Creating personal use codes
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Select .
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Click Create.
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Specify this information:
- Book
- Select the book that is associated with the personal use code.
- Personal Use Code
- Specify a personal use code and description.
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In Depreciation Options section, specify this information:
- Qualifying Business Use Percentage
- Specify a qualifying business use percent value. This field
refers to the percentage of business use an asset must maintain. If
the percentage drops below this limit, then the recapture, life, and
method changes go into effect.
- Life
- Specify in months an asset life that is used if the business use falls below the qualifying percentage.
- Recapture Depreciation Below Qualifying Percentage
- Select this check box if the Asset Accounting
recaptures depreciation when business use percentage drops below the
qualifying percentage.
- Change Method Below Qualifying Percentage
- Select this check box if the Asset Accounting
changes the depreciation method if the business use drops below the
qualifying percentage. If you select this check box, then specify an
alternative method in the Methods field.
- Optional Depreciation Method
- Select the name of an optional depreciation method. This method must be specified on Methods. If you specify a value in this field, then select the check box of Change Method Below Qualifying Percentage.
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In the Tax Credit Options section, specify this information:
- Recapture Tax Credit Below Qualifying Percentage
- Select this check box to recapture tax credit when business use
drops below the qualifying percentage. The qualifying percentage is
defined in the Qualifying Business Use Percent
field.
- Tax Credit Limit
- Specify a tax credit limit amount if the business use percentage drops below the qualifying percentage.
- Recapture Tax Credit Below Prior Year Use Percentage
- Select this check box to recapture tax credit when business use
drops below the previous year's business use.
- Tax Credit Limit
- Specify a tax credit limit amount if the business use percentage drops below the previous year's use.
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In the Annual Depreciation Limits section, specify this information:
- Allow Annual Depreciation Limit
- Select this check box if the annual depreciation limits are
specified for the personal use code. If you select the check box,
then specify the depreciation limits.
- Allow Post Recovery Deduction
- Select this check box the remaining book value of an asset is
depreciated by the system when it is not fully depreciated over its
asset life.
- Annual Depreciation Limits
- Specify up to 20 maximum allowable limits for depreciation for a
recovery year. If the amount is zero, then no limit is specified for
the year.
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Click Save.