| | What is the RV depreciation method? |
| Description | Important Information about RV -
This article focuses on Internal (GAAP) book issues, even though it mentions a few Tax Methods. - Straight-line or table depreciation methods don't fully depreciate assets after critical changes.
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If an asset uses RV depreciation, calculate Net Book Value from the Beginning Date divided by Remaining Life. Why use RV? - Straight-line or table methods use Acquisition Value over Estimated Life or IRS table percentages.
- Overrides using Beginning fields or critical changes can reduce Accumulated Depreciation or shorten Estimated Life.
- These changes can cause the asset to under-depreciate.
- RV depreciation adjusts the start point and calculation basis.
- It ensures that under-depreciated assets fully depreciate on time.
Fully depreciate an under depreciated asset
How to force depreciation [BCB:165:Chat Fixed Assets US:ECB] |
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