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Critical Diagnostic Asset Method Inappropriate for Date Acquired (Ref. #2025012)

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Intuit

Critical Diagnostic Asset Method Inappropriate for Date Acquired (Ref. #2025012)

The following critical diagnostic is generating,
Depreciable Asset #: Method inappropriate for Date Acquired. (ref. #2025012) 

Solution Description

This diagnostic generates when:
  • An asset is entered with a date placed in service of 12/31/1980 (or earlier) using an ACRS method, or
  • Method 92 or 93 is selected for an asset placed in service after 12/31/1980.

Solution #1- To resolve this diagnostic for an asset placed in service on 12/31/1980 or earlier:

  1. Go to the Depreciation screen:
    • Screen 22 (Individual)
    • Screen 14 (Partnership)
    • Screen 21 (Corporate)
    • Screen 16 (S Corporate)
    • Screen 27 (Fiduciary)
    • Screen 39 (Exempt Organization)
  2. Click on the Asset from the left navigation panel.
  3. Select one of the applicable Methods from the drop down menu:
    • 91 = Straight Line
    • 92 = 200% Declining Balance
    • 93 = 150% Declining Balance
  4. Scroll down to the Federal Depreciation section.
  5. Locate the Regular Depreciation subsection.
  6. Enter the Life or class life (recovery period automatic).
Solution #2- To resolve this diagnostic for an asset placed in service after 12/31/1980:
  1. Go to the Depreciation screen:
    • Screen 22 (Individual)
    • Screen 14 (Partnership)
    • Screen 21 (Corporate)
    • Screen 16 (S Corporate)
    • Screen 27 (Fiduciary)
    • Screen 39 (Exempt Organization)
  2. Click on the Asset from the left navigation panel.
  3. Select the applicable MACRS or ACRS method from the Method drop down menu.
    • Assets placed in service after 1980 and before 1987 should use an ACRS method.
    • Assets placed in service after 1986 should use a MACRS method.

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