Midquarter Applicability Report

Purpose

You can run the Midquarter Applicability report to determine whether the company is required to use the midquarter convention for qualified assets placed in service during the selected year. The test for determining the applicability of the midquarter convention depends on the depreciable basis of newly acquired qualifying MACRS property (generally, personal property).

To apply the midquarter convention, you can use the MACRS Convention Switch for existing assets. For assets that you enter at a later date, change the averaging convention on the Book Overrides tab in the Edit Company window.

The report displays the total depreciable basis of qualifying MACRS property that you placed in service in the selected year.

Bear in mind that this report for midquarter applicability can be accurate only if your company database includes all newly acquired qualifying MACRS property that you placed in service during the company's fiscal year. Also, the midquarter test applies across all companies when filing a consolidated tax return.