Estimated Life Field

Use this book information field in Asset Detail to enter the asset's estimated life, in the format YY/MM. The system uses this field to determine the time period over which the asset will recover its depreciable basis. For some methods, you can select the estimated life from a list of valid entries. Generally, you cannot enter an estimated life of less than 1 year for an asset. Exceptions are:

• If the asset's depreciation method is MACRS formula (MF or MA), 150% declining-balance, and the property type is real or personal property other than an automobile, the estimated life can be 6 months.

• If the asset's depreciation method is straight-line (SL), ADS straight-line MACRS (AD or AA), remaining value over remaining life method RM or RV, or your own depreciation calculation (OC), the estimated life can be 1 to 11 months. Method OC lets you manually enter depreciation amounts; the application does not calculate depreciation for the asset.

Important! To help you determine the correct estimated life for an asset for the Tax book, you can use the IRS Table link located in Asset Detail. Here you will find an easy-to-use version of the IRS ADR Class Life Table.