added. Thanks!
pp-communityhub.sage.com/.../SAGE-Tax-Cuts-and-Jobs-Act-of-2017_2D00_ADS-Method.pdf

Delray · Answer

Hello TCJA, 
 The new Methods are: 
 
 RM &ndash; Remaining value over Remaining Life, midmonth 
 RH &ndash; Remaining value over Remaining Life, half-year (or mid-quarter) 
 
 Please See New depreciation methods for more details. 
 ~Delray

Bob Mc · Answer

Kim, 
 The "work around" that you described is like taking a slow boat to China. It will get you there but not without a significant investment of time. 
 Here&rsquo;s what I would suggest instead. Planning steps. Customize the asset list view to include the 168 Allowance Amount. Create your group of assets where the method must be changed to ADS. When viewing this group of assets, send this asset list to a file (you might use either the Print Asset List or Export to Excel feature at the bottom of the screen). 
 Execution steps. Use the Bulk Edit feature to change the depreciation method to the methods Delray identified above, i.e., RM for the real property and RH for the rest. The validation report will list all assets that have already been depreciated with bonus. They will be identified with a warning. The very same assets will again be listed in auto-generated report when you execute the bulk edit. Be sure to capture at least one of these reports, if not both, by saving them to a file. 
 Using the file you saved from your planning steps, go to the detail view of each asset listed with a 168 allowance amount (these should be the same assets identified with a warning in your Bulk Edit validation report) and add that figure (168 Allowance Amount) to the amount in the Beginning Accum field. This will indeed take time to edit the Beginning Accum field on each of these assets. But that might take less time to complete than the &ldquo;work around&rdquo; you were previously given. 
 If your list to be manually edited includes hundreds or more, you may want to engage a PS consultant to do the work for you. 
 Kim, have you recommended yet an improvement to the software on the Sage City website &ndash; suggesting that the RV methods, RM and RH, should add the bonus, if it was taken, to the accumulated depreciation and enter that sum into the beginning fields? Because like you, I think that&rsquo;s an operation that could be done in the software. But I have found from experience that Sage management is more likely to listen to recommendations from customers like you than they will accept the same idea from me. Improvements to the software are driven by customer recommendations!

Ann Donie · Answer

Hi TCJA, 
 Thank you for the question. After hearing from you and other customers with similar questions, a how-to document has been created. A new Sage City article has been added with a PDF attachment of the steps needed to convert any existing real property to the ADS method. You can find the article and attachment here .

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