Creating asset tax credit tables

  1. Select Financials > Asset Accounting > Asset System Setup > Asset Tax Credit Tables.
  2. Click Create.
  3. Specify this information:
    Asset Tax Credit Table
    Specify a asset tax credit table code and description. Tax credit tables are used to calculate tax credits.
  4. In the Percentages section, specify this information:
    Qualifying Percentage
    Specify a qualifying percentage for the tax credit table. This value identifies the percentage of an asset's depreciable basis that qualifies for a tax credit. If this field is field blank, then 100 percent is used.
    Tax Credit Percentage
    Specify a tax credit percentage for the tax credit table. This value is applied to the qualifying percent to calculate the tax credit.
    Basis Reduction Percentage
    Specify a basis reduction percentage for the tax credit table. This value is used to calculate an asset's depreciable basis. Each year, the depreciable basis is reduced by the percentage you specify.
  5. In the Recapture Percentages By Year section, specify the percentage of the tax credit to recapture if an asset is disposed or retired before its service life is expired. The total percentages must be 100 percent.
  6. Click Save.