Hi
The expenses for repair and maintenance of old assets which have life of 25 or 35 years are in turn tracked in a project and capitalized as turnaround assets with life of 6-8 years. PES has a asset class 160280 for such turnarounds which has 3 assets that we have already placed in service in 2013 and depreciated for Book depreciation area. Initially these asset had no tax depreciation calculated but client, after consulting with their tax consultant has decided to expense only 60% of the acq value for tax basis purpose and depreciate with a 5 year life.
The requirement is to have a different base/Acq value for the book and tax depreciation for these turnaround assets. The user wants to expense only 60% of the acquisition value for tax depreciation on turnaround asset class. We have tried couple of scenarios including creating a custom credit transaction type and assigned it to only tax depreciation area and post the difference using ABZO, but the acquisition value for book dep also changes along with the tax basis.
Example:
For asset 100000124 with the acquisition value for book = $100,000.00 but for tax acquisition we want to have @ 60% = $60,000.00
I would really appreciate any inputs in this regard. Please let me know if you need further information in this regard.
Thank you
Brinda