Re: Year 2000 tax credit??

[Glenn Ericson <Glenn-Ericson@xxxxxxx>]

At 02:18 PM 9/12/97 +0000, you wrote:
>This may be a little off the list, so you may wish to send replies as
>private email.
>
>We are doing a year 2000 conversion project for a client.  The VP/IS there
>has asked me if I have ever heard of a tax credit for companies for the
>cost of their Y2K projects.
>
>Anyone know of anything like this??
>
>TIA.
>Carl
>
Carl,  as I  recall the FASB  accounting rulings efforts to fix Year/2000
in  current systems  must be expensed in the year they happen. However,
investment in new applications Y2K compliant or not  can be  expensed
across many years, similar to the  original system costs.

That  does not mean you should rush out and get a  new software or hardware
system as in many cases there is not enough time to make it all happen.
However if today's system is not a good  solution then don't  waste more
bucks making it Y2K  ready/compliant.

Is there a tax credit? - Not in the USA and not on the immediate horizon.

It  might  be a good idea for the VP/IS to prepare  a cost estimate for the
accountants so that it can be included in the 10K and SEC type  statements
as required.  Even if  the firm falls to the exempt side you need the data
to prove it. [The 97 reporting will be more stringent than prior  years.
Another project you  don't need.]

Now I am not an accountant or tax lawyer so it might be best if your client
seeks  certified accounting advice.


Glenn
___________________________________________________
Glenn Ericson,          Phoenix Consulting                      
P O Box 701164   East Elmhurst NY 11370-3164 USA                            
Ph. 718 898 9805         Fx. 718 446 1150
AS/400 & Year 2000- - Solutions Specialists
 © 1997copyright,  all rights reserved
____________________________________________________


 
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