Accelerated Depreciation for Indian Reservation Property

The Audit Advisor determines if you have had Indian Reservation property in the past (property methods MI and MR). Indian Reservation property legislation was not extended past 12/31/2017 but the methods have been made available in Sage Fixed Assets through 12/31/2018.

Issue

The tax provision allowing shorter lives for qualified Indian reservation property expired 12/31/2017. These shorter lives allow qualifying assets to be depreciated at a quicker pace. Pending legislation introduced at the end of 2018 would have extended the provision one year, from 1/1/2018 through 12/31/2018. This advisor will indicate ‘Exceptions Found’ and provide additional information if your company has existing assets that used the Indian Reservation methods of MR or MI in prior years.

Resolution

The system has detected that you previously selected depreciation methods that indicate assets were placed in service on an Indian reservation during 2018 and prior years. Legislation extending special Indian depreciation rules past 12/31/2017 was not enacted into law. Review your assets placed in service to determine whether an asset qualifies as Indian reservation property or not. If an asset does qualify, please change the depreciation method to an Indian reservation method which would be MI or MR. If not, use another MACRS method. If an asset has already been depreciated, this will result in a depreciation-critical change. You will need to make several decisions about how the critical change will be handled. The system will guide you through this process.