Assets with Less Than 100% Business Use

The Audit Advisor finds assets in the selected fiscal year that have ever been used for less than 100% business use.

Issue

Assets with less than 100% business use are not entitled to a full year's depreciation deduction. The business-use percentage may change over time and therefore should be reviewed and updated on an annual basis. The system detects if one or more assets in the selected fiscal year have ever been used for less than 100% business use.

Resolution

1. In the Asset List, display the group of assets that the Audit Advisor created.

The group is named AA (for Audit Advisor), followed by "Bus Use," followed by the book name, followed by the fiscal year end. For example, if you selected the Tax book and a fiscal year ending in December 2018 in the Audit Advisor window, then the group would be called AA-Bus Use-Tax-12/18.

2. Examine each asset to make sure that the Business Use Percentage field has been appropriately updated for the selected fiscal year.
3. If the percentage in the Business Use Percentage field is incorrect, you must enter the correct business use, which is a depreciation-critical change.
4. After you have updated the Business Use Percentage fields, recalculate depreciation for the affected assets for the created group.