Sage FAS - 2004 Tax Update

To install the FAS 2004.1 Tax Update, you must currently be using version 2003.1 or later of FAS 100 Asset Accounting, FAS 50 Asset Accounting (formerly FAS FirstStep), or FAS 500 Asset Accounting. You cannon install the patch on previous versions. You should install the update on each FAS client machine. You do not need to install the update on the server unless a FAS client has also been installed on the server.

NOTE: If you are running multiple versions of Sage FAS on a single computer, you install the update only once. The system updates every version of the Sage FAS program that it finds on a machine, using the same base install path, at the same time.

The IRS has issued several regulations: T.D. 9091 and T.D. 9069. These regulations require program changes since the last release of FAS (the 2003.1.1 release). They also require a change to the way you enter some assets. Therefore, the 2004.1 Tax Update includes the following enhancements and changes:

1. A new Property Type 'T' for Light Trucks and Vans. Light trucks and vans are eligible for a higher depreciation limit than luxury automobiles (Property Type A).
2. A change in the way certain non personal use vehicles should be entered in FAS.
3. Audit Advisor. This new feature helps you locate assets that may not comply with the following new and existing IRS regulations:
• Disposals in the Placed-in-Service Year: A new IRS regulation states that the 168(k) Allowance cannot be taken on an asset that is placed in service and disposed in the same tax year.
• Transfers in the Placed-in-Service Year: A new IRS regulation requires the allocation of the 168(k) Allowance between the original asset and the transferred asset when the asset was transferred in its placed-in-service year.
• MACRS Depreciation Methods: Generally, all assets placed-in-service after December 31, 1986 must use a MACRS depreciation method.
• Light Trucks and Vans: Light trucks and vans are eligible for higher depreciation limits than other luxury automobiles.

When you run Audit Advisor, the system displays a report that tells you if there are potential problems with your data. If it finds any assets with potential problems, the system creates a group of assets that might not comply with each regulation. You can examine each asset in the group. Then you can decide whether to change the information for each asset.

4. The updated IRS Form 4562 - Depreciation and Amortization for 2003.
5. Compliance with the scheduled increase in the Section 179 limits and conformity with the luxury auto limits.
6. Updates to depreciation limitation calculations for vehicles claiming a 30% 168(k) Allowance and vehicles placed-in-service in a short year.