How to change the write-off method of an investment
Randy Strauss |
14 steps |
2 minutes
1
Select the Capital Investments form.
2
In this example the Tangible Capital investment is having its write-off changed. Select the stream by left-clicking on a cell in the stream.
3
Press the F4 key to display the stream's parameters.
4
Select the desired Asset to add change the investment. Be aware of the affects of inheritance. Any previously evaluated descendant Asset will have different AFIT results after this change.
5
Right-click on the investment digital stream to pop-up the menu.
6
Select the Capital Adjustment option.
7
The Tax write-off currently is set to ACRS7 depreciation. This method is under the Scheduled Depreciation group. Displaying the grouping drop-down list by clicking on the triangle to the right of "Schedule Depreciation".
8
Select Formula Depreciation.
9
This example is switching the tax depreciation to straight line. Select StraightLine.
10
Several write-off types require addition parameters. Straight line is one of them. Select the Parameters button.
11
A StraightLine write off requires the life of the write-off. This example is using 10 as the number of years.
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Type 10 and press the enter key.
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Select the OK button to exit the StraightLine Parameters.
14
The write-off has been modified. Select the OK button to exit the Capital Adjustment dialogue.
Tip! The dialogue has an additional field to add a date for the point at which the depreciation is to start.