Halon requires you to manually enter fixed assets. This ensures the integrity of the bookkeeping as Halon uses it each year.
When entering fixed assets, you'll tell Halon the purchase date, asset name, cost and select what type of asset it is (Car, Desk, Equipment, Building, etc.). That must be entered for each asset using the category dropdown menu.
Once the category has been selected, if the asset was placed in service PRIOR to this year, the following fields must be entered:
- Prior Depreciation
- Section 179 Expense taken in prior years
- Bonus Depreciation taken in prior years
To find this information, you must have a detail schedule of depreciation from the prior year tax return. There you will find each component.
Halon will pre-populate amounts that match what should have been taken in prior years.
IMPORTANT: Any asset under $2,500 does not need to be capitalized and depreciated. You can simply expense them as "Assets under $2,500" in your income statement (Profit & Loss).
You can add additional assets by clicking the "Add an Asset" button.
If an asset was sold during the year, you must check the "Sold This Year" box next to the asset.
The Asset Sale Detail will then ask you for sales price, expenses of the sale, and the date the asset was sold. Using that information Halon will calculate the gain or loss on the asset sale. Your return will also be upgraded to Halon Assisted.
Assets That Have Been Sold
If Halon picks up assets that have already been sold in prior years, mark those assets "Not Depreciated" as the category. Halon will then ignore those assets.