2009 Conversion Manual

 

Lacerte® 1040 to ATX

 

 

 

 

 

 

 

 

 

 

 

© CCH, Small Firm Services

6 Mathis Drive NW

Rome, GA 30165

 

No part of this manuscript may be copied, photocopied, reproduced, or distributed in any form or by any means without permission in writing from CCH, Small Firm Services. Information in this manuscript is subject to change without notice. Any software described in this manuscript is furnished under a license agreement and may be used or copied only in accordance with the terms of the agreement.

 

CCH, Small Firm Services is not engaged in rendering legal, technical, or other professional services. Use of this manuscript or the information in this publication does not relieve the user of complete responsibility for the operation and functionality of its computers and/or network, for the maintenance and backup of all user data, or for the preparation, content, accuracy, and review of all forms. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, MADE WITH RESPECT TO THESE MATERIALS OR ANY OTHER INFORMATION PROVIDED.

 

 

Lacerte® is a registered trademark of Intuit, Inc. Intuit, Inc. does not sanction nor participate in this conversion project.


Table of Contents

Important Information About Converting Returns   2

Conversion Instructions   2

Downloading the Conversion Utility   2

Installing the Conversion Utility   2

Converting Returns   2

Importing Converted Returns to ATX 2008   2

Lacerte® 1040 Conversion Items to Note   2

Individual Conversion Items (1040) 2

 

 

 

 


Important Information About Converting Returns

Before beginning the conversion process, review the following information:

  • Before beginning the conversion process, you must download the latest version of ATX 2008 using the Updates feature in your program.
  • The data contained in these returns is minimal and contains ONLY the information needed to rollover to the 2009 return. 
  • The conversion does not re-create your original 2008 tax return. 
  • Due to differences between tax programs ATX cannot convert 100% of tax return data therefore the tax calculations will not be accurate.
  • It is the responsibility of the tax professional to verify converted data.  Once verified, further processing of your 2008 tax returns in ATX is unnecessary.
  • The rollover portion of the conversion will be activated with the first release of ATX 2009.

 

For important conversion information specifically related to your previous tax software, such as Conversion Items to Note and Individual Conversion Items, review the sections at the end of this manual.

 

 

 

 


Conversion Instructions

Before converting returns to ATX 2008, you must have the following:

  • A full installation of ATX 2008
  • Internet connectivity

Downloading the Conversion Utility

To download the Conversion Utility

  1. Open Internet Explorer® 6.0 or higher.
  2. Point your Web browser to http://support.atxinc.com.
  3. Enter your Client ID, User Name, and Password.
  4. Click Log In.
  5. Click the Download Center tab.
  6. In the left navigation bar, click Conversions.
  7. Click the download icon next to the name of the tax software from which you will be converting.
  8. In the File Download – Security Warning dialog box, click Save.
  9. In the Save As dialog box, navigate to your desktop.
  10. Note the name of the file and then click Save.

 

The Conversion Utility installation file is now saved to your computer.

Installing the Conversion Utility

To install the Conversion Utility to your computer

  1. Double-click the Conversion Utility file on your desktop.
  2. If an Open File – Security Warning dialog box appears, click Run. Otherwise continue to step 3.
  3. In the ATX2009 dialog box, click Next.
  4. In the License Agreement dialog box, click Yes if you agree with the license agreement.
  5. Click OK once the installation is complete.

 

The Conversion Utility launches the 2009 Conversion Manual in your Internet browser. You have now successfully installed the Conversion Utility.

Converting Returns

To begin converting data from your previous tax software

  1. Click Start, point to All Programs, point to ATX 2009, and then click Lacerte® 1040 Conversion.
  2. In the Lacerte Individual Conversion V7 dialog box, navigate to the location of your Lacerte database in the Source Folder section. The default location for the Lacerte database is C:\Lacerte\08tax. If you did not install to the default location, adjust the path accordingly.
  3. In the Destination Folder location, verify that the location is C:\Progarm Files\ATX2008\Backup. If you did not install ATX 2008 to the default location, adjust the path accordingly.
  4. Click Start Conversion.
  5. Once the conversion process is complete, click OK.
  6. Close the Lacerte Individual Conversion dialog box.

 

Your returns are now converted to an ATX 2008 format.

Importing Converted Returns to ATX 2008

To import returns to ATX 2008

  1. Click Start, point to All Programs, point to ATX 2008, and then click ATX 2008.

·        We highly recommend downloading and installing the latest program updates and forms by using the Updates feature before converting returns.

  1. On the Returns menu, point to Import, and then click Converted Returns.
  2. Click Update Now if you have not recently updated your program. Otherwise continue to step 8.
  3. Click Select All.
  4. Click Download.
  5. Click Continue.
  6. On the Returns menu, point to Import, and then click Converted Returns.
  7. Click Continue.
  8. In the list of returns, select the returns you want to import. You can filter return types shown using the Files of type drop-down menu. Press the Shift key while selecting returns to select multiple returns or press Ctrl+A to select all the returns.
  9. Click Open to begin the import process.

·        The amount of time the import process takes varies by the number of returns you are importing.

  1.  In the Returns Converted dialog box, click Done.

 

Your converted returns are now imported to ATX 2008. Please review the Conversion Items to Note section at the end of this manual.

 

** Special Notes for Depreciation **

Tax programs utilize many different combinations of Depreciation methods. Some methods of depreciation listed in your prior program may not be able to be converted into ATX. We strongly advise you to check your depreciation closely to verify that each asset is correctly represented in ATX.

 

  1. Current-year Special Depreciation Allowance is calculated inside Lacerte, with no total being displayed on the entry screen. As a result, this amount may or may not be converted correctly into ATX.
  2. Lacerte does not calculate current depreciation to their worksheet. Therefore, the exact value reported previously cannot be converted. The current depreciation amount for each asset should be checked in ATX after conversion to ensure that the amounts are precise.
  3. Lacerte does not require the user to enter mileage information for vehicles.  If no mileage information is entered, then Lacerte assumes 100% business usage.  ATX does not make this assumption if no mileage information is entered – if no mileage is entered, then 0% business usage is assumed.  As a result, if no mileage information is converted to ATX, then the current year depreciation amount will not calculate.
  4. Indicator for truck or van purchased after 2002 and weighing less than 6,000 pounds and the percentage of business use for all vehicles may or may not convert correctly.
  5. Assets attached to Form 2106 may or may not convert into ATX.
  6. Assets sold on the Asset Worksheets in Lacerte will not be eliminated from the return next year.
  7. Salvage/Land Value when Business Use Percentage is a factor – Lacerte applies an asset’s Salvage or Land value AFTER the business use percentage has adjusted the Cost Basis of the asset. ATX applies the Salvage/Land value to the Cost Basis BEFORE the business use percentage is applied. For this reason, the converted amount for Salvage/Land value will be different than the amount that was entered in Lacerte: it has been divided by the Business Use. If Business Use changes from year to year, you will need to adjust the Salvage/Land Value accordingly.

Lacerte® 1040 Conversion Items to Note

 

The Conversion Utility only converts data that is necessary for rollover to the following year’s software. Since ATX software only rolls over certain information on the federal portion of a return, the Conversion Utility only converts certain data residing on the federal portion of a return. No state information is converted from your previous tax software.

 

Following are forms in which we recommend you verify the accuracy of the converted data:

 

  • All Calculated Fields – Since field amounts calculated in your Lacerte® software are not stored in the file from which we extract data, we recommend verifying the converted amounts on these forms.
  • Disposition Forms (i.e., Form 6252 and 8824) – Due to the high degree of difficulty in identifying the origination of amounts on these forms we recommend verifying their converted amounts.
  • Asset Entry Worksheet for Form 4562 – Verify all converted Asset Categories, Methods, and Convention Codes.

NOTE: Lacerte® uses a Convention Code of MQ while ATX separates MQ into four quarters – MQ1, MQ2, MQ3, and MQ4. Since the Conversion Utility assigns an MQ1 Convention Code to all Lacerte® data converted with an MQ Convention Code, you need to manually make these adjustments in ATX.

  • Form 8853 – Information on Form 8853 is not converted due to differences in the storage of data between Lacerte® and ATX software.
  • Schedule E- Lacerte® calculates the vacation home allowance differently than ATX software, due to this we recommend verifying the allowance for the vacation home.
  • All K1 Forms – Due to the differences in which information is stored on these forms we recommend verifying their converted amounts.

Individual Conversion Items (1040)


Client Information

Taxpayer name

Spouse name

Taxpayer social security number

Spouse social security number

Filing status

Presidential election

Taxpayer occupation

Spouse occupation

Taxpayer DOB

Spouse DOB

In care of address

Street address

City

State

Zip

Taxpayer telephone number day

Taxpayer telephone number evening

Taxpayer blind

Spouse blind

Married Filing Separately spouse name

Married Filing Separately spouse social security number

Qualifying dependent name

Qualifying dependent SSN

 

Dependent Information

Dependent first name

Dependent last name

Dependent SSN

Dependent DOB

Relationship

 

Wages, Salaries, and Tips (W-2)

Owner (Taxpayer or Spouse)

Employer name

Employer address

Employer city

Employer state

Employer ZIP

Federal EIN

Box 1 - Wages, tips and compensation

Box 2 - Federal withholding

Box 12 - 1,2,3,4 codes and amounts

Box 14-  1,2,3,4 types and amounts

Statutory Employee

Retirement Plan

Third Party sick pay

State name 1,2,3,4
State ID 1,2,3,4
Locality name 1,2,3,4

 

Pensions, IRA Distributions (1099R)

Owner (Taxpayer or Spouse)

Payer name

Payer address

Payer city

Payer state

Payer ZIP

Federal EIN

Line 1 - Gross distribution

Line 2 - Taxable amount

Total Distribution Checkbox

Federal Tax Withheld

Box 7 Code

IRA/SEP/Simple Checkbox

State name 1 and 2

State ID 1 and 2

Locality name 1 and 2

Distribution checkbox from traditional, SEP, or SIMPLE IRA

Starting date of annuity

Age or combined ages at start date

Amount recovered after 1986

Exclusion amount

 

Itemized Deductions (Schedule A)

Real estate taxes paid on residence

Other taxes type description

Other taxes type amount

Personal property taxes

Mortgage individual name

Mortgage individual address

Mortgage individual TIN

Mortgage individual amount

Home mortgage interest and points reported on form 1098

Investment Interest

Employee expense description

Employee expense amount

Tax preparation fees

Other misc. expenses subject to the 2% floor description and amount

Other miscellaneous deductions not subject to the 2% floor description and amount

 

Itemized Deductions (Schedule A detail)

Medical Mileage

Qualified long term care

Medical expense description – an additional worksheet is available

50% cash charity description – an additional worksheet is available

30% cash charity description – an additional worksheet is available

50% non-cash charity description – an additional worksheet is available

30% non-cash charity description

20% non-cash charity description

 

Interest and Dividend Income (Schedule B)

Seller financed mortgage name

Seller financed mortgage SSN

Seller financed mortgage address

Owner (Taxpayer, Spouse, Joint)

Interest source description

Interest Amount

Early Withdrawal Penalty

Interest Income Federal Withholding

NAEOB Code

NAEOB Amount

Dividends source description

Ordinary dividends

Qualified dividends

Capital Gain

Unrecaptured Section 1250 Gain

28% Gain

Dividend Income Federal Withholding

Exempt Interest Dividends

AMT Private Activity Bond

Foreign country

 

Business Income (Schedule C)

Owner (Taxpayer, Spouse, Joint)

Business description

Business code

Business name

Business address

Business city, state, ZIP

EIN

Accounting method

Accounting method other description

Material participation

Gross receipts or sales

Returns and allowances

Other income

Advertising

Commissions and fees

Contract labor

Depletion

Employee benefit programs

Insurance

Mortgage interest paid to bank

Other interest

Legal and professional services

Office expense

Pension and profit-sharing plans

Real Estate taxes

Licenses

Other taxes

Rent or lease

Repairs or maintenance

Supplies

Wages

Taxes and licenses

Travel expenses

Meals subject to limitation

Meals @ 50%

Utilities

Wages

Other expenses descriptions and amounts

Inventory method

Inventory at beginning of year

Purchases

Cost of labor

Materials and supplies

Other costs

End inventory

 

Capital Gains and Losses (Schedule D)

Short Term Carryforward Loss

Capital Gains distributions

Description of Properties

Date Acquired

Date Sold

Sales amount

Cost or basis amount

Ownership T, S, J

28% checkbox

Short/Long term designation

 

Rent and Royalty Income (Schedule E)

Property kind A, B, C

Property location A, B, C

Property address

Property city

Property state

Property ZIP

Property ownership

Active participation

Travel expenses

Real estate professional

Depletion expense

Rents received

Royalties received

Advertising

Cleaning and maintenance

Commissions

Insurance

Legal and other professional fees

Management fees

Mortgage interest paid to banks

Other interest

Repairs

Supplies

Taxes

Utilities

Other expense description and amount – an additional worksheet is available

Prior Year loss Carryfoward

Prior year AMT unallowed loss

 

Farm Income (Schedule F)

Owner (Taxpayer or Spouse)

Principal product

Activity business code

Accounting method

FEIN

Material participation checkbox

All or some at risk

Sales of livestock purchased for resale

Cost of livestock on line 1

Sales of livestock you raised

Total coop distributions

Line 5b Taxable amount

Line 5b Total amount

Agricultural program payment

Line 6b Taxable amount

Line 6b Total amount

CCC loans reported under election

Line 7b CCC loans forfeited

Line 7c CCC loans Taxable amount

Crop insurance proceeds

Line 8a Total amount

Defer to next year election

Amount deferred from last year

Custom hire

Other income amount

Chemicals

Conservation expenses

Custom hire

Employee benefit programs

Feed

Fertilizer

Freight and trucking

Gas, fuel and oil

Insurance

Mortgage interest

Other interest

Labor hired before credits

Pension plans

Rent or lease

Repairs and maintenance

Seeds and plants purchases

Storage and warehousing

Supplies

Taxes

Utilities

Veterinary breeding and medicine

Other expense description and amount

Sales (page 2)

Total coop distributions (page 2)

Line 39b taxable amount (page 2)

Agricultural program payments (page 2)

Line 40b taxable amount (page 2)

CCC loans reported under election (page 2)

Line 41b – CCC loan forfeited (page 2)

Line 41c- CCC loan taxable amount

Crop insurance proceeds (page 2)

Custom hire income (page 2)

Other income (page 2)

Inventory at beginning of year (page 2)

Cost of purchases (page 2)

Ending inventory (page 2)

 

1099-G Government Payment Worksheet

Taxpayer/Spouse Indicator

Line 1 - Payer's Name

Line 2 - Unemployment Benefits Received

Line 3 - Repayment of Unemployment Benefits Received in 2004.

Line 5 - Federal Tax Withheld

Line 6 - State Tax Withheld

Line 1 - EIN

 

 

Farm Income (Form 4835)

FEIN

Owner (Taxpayer or Spouse)

Real estate professional

Active participation

Income from production

Total coop distributions

Line 2b taxable amount

CCC loans reported under election

Line 4b CCC loans

Line 4c taxable amount

Crop insurance proceeds

Section 451 defer amount

Line 5b taxable amount

Deferral to 2008 election checkbox

Line 5d – Amount deferred from last year

Other income

Chemicals

Conservation expenses

Custom hire

Employee benefit programs

Feed

Fertilizer

Freight and trucking

Gas, fuel and oil

Insurance

Interest

Other interest

Labor hired

Pension and profit sharing

Rent or lease

Repairs and maintenance

Seeds and plants

Storage and warehousing

Supplies

Taxes

Utilities

Veterinary breeding and medicine

Other expense description and amount – an additional worksheet is available

 

Vehicle/Business Employee Expense (Form 2106)

Taxpayer/Spouse indicator

Occupation

Parking fees, tolls, transportation

Travel expenses

Meals and entertainment expense

Employer reimbursements

 

Child and Dependent Care Expenses (Form 2441)

Provider name

Provider address

Provider city, state, ZIP

Provider SSN or EIN

EIN checkbox

Amount paid to provider

Qualifying persons name

Qualifying persons social security number

Qualifying persons expenses paid

 

Foreign Earned Income (Form 2555)

Taxpayer/Spouse Indicator

Foreign Address

Foreign Country

Employer’s Name

Employer’s U.S. Address

Employer’s Foreign Address

Employer Entity Type

Employer Entity Type – Other Description

Previous year form 2555 filed

Type of exclusion

Country of which a citizen/nation

 

Moving Expenses (Form 3903)

Number of miles to new workplace

Number of miles to old workplace

Amount paid for transportation and storage

Amount of miles

Other travel and legging expenses

Amount from your employer paid for expenses

 

Investment Interest Expense Deduction (Form 4952)

Interest paid

Disallowed interest

 

Installment Sale Income (Form 6252)

Description of property

Date acquired

Date sold

Marketable security

Selling price

Existing mortgage assumed

Cost or other basis

Expenses of the sale

Profit percentage

Prior payments received

Current payments received

 

 

Qualified Hurricane Retirement Plan Distributions and Repayments (Form 8915)

Taxpayer/Spouse Indicator

Distributions from retirement plans

Distributions from Traditional, SEP and SIMPLE IRA’s

Distributions from Roth IRA’s

Repayments made

Distributions for construction of new home

Repayments for construction of new home

 

Business Use of Home (Form 8829)

Area used for business

Total area of home

Adjusted basis of home

Value of land

Depreciation percentage

 

Qualified Adoption Expenses (Form 8839)

First and Last Name for Child 1

First and Last Name for Child 2

Year of birth for Child 1 and 2

ID Number for Child 1 and 2

Special Needs checkbox

Foreign Child checkbox

Amount of prior year 8839

Amount of Qualified Adoption expenses

 

Archer MSA and Long-term Care Insurance Contracts (Form 8853)

Taxpayer/spouse checkbox

Line 1a

Line 1c

Line 2a

Line 2c

Archer MSA contribution made in 2008

 

Partnership Information (Form K-1)

Partnership name

Foreign partnership checkbox

EIN

Tax shelter registration number

PTP box

PTP sold this year

100% interest sold this year

Real estate professional (material participation) indicator

Passive activity indicator

Rental Actively Participating indicator

Line 1 – Ordinary income

Line 2 – Net income/loss from rental real estate

Line 3 – Net income/loss for other rental

Line 4 – Guaranteed payments to partner

Line 5 – Interest income

Line 6a – Ordinary dividends

Line 6b – Qualified dividends

Line 7 – Royalties

Line 8 – Net short term capital gain (loss)

Line 9a – Net long term capital gain (loss)

Line 9b - Collectibles 28% gain (loss)

Line 9c – Unrecaptured Section 1250 gain

Line 10 – Net Section 1231 gain (loss)

Line 10a – Unrecaptured Section 1250 gain

Line 11a – Form 4684 at 28% rate

Line 12 – Section 179 expense deduction

Line 13a – Cash contributions 50%

Line 13b – Cash contributions 30%

Line 13c – Noncash contributions 50%

Line 13d – Noncash contributions 30%

Line 13e – Capital gain property to a 50% organization

Line 13f – Capital gain property 20%

Line 13g – Deductions – portfolio 2% floor

Line 13l – Deductions – portfolio – other

Line 13h – Investment interest expense

Line 13i – Deductions – royalty income

Line 13m - Amounts paid for medical insurance

13o – Dependent care benefits

13w – Penalty on early withdrawal

Line 14a – Net earnings from self employment

Line 14b – Gross farming or fishing income

Line 15q – backup withholding

Line 17a - Depreciation adjustment post 86 – ordinary, active rental, passive

Line 17b - Adjusted gain or loss – ordinary, active rental, passive

Line 18a – Tax-exempt interest income

Line 20a – Investment income

Line 20b – Investment expense

 

S-Corporation Income (Form K-1)

S-Corp name

Foreign corporation checkbox

EIN

Tax shelter registration number

100% interest sold this year

Real estate professional (material participation) indicator

Passive activity indicator

Rental Actively Participating indicator

Line 1 – Ordinary income

Line 2 – Net income/loss from rental real estate

Line 3 – Net income/loss for other rental

Line 4 – Interest income

Line 5a – Ordinary dividends

Line 8b – Qualified dividends

Line 6 – Royalties

Line 7 – Net short term capital gain (loss)

Line 8a – Net long term capital gain (loss)

Line 8b - Collectibles 28% gain (loss)

Line 8c – Unrecaptured Section 1250 gain

Line 9 – Net Section 1231 gain (loss)

Line 9a – Unrecaptured Section 1250 gain

Line 10a – Form 4684 at 28% rate

Line 11 – Section 179 expense deduction

Line 12a – Cash contributions 50%

Line 12b – Cash contributions 30%

Line 12c – Noncash contributions 50%

Line 12d – Noncash contributions 30%

Line 12e – Capital gain property to a 50% organization

Line 12f – Capital gain property 20%

Line 12k – Deductions – portfolio 2% floor

Line 12l – Deductions – portfolio – other

Line 12h – Investment interest expense

Line 12i – Deductions – royalty income

Line 12s – Penalty on early withdrawal

Line 13q – backup withholding

Line 15a - Depreciation adjustment post 86 – ordinary, active rental, passive

Line 15b - Adjusted gain or loss – ordinary, active rental, passive

Line 16a – Tax-exempt interest income

Line 17a – Investment income

Line 17b – Investment expense

 

Estate and Trust Information (Form K-1)

Estate name

EIN

Passive activity indicator

Rental Actively Participating indicator

Line 1 – Interest

Line 2b – Qualified dividends

Line 2a – Total ordinary dividends

Line 3 – Net short term gain

Line 4a – Net long term gain

Line 4b – Unrecaptured Section 1250 gain

Line 4c – 28% rate gain

Line 5 – Other portfolio and nonbusiness income

Line 6 – Ordinary business income

Line 7 – Rental real estate

Line 8 – Other rental income

Line 10 – Estate tax deduction

Line 11a- Excess deduction on termination

Line 11b- Short-term capital loss carryover

Line 11c- Long-tern capital loss carryover

Line 11d- NOL carryover for regular tax purposes

Line 12a- Adjustment for minimum tax purposes

Line 12g- Accelerated depreciation for Ordinary nonpassive, Active rental, and Passive Income

Line 12j- Exclusion Items

Line 14a – tax exempt interest

 

Form 4562, page 1 – Depreciation

Activity Description

 

Asset Entry Worksheet

Description of property

Date placed in service

Schedule E Property Column (A, B, or C)

Cost or Basis - federal and state (if different)

Salvage/Land value

Business use %, listed and vehicle

Method – federal and state (if different)

Recovery period – federal and state (if different)

Convention – federal and state (if different)

Prior year depreciation – federal and state (if different)

Prior 179 election amount – federal and state (if different)

Recovery period for AMT – federal and state (if different)

Current-year 179 election amount – federal and state (if different)

Current-year AMT depreciation – federal and state (if different)

Prior AMT depreciation - federal and state (if different)

Basis of property for Special Depreciation Allowance

Prior year Special/Bonus Depreciation

Amortization code section

Listed property designation

Vehicle designation

 

Like-Kind Exchanges (Form 8824)

Description of Like Kind Property given up

Description of Like Kind Property received

Date Like Kind Property identified

Date Like Kind Property received