ADS Life Field

Use this book information field in Asset Detail to enter the asset's ADS life. The ADS life is assigned to an asset type under the MACRS Alternative Depreciation System. For most assets, the ADS life is the midpoint of the Asset Depreciation Range (ADR) in which the asset belongs.

The system uses this field as the asset's default estimated life in the user books (Internal, Book 06 through Book 20) and in the AMT and ACE books (where applicable).

Note: If you elect depreciation method AD, AA, RH, or RM (MACRS straight-line) for regular tax purposes, enter the asset's ADS life in both the Estimated Life field and the ADS Life field in the Tax book. The system uses the entry in the Estimated Life field for calculating depreciation in the Tax book, and the entry in the ADS Life field for setting defaults in other books where appropriate.

If you choose not to enter an ADS life, the system automatically assigns and displays a default life based on Tax book entries. Because there are exceptions to the general rules the program uses, entering a known ADS life for a specific asset is more accurate than letting the system determine it.

The following chart outlines some frequently used ADS lives (as outlined in Rev. Proc. 87-56):

Asset	ADS Life (Years)
Automobiles	5
Copiers	6
Information systems, including computers	5
Land improvements	20
Office equipment and furniture	10
Real property	40
Trucks, heavy general purpose	6
Trucks, light general purpose	5
Typewriters and adding machines	6

Note: Although the application will default an ADS life based on the Estimated Life field, it is best to look up the ADS Life field yourself. For ease of use, we have reformatted the IRS ADR Class Life Table. It is accessed by selecting the IRS Table link in Asset Detail.