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Fixed Asset Tax Depreciation

  • 1.  Fixed Asset Tax Depreciation

    Posted Aug 16, 2019 10:22 AM
    I was wondering if anyone knows if DAX's calculation for tax depreciation using MACRS is accurate? It appears AX 2009 does not use the IRS tables and uses the following calculation,:
    Depreciation in Subsequent Years =
    (Cost − Depreciation in Previous Years) × 1 × A
    Recovery Period

    Where, A is your method, i.e. 200%, 150%, etc.

    Depreciation calculates differently using the formula above vs. using the IRS tables. Are both acceptable? Has anyone had any experience with this being an issue when your tax consultants validate the depreciation? Has this changed with D365?

    Thanks in advance!

    Hannah Larkin
    Dallas TX

  • 2.  RE: Fixed Asset Tax Depreciation

    Posted Aug 19, 2019 09:13 AM
    We are on AX 2012, but we ran into the same issue when we were implementing our fixed asset tax books.  We have to use the Alternative Depreciation Profile "Straight line life remaining" combined with the MACRS method and depreciation convention, to get it to calculate the same as the IRS tables.

    Vienna Kraay
    Senior Accountant
    Oscar Winski Company, Inc
    Lafayette IN


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