Midquarter Field
Important! This field on the Book Overrides tab is extremely important to depreciation calculations for the tax-related books. It controls which averaging convention is used. After you select the midquarter convention and calculate depreciation, you cannot undo the depreciation results unless you reset depreciation for the asset (which is undesirable, since you lose asset history when you reset depreciation)
Under the Tax Reform Act of 1986, if during the last three months of the tax year you place in service more than 40% of the aggregate basis of newly acquired qualifying MACRS property (generally, personal property), you must treat all such newly acquired MACRS property as though you placed it in service in the middle of the quarter in which you purchased it.
Note: If you need help determining whether you should apply the midquarter convention, run the Midquarter Applicability report (accessible through the Reports menu). If the report indicates that the company's acquisitions of qualifying property in the last three months of the tax year exceed 40 percent and you have not calculated depreciation on them yet, you must change this field to Midquarter and depreciate the assets. If you have already calculated depreciation on any assets placed in service in the current year, you must reset depreciation on them before recalculating depreciation.
For assets previously depreciated outside of a Sage Fixed Assets application, when you enter a date in the Beginning Date field in Asset Detail, the system asks you if you used the midquarter convention.