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Fixed Assets - MACRS depreciation

Be able to run depreciation as MACRS in Fixed Assets.

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Samantha Favrot shared this idea  ·   ·  Report…  ·  Admin →
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  • James Kruse commented  ·   ·  Report

    I've run into this issue just now when adding Real Estate fixed assets in the USA. The mid-month MACRS depreciation is required for these assets over a 27.5-year lifetime. I am unable to recreate this depreciation schedule with the tools available in Xero. The full month option overestimates the depreciation by a whopping 9.3%.

  • Freya Pieroz commented  ·   ·  Report

    Would you be able to explain how MACRS (as defined by the IRS), differs from the straight line depreciation and reducing balance depreciation methods used in the rest of the world? A quick read through tells me that MACRS:GDS is basically reducing balance, and MACRS:ADS is basically straight line depreciation, it's just the effective life that changes (eg the Australian Tax Office says that the effective life of a tractor is 12 years and it looks like the IRS defines it as 3 years when using MACRS?)

  • Tammy Adkins commented  ·   ·  Report

    MACRS is the current tax depreciation system used today for tax purposes. I highly favor this system being added.