Choosing bonus depreciation elections

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Electing out is handled on a class-by-class basis by tax year. Note that the current and prior depreciation for all qualified assets is affected by the election status of the class by which they are depreciated.

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.

To select the bonus depreciation options for the current client:

  1. In the Asset List window, choose Setup > Options.
  2. In the Options dialog, click the Calculation tab.
  3. Click the Bonus Depreciation Elections button.
  4. 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.
  5. 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.

  6. 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.

  7. 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.

  8. When you are done, click OK to save your changes and return to the Calculation tab.

    Note: UltraTax CS does not automatically print the federal election statement unless you opt out of bonus depreciation for all asset classes. When electing out of bonus depreciation for specific asset classes you must select the appropriate elections statement(s) on Screen Elect in the Elections folder.

Related topic: Depreciation: Electing out of bonus depreciation for a single asset

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