Apply the mid-quarter convention for assets acquired in prior years
The application automatically determines whether the mid-quarter convention applies and recalculates depreciation when necessary. To include or exclude prior-year assets from the automatic mid-quarter determination and calculation, follow these steps.
- Open the following:
- Open the client and, if necessary, select an activity folder.
- Select the prior-year asset you want then selectModify.
- SelectTasksthenUse Mid-Quarter Convention.The Use Mid-Quarter Convention - Prior Year Assets window opens.
- Complete one of the following:
- Select theCalculate MACRS depreciation using mid-quarter conventioncheckbox on the tab for each of the treatments.
- Select theCalculate all treatments using mid-quarter conventioncheckbox. If you select this checkbox, theCalculate MACRS depreciation using mid-quarter conventioncheckbox on each treatment tab is marked and not available.
- SelectOKto save your changes.note
- When you select to calculate MACRS depreciation using the mid-quarter convention for a specific treatment, that treatment column heading within the Depreciation tab shows in blue.
- The application also indicates that the asset is being depreciated using the mid-quarter convention by showing the wordsMid-Quarter Appliesin blue near the Depreciation tab.
