MACRS Depreciation Method and Fixed Assets

Issue

Does the Fixed Assets module allow for the MACRS (Modified Accelerated Cost Recovery System) depreciation method?

Resolution

While there is no specific method called MACRS, Small Business Manager does accommodate the calculations. Consult your tax book or ask your Tax Accountant for a Depreciation Method, Averaging Convention, Switchover and Original Life combination that the MACRS table is based on for your specific needs.

Fixed Assets has several depreciation methods and averaging conventions that can be used in various combinations that should accommodate these needs.

Typically a Declining Balance depreciation method combined with an averaging convention and original life is used for MACRS. Once you have the appropriate information from the tax book, set this up in the Book Depreciation Options Setup window (Setup | Fixed Assets | Book Depreciation Options).

This article was TechKnowledge Document ID: 31761