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When adding a new asset, choose from the standard methods described below.

handles the calculations automatically as you record the information for each asset.

MACRS

• Handles 3-, 5-, 7-, 10-, 15-, 20-, 25-, 27.5-, 31.5-, and 39-year class lives.
• Handles the straight-line method under alternate MACRS.
• Supports the use of the Alternative Depreciation System.
• Supports 150% declining balance over regular MACRS lives.
• Handles shortened Indian reservation property lives.
• Handles farm property depreciation.
• Handles the calculation of the bonus depreciation under section 168(k) and 1400N.

ACRS

• Handles 3-, 5-, 10-, 15-, 18-, and 19-year class life assets using either regular or optional straight-line methods.
• When you take investment tax credit, allows you to elect reduced basis or reduced ITC with automatic ITC calculation.
• Accounts for the partial or complete expensing of section 179 property.

Old law

• Supports straight-line and 200/150/125% declining balance.
• Automatically switches to straight-line method when advantageous. To turn this feature on or off, choose Setup > Options > Calculation tab and mark or clear the Continue declining-balance with no switch to straight-line checkbox.
• Properly accounts for pre-1981 assets including additional first-year depreciation and salvage value.
• Depreciates assets acquired or disposed of based on the following conventions: actual month of transaction, half year, or full year/no year.

Customize depreciation calculation