Sage Fixed Assets 2012.1 Tax Update! Designed to provide you with the most up-to-date functionality and tax legislation, this version contains exciting new features and enhancements to your Sage Fixed Assets solution.
The following changes apply to our industry-leading fixed assets solution:
• New Product Names. We have changed the names of all of our Sage Fixed Assets products.
• Sage Fixed Assets – Depreciation: Tax Law Updates. We have updated the Sage Fixed Assets program to comply with the latest tax law changes:
• Updated Tax Forms. The 2012.1 tax update includes the updated IRS Form 4562 – Depreciation and Amortization for 2011.
• Updated Tax Limits. The 2012.1 tax update complies with the scheduled updates to the Section 179 limits and luxury auto limits.
• Updated Sec 179 Limits for Qualified Disaster Zone Property. The 2012.1 tax update includes Section 179 dollar limits for the Qualified Disaster Zone.
• Updated Audit Advisor. We have updated Audit Advisor to check for real property that may be qualified for the Section 179 expense deduction.
Sage Fixed Assets - Depreciation Tax Law Updates
Updated Tax Forms
The IRS changes many tax laws each year. As a result, the corresponding tax forms and worksheets may change moderately or significantly. Sage Business Care members receive the updated forms and worksheets each year as part of the annual tax update; enabling them to get the greatest savings and most benefit from the recent tax law changes.
This year, the IRS Form 4562 – Depreciation and Amortization has been updated for the 2011 tax year.
To run the tax forms and worksheets
• Calculate depreciation through the end of the fiscal year.
• Select Tax Forms and Worksheets from the Reports menu.
• Select the desired tax form or worksheet.
• Complete the fields on the dialog box, and then click the Execute button.
Updated Tax Limits
The IRS routinely modifies the depreciation limits for certain automobiles to adjust for inflation and other factors. If you use vehicles in your business, these changes can have significant tax implications.
Luxury Auto Limits
The depreciation limits in effect for automobiles placed in service in 2012 are as follows:
Year 1: $11,160*
Year 2: $5,100
Year 3: $3,050
Year 4: $1,875
* If you elect out of the 168 Allowance for the automobile, the depreciation limitation is $3,160 for the first year.
Light Trucks and Vans Limits
The depreciation limits for light trucks and vans placed in service in 2011 are as follows:
Year 1: $11,360*
Year 2: $5,300
Year 3: $3,150
* If you elect out of the 168 Allowance for the truck or van, the depreciation limitation is $3,360 for the first year.
Section 179 Limits
The maximum Section 179 limit is $139,000 for assets placed in service in the tax year beginning in 2012. In addition, the maximum cost of Section 179 property that can be placed in service in the year before the phase-out begins is $560,000 for the tax year beginning in 2012.
Increased Sec 179 Limits for Qualified Disaster Zone Property
The Emergency Economic Stabilization Act of 2008 provides for increased Section 179 limits for assets located in a Qualified Disaster Zone. The Section 179 limit for 2012 is $239,000 ($139,000 plus the cost of the Disaster Zone property, limited to $100,000).
Learn More
See the release notes:
Sage ERP MAS 90 and MAS 200 4.5.0.2
Service Pack 8 for V2011
Sage BusinessWorks v2011 SP 8 contains the early tax table updates for 2012 AND the adjusted OASDI rate of 4.2% per the recent Congressional vote. Please do not install this service pack until AFTER you have completed your last payroll of 2011 and after you have run the W2 forms.
You can download a service pack from Sage BusinessWorks:
1. From the BusinessWorks Help menu, select Support and Service on the Web, and Download Updates. If you are already logged into Sage Software Online, you can skip to step 4.
2. Log in to Sage Software Online (www.sagesoftwareonline.com). (If you are not registered for Sage Software Online, click Register now, and follow the onscreen instructions.)
3. Click Support, and Sage BusinessWorks.
4. The Sage BusinessWorks support webpage appears.
5. Click Service Packs.
6. Click Download v2011 SP8.
7. See the Release Notes that accompany the service pack for more details.
Sage Software, Inc. (2011) - Sage BusinessWorks Accounting Service Pack 8 for v2011
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