Federal Tax - U.S.

The Federal Tax book is used to record data that is subject to United States Internal Revenue Service (IRS) tax reporting regulations. IRS regulations dictate specific depreciation methods that are used for varying circumstances, such as adjusted current earnings and alternative minimum tax.

You can specify whether the book records data for alternative minimum tax (AMT) reporting and adjusted current earnings (ACE) tax reporting.

You can define three separate federal tax book types:

• Standard
• ACE
• AMT

The separate book types can be attached to the same asset, and depreciate based on different federal tax types. If you want a book to be an ADR book, the book must be the Federal Tax book.

You cannot use this book as the posting book and no additional posting is allowed. It uses the section 179 value in depreciation calculation if entered. Both Economic Recapture and the Annuity depreciation method are invalid for this book type.