1. Accounting
  2. Fixed Assets Management
  3. Setting Up the Fixed Assets Management System
  4. Depreciation Methods
  5. Depreciation Formula
  6. Formula Example: Diminishing Value Method for Tax

Formula Example: Diminishing Value Method for Tax

You can create a diminishing value method to calculate tax depreciation using a reduced rate in the initial period (year of acquisition). For example:

Formula: (NB)*(DH/365)*(200/(AL/12)/100)

Depreciation Period: Monthly

Net book value is the depreciated value for tax purposes at the end of the prior period. The Prior Year Net Book Value is the depreciated value for tax purposes at the end of the prior year.

Related Topics

General Notices