168(k) (Force) asset types

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field on the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field on the asset's Other tab.

When NYLZ leasehold improvement is selected in the 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.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field in the asset's Other tab.

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 168(k) (force) field on the asset's Other tab.

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 168(k) (force) field on the asset's Other tab.