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So I have to show the tax benefit from depreciation. We will use the MACRS and for tax purposes, the depreciation will be divided into quarters - allocated to months 4,6,9,and 12 (months when taxes are filed).
The problem is sometimes the purchase of an asset starts in a random month. So for example if the asset is purchased in July of 2013, then the depreciation will only be allocated to months 9 and 12 of 2013. or if in May, then allocated to months, 6, 9, and 12. How can I set up a formula that does that?
Also, say the item is purchased in 2013, I use MACRS year 1 for depreciation, and year 2 for 2014. Is there a way for excel to recognize that 2013 is year "1" and 2014 is year "2" without manually typing in 1 and 2 in the cell as a cell reference?
In addition, if my term is 12 months, or however many months, is there a way for excel to display that automatically?
I know this sounds confusing and I've been struggling too. I hope the file helps. Thanks everyone.
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