Acquisitions
Purchase-price allocation across the Form 8594 classes: what is depreciable, what is §197, what is goodwill.
Assets & valuation
Depreciation, amortization and valuation for every kind of business.
Book and tax registers side by side. A model proposes the class and the elections from the invoice; code computes every figure from the year’s tables; the CPA chooses.
- Book and tax registers
- Elections proposed, never computed
- Every rule cited
- M-1 computed, never plugged
One asset, two registers
The M-1 adjustment is computed, never plugged.
The same asset, the same placed-in-service date, two methods. The difference flows to Schedule M-1 automatically and is traced to the invoice.
| Line | Book | Tax |
|---|---|---|
| Method | SL 36 mo | Bonus + MACRS |
| Bonus (60%) | — | 1,920.00 |
| Depreciation for 2024 | 888.89 | 256.00 |
| Total 2024 | 888.89 | 2,176.00 |
| Schedule M-1 line 8a | 1,287.11 | |
From the engine’s synthetic test company; figures pinned by tests.
Coverage
What the engine computes, and what is coming.
| Treatment | Rule | Authority | Status |
|---|---|---|---|
| De minimis safe harbor | $2,500 per item or invoice without an AFS | Treas. Reg. §1.263(a)-1(f) | In the engine |
| Bonus depreciation | 60% for 2024; 100% if acquired after 19 Jan 2025 | IRC §168(k); Rev. Proc. 2024-13; P.L. 119-21 | In the engine |
| MACRS | GDS tables, half-year convention | IRC §168; Pub. 946 Table A-1 | In the engine |
| Research and experimental expenditure | 2024 capitalization; §174A deduction from 2025 | IRC §174, §174A; Rev. Proc. 2025-28 | In the engine |
| Acquired intangibles | 15-year ratable amortization | IRC §197 | In the engine |
| Prepaid expenses | 12-month rule for tax; amortized for books | Treas. Reg. §1.263(a)-4(f) | In the engine |
| Section 179 | Expensing election with limits and phase-out | IRC §179 | In development |
| Mid-quarter and mid-month conventions | 40% last-quarter test; real property | IRC §168(d) | In development |
| Real property and QIP | 27.5 / 39 years; 15-year QIP | IRC §168(c), (e)(6) | In development |
| Listed property and auto caps | Business-use test; annual limits | IRC §280F | Roadmap |
| ADS and §163(j) elections | Electing real property trade or business | IRC §163(j)(7)(B), §168(g) | Roadmap |
| Start-up and organizational costs | $5,000 each, phase-out, 180 months | IRC §195, §248 | Roadmap |
| Disposals and recapture | Gain or loss on each basis; §1245 / §1250 | IRC §1001, §1245, §1250 | Roadmap |
| Qualified production property | 100% for qualifying factories | IRC §168(n) | Roadmap |
A model proposes the class. Code computes the depreciation. The CPA chooses.
Recovery periods, conventions and bonus rates come from the year’s tables in tested code, each tied to its authority.
Valuation
Valuation workpapers from the same reconciled ledger.
Normalized earnings, discounted cash flow from your projections, market multiples from the comparables you choose, and the asset approach from the fixed-asset register — prepared for a credentialed professional to review.
Delaware franchise tax
Gross assets drive the assumed par value method.
Try the free calculatorQSBS
Aggregate gross assets at issuance for §1202, with the higher threshold for stock issued after 4 July 2025.
Planning
Buy-sell agreements, owner transactions and exit planning from normalized statements.
Not an appraisal
A valuation workpaper is not a qualified appraisal for gift and estate purposes, and not an independent §409A valuation. Those require a qualified appraiser who signs the opinion. NGTAX.AI prepares the analysis that professional reviews.
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