Percent table

A percent tables provides an optional method of calculating depreciation based on what percentage of an asset's cost should be depreciated each year.

You must define a percent table for United States Federal tax depreciation calculations for assets placed in service between 1981 and 1986. Depreciation for such assets must use the Accelerated Cost Recovery System (ACRS). Consult your tax advisor before you set up ACRS percent tables.

You cannot use a percent table with a compute statement or a Unit of Production (UOP) table. Unit of Production (UOP) table

Example

Note: The percentage amounts you specify must total 100%.

If you have an asset with a life span of five years, you might plan the asset's rate of depreciation as follows:

Year 1: 10% of the asset's cost is depreciated

Year 2: 30% of the asset's cost is depreciated

Year 3: 25% of the asset's cost is depreciated

Year 4: 25% of the asset's cost is depreciated

Year 5: 10% of the asset's cost is depreciated

With this example, the annual depreciation calculation would work as follows:

  • At the end of Year 1, the annual depreciation would be calculated based on 10% of the asset's cost.

  • At the end of Year 2, annual depreciation would be calculated based on 30% of the asset's cost.

  • At the end of years 3, 4, and 5, annual depreciation would be calculated based on 25%, 25%, and 10% of the asset's cost, respectively.