Modifying a treatment's compliance with bonus depreciation

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By default, all treatments - except Book and some states - comply with bonus depreciation. To modify whether or not a treatment complies for a specific year, perform the following steps.

Notes

  • Treatments that do not comply do not calculate the bonus depreciation deduction for all assets placed in service in the year for which the treatment does not comply.
  • You cannot modify a state treatment's compliance with bonus depreciation through the Setup > Treatments > Options dialog. For information about modifying a state's compliance, see Modifying a state's compliance with bonus depreciation.

  1. In the Asset List window, choose Setup > Treatments.
  2. In the Treatments dialog, select the treatment you want to modify.
  3. Click the Options button to open the Treatment Options dialog.

    Note: If you select a custom treatment, you must click OK in the Classify dialog before the Treatment Options dialog opens.

  4. Do one of the following.
    • For the Tax treatment: You can change the Tax treatment's compliance with bonus depreciation only for tax years 2000 and 2001 in the Treatment Options dialog. For information about changing the Tax treatment's compliance with bonus depreciation for specific asset classes for any current or prior year, see Choosing bonus depreciation elections.

      Note: Because AMT and ACE are derived from Tax, the checkboxes in the Section 168(k) group box of the Treatment Options dialog are not available.

    • For the Book, Other, or any custom treatment: Mark one of the following checkboxes:
      • 30% Bonus (Placed in svc 9/11/01 to 5/5/03)
      • 50% Bonus and 30% election (Placed in svc 5/6/03 to 12/31/04)
      • 50% GO Zone bonus (Placed in svc 8/28/05 to 12/31/07)
      • 50%/100% Bonus (Placed in svc 1/1/08 to 12/31/19)
      • 50% Disaster Area bonus

      To view information about these checkboxes, see the Calculation tab overview.

  5. Click OK to save your changes and return to the Treatments dialog. If you want to modify additional treatments for bonus depreciation, repeat steps 2 - 4.
  6. When you are done, click OK to return to the Asset List window.

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