GO Zone bonus depreciation
Qualified assets
The bonus depreciation deduction is calculated for assets that are located in the GO Zone and are qualified GO Zone property.
- To indicate that a client is located in the GO Zone:
- In theAsset Listwindow, selectSetupthenOptions.
- In theCalculationtab, mark theLocated in the GO Zonecheckbox.noteThis checkbox is available only if the current client's processing period is between 8/28/05 and 12/31/11.
- SelectOKto save your changes and return to theCalculationstab.
- To indicate that an asset is located in the GO Zone:
- In theAsset Listwindow, double-click the asset that is located in the GO Zone.
- In theAsset Detailwindow, select theOthertab.
- Go to GO Zone/168(k) (force) and selectLocated in GO Zone.
- SelectDoneto return to theAsset Listwindow.
note
For some qualified assets, you'll need to access the asset's
Other
tab in the Asset Detail
window, then select the proper code in the GO Zone/168(k) (force)
field.Compliance with bonus depreciation
Compliance with bonus depreciation is determined on a treatment-by-treatment basis. By default, all treatments—except Book
and some state
treatments—comply with bonus depreciation. When a treatment doesn't comply, the bonus depreciation deduction doesn't calculate for that treatment.Elect out a class
Any class can elect out of the bonus depreciation deduction. The current and previous depreciation for all qualified assets is affected by the election status of the class by which they are depreciating.
Increased expensing under section 179
The Gulf Opportunity Zone Tax Relief Act of 2005 (GO Zone) allows increased section 179 expensing for assets placed in service between 8/28/05 and 12/31/07 for qualified Gulf Opportunity Zone property. This limit is extended until 12/31/08 for qualified GO Zone extension property.
The dollar amount limit is increased by the lesser of $100,000 or the cost of qualified section 179 Gulf Opportunity Relief Zone property placed in service during the taxable year.
The threshold limit is increased by the lesser of $600,000 or the cost of qualified section 179 Gulf Opportunity Zone property placed in service in the taxable year.
