Custom Methods dialog

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See also: Defining a custom method for calculating depreciation

You can define and use up to 99 custom methods for calculating depreciation for assets when standard IRS formulas are not appropriate. Some businesses, for example, must calculate depreciation based on industry-specific formulas. Any custom methods you define are available for all clients and, if applicable, for all users on a network. Custom methods can be selected from the Method field in the Depreciation tab in the Asset Detail dialog.

To open this dialog, choose Setup > Custom Methods.

All custom methods you define are available to all clients. If you make changes to a custom method, it affects all clients using that method. Therefore, if you make changes to a custom method, you must recalculate depreciation for all assets for each affected client.

Current-period depreciation calculations

When using a custom method, current-period depreciation is calculated in the following manner.

  1. (Basis as adjusted for section 179/AFD, ITC, and salvage value)
  2. x (applicable year's percentage from the Annual Rates table)
  3. x (applicable holding period)
  4. = current-period depreciation

Note that a short year uses the full percentage listed.

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