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Former Member
Oct 26, 2012 at 02:26 PM

Tax depreciation net book value never becomes 0


Hi all,

I am testing asset accounting but in my setup net book value never becomes 0 for tax depreciation. If useful life for tax depreciation is 3 years for example and acquisition is done in period 10, of 1 000 it looks like follows:

Year 1: depreciation 83,22 (tax depreciation is calculated from acquisition date and not for whole year)

Year 2: depreciation 333,33

Year 3: depreciation 333,33

Year 4: depreciation 250 => Net book value 0,01

Year 5: depreciation 0 => Net book value 0,01

I guess that it is something about rounding or my configuration only follows 3 years independent of that value is not 0. How can I set that net book value always shall be 0 after useful life?

It works fine for book depreciation but not for tax that is special depreciation.