The below is from ID 1210237.1 regardingTax Book Requirement For Depreciation Method Changes For MACRS HY And MACRS MQ
For IRS requirements, there is a need to wait until the end of the fiscal year to see whether the assets placed in service in the last quarter exceeds 40% of the assets placed in service for the whole year. If so, MACRS MQ applies. If not, MACRS HY applies. This results in the corporate and tax books not being in sync. SolutionIf the customer wants to keep the last period of the year open, then a method change amortized to the beginning of the year will take the catchup. If they do not want to keep the period open; they can adjust the reserve in closed tax books without doing the method change.
