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Why would the MACRS convention change for assets put in service in January when I add assets acquired in December to the file?
I am working for a small business and earlier in the year I entered leasehold improvements with service dates of January, February, and April into the TurboTax fixed asset form. When I initially entered these assets, TurboTax calculated the depreciation based on the MACRS convention of half year. I recently entered two assets for December and when I rerun the report, the MACRS convention for the assets I entered for January, February, and April has changed to mid-quarter. I understand that the December assets would use the mid-quarter convention as they were placed in service after September, but why would the assets from earlier in the year also change? Is there a way to manually change them back to half year so that the accumulated depreciation is the same as before?
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Why would the MACRS convention change for assets put in service in January when I add assets acquired in December to the file?
NO ... you may not change it back ... you MUST use the mid quarter convention when you put more than 40% of assets in use in the last quarter of the year.
http://cs.thomsonreuters.com/ua/fixa/cs_us_en/calc_depr/mq_conv/hidh_vatd_mq_diduno.htm
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Why would the MACRS convention change for assets put in service in January when I add assets acquired in December to the file?
NO ... you may not change it back ... you MUST use the mid quarter convention when you put more than 40% of assets in use in the last quarter of the year.
http://cs.thomsonreuters.com/ua/fixa/cs_us_en/calc_depr/mq_conv/hidh_vatd_mq_diduno.htm
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