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Calculation

Manage bonus depreciation assets

The following steps will help you manage assets for bonus depreciation.
  1. Review the following information to learn how the application calculates the bonus depreciation:
  2. Complete additional data entry for clients with possible bonus assets.
    1. The application automatically calculates the bonus depreciation deduction for most qualified assets. For the following types of assets, you'll need to force the bonus property type.
      • GO Zone leasehold improvement
      • GO Zone nonresidential real and residential property
      • GO Zone extension property
      • Cellulosic biofuel plant property (QCBPP)
      • Leasehold improvements
      • Improvement property
      • Computer software Code section 167 where an Amortization section hasn't been entered in the Other tab
      • Water utility property
      • New York Liberty Zone nonresidential and residential realty
      • New York Liberty Zone leasehold improvement
      • Disaster Area leasehold improvement
      • Disaster Area nonresidential real and residential property
    2. Modify clients who will elect out asset classes for bonus depreciation.
    3. By default, all treatments—except Book and some state treatments—comply with bonus depreciation.
  3. Print reports and forms for clients whose states don't comply with bonus depreciation.
    • For states in which the add back is the difference between the Tax treatment that complies with bonus depreciation and the state treatment that doesn't comply, select
      File
       then
      Print
       and print the Comparative–Tax & State report.
    • For states that require an add back of the bonus depreciation allowance claimed on federal Form 4562 and/or 2106, print the Tax State Depreciation Adjustment report.
    note
    If you're licensed for Fixed Assets CS, the reports mentioned earlier are available in UltraTax CS only if you create a Fixed Assets CS print profile that includes those reports and you selected the option to include Fixed Assets CS print profiles in UltraTax CS client or preparer print collations.

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