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Creating an asset book ITC record for Fixed Assets

Use the Asset Book ITC window to add US tax S179 information, US investment tax credit (ITC) information, and make other adjustments to the cost basis of an asset. The default original cost basis and net cost basis values will be equal to the cost basis of the asset book record that you selected. When you save the record, the Net Cost Basis field is calculated as follows:

Original Cost Basis – Section 179 Exp. Ded. – ITC Cost Red. Amount + or -Misc. Cost Adjustment

You can add investment tax credit information in the TEFRA, ITC Taken, ITC Allowed, and ITC Recapture fields. This information isn’t used for any calculations, although it might be useful to include on reports.

To create an asset book ITC record:

  1. Open the Asset Book window. (Financial >> Cards >> Fixed Assets >> Book)

  2. Enter or select an asset ID and suffix and select a book ID.

  3. Choose ITC/Cost to open the Asset Book ITC window.

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  4. You can change the original cost basis of the asset, if necessary.

  5. Enter a Section 179 expense deduction. The Section 179 expense reduces amount in the calculation for net cost basis.

  6. You can enter an ITC Cost Reduction amount. This amount reduces the amount in the calculation for net cost basis.

  7. You can enter a Miscellaneous Cost Adjustment amount. This amount will be added to the original cost basis when calculating the net cost basis.

  8. You can enter information in the fields that are related to investment tax credit. Enter the amount of investment tax credit that was taken, allowed, and recaptured for this asset.

  9. Select a TEFRA option or accept the default option. This option isn’t used for calculations in Fixed Asset Management.

  10. Choose Save to save the asset book ITC record.

Keywords: asset book, ITC, fixed assets