Mid-quarter convention tax assumptions
The application automatically determines whether the mid-quarter convention applies to an asset and recalculates the asset's depreciation when necessary. Whenever you close the
Asset Detail
window or force the application to recalculate depreciation, the application totals the business costs of all qualifying assets. If the application determines that conditions require the use of the mid-quarter convention, it uses this convention when recalculating depreciation.If 40% or more of qualifying asset purchases were made during the last 3 months of a client's year, the application applies the mid-quarter convention. Similarly, if the assets were previously calculated using the mid-quarter convention but it is no longer adequate, the application recalculates depreciation without applying the mid-quarter convention.
note
If MACRS property (5, 7, 10, 15, 20, and 25 year) that has been forced to be real property (via the
Tasks
, Designate as Real Property
command) is to be included in the mid-quarter calculation, you'll need to mark the Include in mid-quarter determination (force)
checkbox. To open this checkbox, select Mid-Quarter & Section 179 Force
in the asset's Other tab.
