Depreciation method for half months

Question

Are there any depreciation methods that will calculate depreciation by half months? If an asset is entered in the last half of the month, a half months worth of depreciation will be calculated in the month it in entered?

Delray · Answer

Hello Sunny, 
 No, there is not a not a method in the system which will calculate a half month if any asset is Placed-in service in the last half of the month. The is MF100, for R property and a life greater than 20 years which does calculate a half month, but that only happens for a particular set of Tax rules. 
 ~Delray

Ann Donie · Answer

Hi Sunny19, 
 The method RM calculates 1/2 month of depreciation in the place-in-service month of the asset. RM can be used with any Property Type. The asset's disposal month or last month of its recovery life gets the remaining 1/2 month of depreciation. RM calculates straight-line depreciation over the remaining life of the asset, with the midmonth averaging convention (50% in 1st month, 50% in last month). If used for a depreciation book where Form 4562 is run, it is treated as an ADS (alternative depreciation system). 
 AD: Edited above to change RH to RM . Thanks for catching the error, Delray! 
 RM = Remaining Value over remaining life, with midmonth convention 
 RH = Remaining Value over remaining life, with half-year convention

Sage Fixed Assets

Depreciation method for half months

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING