Types of Depreciation Schedules by Tax Law

Depreciation schedules determine the length of an asset’s depreciable life and annual depreciation amount a company can claim. Here is a sample screen shot from Bassets eDepreciation showing 4 sample schedules types:


The Bassets eDepreciation Software has 4 standard depreciation schedules and allows the user to create additional schedules as necessary. Let’s review each of the different schedule types.

  1. IRS – depreciation calculations for filing federal tax return
  2. Financial Book – depreciation calculations for internal accounting and financial reporting
  3. State – depreciation calculations for a selected state
  4. Alternative Minimum Tax (AMT) depreciation calculations based on AMT rules
  5. Adjusted Current Earnings (ACE) – depreciation calculations for ACE based on IRS schedule values
  6. Earnings & Profit (E & P) – depreciation calculations for E & P based on IRS schedule values

Each of these schedules has their own set of rules. An automated fixed asset software product like Bassets eDepreciation will ease the asset entry process and result in accurate calculations. Business Rule Tables determine correct property type, depreciation methods, first year convention and recovery periods for each schedule based asset classification.

It is very important to understand that each of these schedules has their own set of rules based on IRS regulations, Generally Accepted Accounting Principals (GAAP) or individual state law. A well designed fixed asset software package can greatly improve the accuracy of your depreciation calculations and ensure full compliance with accounting standards and associated tax law.


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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.