If a fixed asset is sold before it has been in operation for five years, the depreciation bonus should be restored, i.e., it should be included in the company's income. To restore the bonus depreciation, you must set up the Depreciation bonus recoveryregister in the Tax registersform. The restoring of bonus depreciation will affect tax accounting only, so you will have to create and calculate a tax register journal. This tax register journal will contains information about the fixed asset and the depreciation bonus amount, which is a source of tax difference amount.

The new register is a child of the following registers:

  • Calculation of constant tax differences.

  • Incomes - current period.

  1. Click General ledger> Setup> Profit tax> Registers.

  2. Press CTRL+N to create a new line.

  3. In the Register typefield, select Depreciation bonus recovery.

  4. In the Register codefield, enter an identification code for the register.

  5. In the Register namefield, modify the name of the register, if necessary.

  6. In the Period typefield, select the type of time period for the register.

  7. Click the Hidetab, and move any fields that you want to hide in the register from Available fieldsto Selected fields.

  8. In Selected fields, select the check box for the register fields to be hidden.

  9. Press CTRL+S or close the form.

See Also