You can elect out of bonus depreciation for client assets if they're eligible:
- For qualified 30% bonus depreciation property, any asset class can elect out of bonus depreciation.
- For qualified GO Zone 50% bonus depreciation property, any asset class can elect out of bonus depreciation.
- For qualified Disaster Area 50% bonus depreciation property, any asset class can elect out of bonus depreciation.
Note: Changing an asset class's election status for a year prior to the current year affects the prior depreciation comparison and prior depreciation amounts if you build a treatment.
Elect out of bonus depreciation
- In the Asset List window, select Setup, then Options.
- In the Options dialog, select Calculations.
- Select the Bonus Depreciation Elections button.
- In the Bonus Depreciation Elections dialog, click the tab for the tax year for which you want to make the election. Electing out for a specific tax year affects assets placed in service during that year. Note that tabs are only present for current and prior years.
- Locate the class for which you want to make a bonus depreciation election.
Note: The Disaster Area asset classes are available in the Bonus Depreciation Elections dialog only when an applicable federal disaster is selected using the Available Dates button.
- Mark the desired checkbox to make an election for bonus depreciation.
Note: For qualified 50%/100% bonus depreciation property, you can choose to elect out of bonus depreciation or, for qualified assets placed in service between 5/06/03 and 12/31/04, elect to take 30% bonus depreciation instead of 50%, for qualified assets placed in service in a 2010 tax year that includes 9/9/2010, elect to take 50% bonus depreciation (instead of 100%), or for qualified assets placed in service in a 2017 or 2018 tax year that includes 9/28/2017, elect to take 50% bonus depreciation (instead of 100%). This is not an option for GO Zone 50% bonus depreciation.
- Repeat steps 5 and 6 for each class in the tax year for which you want to make an election.
Note: If you want to elect out classes for additional years, click the tab for the appropriate year, and repeat steps 5 and 6.
- When you are done, click OK to save your changes and return to the Calculation tab.
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