Tax code and cash exchange
Based on the Portfolio Code setting of the transaction, certain expense tax codes will be changed to match the cash portfolio indicated on the transaction.
- If the transaction is bridged as Portfolio = 1 (Principal) all Cash will bridge to Principal.
- If the transaction is bridged as Portfolio = 5 (Tax Impact Only (applied against principal tax codes)), the logic will set the Income and Principal Cash to 0.
- For Portfolio = 1 and Portfolio = 5 the following tax code exchanges will occur:
Tax Code as Sent in Transaction | Tax Code Description |
|---|---|
21 | Legal Fees – Income (Allocable) |
20 | Legal Fees – Principal (Allocable) |
23 | Other Expense – Income (Allocable) |
22 | Other Expense – Principal (Allocable) |
25 | Trustee/Executor Fees – Income (Allocable) |
24 | Trustee/Executor Fees – Principal (Allocable) |
32 | Other Expense – Income (Non-Allocable) |
31 | Other Expense – Principal (Non-Allocable) |
36 | State Income Taxes – Income |
35 | State Income Taxes – Principal |
79 | Federal Estimates – Income |
80 | Federal Estimates – Principal |
81 | State Estimates – Income |
82 | State Estimates – Principal |
90 | State Tax Refund – Income |
89 | State Tax Refund – Principal |
- If the Transaction is bridged as Portfolio = 2 (Income) or 3 (Invested Income) all Cash will bridge toIncome.
- If the Portfolio = 6 (Tax Impact Onlyapplied against income tax codes), the logic will set the Income and Principal Cash to 0.
- For Portfolio = 2, Portfolio = 3, and Portfolio = 6 the following tax code exchanges will occur:
Tax Code as Sent in Transaction | Tax Code Description |
|---|---|
20 | Legal Fees – Principal (Allocable) |
21 | Legal Fees – Income (Allocable) |
22 | Other Expense – Principal (Allocable) |
23 | Other Expense – Income (Allocable) |
24 | Trustee/Executor Fees – Principal (Allocable) |
25 | Trustee/Executor Fees – Income (Allocable) |
31 | Other Expense – Principal (Non-Allocable) |
32 | Other Expense – Income (Non-Allocable) |
35 | State Income Taxes – Principal |
36 | State Income Taxes – Income |
80 | Federal Estimates – Principal |
79 | Federal Estimates – Income |
82 | State Estimates – Principal |
81 | State Estimates – Income |
89 | State Tax Refund – Principal |
90 | State Tax Refund – Income |
- If the Transaction is bridged as Portfolio = 4 (Both Principal and Income), 2 transactions are created:
- 1 in the corresponding Principal tax code (see the table previously) where the transaction amount is loaded to both the taxable and principal fields.
- 1 in the corresponding Income tax code (see the table previously) where the transaction amount is loaded to both the taxable and income fields.
- If the Transaction is bridged as Portfolio = 7 (Tax Impact Only (applied against principal and income tax codes)), 2 transactions are created (as is done when Portfolio = 4), but the transaction amount is only loaded to the taxable amount field.