MT200 Depreciation
The formula for calculating MT200 depreciation is:
|
Depreciation Rate |
X |
Basis |
= |
Annual Depr. |
You can find the Depreciation Rate by viewing the MACRS Depreciation Tables. You must determine the asset's recovery period and averaging convention to select the correct table.
The system calculates MT200 depreciation by applying the percentages in the MACRS Percentage tables to the asset's unadjusted depreciable basis.
As with the MF200 (MACRS Formula) depreciation method, the MT200 calculation uses 200% declining balance depreciation and switches to straight-line depreciation when this amount is greater.
Note: Depreciation calculations using the MACRS Table method will be substantially the same as the MACRS Formula calculations. There may be some slight rounding differences between the two methods.
Here is an example:
|
Machinery Cost: |
$100,000 |
|
Placed-in-Service: |
03/10/2018 |
|
Useful Life: |
7 years |
|
Convention: |
Half Year |
|
Year |
Depr |
Basis ($) |
Depreciation ($) |
|
1998 |
14.29 |
100,000 |
14,290.00 |
|
1999 |
24.49 |
100,000 |
24,490.00 |
|
2000 |
17.49 |
100,000 |
17,490.00 |
|
2001 |
12.49 |
100,000 |
12,490.00 |
|
2002 |
8.93 |
100,000 |
8,930.00 |
|
2003 |
8.92 |
100,000 |
8,920.00 |
|
2004 |
8.93 |
100,000 |
8,930.00 |
|
2005 |
4.46 |
100,000 |
4,460.00 |