Table-based depreciation method based on put in service date

Jul 4, 2025 2:35PM

I've created a table-based depreciation method with 6 years of life, 12 prorate periods per year. The annual depreciation rate is as follows:

Year 1 - 10%
Year 2 - 10%
Year 3 - 10%
Year 4 - 10%
Year 5 - 10%
Year 6 - 50%

FYI, we are using current month prorate convention. The results are ok if the asset's put in service date is on Jan-25 (the first month of the fiscal year). However, if the asset's put in service date is on May-25, the first year full annual depreciation amount is spreading over the remaining depreciation periods in 2025. This makes the asset to be fully depreciated on Dec-30 period.

The expectation is that the 10% of depreciation rate should be applied to the first year of Asset Life instead of fiscal year. Then, the asset will only be fully depreciated in Apr-31 period. How to achieve?

Table-based depreciation method based on put in service date

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