Additional tax book Depreciation
I received the following question from our tax department. I am not aware of this functionality. Does anyone know if the following functionality exists or not?
The question from the our tax department is as follows:
Can you check something for me? Here’s the scenario.
Let’s say I have a intangible tax asset $30,000 / 15 years = $2,000 depr exp per year.
But tax law allows us to take $5,000 extra depr in the first year. So year 1 would have a total $7,000 depr exp.
Is there a way to do this in Oracle? Something to add additional tax depreciation. But without affecting Oracle’s future depreciation calculations. (In the example above, we don’t want Oracle to start calculating ($30,000-$5,000)/15 = $1666.67 per year.)