1. Fixed Assets Implementation Guide
  2. MACRS First Year Bonus Rule for HR 3090

MACRS First Year Bonus Rule for HR 3090

This rule applies only to assets with a 20-year or less life span. [reference to the 30 percent 1styear bonus related to HR 3090 for assets placed in service between September 11, 2001 and September 10, 2004 here.]

Mid-month information does not apply to this rule.

To add a MACRS 1st year bonus rule for HR 3090:

  1. Set up three new formulas, using the Depreciation Formula Revisions program (P12853D).

    Set up the formulas according to this example:

    Formula ID

    Formula Description

    Formula

    Multiplier/Constant

    541

    First Year Bonus 30 percent

    ((10-(10*12))*11)+(10*12)

    .300000

    542

    Basis*Multiplier

    10*11

    N/A

    543

    70 percent of Cost

    01*12

    .700000

  2. Run the Global Depreciation Rules Update program (R12858) to update these new formulas to the Depreciation Formulas table (F12853).

  3. Add the MACRS First Year Bonus code (50) to user-defined code (UDC) table 12/DM.

  4. Add these values to the new formulas:

    • Depreciation Formula for year 1: 54.

    • Basis Formula for year 1: 541.

    • Depreciation Formula for years 2-11: 542.

    • Basis Formula for years 2-11: 543.

      You should not change the 999 life year rule.