Why is my newly pooled asset depreciated at full rate and not half rate?

Xero handles pool depreciation for an asset differently, depending on whether the asset is added or transferred to the pool.

How does Xero handle pool depreciation on newly pooled assets?

New assets you pool on purchase are depreciated in the pool at half rate in the first year.

Assets you transfer to a pool in the second or later year after you add them in Xero are depreciated at full rate in the pool.

How can I change my asset so it's depreciated at half rate in the first year?

  1. Roll back depreciation to before the asset's tax depreciation start date.
  2. Edit the asset and change the tax Depreciation Method to Pooled.
  3. Rerun depreciation.

Xero calculates pool depreciation on the asset at half rate in the first year, then at full rate for later years.

This will affect your reports since the asset's tax depreciation start date.