Fixed Asset depreciation for vehicles

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Posted on by Community Member

Hello,

Trying to understand how GP can handle vehicles for Fixed Assets and I have some questions:

1. In the Asset Book window, there are check boxes under Luxury Automobile, do these affect the calculation of depreciation or is it just for informational purposes only?

2. When referencing the US Master Tax Guide for 2012 and depreciation for vehicles should be about 3,160 and 11,160 with bonus condition amounts. My depreciations in GP were off. Is there some recommended setting with the Asset Book I need to select or configure so that the depreciation for te vehicles match to the US Tax guide? I'm guessing that I need to adjust this year after year since there doesn't seem to be some "tax rate" or depreciation amount specific for vehicles in GP.

Please advise.

Thanks

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Community Member on at

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Re: Fixed Asset depreciation for vehicles

Thanks Mark. this makes sense. Does it matter if I select Van or Truck?
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mpolino on at

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Re: Fixed Asset depreciation for vehicles

Jay,

In GP I created a test asset. $25,000 vehicle, 5 year life, 200% DB, Half Year, Straight Line Switch, Luxury Auto Yes. I repeated this with multiple cost values higher and lower. In each case, the first year depreciation was 3,260, Y2 was 5,100, Y3 3,050 and 1,875 for subsequent years. This looks like a perfect match to the tax tables.

I took these same settings and changed Special Depreciation Allowance to Yes and 50%. First year depreciation showed as $11,160. I'm not sure what you're seeing but I have to assume you've got something wrong in one of the other settings. It seems to b working just fine for me.

Mark