Fixed Assets - EBS (MOSC)

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bonus depreciation in year retired

edited Aug 4, 2016 5:00AM in Fixed Assets - EBS (MOSC) 8 commentsAnswered

Hi

We are using the seeded 50% Bonus depreciation methods for Tax Books setup . Not sure if the depreciation is getting calculated accurately when the asset is retired

For example .

By using MACRS 50 B HY convention , with 5 year life , the depreciation for an asset in first year with cost : 10000  becomes 6000 ( i.e 5000 Bonus + 1000 normal depreciation)

However when we retire the same asset in the first year itself , where depreciation is to be calculated , the depreciation in this year becomes 2000 ,

Since we are having half year convention , the depreciation for the first year should be half of 6000 which is 3000

Can

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