Summary
Description
Resolution
Many reports have a Key Code column. This column lists one or more lowercase letters that are keys to understanding how depreciation calculates for the asset listed. The keys are:
| a | A depreciation adjustment amount (to adjust for taking too little beginning depreciation) is included in total accumulated depreciation. |
| b | The asset has had a business-use percentage of less than 100%. The business-use percentage reduces the asset's depreciable basis. |
| d | The asset has been disposed. |
| f | The asset has switched from the MACRS table depreciation calculation to the MACRS formula depreciation calculation because of a short tax year. |
| l | The asset's depreciation has been limited by the cap on annual recovery allowances for luxury automobiles. |
| m | The midquarter convention was applied to the asset's depreciation. |
| r | The asset's acquired value was reduced to arrive at the depreciable basis. Salvage value, Section 179 expense or bonus depreciation, ITC, 168 Allowance, or business-use percentage reduced the acquired value. |
| s | The asset switched from a declining-balance depreciation method to a straight-line depreciation method when straight-line depreciation resulted in more depreciation than declining balance. |
| t | The asset was transferred. |
| v | The asset has switched to a remaining value over remaining life depreciation calculation due to ACE rules. |
For more information, access the User's Guide within the product by going to Help, User's Guide, and search for "Key Code Column"
NOTE: Not all assets will have a key code listed. If so, the assets are depreciating normally.
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