Personal Use (AM04.1)
Use Personal Use (AM04.1) to define what should happen to depreciation and tax credit calculations if an asset falls below a certain percentage of business use.
This program lets you recapture depreciation, change the depreciation method and asset life, set yearly maximum depreciation amounts, recapture tax credits, and set maximum tax credit amounts.
Processing Effect
If you select Y (Yes) in the Method Below Qual Percent field, you must define an alternative depreciation method in the Method field.
You can define an alternative life for the asset, whether or not you define an alternative depreciation method.
You can indicate whether Asset Management should depreciate any remaining book value of an asset if it has not been fully depreciated over its asset life.
If you select Y (Yes) in the Annual Limits field, the system opens the Depreciation Limits form tab, and you must define depreciation limits for at least year. You can define limits for up to 20 years.
On the Credit Tax Options tab, you can set a maximum credit tax amount to use if the business use falls below the percentage specified in the Business Use Percent field; you can also set another maximum tax credit amount to use if the business use falls below the previous year's business use.