Tax Expense Report

Purpose

The Tax Expense report displays the components of the current year’s depreciation expense for tax purposes. For each asset, the report displays the current year’s Section 179 expense deduction, the Section 168 Expense, and the current year-to-date depreciation. In the Total Tax Year-to-Date Expense column, the report displays the total of these three amounts.

The left side of the report displays information about the depreciable basis: acquired value, 168 Allowance, and depreciable basis as calculated by the system. The report always displays an amount in the Section 168 Allowance column if the asset uses a "Plus 168" depreciation method.

The right side of the report displays information about the current year’s tax expense. Therefore, the report displays an amount in the Section 179 Expense and the Section 168 Expense columns only if you run the report for the year the asset was placed in service.

Tips: Before you run the report, you should first calculate depreciation through the date for which you want to run the report.

The Section 179 expense deduction and the 168 Allowance are taken in the asset’s placed-in-service year. The Tax Expense report displays these two amounts only for the current year. Therefore, the report displays Section 179 expense and 168 Allowance only when you run the report for the asset’s placed-in-service year.