GO Zone bonus depreciation

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Qualified assets

The bonus depreciation deduction is calculated for assets that are located in the GO Zone and are qualified GO Zone property.

Note that for some qualified assets, you need to access the asset's Other tab (in the Asset Detail dialog) and select the appropriate code in the GO Zone/168(k) (force) field.

Compliance with bonus depreciation

Compliance with bonus depreciation is determined on a treatment-by-treatment basis. By default, all treatments - except Book and some state treatments - comply with bonus depreciation. When a treatment does not comply, the bonus depreciation deduction does not calculate for that treatment. For more information, see:

Electing out a class

Any class can elect out of the bonus depreciation deduction. The current and prior depreciation for all qualified assets is affected by the election status of the class by which they are depreciating. For more information, see Choosing bonus depreciation elections.

Increased expensing under section 179

The Gulf Opportunity Zone Tax Relief Act of 2005 (GO Zone) allows increased section 179 expensing for assets placed in service between 8/28/05 and 12/31/07 for qualified Gulf Opportunity Zone property. This limit is extended until 12/31/08 for qualified GO Zone extension property.

The dollar amount limit is increased by the lesser of $100,000 or the cost of qualified section 179 Gulf Opportunity Relief Zone property placed in service during the taxable year.

The threshold limit is increased by the lesser of $600,000 or the cost of qualified section 179 Gulf Opportunity Zone property placed in service in the taxable year.

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