Tax Depreciation [R0304]
The Tax Depreciation report [R0304] provides year-to-date information on federal, alternative minimum tax (AMT), and state depreciation for the lease portfolio, to assist in the preparation of the lessor's federal and state tax returns. Life-to-date depreciation is also shown for informational purposes. Two depreciation reports are produced, one for federal and AMT, and one for state.
The report may be accessed through the Controllers Tax report menu [R03] and may be selected for:
- All assets
- A portfolio
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 Period 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 Tax Depreciation report [R0304] is segregated into 2 parts: Federal Tax Depreciation report [R0304A] and State Tax Depreciation report [R0304B].
The report is organized by all of the following:
- Portfolio
- State (for the State Tax Depreciation report only)
- Vintage Year
- Depreciation Method and Life
Vintage year is the fiscal year in which the assets were originally placed in service.
Tax Depreciation Selection
- ALL
Enter 'X' to report on all assets. Leave blank to report on a specific portfolio.
- PORT
Enter the number of the portfolio upon which to report. Leave blank if reporting across portfolios.
Federal Tax Deprecation Report
The Federal Tax Depreciation report [R0304A] reports at the asset level and includes the following information:
- ASSET
The asset number is displayed.
- DESCRIPTION
The asset description, as entered through the Add Asset option of the New Lease update [U0101], is displayed.
- STATUS
One of following asset status classifications is displayed:
- INVENTORY
The asset is off-lease, in inventory. Assets are placed in inventory either through the Add Asset option of the New Lease update [U0101] or through the Termination option of the Payoff update [U0103]. - ON-LEASE
The asset is on-lease. Assets are placed on-lease through the Book Lease option of the New Lease update [U0101]. - SOLD
The asset has been sold. Assets are sold either through the Payoff option or the Sale of Asset in Inventory option of the Payoff update [U0103].
- INVENTORY
- IN-SERV
DATE
The date the asset was placed in service, as entered through the Add Asset option of the New Lease update [U0101], is displayed. The in-service date is the starting date for depreciation.
- COST
The original acquisition cost of the asset, as entered through the Add Asset option of the New Lease update [U0101], is displayed.
- ORIGINAL
TAX BASIS
The depreciation tax basis is the original acquisition cost adjusted for any Investment Tax Credit taken (ITC). If the full amount of ITC available is taken, the ORIGINAL TAX BASIS is calculated by reducing the original acquisition cost by one-half of the ITC taken (prior to 1986) or by the full amount of ITC taken (from 1986 on). If a reduced amount of ITC is taken, the ORIGINAL TAX BASIS is equal to the original acquisition cost (i.e., there is no adjustment made). Note that this adjustment is only performed for the Federal tax basis; the State tax basis is unaffected by the amount of ITC taken.
To illustrate, assume that an asset has an original acquisition cost of $10,000.00:
Federal State 3 YR FULL ITC TAKEN 9,700.00 10,000.00 3 YR REDUCED ITC TAKEN 10,000.00 10,000.00 5 YR FULL ITC TAKEN 9,500.00 10,000.00 5 YR REDUCED ITC TAKEN 10,000.00 10,000.00
ORIGINAL TAX BASIS is shown rounded to the nearest dollar.
- DEPRECIATN
EXPNSE YTD
The year-to-date federal depreciation calculated for the asset is displayed. This figure is used to prepare the year's federal tax return. DEPRECIATN EXPNSE YTD is shown rounded to the nearest dollar.
- ACCUM
DEPREC LTD
The life-to-date federal depreciation calculated for the asset is displayed for informational purposes. It is used to calculate the federal DEPRECIABLE BALANCE. ACCUM DEPREC LTD is shown rounded to the nearest dollar.
- DEPRECIABLE
BALANCE
The federal depreciable balance is calculated as follows:
ORIGINAL TAX BASIS
- ACCUM DEPREC LTD
DEPRECIABLE BALANCE is shown rounded to the nearest dollar.
- AMT
LIFE
The alternative minimum tax (AMT) life is displayed (in years).
- YTD
AMT DEPR DIFF
The alternative minimum tax (AMT) depreciation difference is the difference between the current year-to-date federal depreciation and the year-to-date alternative minimum tax depreciation. The AMT TAX DIFFERENCE is calculated as follows:DEPRECIATN EXPNSE YTD
- YEAR-TO-DATE ALTERNATIVE MINIMUM TAX DEPRECIATIONYTD AMT DEPR DIFF is shown rounded to the nearest dollar.
State Tax Depreciation Report
The State Tax Depreciation report [R0304B] reports at the asset level and includes
the following information:
- ASSET
The asset number is displayed.
- DESCRIPTION
The asset's description, as entered through the Add Asset option of the New Lease update [U0101], is displayed.
- STATUS
One of following asset status classifications is displayed:
INVENTORY
The asset is off-lease, in inventory. Assets are placed in inventory either through the Add Asset option of the New Lease update [U0101] or through the Termination option of the Payoff update [U0103].
ON-LEASE
The asset is on-lease. Assets are place on-lease through the Book Lease option of the New Lease update [U0101].
SOLD
The asset has been sold. Assets are sold either through the Payoff option or the Sale of Asset in Inventory option of the Payoff update [U0103]. - IN-SERVC
DATE
The date the asset was placed in service, as entered through the Add Asset option of the New Lease update [U0101], is displayed. The in-service date is the starting date for depreciation.
- SALE DATE
The effective date of the sale of the asset is displayed for assets with a STATUS of 'SOLD'.
- COST
The original acquisition cost of the asset, as entered through the Add Asset option of the New Lease update [U0101], is displayed.
- ORIGINAL
TAX BASIS
The state depreciation tax basis is the acquisition cost of the asset. Unlike the federal depreciation tax basis, the state depreciation tax basis is not adjusted for any investment tax credit (ITC) taken.
- DEPRECIATN
EXPNSE YTD
The year-to-date state depreciation calculated for the asset is displayed. This figure is used to prepare the year's state tax return. DEPRECIATN EXPNSE YTD is shown rounded to the nearest dollar.
- ACCUM
DEPREC LTD
The life-to-date state depreciation calculated for the asset is displayed for informational purposes. It is used to calculate the state DEPRECIABLE BALANCE. ACCUM DEPREC LTD is shown rounded to the nearest dollar.
- DEPRECIABLE
BALANCE
The state depreciable balance is calculated as follows:ORIGINAL TAX BASIS
- ACCUM DEPREC LTDDEPRECIABLE BALANCE is shown rounded to the nearest dollar.
- TOTALS/GRAND
TOTALS
Page totals for the federal report reflect the number of assets and all dollar amounts for each portfolio and header type (vintage year and depreciation method/life). Page totals for the state reports reflect the number of assets and all dollar amounts for each portfolio and header type (state, vintage year, and depreciation method/life).Page totals for the various header types are combined on the portfolio total page. On the federal report, the number of all assets and all dollar amounts are shown by depreciation method/life within vintage year. On the state report, the number of all assets and all dollar amounts are segregated by state. Underlying each state, subtotals are shown by depreciation method/ life within vintage year.
Grand totals are shown for the number of assets and all dollar amounts.
LeasePak Documentation Suite
©
by NetSol Technologies Inc. All rights reserved.
The information contained in this document is the property of NetSol Technologies Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. NetSol Technologies Inc. assumes no liability for any inaccuracy that may appear in this document; the contents of this document do not constitute a promise or warranty. The software described in this document is furnished under license and may be used or copied only in accordance with the terms of said license. Unauthorized use, alteration, or reproduction of this document without the written consent of NetSol Technologies Inc. is prohibited.