half-year convention is not calculating proper depreciation when retiring an asset with 200db method
Help, I have a SR open with Oracle and they are telling us the calculation below is correct; however our tax deparment is saying when an asset is retired using 200DB with half-year convention during it's last year of life the asset should take the full 6 months. hence, the calculation should be:
Cost * Rate = 6642.79 * .0576 (Year 6) = 382.62 and not what follows. I am not a tax expert, so I am trying to get clarification as to what is correct. Does anyone know? Thanks!
The asset's Date Place in Service is 31-DEC-2008.
Your Fiscal Year is from JAN to DEC. Hence, on 01-JAN-2009, you are in Year 2 of the Rates table.