Defining Investment Tax Credit Rates
You can set up and review your Investment Tax Credit (ITC) rates and recapture rates. Oracle Assets displays the rates in ascending order by year and life. Oracle Assets automatically recaptures a portion of the investment tax credit for assets with ITC that you retire before they are fully reserved. Once you set up your rates, you can claim ITC for an asset.
To define ITC rates:
1. Open the Investment Tax Credit Rates window.
2. Enter the year the ITC rate is effective.
You must set up ITC recapture rates for all tax years for which ITC recapture applies.
3. Enter the life for which this ITC rate applies.
4. Enter the ITC Amount Rate as a percentage. The ITC Basis for an asset is the lesser of its original cost and the ITC Ceiling, if one is used.
To define ITC recapture rates:
1. Open the Investment Tax Credit Recapture Rates window.
2. Enter the Tax Year the recapture rate is effective.
3. Enter the Year and Month of life to which the recapture rate applies.
4. Enter the Year of Retirement to which the rate applies. If you retire an asset during this year of life, it is subject to this recapture rate.
5. Enter the recapture rate as a percentage. Oracle Assets uses this rate to determine the amount of investment tax credit to recapture upon retirement.
See Also
Assigning Tax Credits
Tax Credits
Oracle Assets System Setup
Setting Up Depreciation (ITC) Ceilings
ITC Rates Listing
