MaCRS Tax depreciation -7 years- USA

[former_member280251]

Hi,

I have a requirement to calculate MACRS tax depreciation for 7 years with below percentages :

1 year - 14.29%

2 year - 24.49%

3 year - 17.49%

4 year - 12.49%

5 year - 8.93%

6 year - 8.92%

7 year - 8.93%

8 year - 4.46%

I have some rounding differences. For example the first year the system calculates 14.285716 %. So, In an asset that is 250000 USD it has a difference of around 10 USD.

Do you know if there is a way to eliminate this difference?

Thanks,

Cecilia

[former_member198650]

Hi Cecilia,

Check in the t.code OAYO, whether you have selected the check box "automatically calculated depreciation". If yes, then system will round off the depreciation. If you do not select it, then system wont round off.

Regards,

Mukthar

[Former Member]

Cecilia,

create a new depreciation key, with explicit percentages for each of the years. You will need to do this with a new Multilevel method. In the new multilevel method, you will want to use the Base Value that is looking at Acquisition Value (01), or Acquisition value reduced by special depreciation (11) if you have bonus depreciation.
For an example of what this looks like, see the MM 004, in the US chart of depreciation. You can copy this one, and then update your percentages for the years.