CCH Axcess Tax

Pre-ACRS Methods (Before January 1, 1981)

Assets placed in service before January 1, 1981 generally must be depreciated using pre-ACRS ("Old Law") methods for federal purposes. Enter one of the following methods to compute the allowable current year depreciation:

Caution: Do not use these methods for MACRS property. The appropriate conventions will not be applied and the amounts will not carry to a MACRS property line on the Form 4562.

SL. Straight Line Method

D. Declining Balance Method (125 Percent)

DA. 125 Percent Declining Balance Method changing to straight line when advantageous. If the undepreciated balance divided by the remaining life exceeds the declining balance computation, the computation switches to straight line.

DB. Declining Balance Method (150 Percent)

DBA. 150 Percent Declining Balance Method changing to straight line when advantageous. If the undepreciated balance divided by the remaining life exceeds the declining balance computation, the computation switches to straight line.

DDB. Double Declining Balance Method (200 Percent)

DDBA. Double Declining Balance Method changing to straight line when advantageous. If the undepreciated balance divided by the remaining life exceeds the double declining balance computation, the computation switches to straight line.

SYD. Sum of the Years Digits

UP. Units of Production

L. Land or Leased Auto

NC. No computation is performed other than to include on the depreciation schedules.

VAR. Various

Note: Depreciation is not computed on assets that use methods of "L", "NC" or "VAR." The depreciation amount must be entered in the "Current Year Depreciation" field for a method of "VAR." If the depreciation "Automatic Sale" feature is being used with one of these methods, enter the recapture depreciation amount for Sections 1245 and 1250 on the Gains and Losses worksheet or Installment Sales worksheet.