Investment Tax Credit Review [R0303]

The Investment Tax Credit Review report [R0303] provides a year-to-date summary at the office level of the investment tax credit to be taken and reversed. It is formatted to assist in the preparation of the Internal Revenue Service forms for ITC.

Only assets with an ITC method other than BYPS or an in-service date before January 1, 1986 are reported on.

The report may be accessed through the Controllers Tax report menu [R03] and may be selected interactively for:

• all assets
• a portfolio
• a company
• a region
• an office

The report may be automatically generated for each portfolio at the end of the month and the end of the year through the End of Day update [U0401]. Use the End of Period MODULES AND REPORTS screen under the End of Period Customizations option of the Portfolio update [U0212] to specify whether the report is created. (The end of month and the end of year reports are listed separately.)

The report is organized by all of the following:

• Portfolio, Company, Region, Office
  
  
• ITC category

  Recovery (post 1981)
  Non-Recovery (pre 1981)
  Bypass/Pass Through

• ITC Method (Regular or Reduced)
  
  
• New, Used
  
  
• Depreciable Life (3 years, 5 years)

 

Investment Tax Credit Selection Screen

• ALL
  Enter ‘X’ to report on all assets with an ITC method other than ‘BYPS’ or an in-service date before January 1, 1986. Leave blank to report on a specific portfolio, company, region, and/or office.
  
  
• PORT
  Enter the number of the portfolio upon which to report. Leave blank if reporting across portfolios.
  
  
• COMP
  Enter the number of the company upon which to report. Leave blank if reporting across companies.
  
  
• REGN
  Enter the number of the region upon which to report. Leave blank if reporting across regions.
  
  
• OFFIC
  Enter the number of the office upon which to report. Leave blank if reporting across offices.

 

Investment Tax Credit Review

 

The Investment Tax Credit Review report [R0303] is comprised of 8 columns. The first 4 columns provide information for ITC taken and the remaining 4 provide information for ITC reversed. Information is accumulated and reported at the office level.

• ASSETS
  The number of applicable assets for the category is displayed.
  
  
• UNADJUSTED COST
  The total acquisition cost of the applicable assets is displayed.
  
  
• ADJUSTED COST
  The total amount upon which is calculated the amount of ITC available is displayed. ADJUSTED COST is calculated using the UNADJUSTED COST, the ITC method and the depreciable life.
  
  

  ITC METHOD = TK OR TK2

  5 YEAR PROPERTY: UNADJUSTED COST X 100% = ADJUSTED COST
  3 YEAR PROPERTY: UNADJUSTED COST X 60% = ADJUSTED COST

  ITC METHOD = TR OR TR2

  5 YEAR PROPERTY: UNADJUSTED COST X 80% = ADJUSTED COST
  3 YEAR PROPERTY: UNADJUSTED COST X 40% = ADJUSTED COST

• ITC TAKEN
  The total amount of ITC to be taken for tax purposes for the current year (YTD) is displayed.
  
  
• ASSETS
  The number of sold assets for the category is displayed.
  
  
• UNADJUSTED COST
  The total acquisition cost of the sold assets is displayed.
  
  
• ADJUSTED COST
  The total amount upon which is calculated the amount of ITC to be reversed (recaptured) is displayed.
  
  
• ITC REVERSED
  The total amount of ITC to be returned to the Internal Revenue Service because of early property dispositions in the current year is displayed. Refer to the document on Tax Considerations for more information regarding ITC recapture.
  
  
• TOTALS/GRAND TOTALS
  Region, company, portfolio, and grand totals are shown for the number of assets and all dollar amounts. These totals are primarily segregated by recovery, non-recovery and pass through. Underlying each of these categories is ITC method (regular or reduced). Under ITC method is new/used, and under new/used is depreciable life. For example:

  • RECOVERY

  3 YEAR ITC for 3-year new assets (6%)
  OTHER ITC for non-3-year new assets (10%)

  • NEW NEW ASSETS TOTAL

    3 YEAR ITC for 3-year used assets
    OTHER ITC for non-3-year used assets

  • USED used assets total
    
    
  • REGULAR ITC regular ITC (6% or 10%) total
    

    3 YEAR ITC for 3-year new assets (4%)
    OTHER ITC for non-3-year new assets (8%)

  • NEW new assets total

    3 YEAR ITC for 3-year used assets
    OTHER ITC for non-3-year used assets

  USED used assets total

  • REDUCED ITC reduced ITC (4% or 8%) total
    
    
  • RECOVERY post-1981 ITC total

Additional Information

The term ‘recovery’ refers to assets placed in service on or after January 1, 1981. ‘non-recovery’ refers to assets placed in service before January 1, 1981. The depreciable life categories for recovery assets are 3-year and other; the categories for non-recovery assets are 3-year up to (not including) 5-year, 5-year up to (not including) 7-year; and 7-year and up.

The categories ‘new’ and ‘used’ are designated when the asset is added through the Add Asset option of the New Lease update [U0101].

 

LeasePak  Reference Guide

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