Predefined asset depreciation calculation methods
This table shows the formulas that are used for calculating annual depreciation for each depreciation calculation method:
| Method | Annual calculation formula |
|---|---|
| 125DB (125% declining balance) | 1.25 * [(Depreciable basis -
Life-to-date depreciation + Year-to-date depreciation) / (Asset life in
months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 150DB (150% declining balance) | 1.5 * [(Depreciation basis -
Life-to-date depreciation + Year-to-date depreciation) / (Asset life in
months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 150DB30% (150% declining balance with 30% bonus depreciation) | 1.5 * [((Depreciation basis -
Life-to-date depreciation + Year-to-date depreciation) - (Depreciation
basis * .3)) / (Asset life in months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date= Salvage value |
| 150DB50% (150% declining balance with 50% bonus depreciation) | 1.5 * [((Depreciation basis -
Life-to-date depreciation + Year-to-date depreciation) - (Depreciation
basis * .5)) / (Asset life in months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 175DB (175% declining balance) | 1.75 * [(Depreciable basis -
Life-to-date depreciation + Year-to-date depreciation) / (Asset life in
months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 200DB (200% declining balance) | 2 * [(Depreciable basis -
Life-to-date depreciation + Year-to-date depreciation) / (Asset life in
months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 200DB30% (200% declining balance with 30% bonus depreciation) | 2 * [((Depreciation basis -
Life-to-date depreciation + Year-to-date depreciation) - (Depreciation
basis * .3)) / (Asset life in months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| 200DB50% (200% declining balance with 50% bonus depreciation) | 2 * [((Depreciation basis -
Life-to-date depreciation + Year-to-date depreciation) - (Depreciation
basis * .5)) / (Asset life in months / 12)] Depreciation calculations stop when: Depreciable basis - Life-to-date = Salvage value |
| SL (Straight line) | (Depreciable basis - Salvage value - Life-to-date depreciation + Year-to-date depreciation) / (Remaining life in months at beginning of year / 12) |
| SL30% (Straight line with 30% bonus depreciation) | ((Depreciable basis - Salvage value - Life-to-date depreciation + Year-to-date depreciation) - (Depreciable basis * .3)) / (Remaining life in months at beginning of year / 12) |
| SL50% (Straight line with 50% bonus depreciation) | ((Depreciable basis - Salvage value - Life-to-date depreciation + Year-to-date depreciation) - (Depreciable basis * .5)) / (Remaining life in months at beginning of year / 12) |
| SYD (Sum of the year's digits) | (Depreciable basis - Salvage value) * [(Life remaining in years) / (Life in years * {Life in years + 1} / 2)] |
| 100%BONUS (100% bonus depreciation) | 100%BONUS = Depreciation basis. If there is a personal use limit on an asset, then the 100% bonus depreciation must be limited to the business use basis amount. The depreciable basis is the total amount that is depreciated. |
| SLBZERO (Straight line below zero) | (Depreciable basis - Salvage value *
12) / Life This method cannot be used on the posting book. |