Defining personal use codes

Personal use codes are used to define what should happen to depreciation and tax credit applications if an asset falls below a certain percentage of business use. It is also used to set annual depreciation limits for "Listed" assets. Under U.S. Federal tax laws, it is the passenger automobile property type that is limited in the amount of depreciation that may be taken annually.

This procedure outlines the process for defining personal use codes.

Personal use codes are used primarily to meet requirements of U.S. Federal tax laws. Consult your tax advisor before you begin defining personal use codes.

Define a personal use code

  1. Access Personal Use (AM04.1).
  2. Define a personal use code. Specify this information:
    Book

    Select a book to be associated with the personal use code.

    Personal Use

    Define a name for the personal use code.

    Annual Limits

    To define annual depreciation limits for the personal use code, select Y (Yes) in this field and define the depreciation limits on the Depreciation Limits tab.

    Depreciation Limits tab

    Use this tab to define an annual depreciation limit table to use with the personal use code.

    Note: To enable the annual depreciation limits you define on this tab, you must select Y (Yes) in the Annual Limits field on the Depreciation Options tab.
    Tax Credit Options tab

    Use this tab to define personal use options for tax credits.

Related reports and inquiries

To Use
List personal use codes and limits System Setup Listings (AM200)
Related topics