Calculating Alternative MACRS Formula Depreciation

The Alternative Modified Accelerated Cost Recovery System (ALT MACRS) formula calculates depreciation using the declining balance formula with a switch to straight line and a fixed percentage of 150%. LN uses declining balance for the first portion of the asset's life, then switches to straight line with remaining life. ALT MACRS calculations usually apply to only Alternative Minimum Tax (AMT) type books and Adjustment Current Earnings (ACE) type books. These methods should be used in accordance with United States IRS rules and tax regulations.

Note: If the asset for which you are calculating depreciation contains an averaging convention, LN adjusts the depreciation expense for the first half-year, quarter, or month calculation. For more information, see the Calculations and Averaging Conventions topic.