GO Zone/168(k) (force)

Alerts and notices

The GO Zone/168(k) (force) type is the "type" an asset is considered in relation to bonus first-year depreciation rules. The possible types are listed below, followed by the description that will print if you choose the bonus type for printing. (To print the bonus types, either add a column for the bonus type to a custom report or use the bonus type as sort criteria in the report's Presentation tab.)

Note: For information on a specific type, click the appropriate link.

  • Located in GO Zone

    When Located in GO Zone is selected in the GO Zone/168(k) (force) field, the asset is marked as being located in the Gulf Opportunity Zone and the application considers the asset to be Gulf Opportunity Zone property.

    To calculate bonus depreciation for the asset, the property must also have been placed in service between 8/28/05 and 12/31/07 and depreciate as follows:

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

    Note: The Located in the GO Zone item is not available from the GO Zone/168(k) (force) field if the client is marked as located in the GO Zone in the Setup > Options > Calculation tab.

  • GO Zone leasehold improvement

    When GO Zone leasehold improvement is selected in the GO Zone/168(k) (force) field, the asset is considered to be GO Zone leasehold improvement property.

  • GO Zone nonresidential real and residential rental property

    For an asset to be considered GO Zone nonresidential real & residential rental property for bonus depreciation, the following must be true.

    • The asset was placed in service between 8/28/05 and 12/31/11.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class has not been elected out.
    • GO Zone nonres & res rental is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Non-GO Zone property

    When Non-GO Zone property is selected in the GO Zone/168(k) (force) field, an asset is considered as not located in the GO Zone and does not qualify for bonus depreciation.

    Make this selection if the client is marked as being located in the GO Zone in the Setup > Options Calculation tab and the current asset is not located in the GO Zone.

  • GO Zone extension property

    For an asset to be considered qualified GO Zone extension property for bonus depreciation and additional section 179 expense, the following must be true.

    • The asset was placed in service between 1/1/08 and 12/31/11 to qualify for bonus depreciation and placed in service between 1/1/08 and 12/31/08 to qualify for the additional section 179 expense.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life).
    • GO Zone extension property is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Force to qualify 50% & 179 (GO Zone)

    To force an asset that was placed in service between 8/28/05 and 12/31/08 to qualify for GO Zone bonus depreciation and calculate using 50% and also qualify for the additional section 179 amount, select Force to qualify 50% (168(k)) from the GO Zone/168(k) (force) field in the asset's Other tab.

    Note: This code is for property that you want to qualify for GO Zone bonus depreciation and calculate at 50%, but an appropriate type is not available.

  • Qualified cellulosic biofuel plant property (QCBPP)

    For an asset to be considered QCBPP for bonus depreciation, the following must be true.

    • The asset was placed in service between 12/21/06 and 12/31/12.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life).
    • Cellulosic biofuel plant prop (QCBPP) is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Reuse and recycling property

    For an asset to be considered reuse and recycling for bonus depreciation, the following must be true.

    • The asset was acquired and placed in service after 8/31/08.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class life has not been elected out.
    • Reuse and recycling property is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • MACRS 20-yr or less recovery period (168(k))

    Automatic calculation as qualified

    Any asset placed in service between 9/11/01 and 12/31/05 or 1/1/08 and 12/31/14 that is depreciating over 20 years or less using any MACRS method (except MACRS 150% ADS Life or MACRS SL) is automatically considered MACRS 20-yr or less recovery period property for section 168(k).


    Forced calculation as qualified

    To force an asset to be considered MACRS 20-yr or less recovery period property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/05 or 1/1/08 and 12/31/14.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life).
    • MACRS 20-yr or less recovery period (168(k)) is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Improvement property (168(k))

    For an asset to be considered improvement property for section 168(k), the following must be true.

    • The asset was placed in service between 1/1/16 and 12/31/19.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class life has not been elected out.
    • Improvement property (168(k)) is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Leasehold improvement (168(k))

    For an asset to be considered Leasehold improvement property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/15.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class life has not been elected out.
    • Leasehold improvement (168(k)) is selected in the GO Zone/168(k) (force) field on the asset's Other tab.
  • Computer software 167 (168(k))

    Automatic calculation as qualified

    For an asset to be automatically considered Computer software (167) property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/05 or 1/01/08 and 12/31/15.
    • The asset is depreciating using Amortization.
    • 167 - Computer Software (168(k)) is selected in the Amortization section field on the asset's Other tab.


    Forced calculation as qualified

    To force an asset to be considered Computer software (167) property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/15.
    • The asset is depreciating using any of the following methods.
      • MACRS (except MACRS SL ADS Life or MACRS 150% ADS Life)
      • Straight Line
      • Amortization
      • Custom method
    • Computer software 167 (168(k)) is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Water utility property (168(k))

    For an asset to be considered Water utility property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/15.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class has not been elected out.
    • Water utility property (168(k)) is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • New York Liberty Zone nonresidential real and residential rental property

    For an asset to be considered New York Liberty Zone nonresidential real & residential rental property for section 168(k), the following must be true.

    • The asset was placed in service between 9/11/01 and 12/31/09.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class has not been elected out.
    • NYLZ nonres & res rental is selected in the GO Zone/168(k) (force) field on the asset's Other tab.
  • New York Liberty Zone leasehold improvement

    When NYLZ leasehold improvement is selected in the GO Zone/168(k) (force) field, an asset is considered to be New York Liberty Zone leasehold improvement property.

    This type of property does not qualify for the section 168(k) 30% bonus depreciation.

  • Property not qualified (GO Zone/168(k)/168(n))
  • Force to qualify - 30% (JGTRRA)

    To force an asset that was placed in service between 9/11/01 and 12/31/28 to qualify for section 168(k) and calculate using 30%, select Force to qualify - 30% (JGTRRA) from the GO Zone/168(k) (force) field in the asset's Other tab.

    Note: This code is for property that you want to qualify for section 168(k) and calculate using 30%, but an appropriate type is not available.

  • Force to qualify - 40% (168(k))

    To force an asset that was placed in service between 1/1/18 and 12/31/28 to qualify for section 168(k) and calculate using 40%, select Force to qualify - 40% (168(k)) from the GO Zone/168(k) (force) field in the asset's Other tab.

    Note: This code is for property that you want to qualify for section 168(k) and calculate using 40%, but an appropriate type is not available.

  • Force to qualify - 50% (168(k))

    To force an asset that was placed in service between 5/6/03 and 12/31/28 to qualify for section 168(k) and calculate using 50%, select Force to qualify - 50% (168(k)) from the GO Zone/168(k) (force) field on the asset's Other tab.

    Note: This code is for property that you want to qualify for section 168(k) and calculate at 50%, but an appropriate type is not available.

  • Force to qualify - 100% (168(k))

    To force an asset that was placed in service between 9/9/10 and 12/31/28 to qualify for section 168(k) and calculate using 100%, select Force to qualify - 100% (168(k)) from the GO Zone/168(k) (force) field on the asset's Other tab.

    Note: This code is for property that you want to qualify for section 168(k) and calculate at 100%, but an appropriate type is not available.

  • Located in Disaster Area

    When Located in Disaster is selected in the GO Zone/168(k) (force) field, the asset is marked as being located in a federally declared disaster area and the application considers the asset to be qualified disaster assistance property.

    To calculate bonus depreciation for the asset, the property must also have been placed in service after 12/31/07 and occurring before 1/1/10 and depreciate as follows:

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

    Note: The Located in Disaster Area item is not available from the GO Zone/168(k) (force) field if the client is marked as located in a Disaster Area in the Setup > Options > Calculation tab.

  • Disaster Area leasehold improvement

    When Disaster Area leasehold improvement is selected in the GO Zone/168(k) (force) field, the asset is considered to be Disaster Area leasehold improvement property.

  • Disaster Area nonresidential & residential realty property

    For an asset to be considered Disaster Area nonresidential real & residential rental property for bonus depreciation, the following must be true.

    • The asset was placed in service after 12/31/07 for disasters declared after 12/31/07 and occurring before 1/1/10.
    • The asset is depreciating using any MACRS method (except MACRS SL ADS Life or MACRS 150% ADS Life), as long as the class has not been elected out.
    • Disaster Area nonres & res rental is selected in the GO Zone/168(k) (force) field in the asset's Other tab.
  • Non-Disaster Area property

    When Non-Disaster Area property is selected in the GO Zone/168(k) (force) field, an asset is considered as not located in a Disaster Area and does not qualify for bonus depreciation.

    Make this selection if the client is marked as being located in a Disaster Area in the Setup > Options > Calculation tab and the current asset in not located in a Disaster Area.

  • Force to qualify 50% & 179 (Disaster Area)

    To force an asset that was placed in service after 12/31/07 for disasters declared after 12/31/07 and occurring before 1/1/10 to qualify for Disaster Area bonus and calculate using 50% and also qualify for the additional Section 179 amount, select Force to qualify 50% &179 (Disaster Area) from the GO Zone/168(k) (force) field on the asset's Other tab.

    Note: This code is for property that you want to qualify for Disaster Area bonus depreciation and calculate at 50%, but an appropriate type is not available.


Was this article helpful?

Thank you for the feedback!