Placing an asset out of service

Alerts and notices

When an asset is placed out of service, depreciation is not taken after the date placed out of service. The asset remains until the disposal method is changed to Casualty / Theft, Sold / Scrapped, or Like-Kind Exchange, even if the period is advanced. In addition:

  • Out of service assets are not included with disposals on any report or form.
  • Out of service is available when performing a mass disposition under Tasks > Mass Dispositions
  • Out of service assets can be placed back in service. To place an asset back into service, open the asset, access the Disposal tab, highlight the Out of Service method and press your Delete key.

Notes:

  • If prior depreciation is calculated by the program after placing the asset back in service, it still calculates the entire prior depreciation as if the asset was never placed out of service.
  • Assets placed out of service as part of a mass disposition cannot be placed back into service in future years. To place one of these assets back in service, move back to the year of disposition and remove the asset from the mass disposition. At that point you may place the asset out of service again in the Disposal tab. After closing forward to the current year you may bring the asset back into service.
  • If an asset is placed out of service at the beginning of the year and is subject to the half-year convention, it will calculate as if disposed at the mid-point of the year, per Pub 946.

Related topics

Entering disposal information

Disposal methods

Was this article helpful?

Thank you for the feedback!