Calculations for bonus depreciation qualified assets

Alerts and notices

Automatic calculation as qualified assets

The application automatically calculates the following:

  • 30% bonus for assets placed in service between 9/11/01 and 5/5/03
  • 50% bonus for assets placed in service between 5/6/03 and 12/31/04
  • 50% bonus for assets placed in service between 8/28/05 and 12/31/07 and marked as located in the GO Zone
  • 50% bonus for assets placed in service between 1/1/08 and 9/8/10
  • 100% bonus for assets placed in service between 9/9/10 and 12/31/11
  • 50% bonus for assets placed in service between 1/1/12 and 9/27/17
  • 100% bonus for assets placed in service between 9/28/17 and 12/31/22
  • 30% bonus for assets placed in service after 12/31/07 for disasters declared after 12/31/07 and occurring before 1/1/10 and marked as located in a Disaster Area

…if the qualified assets depreciate as follows:

  • Depreciated over 20 years or less using any MACRS method (except MACRS 150% ADS Life or MACRS SL).
  • Amortized with 167 - Computer software selected in the Amortization section field in the asset's Other tab.

Forced calculation as qualified JCWA, JGTRRA, ESA, Recovery Act, SBJA, and TRA assets

The application is forced to calculate the following assets that were placed in service between 9/11/01 and 12/31/19 (or 12/31/09 for NYLZ nonres real and res rental) as qualified for bonus depreciation.

  • Assets depreciating using any MACRS method (except MACRS 150% ADS Life or MACRS SL ADS Life) and with any of the following selections chosen in the GO Zone/168(k) (force) field in the asset's Other tab.
    • Leasehold improvements (168(k))
    • Water utility property (168(k))
    • NYLZ nonres real & res rental
    • Cellulosic biofuel plant property (QCBPP)
    • Improvement property (168(k))
    • MACRS 20-yr or less recovery period (168(k))
      Use this force code for property acquired prior to 9/11/01, but placed in service between 9/11/01 and 12/31/05 or 1/1/08 and 12/31/14. (In some cases, the date placed in service may extend to 12/31/06. See section 168(k) and section 1400L for further guidance.)
  • Assets with Computer software 167 (168(k)) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using one of the following methods:
    • MACRS (except MACRS SL ADS Life and MACRS 150% ADS Life)
    • Straight Line
    • Amortization
    • Custom
  • Assets with Force to qualify - 30% (JGTRRA) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using any method will calculate the bonus at 30%.
  • Assets with Force to qualify - 40% (168(k)) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that are placed in service as of 1/1/18 or later and depreciate using any method will calculate the bonus at 40%.
  • Assets with Force to qualify - 50% (168(k)) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using any method will calculate the bonus at 50%.
  • Assets with Force to qualify - 100% (168(k)) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using any method will calculate the bonus at 100%.

Forced calculation as qualified GO Zone assets

The application is forced to calculate the following assets as qualified for bonus depreciation if they were placed in service between 8/28/05 and 12/31/08 (and 12/31/11 for GO Zone nonres real and res rental).

  • Assets depreciating using any MACRS method (except MACRS 150% ADS Life or MACRS SL ADS Life) and with any of the following selections chosen in the GO Zone/168(k) (force) field in the asset's Other tab.
    • GO Zone leasehold improvements
    • GO Zone nonres real & res rental
    • GO Zone extension property
  • Assets with Force to qualify 50% & 179 (GO Zone) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using any method will calculate the bonus at 50%.

Forced calculation as qualified Disaster Area assets

The application is forced to calculate the following assets as qualified for bonus depreciation if they were placed in service after 12/31/07.

  • Assets depreciating using any MACRS method (except MACRS 150% ADS Life or MACRS SL ADS Life) and with any of the following selections chosen in the GO Zone/168(k) (force) field in the asset's Other tab.
    • Disaster Area leasehold improvements
    • Disaster Area nonres real & res rental
  • Assets with Force to qualify 50% & 179 (Disaster Area) selected in the GO Zone/168(k) (force) field (in the asset's Other tab) that depreciate using any method will calculate the bonus at 50%.

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