Tax Book

The Tax book is for asset depreciation information as you will report it to the IRS on the company's federal income tax return for regular tax purposes. The application uses the entries in this book to set appropriate defaults for the other open books. For example, if you enter a real property asset's depreciation method in the Tax book as MF100 (MACRS formula), the system sets the asset's depreciation method in the AMT book to AD (ADS straight-line MACRS). Depreciation Defaults explains the specific defaults for all depreciation books. Note that if you close the Tax book, the State, AMT, and ACE books will not have any default information.