Assets that require an entry in the GO Zone/168(k) (force) field

Show expandable text

New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

The following types of assets require an entry in the GO Zone/168(k) (force) field in the Other tab. For information on each type, click the following links.

  • Nonresidential real and residential rental property (GO Zone)

    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.
  • Nonresidential real and residential rental property (Disaster Area)

    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.
  • Leasehold improvement (GO Zone)

    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.

  • Leasehold improvement (Disaster area)

    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.

  • 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.
  • 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.
  • Computer software Code section 167 (168(k)) depreciated using a method other than Amortization

    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 12/31/14.
    • The asset is depreciating using any of the following methods, as long as the class has not been elected out.
      • 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.

    Note: For an asset to be considered computer software for GO Zone bonus depreciation, 167 - Computer software must be selected in the Amortization section field in the asset's Other tab. If this selection is not chosen, you must choose Force to qualify 50% & 179 (GO Zone) from 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.
  • 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 12/31/14.
    • 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.

  • Any property to be excluded (GO Zone/168(k))

    When Prop not qualified (GO Zone/168(k)/168(n)) has been selected in the GO Zone/168(k) (force) field in an asset's Other tab, the asset is considered to be property that is not qualified for bonus depreciation.

    Note: If the Used checkbox is marked at the top of the Asset Detail dialog, Property not qualified (GO Zone/168(k)/168(n)) is automatically selected in the GO Zone/168(k) (force) field.

    Do not enter this code to elect out of bonus depreciation for a class. Instead, see Choosing bonus depreciation elections.

  • Property acquired before 1/1/06, but placed in service between 1/1/06 and 12/31/07 or acquired before 1/1/15, but placed in service between 1/1/15 and 12/31/15 (168(k))

    Select the appropriate type of property from the GO Zone/168(k) (force) field in an asset's Other tab to force the calculation.

    Note: See section 168(k), 168(n), and 1400L for further guidance.

  • Property acquired before 1/1/08, but placed in service between 1/1/08 and 12/31/08 (GO Zone)

    Select the appropriate type of property from the GO Zone/168(k) (force) field in an asset's Other tab to force the calculation.

    Note: See section 168(k), 168(n), and 1400L for further guidance.

  • 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.

Was this article helpful?

Thank you for the feedback!