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Hi
Can an assets depreciation stopped and started again during the life time of an asset .
I did try placing the asset on “ No depreciation” and then back on “ Straight Line Dep “.
For example following are the details of the asset.
Cost: 4800
Placed in service; 01-01-2019
Year to date Dep: 0
Life to Dep : 1200 ( for the year of 2019)
eg. Jan to march 2020 asset placed on no depreciation.
asset placed on dep back in april.
New april dep : 133.33 instead of 100.
(The year to date depreciation of the year 2020 taken as 1200 being distributed through april to dec 2020 - seen thru projection. Whereas the year to depreciation for the year 2020 should be 900
)
Effect of assets placed on no depreciation is lost.
Is there any possible way to achieve this
Thanks in advance
During the last period of the year, fixed assets takes the difference between the yearly depreciation rate and the YTD depreciation amount. Because of this, if you temporarily suspend depreciation in the middle of the year, it will just "catch up" the difference during the deprecation for the final period of the year.
In general if you want to do something like this you are going to end up needing to manually depreciate the asset through the year when you are skipping a few months. If your set to straight line original life as well the asset will "pick up" the difference during the final year of the asset. If you current set to straight line original and want it to take the difference over the rest of the life and not take the difference exclusively in the final year of the life for the asset, you may want to switch the asset to straight line remaining life.
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