Enter a name for the custom method, choose a period convention, and click Continue. The Annual Rates dialog then opens automatically, allowing you to enter depreciation percentages for up to 40 years.
To open this dialog, click the Add button in the Setup > Custom Methods dialog.
Special information
Defining a custom method for calculating depreciation
Fields & buttons
Enter the name of the new custom method.
Note: Enter a descriptive name when the method is not time based and when assets using this method will be marked as section 168(f)(1) assets. The method name is printed on the subschedule for property subject to 168(f)(1) election on Form 4562.
Choose one of the following options.
- Monthly: Based on number of months held during year of transaction; full month or no month for month of transaction.
- Half Year: Give one-half year's depreciation in year of transaction.
- Full year / No year: Full year or no year, depending on when during the year the transaction occurs.
- Full year at acquisition / global disposal treatment: Full year at acquisition, or monthly if using a global disposal treatment.