Investment Tax Credit Listing [R0302]
End of Period: This process can be run interactively through this update or seleted to run as either a special month-end or year-end version during EOP End of Month and/or End of Year. As an EOP module, the process is:
| EOP Only | Yes* |
| Frequency | Monthly/Yearly |
| Sequential Updates | No |
| Skip Notes | No restrictions |
*The special month-end and year-end versions of this report are only available through EOP End of Month and End of Year respectively, but are otherwise the same as the interactive versions, using the same processing but with selection criteria specific to either End of Month or End of Year.
The EOP End of Year version of this report is also known as U0485 Investment Tax Credit Listing (EOY).
For more information about End of Period, refer to U04 End of Period Overview.
The Investment Tax Credit Listing report [R0302] provides a current detailed accounting of the Investment Tax Credit status for each asset. This report may be used for tax information and book ITC accrual purposes if ITC is recognized on a flow-through basis. If ITC is recognized for book purposes using the deferral method, the accrual register and/or transaction journal reports book ITC accrual information.
Only assets with an ITC method other than BYPS or with 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 elements:
- 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
- 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 Listing
The Investment Tax Credit Listing report
[R0302] 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.
- IN-SERV
DATE
The date the asset was first 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 ITC. Only assets with an in-service date before January 1, 1986 are reported on.
- STAT
The short symbol for the asset's status is displayed (e.g., NLSE = New on lease). Refer to the Status Codes reference document for a list of asset status codes and their meanings.
- ITC
CODE
One of the following ITC codes, used for tax purposes (not book), is displayed:
- TK Full ITC (6% or 10%) is taken
the first year.
- TR Reduced ITC (4% or 8%) is taken the first year.
- TK2 Full ITC is taken over 3 or 5 years.
- TR2 Reduced ITC is taken over 3 or 5 years.
- PASS ITC is passed through to the lessee (not taken).
Assets with an ITC method of 'BYPS' are not reported on.
- TK Full ITC (6% or 10%) is taken
the first year.
- UNADJUSTED
BASIS
The unadjusted basis (acquisition cost) is the dollar amount upon which ITC is calculated. ITC is calculated at either 4%, 6%, 8% or 10% of this figure, depending upon the ITC CODE and depreciable life.
- ORIGINAL
ITC
The original ITC represents the total Investment Tax Credit available for this asset. It is calculated using the ITC CODE, depreciable life, and the UNADJUSTED BASIS. For example, an asset with a $100,000 basis, a depreciable life of 5 years, and the full ITC taken, has available $10,000 of Investment Tax Credits.
- SUSTAINED
ITC
This is the amount of ITC the lessor would be entitled to retain, should the asset be sold as of the date the report is run. ITC is sustained at a rate of approximately one-third (for three-year property) or one-fifth (for five-year property) of the ORIGINAL ITC per calendar year starting with the asset's IN-SERVICE DATE. For example, a 5-year depreciable life asset placed in service on March 10, 1986 would sustain one-fifth, or 20%, of its ORIGINAL ITC on March 10, 1987. ITC is not sustained on a prorated basis over the year.
- RECAPTURED
ITC
This is the amount of ITC owed to the Internal Revenue Service because of an early disposition of the asset. This amount appears only if the asset is sold and is calculated and tracked automatically.
- AT
RISK ITC
This is the amount of ITC that would have to be recaptured should the asset be sold (the amount still 'at risk'). Approximately one-third (for three-year property) or one-fifth (for five-year property) of the ORIGINAL ITC is transferred from AT RISK ITC to SUSTAINED ITC each full calendar year that the asset has been in service.
SUSTAINED ITC + AT RISK ITC = ORIGINAL ITC
Example:
CASE A: 3 YEAR PROPERTY
$100,000.00 ACQUISITION COST = UNADJUSTED BASIS
| End of Year | TK (ITC = $6000.00) | TR (ITC = $4000.00) | ||
| Sustained | At Risk | Sustained | At Risk | |
| 1 | $2040.00 | $3960.00 | $1360.00 | $2640.00 |
| 2 | $4020.00 | $1980.00 | $2680.00 | $1320.00 |
| 3 | $6000.00 | $0.00 | $4000.00 | $0.00 |
CASE B: 5
YEAR PROPERTY
$100,000.00
ACQUISITION COST = UNADJUSTED BASIS|
| End of Year | TK (ITC = $10,000.00) | TR (ITC = $8,000.00) | ||
| Sustained | At Risk | Sustained | At Risk | |
| 1 | $2000.00 | $8000.00 | $1600.00 | $6400.00 |
| 2 | $4000.00 | $6000.00 | $3200.00 | $4800.00 |
| 3 | $6000.00 | $4000.00 | $4800.00 | $3200.00 |
| 4 | $8000.00 | $2000.00 | $6400.00 | $1600.00 |
| 5 | $10000.00 | $0.00 | $8000.00 | $0.00 |
- Y-T-D
TAKEN ITC
The year-to-date ITC is the amount of ITC to claim for the current fiscal year's taxes. If ITC is taken up front, an amount appears in this column the first year the asset is in service and zero (0) thereafter. If ITC is taken 2% per year for tax purposes, approximately one-third (for three-year property) or one-fifth (for five-year property) of the ORIGINAL ITC appears in this column each year.
-
TOTALS/GRAND TOTALS
The page totals for the report reflect the number of assets and all dollar amounts for each office and header type (recovery or non-recovery, ITC method, new or used, and depreciable life). If applicable, an additional page is provided for bypass and pass through assets which shows the number of assets and a dollar total of the unadjusted basis.The page totals for the various header types are combined on the office total page. These totals are primarily segregated by recovery, non-recovery and bypass/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
Region, company, portfolio, and grand totals are shown for the number of assets and all dollar amounts.
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 categories 'new' and 'used' are designated when the asset is added through the Add Asset option of the New Lease update [U0101].
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