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How to apply 168 allowance

Created on  | Last modified on 

Summary

Steps to apply the 168(k) allowance to existing assets using the 168 Allowance Switch in Sage Fixed Assets Depreciation.

Resolution

Create a backup before proceeding with this solution. See How to back up a company.


In Sage Fixed Assets - Depreciation:

  1. In the Asset List View, select at least one asset.
  2. Select Depreciation, then 168 Allowance Switch.
    Note: The 168 Allowance Switch will be grayed out if you don’t highlight at least one asset.
  3. Select the Group (Optional), Book(s), enter the FYE the asset was placed in service in Assets placed in service fiscal year end. Select the Allowance Percentage under Change qualifying assets to.
  4. Re-run depreciation for the books you applied the 168 allowance to using the Force Recalculate option. See How to run Depreciation for more information.

Notes:

  • The 168 Allowance Switch won’t affect Disposed or Transferred assets. To update Disposed or Transferred assets, reverse the transaction first. From the Asset Detail view, go to Transactions, Delete Last Transaction, then apply the switch
  • The 168(k) Allowance Switch will affect one Fiscal Year at a time
  • If different books have different Fiscal Year Ends, perform the 168(k) Allowance switch option on each required book separately
  • For information about time periods and percentages to select see What assets qualify for the 168 Allowance switch?

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