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ACCUTAX REGISTRATION FORM Please register your use of AccuTax. Registration entitles you support and next year's release of AccuTax at a reduced rate. By registering, we will be able to notify you as soon as next year's product is ready. Remember, the registration fee is tax deductible. Name__________________________________________________________ Address_______________________________________________________ City_____________________________ State_______ Zip___________ Phone_________________________________________________________ To register, send this form and a check for $35 to: AccuSoft P.O. Box 16706 Kansas City, Mo. 64133 Missouri residents, add 4.5% sales tax ($36.60). Or, charge it to your VISA or MasterCard: Check One: Visa ______ MasterCard ________ Card Number: __________________________________ Expiration Date: _____________________________ Or, call us with your credit card number. We'll register you over the phone. Our phone number is (816) 241-0014. ACCUTAX '86 (1985 Tax Year) Tax Preparation Software for the IBM Personal Computer (and compatibles) (C) Copyright 1985 by AccuSoft TABLE OF CONTENTS 1.0 ACCUTAX AGREEMENT 2.0 GENERAL INFORMATION ABOUT ACCUTAX 3.0 TAX FORMS SUPPORTED 4.0 HARDWARE REQUIREMENTS 5.0 DISKETTE CONTENTS 6.0 GETTING STARTED 7.0 SCREEN CONVENTIONS 8.0 ENTERING DATA 8.1 INPUT RULES 8.2 MOVING WITHIN A FIELD 8.3 MOVING FROM FIELD TO FIELD 9.0 ACCUTAX MENU 9.1 START A NEW RETURN 9.2 CHANGE/REVIEW A RETURN 9.3 PRINT RETURN(S) 9.4 SET SYSTEM OPTIONS 10.0 PREPARING A TAX RETURN 10.1 ACCESSING SUPPORTING SCHEDULES 10.2 CALCULATING THE TAX 10.3 OVERRIDING ACCUTAX CALCULATIONS 10.4 THE 'POP-UP' CALCULATOR 10.5 DELETING A TAX FORM, SCHEDULE OR WORKSHEET 10.6 SHORT-CUT TO A SUPPORTING SCHEDULE 10.7 SAVING THE TAX RETURN 11.0 FORMS/SCHEDULES/WORKSHEETS 11.1 FORM 1040 11.2 SCHEDULE A 11.3 SCHEDULE B 11.4 SCHEDULE C 11.5 SCHEDULE D 11.6 SCHEDULE E 11.7 SCHEDULE G 11.8 SCHEDULE R 11.9 SCHEDULE SE 11.10 SCHEDULE W 11.11 FORM 2106 11.12 FORM 2441 11.13 FORM 4562 11.14 FORM 5695 11.15 FORM 6251 11.16 W-2 WORKSHEET (#1) 11.17 OTHER DEPENDENTS WORKSHEET (#2) 11.18 SHORT-TERM CAPITAL GAIN OR LOSS WORKSHEET (#3) 11.19 LONG-TERM CAPITAL GAIN OR LOSS WORKSHEET (#4) 11.20 CAR EXPENSE WORKSHEET (#5) 11.21 SECTION 179 EXPENSE WORKSHEET (#6) 11.22 ACRS NON-LISTED PROPERTY WORKSHEET (#7) 11.23 AMORTIZATION WORKSHEET (#8) 11.24 RENT/ROYALTY INCOME WORKSHEET (#9) 11.25 PARTNERSHIP & S-CORP INCOME WORKSHEET (#10) 11.26 ESTATE OR TRUST INCOME WORKSHEET (#11) 11.27 ACRS LISTED PROPERTY WORKSHEET (#12) 11.28 PRE-1984 DEPRECIATION WORKSHEET (#13) 11.29 GENERAL ITEMIZING WORKSHEET (LIST) 12.0 ACCUTAX MESSAGES 1.0 ACCUTAX AGREEMENT AccuTax is user-supported software. It is not copy-protected and you are encouraged to freely copy it and distribute it to others. However, if you do copy it, no files may be be altered in any way and all files must be copied. If you find it useful, then we ask that you send in the $35.00 registration fee to AccuSoft. This registration fee will enable the authors to improve the product and to continue offering updated versions of AccuTax in subsequent years. Your registration entitles you to product support and next year's release at a reduced rate. We will also be able to notify you directly as new releases become available. Compare the price that we're asking to tax preparation packages currently on the market. AccuTax offers you the same functionality at a fraction of the cost. Please support us. AccuSoft makes no warranties, either expressed or implied, with respect to this manual or with respect to the software described in this manual, its quality, performance, merchantability, or fitness for any particular purpose. AccuTax is offered "as is". The entire risk as to its quality and performance rests solely with the user. In no event should the authors (AccuSoft) or their agents be liable for any direct, indirect, incidental or consequential damage resulting from the use of AccuTax. 2.0 GENERAL INFORMATION ABOUT ACCUTAX AccuTax is a software product designed to assist you in the preparation of your 1985 federal tax return. It will do most calculations for you and, where possible, check to see that information entered by you is consistent and valid. Because of the power of the software, you can try out any 'what if' situation. Change an income or deduction figure and instantly see the result on your tax balance or refund. Besides the 1040 form, many other commonly used forms and schedules are supported. Information entered or calculated for a supporting form is automatically transferred to the appropriate line that it supports. All of the forms (except for the 1040) can be printed on your PC's printer suitable for filing directly with the IRS. General purpose worksheets can be used to enhance your record keeping. For instance, to keep a permanent tax record of your medical expenses, tell AccuTax to itemize that line of the Schedule A. AccuTax will add up the expenses, transfer the total to the line itemized, and print a detailed list for your records. Up to 50 lines of your tax return can be 'itemized' and up to 30 items can be listed on each worksheet. You'll find many other useful features after reading through this manual and trying the program. When calculating a tax return, there are situations where AccuTax will make assumptions based on the most common method of calculating taxes. These assumptions are documented later in this manual. A feature is provided for you to 'override' a calculated value if the assumptions used are not correct for your particular tax situation. AccuTax is your assistant in preparing your 1985 tax return. It will save you a lot of time. However, you are the one responsible for deciding whether you should file a return, which forms you need, and for the figures entered and calculated on your return. The formulas in this software program have been carefully checked and we believe that they are correct. However, the tax laws are complex and at times vague. In some cases your special circumstances may not be properly handled by the program's calculations. You are the one ultimately responsible for the numbers on the form. Inspect them before signing your return. 3.0 TAX FORMS SUPPORTED The 1985 tax year version of AccuTax supports the following federal tax forms: Federal Form 1040 - Individual Tax Return Schedule A - Itemized Deductions Schedule B - Interest/Dividend Income Schedule C - Business Income or Loss (up to five separate businesses) Schedule D - Capital Gain or Loss Schedule E - Supplemental Income (up to five rent or royalty properties supported) Schedule G - Income Averaging Schedule R - Credit for Elderly Schedule SE - Self-Employment Tax (up to two copies, one for you and one for spouse) Schedule W - Marriage Deduction Form 2106 - Employee Business Expense (up to two copies) Form 2441 - Child Care Credit Form 4562 - Depreciation (up to eighteen copies supported) Form 5695 - Energy Conservation Credit Form 6251 - Alternative Minimum Tax AcccuTax uses special 'worksheets' to handle specific situations on the federal tax form. The worksheets are: Worksheet #1 - W-2 Wages (5 employers) Worksheet #2 - Other Dependents (5 copies) Worksheet #3 - Short-Term Capital Gain (10 copies) Worksheet #4 - Long-Term Capital Gain (10 copies) Worksheet #5 - Car Expenses (5 cars) Worksheet #6 - Sec. 179 Expenses (5 copies) Worksheet #7 - ACRS Non-Listed Property (30 copies) Worksheet #8 - Amortization Worksheet (5 copies) Worksheet #9 - Rent/Royalty Income (5 properties) Worksheet #10 - Partnership/S Corp Income (6 copies) Worksheet #11 - Estate/Trust Income (3 copies) Worksheet #12 - ACRS Listed Property (10 copies) Worksheet #13 - Non-ACRS Depreciation (15 copies) 4.0 HARDWARE REQUIREMENTS You need the following hardware to run AccuTax: o IBM PC, XT, AT, or PCJr, or IBM-compatible micro o DOS 2.0 or later o At least 192K of memory o One 360K disk drive or a hard disk o 80-column monochrome or color monitor o A PC printer (if filing computer-printed forms) 5.0 DISKETTE CONTENTS The AccuTax diskette contains the following files: TAX85.EXE - The AccuTax program file. TAX85.OPT - A file that contains default system options that control certain features of the AccuTax software. You can modify these options from AccuTax's menu. xxxxx.S85 - Parameters for the display of the 1985 tax forms on the PC monitor. One file is present for each tax form. DO NOT modify these files in any way -- program operation will be unpredictable if you do. xxxxx.P85 - Parameters that control printing of the 1985 tax forms. One file is present for each tax form. DO NOT modify these files in any way -- printing will be unpredictable if you do. ACCUTAX.DOC - The documentation manual for AccuTax. REGISTER - Form to use when registering your use of AccuTax. FEEDBACK - A feedback form for you to use in filing comments, suggestions, and problems with AccuTax authors. You will always receive a prompt response. It is recommended that you make a backup copy of the AccuTax diskette before trying it. Store the backup in a safe place in case you need it later. AccuTax is not copy protected. Assuming that you have two floppy disk drives, insert the AccuTax diskette in drive A and a formatted, blank diskette in drive B. Then from DOS, type: A>copy *.* b: Consult your DOS manual for instructions if you have some other hardware configuration. 6.0 GETTING STARTED One-Diskette System: o Backup the AccuTax program diskette. o Start DOS. o Insert the AccuTax program diskette into drive A. There is enough work space on the diskette to calculate and save an average tax return (about 16K). If this is not sufficient, delete the documen- tation file. o From the A> prompt, enter TAX85. Two-Diskette System: o Backup the AccuTax program diskette. o Start DOS (assume A> appears on monitor). o Insert AccuTax diskette in drive A. o Insert work diskette in drive B. o Enter TAX85. Hard-Disk System: o Insert the AccuTax program diskette into drive A. o Start DOS (assume C> appears on your monitor). o Enter MD\TAX to create a sub-directory for the program. o Copy the AccuTax program diskette to your hard disk. The following steps assume that a subdirectory called TAX has been created. Keep all files from the original AccuTax diskette together in the same directory. Insert the original program diskette into drive A:, then: C>CD \TAX C>COPY A:*.* C: o Enter TAX85. *************************************************************************** *NOTE: During the first startup of AccuTax, the program file (TAX85.EXE)* * and the screen files (SCREENS.S85), must be together on the* * default drive and sub-directory. * *************************************************************************** 7.0 SCREEN CONVENTIONS This section introduces you to some conventions used by AccuTax when presenting menus and tax forms on your computer's display screen. **************************************************************************** * (1) * * AccuTax 1985 FORM 1040 mm-dd-yy hh:mm * * ======================================================================== * * * * * * 7a. Your wages ............................ 7a ==>* (3) * * 7b. Spouse wages .......................... 7b ==>* * * 7c. Excess reimbursements (from 2106) ..... 7c ==>C (4) * * 7. Total Wages ........................... 7 ==>C * * . * * . * * . (2) * * . * * * * * * * * * * * * * * * * * * * * * * ------------------------------------------------------------------------ * * (5) (6) (7) * * NUM CAPS INS PAGE 1 OF 10* * (8) * **************************************************************************** (1) -- TITLE AREA Screen titles (such as FORM 1040 or ACCUTAX MENU) appear here to indicate where you are in the program. (2) -- MAIN BODY Lines from each tax form and menu options are displayed here. (3) -- * Lines on the tax forms, schedules, or worksheets marked with an asterisk (*) are lines supported by another form, schedule, or worksheet. If the * is displayed bright, then the supporting form is in use for that line. Many lines are not marked with an asterisk. Normally, you enter a figure directly into that line. However, a general worksheet can still be used to itemize (or support) most of these lines. A bright * will appear on any line supported by a general worksheet. (4) -- C Lines marked with a 'C' are lines calculated or 'checked' by AccuTax. Normally, you cannot enter information into calculated lines since the 'cursor' will not stop there. In a few instances, the cursor will stop on a line marked with a 'C'. This means that the calculation was not a simple addition or subtraction, but one requiring certain assumptions. AccuTax provides a feature for you to 'override' the calculations or checks in effect for these lines (see section 10.3 for details). (5) -- MESSAGE AREA Error and warning messages are reported here. (6) -- KEYBOARD STATUS NUM appears if NUM LOCK key is 'on'. CAPS appears if CAPS LOCK key is 'on'. INS appears if INSERT key is 'on'. (7) -- PAGE STATUS PAGE n OF m appears here if a tax form requires more than one screen page to display all lines. You move from page to page using the PGUP and PGDN keys. (8) -- FUNCTION KEYS Function keys (F1 through F10) are your way of controlling the AccuTax program. The last line of the display screen always indicates possible options. 8.0 ENTERING DATA 8.1 INPUT RULES You can only enter data into the area of the screen marked by the highlighted block. The size of the block indicates the maximum number of characters that can be entered into that 'field'. The first position and last position of the block are reserved to make the field more readable on the screen. Certain fields (such as names) can contain any character on the keyboard. Other fields (such as wages) can contain only numeric (0-9 . or -) characters. AccuTax will 'beep' if you try to enter an invalid character into a numeric field. Whenever a character is entered into the leftmost position of a field, the entire field is first erased. When entering dollar values, enter them starting at the left. AccuTax will automatically align the figure for you. The CTRL-END key combination will erase all characters to the right of the blinking cursor. AccuTax can handle dollar values between -999,999.99 and 999,999.99. 8.2 MOVING WITHIN A FIELD Whenever you type a character, the 'cursor' automatically moves to the next position within the highlighted area. The 'Left Arrow' key moves one position to the left. The 'Right Arrow' key moves one position to the right. The 'Backspace' key erases the character above the cursor and moves one position to the left. 8.3 MOVING FROM FIELD TO FIELD The 'Tab Right' key moves to the next field on the screen. The 'Tab Left' key moves to the previous field on the screen. The 'Home' key moves to the first field on the screen. The 'End' key moves to the last field on the screen. The 'NewLine' key moves to the next field on a new line. The 'Up Arrow' key moves to the previous field on the screen. The 'Down Arrow' key moves to the next field on the screen. ************************************************************************* * * * Some data input screens, particularly the tax forms, schedules, * * and worksheets, require two or more screens (or pages) to * * present all required information. For example, Form 1040 * * requires ten screen pages. The PGUP and PGDN keys are used to * * move from page to page and are active only for multi-page * * screens. * * * ************************************************************************* The 'PgUp' key moves to the first field on the previous screen page. The 'PgDn' key moves to the first field on the next screen page. NOTE: Whenever the highlighted field is 'filled' (i.e. you've entered a character in the rightmost position), AccuTax automatically advances to the next field. 9.0 ACCUTAX MENU AccuTax will take a few moments to load in the tax forms and then will present a menu. You can select one of the following options: 1. START A NEW RETURN You can prepare a new tax return. 2. CHANGE/REVIEW A RETURN You can change or review any tax return previously saved on disk. 3. PRINT RETURN(S) You can print one or more of the tax returns previously saved on disk. Several print control options are available. 4. SET SYSTEM OPTIONS Several parameters can be controlled to suit your computer system. You should review these parameters when you start up AccuTax for the first time. Q. QUIT Returns you to the DOS operating system. 9.1 START A NEW RETURN You will be presented with a blank 1040 screen. Begin entering the required data for the tax return. See section 10 for further details. 9.2 CHANGE/REVIEW A RETURN You will be presented with a list of tax returns saved on the drive designated for tax returns (see 9.4 for explanation). The screen will look like this: ******************************************************************************* * AccuTax '86 CHANGE RETURN mm-dd-yy hh:dd *============================================================================== * Which tax return do you want displayed? * ---------------------------------------------------------------------------- * | SEL | FILENAME | DATE | TIME | DESCRIPTION * |-------|--------------|----------|--------|-------------------------------- * | _ | SAMPLE1 | 02-18-86 | 9:03 | Sample tax return * | _ | SAMPLE2 | 02-24-86 | 15:30 | Another sample return * | | . | | | * . * . * . * * * ---------------------------------------------------------------------------- * Y = Display Tax Return * * * F1=Help F2=Enter F3=NewDir F0=Return ******************************************************************************* Enter a Y in the column marked 'SEL' next to the tax return you want to review or change. Then press F2 or the large, gray '+' key. AccuTax will take a few moments to reload that return into memory. AccuTax will only process the first return marked with a 'Y'. If you have tax returns on several floppy diskettes, you can switch diskettes and press F3. AccuTax will list the tax returns on the new diskette. 9.3 PRINT RETURN(S) AccuTax will print all supporting forms and schedules in a format suitable for filing directly with the IRS, except for the 1040. The 1040 is a legal document and regulations require that an IRS form be filed. You can request a 'draft' copy of the 1040 and copy the figures over to the IRS-supplied form. To meet IRS requirements for computer-generated substitute tax forms, you must use 8 1/2 x 11 white paper. The paper must be of good quality. Thickness of the paper stock cannot be less than .003 inch. You will be presented with a list of tax returns saved on the drive designated for tax returns. This is presented in a manner very similar to the screen described in section 9.2. However, when printing tax returns, AccuTax allows you to print more than one at a time. Enter a Y next to all of the tax returns you wish to print. Then press F2 or the + key. You are then asked for instructions to control printing. The following screen will appear: ******************************************************************************* * AccuTax '86 PRINT RETURN mm-dd-yy hh:dd *============================================================================== * * WHAT DO YOU WANT PRINTED? ==> * * 1 = All pages * 2 = Form 1040 10 = Schedule SE * 3 = Schedule A 11 = Schedule W * 4 = Schedule B 12 = Form 2106 * 5 = Schedule C 13 = Form 2441 * 6 = Schedule D 14 = Form 4562 * 7 = Schedule E 15 = Form 5695 * 8 = Schedule G 16 = Form 6251 * 9 = Schedule R 17 = Just pages needed for IRS * * ARE YOU USING LINED PAPER? ==> * * DRAFT COPY PRINTED? ...... ==> * * PAUSE AFTER EACH PAGE? ... ==> * ******************************************************************************* You can print all pages of the tax return or just a specific tax form. Or you can print just those pages that must be filed with the IRS. If you choose the latter (option 17), then the 1040 form and any 'information only' worksheets will not be printed. Only the forms and schedules (plus any required supporting worksheets) that can be printed in IRS format will be printed. IRS Revenue Procedures state that computer-generated substitute tax forms must be submitted on quality lined or color-barred paper. If you do not have lined paper, then computer-generated lines are acceptable. If you answer 'N' (no) to the question, AccuTax will automatically underline every other text line as it prints your tax return. You will also be asked whether you want 'draft' or 'final' printing. If you answer 'Y' (yes) to the underlining question, there is no difference between draft and final printing. However, if you do not have underlined paper, draft printing bypasses the underling and, therefore, takes less time. AccuTax supports sheet-fed or continuous-fed printers. If you want to pause after each page, then answer Yes to the final question. Otherwise, answer No. 9.4 SET SYSTEM OPTIONS Default values are preset by AccuTax for several important parameters. If the default values are incorrect for your system, then you must change them to insure proper operation of the software. 1. "WHERE WILL I FIND ACCUTAX PROGRAM AND SCREEN FILES?" AccuTax needs to know where to find the screen and print files. These must all be together on the same diskette or subdirectory of your hard disk. Enter a drive letter and an optional path name. The path name must be preceded by a backslash (i.e. \TAX). Default = Default drive and path at system startup. 2. "WHERE DO YOU WANT TO SAVE YOUR TAX RETURNS?" AccuTax needs to know where you want to save your tax returns. Enter the drive letter and an optional path name. Default = Default drive and path at system startup. 3. "WHERE CAN I FIND EXTRA, TEMPORARY WORK SPACE?" During the processing of a tax return, AccuTax may need extra work space. This work space must be on a disk (or RAM disk if you have enough extra memory). Enter the drive letter and an optional path name for this work file. NOTE: A RAM disk drive will improve program performance. Default = Default drive and path at system startup. 4. "DO YOU HAVE A COLOR MONITOR?" Answer Y(es) or N(o). If you are using a color monitor, then you may select the colors to display for the various sections of the display screen. Defaults = NO and WHITE for display screen. 10.0 PREPARING A TAX RETURN AccuTax always begins by displaying Form 1040. You can move to supporting forms (and back) via function keys. The tax forms are presented in generally the same format found on the printed IRS document. Use your IRS instructions to determine what needs to be entered and what tax forms are required. Section 11 describes the tax forms supported and the program logic behind many of the lines. Simple additions and subtractions are obvious from the screen description and are not included in Section 11. FUNCTION KEYS ACTIVE F1 - HELP Displays a screen defining the function keys that are currently active. F2 - SAVE Let's you save (on disk) the tax return currently being processed. This is described in more detail in section 10.7. F4 - RECALC AccuTax will recalculate your tax whenever you press F4. This is described in more detail in section 10.2. F5 - +/- Allows you to access a pop-up calculator for addition, subtraction, multiplication, and division. Result can be transferred to the tax return if you wish. See section 10.4 for details. F6 - SUPP(orting form) Allows you to access supporting tax forms, schedules, or worksheets. See section 10.1 for details. F8 - STATUS Displays all forms, schedules, and worksheets used in the tax return. You can review any of the entries by typing an 'R' next to the appropriate form (see section 10.6). Or, you can delete any entry by typing a 'D' next to the appropriate form (see section 10.5). F9 - OV(er)RIDE Let's you turn 'on' or 'off' the AccuTax calculation override feature. See section 10.3 for details. F10 or ESC - RETURN Always returns to the form or menu that you just left. For example, when completing a supporting schedule, F10 will transfer you back to the 'parent' form. The appropriate values are also transferred to the parent form. 10.1 SUPPORTING SCHEDULES We've said that data entry is allowed in the highlighted block on the screen. If the line next to the highlighted block is marked with an asterisk (*), then that line is supported by a form, schedule, or worksheet. For example, line 7a of the 1040 is marked with an * and is supported by the W-2 worksheet. There are many lines not marked with an '*' that can still be supported by a general worksheet. This worksheet allows you to list up to 30 items and a corresponding dollar amount. This is a useful way of keeping more detailed records of your tax preparation. You can access the supporting form, by pressing the F6 key. The 'parent' form is filed away temporarily and the 'supporting' form appears on the screen. You can now enter data into the supporting form. Multiple copies are allowed for some supporting forms (such as Schedule C and Form 4562). The first time you access one of these supporting forms, AccuTax sends you directly to the data entry screen for that form. However, once a multi-copy form is in use, AccuTax needs to know which form you are trying to access or if you want a new copy. The following screen appears when accessing a multi-copy form (for example, calling for Schedule C from Form 1040, line 12): ******************************************************************************* * AccuTax '86 SUPPORTING FORMS mm-dd-yy hh:dd *============================================================================== * Which copy do you want displayed? * ---------------------------------------------------------------------------- * | SEL | FORM | SUPPORTS | LINE | * |-------|------------------|-----------|-------|---------------------------- * | _ | SCHEDULE C | FORM 1040 | 12 | Company A. * | _ | SCHEDULE C | | | Company B. * . * . * * * ---------------------------------------------------------------------------- * Y = Display Form Use INS key for a new copy * * * F1=Help F2=Enter F0=Return ******************************************************************************* Enter Y next to the copy that you want to display and then press F2 or the '+' key. Pressing INS key calls up a new, blank copy of the supporting form. The INS message will not appear if the maximum number of copies for that supporting form are currently in use. To return to the 'parent' form, press the F10 (Return) key or the ESC key. The parent form will reappear on the screen with the proper value transferred from the supporting form. You will also notice that the * is now highlighted, indicating that the supporting form is 'active'. You never have to use the supporting form within AccuTax. You can prepare the supporting form by hand, if you wish, and enter the result directly into the parent form. However, once you've used AccuTax to fill out a supporting form, you cannot enter a figure directly into the line of the parent form that it supports. AccuTax will always take the result from the supporting form and erase any amount that you may have keyed into the field. You will need to delete the supporting form (see 10.5) before you can return to 'direct entry' mode. 10.2 CALCULATING YOUR TAX AccuTax is amazingly quick when it comes to calculating your tax. AccuTax goes through a complete recalculation under any of the following conditions: o Whenever you press the F4 key; o Whenever you move to a new screen page; o Whenever you access a supporting form, schedule, or worksheet; o Whenever you return to a parent form; o Whenever you override a calculated value; o Whenever you cancel an overriden value; o Whenever you delete a form, schedule, or worksheet; o Before you save the tax return on disk; 10.3 OVERRIDING ACCUTAX CALCULATIONS AND CHECKS During the tax calculation, certain assumptions are made and many fields are checked for accuracy. If you've entered a value that is beyond the limits imposed by the IRS (for example, IRA deduction limit of $2000), AccuTax will automatically change your entry to the maximum allowable amount. These calculations and checks are performed on lines highlighted with a 'C' and are documented in section 11. Tax regulations are complex and it's impossible to program AccuTax to handle all possible situations. Therefore, whenever the calculation involves more than a simple mathematical operation, you are given the opportunity to override the AccuTax logic. Basically, this means you can override whenever the highlighted block stops on a line marked with a 'C'. There are two ways to override. One way is to press the F9 key when the highlighted block is on the line that you need to override. Notice that the 'C' will change to a bright 'O' (for override) and a message "Calculated field is being overriden" will appear on the bottom of the screen. You can now enter any value that you wish. AccuTax will use the overriding value in place of the calculated value in all further tax calculations. To cancel the override, press the F9 key again. Notice that the bright 'O' returns to a 'C' and a message "Returning field to calculated mode" appears on the bottom of the screen. AccuTax will replace the overriding value with the calculated value. The other way to override is to call up a general worksheet to support the calculated line (see 10.1 for instructions). You can list up to 30 descriptive lines and dollar amounts. The sum is used in place of the calculated value. Notice that the 'C' changes to a bright '*' when this occurs. To cancel this type of override, you must delete the supporting worksheet. See section 10.5 for details. 10.4 THE POP-UP CALCULATOR AccuTax has a built-in calculator ready to use at the push of a button (F5). The calculator can add (+), subtract (-), multiply (*), and divide (/). It also has a memory feature, just like a real calculator. When you press F5, the calculator appears and AccuTax automatically turns 'on' the NUMLOCK feature of the IBM keyboard. This means that the number keys on the right side of the keyboard are active (rather than the arrows, PgUp, and PgDn). You'll notice three display lines on the AccuTax calculator. The entry line is where you type in each number. The result line displays the current result of your calculation. Figures in the entry line are added to, subtracted from, divided into, or multiplied by the figure in the result line. The memory line displays the current contents of the calculator memory. The function keys are changed to let you: F2 - Clear the entry line; F3 - Clear the memory; F4 - Clear the entry, result, and memory lines; F5 - Add the result line to memory; F6 - Subtract the result line from memory; F7 - Recall memory (move it to the entry line); F8 - Save the result in memory; F9 - Return to the tax form and transfer the result line to the form; F10 - Return to the tax form but do not bring the result forward. When you return to the tax form, the NUMLOCK status is returned to it's previous state. If you returned via F9, the result line is moved to the tax return. If you returned via F10 or ESC, the result line is ignored. 10.5 DELETING A TAX FORM, SCHEDULE, OR WORKSHEET You may have accessed a supporting form by accident or perhaps the supporting form is no longer needed for a tax return. AccuTax provides a simple way for you to delete any form, schedule, or worksheet. Press F8 from any tax preparation screen and a status of all tax forms used in the return in presented: ******************************************************************************* * AccuTax '86 TAX RETURN STATUS mm-dd-yy hh:dd *============================================================================== * You can delete or review any of these forms... * ---------------------------------------------------------------------------- * | SEL | FORM | SUPPORTS | LINE | * |-------|------------------|-----------|-------|---------------------------- * | _ | FORM 1040 | | | * | _ | W-2 WORKSHEET | FORM 1040 | 7a | ACME Company * | _ | SCHEDULE B | FORM 1040 | 8 | * | _ | ITEMIZED LIST | SCHEDULE B| 2 | 1275.00 * . * . * * * ---------------------------------------------------------------------------- * D = Delete Form R = Review Form * * * F1=Help F2=Enter F0=Return ******************************************************************************* Enter a D next to the form or forms you want to delete, then press the F2 or large, gray '+' key. AccuTax will take a few moments to delete the form (along with any forms that may support it) and recalculate the tax. 10.6 SHORT-CUT TO A SUPPORTING SCHEDULE The F8 (status) key also provides a short-cut to reviewing a supporting schedule that is in use. The screen described in section 10.5 can also be used to review a specific form. This is done by placing an 'R' next to the form desired and then pressing F2 or the '+' key. Only one form can be reviewed at a time, therefore, AccuTax process only the first line marked with an 'R'. 10.7 SAVING THE TAX RETURN You can save your work by pressing F2 from any tax preparation screen. You will be prompted for a filename (up to 8 characters) and an optional description. If you use the description field, it will appear when presented with a list of tax returns to change (see 9.2) or print (9.3). If a tax return is already saved with that filename, then you will be asked: "OK to write over existing file (Y/N)? ==>" If you answer Yes, then the tax return in memory will update (write over) the tax return on disk. If you answer No, you will be given the opportunity to enter a different filename. 11.1 FORM 1040 Line 6c. If the names of all dependent children will not fit on one line, & 6d. use the supporting form feature (F6) to itemize the names. Line 6e. You may enter the number of other dependents directly into this line or use the 'Other Dependent Worksheet' to itemize the information. If you use the worksheet, AccuTax will count the number of copies used and enter that count on line 6d. Line 7a. Enter your wages directly into these fields or use the 'W-2 & 7b Worksheet'. There are advantages to using the worksheet. State and federal withholding taxes will be automatically forwared to Schedule A. Federal tax withholdings will be transferred to to Form 1040, line 57. And excess FICA withholdings (line 61) will be automatically calculated. Line 7c. Automatically calculated if excess reimbursements are entered on Form 2106. Line 8. Supported by Schedule B. If more than $400, then you must use Schedule B. You can enter interest income directly into this field, but if Schedule B is used for dividend income (line 9a) then you must also enter interest income on the Schedule B. Line 9a. If you used Schedule B to enter interest income on line 8,then you must enter dividend income on Schedule B as well. Line 9b. If filing status is 2 (joint return), then dividend exclusion is automatically set to $200. Otherwise, $100 is used. AccuTax assumes that all dividends qualify for the exclusion . If this is not true, then override the calculation and enter correct dividend exclusion. Line 12. Supported by Schedule C. Up to five copies of Schedule C can be supported. Line 13. Supported by Schedule D. Line 17b. Value on this line is limited to the total other pensions and annuities reported on line 17a. Line 18. Supported by Schedule E. Line 20b. Calculated assuming that the unemployment income on line 20a does not include any overpayment and that, if married but not filing a joint return, both husband and wife lived together during the tax year. If assumptions are incorrect, then override the calculation with the appropriate amount. Your Earned Income. Calculated as your W-2 wages (line 7a) plus your Schedule C income plus all Schedule F income (line 19). If your return has partnership income, then this value may need to be overridden. This is an important figure, since it is used in checking IRA deductions, Schedule W, and other areas. Spouse's Earned Income. Calculated as spouse's W-2 wages (line 7b) plus spouse's Schedule C income. If spouse had partnership income, this may need to be overridden. Unearned Income. Calculated as the difference between total income (line 23) and earned income. Line 25. Supported by up to two copies of Form 2106. Line 26a. Your entry on this line is limited to your earned income (less any Keough deductions from line 27a) or $2000, whichever is less. If your income included any foreign earned income, then you may need to override this calculation. Line 26b. If your spouse worked, then entry on this line is limited to your spouse's earned income (less any Keough deductions from line 27b) or $2000, whichever is less. If spouse did not work, then entry is limited to $2000, but total IRA payments (line 27a and 27b) cannot exceed $2250. If your spouse's income included any foreign earned income, then you must override this calculation. Line 27a. Your Keough contribution is limited to 25% of your Schedule C income or $30,000 whichever is less. If you had partnership earnings, you may need to override this limitation. Line 27b. Spouse's Keough contribution is limited to 25% of spouse's Schedule C income or $30,000 whichever is less. If spouse had partnership earnings, you may need to override this limitation. Line 30. Supported by Schedule W. Accessible only if filing a joint return. Line 34a. Supported by Schedule A. Line 34b. If you've entered an amount on line 34a, then entry is not & 34c. allowed on these lines. Line 35. Adjusted gross income less either line 34a (if you itemized) or line 34e (if you did not). You may need to override this calculation if you must itemize deductions and your total deductions are less than the zero bracket amount for your filing status. According to IRS regulations, you must itemize if you can be claimed as a dependent on your parent's return and you had unearned income more than $1,040. There are other conditions that may force you to itemize. Consult the IRS Form 1040 instructions. Line 38a. If taxable income is less than $50,000 then this line represents your tax from the tax tables. Line 38b. If taxable income is more than $50,000, then this line represents your tax from Schedule X, Y, or Z. Line 38c. Supported by Schedule G. Line 38d. Your tax. Lesser of line 38a/b and 38c. Line 41. Supported by Form 2441. Line 42. Supported by Schedule R. Line 43. Supported by Form 5695. Line 51. Supported by Schedule SE. Maximum of two copies are supported. Line 52. Supported by Form 6251. Line 57. If you used the W-2 worksheet on line 7a or line 7b, then the federal tax withheld on each W-2 is totalled. If this is not correct, then override. If you did not use W-2 worksheet, then enter the correct amount directly into this field. Line 61. If you used the W-2 worksheet on line 7a or line 7b, then the FICA tax withheld is compared to the maximum amount for both you and your spouse. Any excess withholding is entered here as a tax credit. If calculation is not correct in your case, then override. If you did not use the W-2 worksheet, then enter a value directly into this field. Line 67. If there is any overpayment of taxes, you can apply part or all of it to next year's taxes. Any entry on this line is subtracted from line 66 (Refund). 11.2 SCHEDULE A (Itemized Deductions) Supports: Form 1040, line 34a. Line 2c. Use the general worksheet to itemize other medical expenses. Line 6. This is the sum of all state and local taxes withheld, as reported on the W-2 worksheets. If you have not used the W-2 worksheet, then enter a value here. Line 9. Use the general worksheet to itemize other tax deductions. Line 11b. Use the general worksheet to identify any home mortgage interest paid to individuals. Line 13. Use the general worksheet to itemize other interest deductions. Line 22. Use the general worksheet to itemize other miscellaneous deductions. Line 26. Transferred to Form 1040, line 34a. 11.3 SCHEDULE B (Interest and Dividend Income) Supports: Form 1040, lines 8 and/or 9c Line 2. Use the general worksheet to itemize interest income. Line 3. Transferred to Form 1040, line 8. Line 4. Use the general worksheet to itemize dividend income. Line 10. Transferred to Form 1040, line 9a. NOTE: If Schedule B is used to report either interest or dividend income, then you must use it to report both. In other words, do not enter a value on Form 1040, line 8 and then use Schedule B to report dividend income. AccuTax will calculate interest income as zero and erase the value you entered on line 8. 11.4 SCHEDULE C (Profit or Loss from Business) Supports: Form 1040, line 32 Proprietor. Indicate whether you or your spouse is the proprietor of this business. This is a required field, since several other calculations (such as earned income) depend on it. Line 4b. Use the general worksheet to itemize other business income. Line 12. Supported by Form 4562 (ACRS Depreciation). Line 30. Use the general workseet to itemize other business expenses. Line 32. The sum of line 32 of all copies of Schedule C used in this tax return is transferred to Form 1040, line 12. 11.5 SCHEDULE D (Capital Gains or Losses) Supports: Form 1040, line 13. Line 1f. Supported by 'Short-Term Capital Gain/Loss' worksheet. Up to 1g. ten worksheets can be used. Line 3. Must enter any loss as a negative number. Line 4f. Enter either a positive or negative number. AccuTax will convert any entry to a negative number. Line 9f. Supported by 'Long-Term Capital Gain/Loss' worksheet. Up to ten 9g. worksheets can be used. Line 11. Must enter any loss as a negative number. Line 12f. Enter either a positive or negative number. AccuTax will convert any entry to a negative number. Line 23. If a gain is calculated, then this line is transferred to Form 1040, line 13. Line 25. If a loss is calculated, then this line is transferred to Form 1040, line 13. Line 36. If your loss is greater than the allowable amount, then a loss carryover is calculated here. Use it in computing next year's taxes. 11.6 SCHEDULE E (Supplemental Income) Supports: Form 1040, line 18. You must use the 'Rent/Royalty Income' worksheet to report supplemental income. Lines 3a through 24 on the Schedule E are a summation from all worksheets used for this tax return. Up to five properties can be listed. Line 25. Enter any farm rental loss as a negative number. Line 27a. Supported by 'Partnership/S Corp Income' worksheet. Up to six 27b. worksheets can be used. Line 31a. Supported by 'Estate/Trust Income' worksheet. Up to three 31b. worksheets can be used. Line 36. Transferred to Form 1040, line 18. 11.7 SCHEDULE G (Income Averaging) Supports: Form 1040, line 38c. Line 1-3. Enter the taxable amount from previous tax years. Line 8. The value from Form 1040, line 37 is entered here. Line 28. Transferred to Form 1040, line 38c. If less than the tax calculated from tax tables, this value will be used as your tax. 11.8 SCHEDULE R (Credit for the Elderly) Supports: Form 1040, line 42. Line 1-9. Enter 'Y' next to the line that applies. This is required information, since it controls calculations on lines 10 and 15 of this schedule. Line 14. The value from Form 1040, line 33 is entered here. Line 21. Transferred to Form 1040, line 42. 11.9 SCHEDULE SE (Self-Employment Tax) Supports: Form 1040, line 51. Employee: Enter '1' if this SE is for you or '2' if it is for your spouse. This is a required entry since information later in this schedule depends on it. Line 1a. The value from Form 1040, line19 (Farm income) is automatically entered here if the employee code is '1'. If farm income is for your spouse, then you will need to override this value. Line 2a. Income or loss from Schedule C is added up and entered here. AccuTax adds up the income from those businesses that correspond to the employee code marked on this Schedule SE. "Are you exempt from Self-Employment Tax?" - Enter Y or N per the instructions. If you answer yes, then SE taxes are zero. Line 4a. AccuTax uses the value from Form 1040, line 19 (Farm income) if the employee code is '1' (you) and farm income is greater than zero and less than $1600. If this incorrect, then override it. Line 4b. Enter other farm profits from Schedule K-1. Line 4c. The sum of 4a and 4b, but limited to $1600. Line 6a. AccuTax uses two-thirds of gross profits from Schedule C (line 5) if this amount is greater than zero and less than $1600. Override if necessary. Line 6b. Enter other non-farm profits from Schedule K-1. Line 6c. Sum of 6a and 6d, but limited to $1600. If line 4c is greater than zero, then line 6c is set to zero. Line 11a. The value from Form 1040 line 7a (your wages) or line 7b (spouse's wages) is entered here. Line 14. Transferred to Form 1040, line 51. 11.10 SCHEDULE W (Marriage Deduction) Supports: Form 1040, line 30 Line 1a. Your W-2 wages from Form 1040, line 7a is automatically entered here. Line 1b. Your spouse's W-2 wages from Form 1040, line 7b is automatically entered here. Line 2a. Your other earned income (earned income less W-2 wages) is auto- matically entered here. Line 2b. Your spouse's other earned income (earned income less W-2 wages) is automatically entered here. Line 4a. Sum of Form 1040 line 26a (your IRA deduction) and line 27a (your Keough deduction) and your employee business expenses from Form 2106. If your tax return includes any repayment of supplemental unemployment benefits, then you will need to override this calculation Line 4b. Sum of Form 1040 line 26b (spouse's IRA deduction) and line 27b (spouse's Keough deduction) and spouse's employee business expenses from Form 2106. If your spouse had any repayment of supplemental unemployment benefits, then you will need to override this calculation. Line 8. Transferred to Form 1040 line 30. 11.11 FORM 2106 (Employee Business Expenses) Supports: Form 1040, line 25 and/or 7c Employee. Enter '1' if this form is for your expenses or '2' if this form is for your spouse's expenses. Line 1. Calculated from your vehicle expense worksheet. Sum of lines 15 and 22. Line 9. If employer reimbursements exceed your expenses, then the difference is transferred to Form 1040 line 7c and included in your taxable wages. Line 10. If employer reimbursements are less than your expenses, then the difference is transferred to Form 1040 line 25. PART II (Vehicle Expenses) First Press the F6 key on this line if you have car expenses to Line report. Line 11 These lines represent a summation from all vehicle expense thru 15 worksheets where you elected to use the standard mileage method. Line 16 These lines represent a summation from all vehicle expense thru 22 worksheets where you elected to use the actual expense method. 11.12 FORM 2441 (Child Care Credit) Supports: Form 1040 line 41. Line 3. If you have one qualifying child, the amount on this line is limited to $2400. For more than one qualifying child, the amount is limited to $4800. Line 4a. Your earned income is automatically entered here. Line 4b. Spouse's earned income is automatically entered here. Line 4c. If both you and your spouse work, then line 4c is the lesser of line 4a and 4b. If you are filing a joint return and only one of you worked, then you do not quality for a child care credit, and line 4c will be zero. If you are not filing a joint return, then line 4c will be equal to line 4a. Line 5. This line is the lesser of line 4c or line 3 (your child care expenses). Line 6. Your adjusted gross income from Form 1040, line 33 is used to determine the percentage to be used in calculating the credit. Line 9. Transferred to Form 1040, line 41. 11.13 FORM 4562 (Depreciation Expenses) Supports: Schedule C, line 12 Rent/Royalty Income Worksheet, line 18b Business Activity. Briefly describe the business activity that this form is being used for. Line 1. Use the Sec. 179 Expense Worksheet (accessed via F6) to enter your section 179 expenses. Total Sec. 179 expenses are limited to $2500 if married, filing a separate return. Otherwise, the limit is $5000. AccuTax can only apply this limit to a single Depreciation Form. You are responsible for ensuring that your total section 179 expenses do not exceed the limit. Line 2. This is a sum of section 179 expenses for listed property. Information is entered into part III of this form. Line 4a-4h. Use the ACRS Non-Listed Property Worksheet (accessed via F6) to enter your depreciation expenses incurred in the current tax year. Line 5. This is a sum of depreciation for listed property. Information is entered into part III of this form. Line 6a-6h. Use the ACRS Non-Listed Property Worksheet (accessed via F6) to enter your depreciation expenses incurred in previous tax years. Line 7-8. No supporting worksheets for these lines. You must enter any value directly into this line. Line 9. Transferred to the appropriate line that accessed this form. AMORTIZATION. Use the Amortization Worksheet (accessed via F6) to enter any amortization expenses. PART III. LISTED PROPERTY This section is used for automobiles and other listed property as described in the new IRS depreciation regulations. Basically, automobile depreciation comes under special consideration. These rules are explained under the Listed Property Depreciation Worksheet. 11.14 FORM 5695 (Energy Credit) Supports: Form 1040, line 43 Line 1. If you residence was completed before 4-20-77, answer Y(es). If you answer N(o), then you do not qualify for the energy credit and lines 2a thru 2h will be zeroed. Line 2a-2h. Enter energy conservation costs on the appropriate line. Line 3a-3d. Enter renewable energy source costs on the appropriate line. Line 24. Enter energy credit carryover from last year. Line 26. The value from Form 1040, line 40 is automatically entered here. Line 29. Your energy credit is the lesser of line 25 (maximum credit) and your tax due this year. The value on this line is automatically transferred to Form 1040, line 43. Line 32. If line 29 is less than line 25, then you can 'carryover' the remaining credit to next year. 11.15 FORM 6251 (Alternative Minimum Tax) Supports: Form 1040, line 52 Line 1. The amount from Form 1040, line 33 is automatically entered here. Line 2a. If you used Schedule A, then your medical expenses from line 3 is entered here. You may override if this is not correct. Line 2b. If you used Schedule A, then your contribution amount from line 18 is entered here. You may override. Line 2c. If you used Schedule A, then your casualty/theft expense from line 19 is entered here. You may override. Line 2d. If you used Schedule A, then your interest expenses on your residential property from line 11a and 11b are added up and entered here. You may override. Line 2e1. If you used Schedule A, then your other interest expenses from lines 12 and 13 are added up and entered here. You may override. Line 2e2. Your net investment income is calculated as the sum of Form 1040 line 8 (interest income), line 9a (dividend income), and line 18 (supplemental income). If less than zero, then line 2e2 will be zero. If this is incorrect, then override. Line 2f. You must enter any gambling losses (limited to any winnings). Line 2g. You must enter your estate taxes. Line 2h. You must enter any charitable deductions and income distribution deductions from an estate or trust. Line 4a. The amount from Form 1040, line 9b is automatically entered here. Line 4b. The amount from Schedule D, line 22 is automatically entered here as your non-taxable capital gain deduction. You may override if necessary. Line 4c-4k. You must enter the amounts for these lines. Line 6. If your filing status is 1 or 3, then $30,000 is entered here. If your filing status is 2, then $40,000 is entered here. Otherwise, $20,000 is used. Line 9. The amount from Form 1040, line 50 is automatically entered here. You may override if necessary. Line 11. The amount from Form 1040, line 47 is automatically entered here. You may override if necessary. Line 12. Transferred to Form 1040, line 52. 11.16 W-2 WORKSHEET (#1) Supports: Form 1040, lines 7a and 7b Use this worksheet to enter wages and withholdings from up to five employers. 11.17 OTHER DEPENDENT WORKSHEET (#2) Supports: Form 1040, lines 6d Use this worksheet to list information concerning other dependents that you can claim on your tax return. 11.18 SHORT-TERM CAPITAL GAIN OR LOSS WORKSHEET (#3) Supports: Schedule D, line 1 Use this worksheet to enter your short-term capital gains or losses. AccuTax does not check the date acquired or sold. It's up to you to be sure that the period of time that you held the asset qualifies you for short-term taxation. Up to ten assets can be reported. 11.19 LONG-TERM CAPITAL GAIN OR LOSS WORKSHEET (#4) Supports: Schedule D, line 9 Use this worksheet to enter your long-term capital gains or losses. AccuTax does not check the date acquired or sold. It's up to you to be sure that the period of time that you held the asset qualifies you for long-term taxation. Up to ten assets can be reported. 11.20 VEHICLE EXPENSE WORKSHEET (#5) Supports: Form 2106, line 3 Line 1. Enter the date that the vehicle was placed in service. Use mm-dd-yy format. Line 2. Enter total mileage driven in 1985. Line 3a. Enter total business miles driven in 1985. Line 3b. Enter total mileage reading on car at the end of 1985. This is used later in determining eligibility for the $.21 per mile rate. Line 4. Business percent is calculated as line 3a divided by line 2. You may override if this is incorrect. To determine your vehicle expenses, you can use either the standard mileage rate method or the actual expense method. AccuTax will assume that you are using the standard method unless you enter anything in the Actual Expense section. If line 22 is greater than zero, then all standard mileage rate lines are zeroed out. STANDARD MILEAGE RATE METHOD. Line 11. Calculated as the smaller of line 3 or 15,000 miles. Line 12. Line 3 less line 12. Line 13a. IRS rules state that you can deduct $.21 per mile for the first 15,000 miles of business use and $.11 per mile for each additional business mile. However, the $.21 per mile rate can be used only until the car is fully depreciated. A car is considered fully depreciated after 60,000 miles. Therefore, 13a is equal to line 11 if line 3b is less than 60,000. Otherwise, line 13a is equal to that part of the business mileage driven while the car was still under 60,000 miles. You may override this figure if necessary. Line 13b. Line 13a times $.21. Line 14. Line 3a less line 13a times $.11 per mile. ACTUAL EXPENSE METHOD Line 19. Sum of actual expenses times the percent used in business. Line 21. Supported by Section D. Line 22. Total actual expenses. If greater than zero, standard mileage figures are zeroed out. DEPRECIATION Line A. Enter the total cost of the car. Line B. The basis for depreciation is the total cost (A) times the business use percent (line 4). Line C. Enter "PRE" (must be caps) if you are eligible for the ACRS percentages. Otherwise, enter "SL" or "L" for straight-line depreciation. Recov. Enter the number of years to depreciate the vehicle. If you qualify for ACRS treatment, then this must be 3, 5, or 10 yrs. If not, AccuTax uses the 3 year percentages. Pct. This is the depreciation percent calculated by AccuTax. If the business-use percent is less than 50% or if you entered anything other than "PRE" in line C, then ACRS depreciation is not used. You must use straight-line. In the first year, the half-year convention is used for straight-line depreciation (that's half the full year rate). Subsequent years, the rate is 100 divided by the recovery period. If the business use is more than 50% and you entered "PRE" in the method, the percent comes from the ACRS tables (based upon the recovery period you entered). You can override this logic with your own percentage if necessary. Line D. Line B less line E times the depreciation percent. Line E. No Sec. 179 expenses are allowed in the business-use percent is less than 50%. AccuTax will zero out line E in this case. If If you are allowed to take a section 179 expense deduction, then this is deducted from the depreciable base of the car. Line E is limited to $5000. One final limitation applies to automobile depreciation. For cars placed in service after 4-2-85, the maximum deduction (Line D + Line E) is limited to $3200 in 1985 and $4800 in subsequent years. For cars placed in service after 6-18-84 and before 4-2-85, the limitation is $4000 the first year and $6000 in subsequent years. Furthermore, this limitation is scaled down by the business-use percent. For instance, if you are depreciating a car purchase in June, 1985 and that car was used 80% for business, then your depreciation and section 179 expenses are limited to $2,560 ($3200 x 80%). 11.21 SECTION 179 EXPENSE WORKSHEET (#6) Supports: Form 4562, line 1 Use this worksheet to enter Section 179 on Form 4562. A total of five worksheets can be used in a tax return. 11.22 ACRS NON-LISTED PROPERTY WORKSHEET (#7) Supports: Form 4562, lines 4a-4h and lines 6a-6h. A total of 30 worksheets can be used in your tax return. Line a. Describe the asset. Line b. Enter the month and year acquired. This is important, since calculations depend on this date. Line c. Enter the cost of the asset. Line d. Recovery period is automatically set based upon the line you were at when you pressed F6. For instance, in you called for this worksheet from line 4a of Form 4562 (3-yr recovery property), then this line will be set to 3 years. However, you may override it per IRS regulations. Line e. Defaults to 'PRE', but you may change it to 'SL', 'FP', 'RRB', or 'TEO'. See IRS instructions for details. Percent: If the method is 'PRE', then AccuTax uses the date acquired and the recovery period to find the accelerated deprection rate from the ACRS tables. If the method is anything other than 'PRE', AccuTax uses the straight line method of depreciation. In the first year, the half-year method is used (i.e. half the full year depreciation). In subsequent years, the straight line percent is calculated as 100 divided by the recovery period. You can override the percent used by AccuTax if necessary. Line f. Cost of the asset (line c) times the depreciation percent. 11.23 AMORTIZATION WORKSHEET (#8) Supports: Form 4562, Part II. A total of five worksheets can be used in your tax return. Line e. Enter the number of years that the asset is to amortized. Percent. AccuTax assumes a straight line amortization percent. You may override if necessary. Line f. Cost of the asset times the amortization percent. 11.24 RENT/ROYALTY INCOME WORKSHEET (#9) Supports: Schedule E, line 3a and 3b A total of five worksheets can be used in your Schedule E. Line 3a. If this is a rental property, enter income on this line. Transferred to line 3a of Schedule E. Line 3b. If this represents royalty income, enter income on this line. Transferred to line 3b of Schedule E. Line 17. Use the general worksheet to itemize other expenses. Line 18. Transferred to line 18 of Schedule E. Line 19a. Supported by the Pre-1981 Depreciation Worksheet. Transferred to line 19 of Schedule E. Line 19b. Supported by Form 4562. Transferred to line 19 of Schedule E. 11.25 PARTNERSHIP / S CORP INCOME WORKSHEET (#10) Supports: Schedule E, line 27a and 27b A total of six worksheets can be used in your Schedule E. Line b. Enter 'P' if this is a partnership or 'S' if a sub-chapter S corporation. Line e. Enter any loss on this line. AccuTax will automatically turn any entry into a negative number. Transferred to Schedule E, line 27a. Line f. Enter any profits on this line. Transferred to Schedule E, line 27b. 11.26 ESTATE OR TRUST INCOME WORKSHEET (#11) Supports: Schedule E, line 31a and 31b A total of three worksheets can be used in your Schedule E. Line e. Enter any loss on this line. AccuTax will automatically turn any entry into a negative number. Transferred to Schedule E, line 31a. Line f. Enter any profits on this line. Transferred to Schedule E, line 31b. 11.27 ACRS LISTED PROPERTY WORKSHEET (#12) Supports: Form 4562, Part III. A total of ten worksheets can be used in your Schedule E. Line b. Enter the month and year placed in service. Line c. If this is an automobile (i.e. lines 6 - 10 have been completed), the business use percent is calculated as line 6 divided by line 7. You may enter a percent (if this is not an automobile) or override the calculation (if it is). Line d. Enter the total cost of the asset. Line e. Enter the recovery period. Line f. Enter the method of depreciation. "PRE" is required if you want to use the ACRS method and you qualify. Otherwise, straight line is assumed. Pct. See the rules for automobiles described in the Vehicle Expense Worksheet (#5). Line g,h. See the rules for automobiles described in the Vehicle Expense Worksheet (#5). 11.28 PRE-1981 DEPRECIATION WORKSHEET (#13) Supports: Rent/Royalty Income Worksheet, Line 18b A total of fifteen worksheets can be used in your tax return. Line c. Enter the cost of the asset. Line d. Enter depreciation from prior years. Line e. AccuTax does not check what you enter in this field. Line f. If you enter the asset life in years, AccuTax will calculate the depreciation rate using the straight-line method. Or you may override the rate calculation with a percentage. Line g. Cost times depreciation rate. 11.29 GENERAL ITEMIZING WORKSHEET (LIST) Supports: Various lines of the tax return. A total of fifty worksheets can be used in your tax return. This worksheet consists of a series of 30 descriptions and 30 dollar amounts. You can use this worksheet to itemize (or detail) many lines of other forms and schedules. The sum of all dollar amounts entered on the general worksheet is transferred to the tax line that the work- sheet supports. 12.0 ACCUTAX MESSAGES Calculated field is being overriden A warning message displayed any time you press F9 to override a field normally calculated by Accutax. Cannot support any more forms AccuTax can handle a maximum of 100 forms, schedule, and worksheets on any single tax return. Cannot write tax return to disk AccuTax could not process a request to save the tax return. The disk drive is not ready or there is no room on the diskette. Disk drive not available The path name entered on the systems option menu may be invalid or the disk drive door is open or a floppy diskette may not be in the drive. Insufficient memory At least 192K of memory is needed to run AccuTax. Invalid -- not filing joint return You've tried to do something that is only valid when filing a joint return. Such as, trying to use Schedule W or indicating that wages or business income is for your spouse. Invalid value on line xx An invalid value was entered into the highlighted field. Correct the value. Maximum of 50 returns listed AccuTax can list up to 50 returns on any diskette or path. This message may appear when you've requested the print or change option and more than 50 tax returns are saved. No supporting detail for this line The line you were on when you pressed F6 is not supported by any other forms, schedules, or worksheets. You must enter any data directly into this line. No tax returns on diskette During a request to print or change a tax return, AccuTax could not find any tax returns on the drive/path specified in the system options list. Printer not ready The printer is turned off or out of paper. Returning field to calculated mode A warning message displayed any time you press F9 on a field that is currently overriden. This subjects the field to normal AccuTax calculation and validation. SCREEN file not on default drive The file SCREEN.S85 must be on the default drive when you start AccuTax. Unable to allocate work file AccuTax uses a disk file to manage tax return data. This message usually means no room was available on the disk drive defined in the system options list.