The tag number is the primary mechanism for identifying a fixed asset
Intended to provide regulatory relief for credit unions, the new proposal eliminates a provision in the current fixed assets
rule that establishes a 5% aggregate limit on investments in fixed assets
for federal credit unions with $1 million or more in assets.
Unlimited companies are supported, and seven depreciation "books" can be kept for each fixed asset
, including tax, internal, state, AMT, ACE and two user-defined books.
In determining whether an expense is a start-up cost or a fixed asset
, CPAs should look to an entity's policy of accounting for fixed assets
In July 2014, NCUA Board Member Rick Metsger said the plan to eliminate the 5% cap on fixed assets
would provide regulatory relief for federal credit unions.
For many taxpayers, the property tax savings resulting from conducting an audit or fixed asset
inventory to reveal nonexistent assets and identify assets that should be disposed of far exceed the costs of the audit or inventory.
Improvement desired: Easier client access, improvement in fixed assets
and depreciation module, clearer manual.
Our corporate tax clients are faced with key issues in the fixed asset
arena, including documentation, compliance, planning and reporting," states Michael Stenftenagel, Tax Lead Director, Sirius Solutions.
We have 28 branches but our fixed asset
ratio is only 2.
A major oil field services firm, for example, via a fixed asset
software package, plans to post its holdings on its corporate intranet, allowing its divisions to know what it owns, thus promoting its co-location initiatives.
The Fixed Asset
Management System (FAMS), for instance, allows Citicorp to track domestic and overseas assets for tax compliance purposes.
We are proud that Red Moon Solutions' latest release of Fixed Assets
Manager supports the new legislation," states Jim Shedivy, President, Red Moon Solutions.