NetAsset - Tax Engine: Apply Tax Rules

Overview

Once the Tax Engine is set up and tax years have been created, tax treatments must be applied to the assets to ensure they are reflected on the alternate tax depreciation schedules. This should be done at the end of the tax year, after the tax years have been successfully configured.

Prerequisites

Before proceeding, ensure the following configurations are completed:

  1. Tax Engine Setup: The tax engine must be properly configured. For detailed instructions, refer to the Tax Engine Setup Guide.

    • Asset Type Configuration: Asset types should be set up with the correct tax classifications.
    • Depreciation Method Setup: Depreciation methods must be defined with the appropriate tax classifications.
    • Permissions Setup: User permissions should be configured to ensure access and management of the tax engine.
    • Taxpayer Setup: Taxpayer records must be created, and subsidiaries should be mapped to the appropriate taxpayers.

  2. Tax Year Creation: Tax years must be created within the system. For detailed instructions, refer to the Manage Tax Years Guide.

Step by Step Process 

  • Navigate to NetAsset > NetAsset Setup > Manage Tax Years>Select "View" on applicable Tax Year


  • Once on the correct Tax Year, click the Apply Tax Rules button:


  • On the Apply Tax Rules page, select the Taxpayer and Tax Year. The other fields will automatically populate based on the tax year setup:
  • The Overwrite Depreciation Method checkbox is optional. Selecting this option will overwrite the depreciation method if one is already assigned to the selected assets. If left unchecked, assets with an existing depreciation method will not be re-evaluated:
  • Once the desired filters have been applied, click Apply Tax Rules:
  • Once redirected to the processing screen, Refresh the page periodically until the status shows Complete:
  • Once completed, all applicable assets will be displayed below. This page will also indicate whether a depreciation method was reassigned, based on whether the Overwrite Depreciation Method checkbox was selected on the previous screen:
  • After the tax year is applied, the Depreciation Method and Tax Information sections on the asset record will be updated accordingly:
  • Once the tax rules are applied, the next step is to complete the Section 179 Worksheet. For guidance, refer to the 179 Worksheet article.
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