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AdamG87

Reflecting Qualified Improvement Property on SAGE 4562

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I am noticing an issue with the SAGE 4562 report that you can print under the Reports>Tax Reports>Form 4562.

Let's use 2024 as an example:  When I enter a qualified improvement property addition into sage, I enter the following in the "tax" books:

Property Type: R

Placed-in-service date:  7/15/24

Depreciation Method:  MA100

Estimated Life:  15 yrs 00 mos

MA100 computes straight line on the amount that is not bonus depreciation.  Eg. 60% bonus in 2024, so 40% is depreciated over 15 years and we will get 6 months worth of depreciation in 2024 since it uses the HY (Half year) convention.

However, when I print the SAGE 4562 report, row 19e, column f, is populating "150DB".  Should this not be "S/L" ?  150DB should be used for land improvements and MA150 - not MA100.  Are others with qualified improvement property noticing this default issue?

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    Hello Adam,

    The Tax class is determined by the life. Line 19 reflects the current years assets by Tax class, the method there is meaningless.

    It only reason it says DB150 there because they would have to rewrite the entire report when the DB150 has no effect on the calculation. Since the method is not going to affect the numbers there, they decided against rewriting the entire report.

    Just out of curiosity, I downloaded the 4562 from the IRS site, line 19 does not even populate the method until the 25-year property line. I don’t know what that means, but I thought it interesting.

    ~Delray

  • 0 in reply to Delray

    Hi Delray -

    Thanks for the response.  That makes sense - I figured they may have consciously to not edit the report for this.  I agree that the classification and calculations are correct - displaying the correct method was just something I thought I'd see if there was a known workaround to avoid confusion in hundreds of 4562s my department will have to print from SAGE.

  • 0 in reply to AdamG87
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    For years, the only method with a 15-year life was MF or MA 150 hence the DB150 on the 45262 and while for those same years MF or MA100 did allow a 15-year life, it was only for a narrow range of qualified Restautant properties. It is only in recent years the once limited improvement property became the QIP we know today.

    There is always the ideas page (Sage Fixed Assets Ideas Portal) which goes directly to Product management. Maybe you can poke them into doing something.

    ~Delray

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  • 0 in reply to AdamG87
    SUGGESTED

    For years, the only method with a 15-year life was MF or MA 150 hence the DB150 on the 45262 and while for those same years MF or MA100 did allow a 15-year life, it was only for a narrow range of qualified Restautant properties. It is only in recent years the once limited improvement property became the QIP we know today.

    There is always the ideas page (Sage Fixed Assets Ideas Portal) which goes directly to Product management. Maybe you can poke them into doing something.

    ~Delray

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