Depreciation Tables

This window allows you to set up custom depreciation tables, including the MACRS tables supplied by the IRS in the depreciation tax publication 946.

Go to Fixed Assets > Setup > Depreciation Tables.

Each depreciation table combines the rates for the Half-Year and the Mid-Quarter conventions.  If you are not using the Mid-Quarter conventions for any of your assets, it is not necessary to enter the rates in the 1Q/2Q/3Q/4Q Rate columns.

Table #

Each depreciation table must be assigned a unique table ID/#

Description

Enter a description for this table.

# of Years

Enter the number of years that the depreciation is for (e.g. 3, 5, 7, 10, etc.).

Year #

Enter the year # on each line.  For each table, you have will one more entry than the # of years.  For example, on a 3 year depreciation schedule, you would enter 3 for the # of Years, but there will be four lines since the depreciation takes place over four years.

½ Y Rate

Enter the percentage from the Half-Year Convention table for each of the years.

1Q Rate / 2Q Rate / 3Q Rate / 4Q Rate

Enter the rate from the corresponding mid-quarter depreciation table for each year in each column.

If you do not use the mid-quarter convention, it is not necessary to enter the rates in these columns.

Declining Balance Depreciation Methods

The straight-line depreciation method is built into the system.  If you need to use Declining Balance depreciation for an asset, an entry in the depreciation table file must be set up.

The Table # should start with the letters “DB” and it should be followed by the accelerator percentage used for the declining balance method.  For example, “DB 200%” would result in a double declining balance calculation for depreciation.

When setting up a declining balance depreciation method, it is not necessary to enter percentages in the table.  All that is required is a Table # and a Description.  A number does not need to be entered for the Useful Life, since this will be determined by what is entered on the asset.

Example Depreciation Table

The following illustration shows how to use the rates that appear in IRS Publication 946 to set up a depreciation table for 3 years using the MACRS 200% method.  The depreciation tables appear on pages 71-73 of the publication for tax year 2016.