Using the mid-quarter convention

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The application automatically determines whether the mid-quarter convention applies to an asset and recalculates the asset's depreciation when necessary. Whenever you close the Asset Detail dialog or force the application to recalculate depreciation, the application totals the business costs of all qualifying assets. If the application determines that conditions require the use of the mid-quarter convention, it uses this convention when recalculating depreciation.

Example: If 40% or more of qualifying asset purchases were made during the last three months of a client's year, the application applies the mid-quarter convention. Similarly, if the assets were previously calculated using the mid-quarter convention but it is no longer appropriate, the application recalculates depreciation without applying the mid-quarter convention.

Note: If MACRS property (5, 7, 10, 15, 20, and 25 year) that has been forced to be real property (via the Tasks > Designate as Real Property command) is to be included in the mid-quarter calculation, you must mark the Include in mid-quarter determination (force) checkbox. To open this checkbox, click the Mid-Quarter & Section 179 Force Options button in the asset's Other tab.

Overriding the application's automatic determination

For information on explicitly including or excluding prior-year or current-year assets from the automatic mid-quarter determination and calculation, click the appropriate link below.

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