Election to Amortize IDCs?
03/05/09 4:14pm PST, Viewed by asker 03/16/09 9:30am PDT
Total Views: 1,833
Has something changed in the oil & gas world? In 2006 Lacerte, the election to amortize IDC over 60 months under 59(e)(4) was right above the election to write off IDC on dry holes. For 2007 and 2008, no such election exists.
My vague recollection is that the election to amortize is a belt-and-suspenders one (so the election statement isn't technically required), but now I'm wondering if something changed in the intervening years. We do an election statement saying we're expensing (at least a dollar of) IDC in the first year, too, just so there's no question about that one.
How are other people handling it?
Solved!
Solved!
In the Elections input screen, the section "Election to Amortize Qualified Expenditures", includes :
(From F1 Help in the S-Corporation module) - Section 59(e)(4) allows an election to capitalize and amortize IDC over 60 months, circulation costs over 3 years, for a period of ten years, research and experimental expenditures, mining development costs and mining exploration expenditures. Enter a 1 to amortize IDC, a 2 for circulation cost, a 3 for research and experimental expenditures, a 4 for mining development costs and a 5 for mining exploration expenditures to have the program generates the necessary election statement.
Entering a 1 in "Amortize costs: 1=IDC, 2=circulation, 3=research and experimental, 4=mining development, 5=mining exploration [59(e)(4)]" in 08Tax, produces the same election statement as checking the box "Amortize intangible drilling & development costs [59(e)(4)]" in 06Tax.
This input is consistent across the different tax types.
