About Partial Depreciation

For example, if Number of Periods is set to 12 for a year and it has 36 units to depreciate, the custom rate is:

Year	Rate %
1	30
2	50
3	20

The asset detail is:

Asset Name	AS_1
Start to Depr Date	Apr 2012
Cost	7200
# Units to Depr	36 (12 Periods * 3 Years)

It will depreciate for twelve periods for a single year from the start date.

Date	Units to depreciate	Rate %	Period Depreciation
04/2012 - 03/2013	12	30	180 = 7200 * 30% / 12
04/2013 - 03/2014	12	50	300 = 7200 * 50% / 12
04/2014 - 03/2015	12	20	120 = 7200 * 20% / 12

For partial depreciation, when an asset is placed in service at some time in the year, part of the full-year depreciation is required in the first year, while the remaining balance is deducted in the final year of the depreciation. The year for partial has three types:

1. Calendar Year: Period from January 1 to December 31. It depreciates starting on the date it is placed in service to December 31.
2. Fiscal Year: Period used for calculating annual financial statements in businesses. It depreciates from the date is placed in service date to the end of the fiscal year. The US fiscal year is October 1 to September 30.
3. None: No partial depreciation is taken.

For example, below is a three year property partial depreciation rate:

Year	Rate %
1	30
2	40
3	20
4	10

For the calendar year, depreciation rates would be as follows:

Date	Units to depreciate	Rate %	Period Depreciation
04/2012 - 12/2012	9	30	240 = 7200 * 30% / 9
01/2013 - 12/2013	12	40	240 = 7200 * 40% / 12
01/2014 - 12/2014	12	20	120 = 7200 *20% / 12
01/2015 - 03/2015	3	10	240 = 7200 * 10% / 3

For the fiscal year, depreciation would be as follows:

Date	Units to depreciate	Rate %	Period Depreciation
04/2012 - 09/2012	6	30	360 = 7200 * 30% / 6
10/2012 - 09/2013	12	40	240 = 7200 * 40% / 12
10/2013 - 09/2014	12	20	120 = 7200 * 20% / 12
10/2015 - 03/2016	6	10	120 = 7200 * 10% / 6

Follow the steps in Generating a Depreciation Schedule to set up a fixed asset depreciation.