Elect out of bonus depreciation for all assets in UltraTax CS
You can elect out of bonus depreciation for client assets if they're eligible:
- For qualified 30% bonus depreciation property, any asset class can elect out of bonus depreciation.
- For qualified GO Zone 50% bonus depreciation property, any asset class can elect out of bonus depreciation.
- For qualified Disaster Area 50% bonus depreciation property, any asset class can elect out of bonus depreciation.noteChanging an asset class's election status for a year prior to the current year affects the prior depreciation comparison and prior depreciation amounts if you build a treatment.
Follow these steps to elect out of bonus depreciation.
- In the Asset List window, selectSetup, thenOptions.
- In the Options window, selectCalculations.
- SelectBonus Depreciation Elections.
- In the Bonus Depreciation Elections window, select the tab for the tax year you want to make the election for. Electing out for a specific tax year affects assets placed in service during that year.noteTabs are only present for current and prior years.
- Locate the class for which you want to make a bonus depreciation election.noteThe Disaster Area asset classes are available in the Bonus Depreciation Elections window only when a federal disaster is selected using theAvailable Datesoption.
- Select a checkbox to make an election for bonus depreciation.noteFor qualified 50%/100% bonus depreciation property, you can select to elect out of bonus depreciation or, for qualified assets placed in service between May 06, 2003 and December 31, 2004, elect to take 30% bonus depreciation instead of 50%, for qualified assets placed in service in a 2010 tax year that includes September 9, 2010, elect to take 50% bonus depreciation (instead of 100%), or for qualified assets placed in service in a 2017 or 2018 tax year that includes September 28, 2017, elect to take 50% bonus depreciation (instead of 100%). This isn't an option for GO Zone 50% bonus depreciation.
- Repeat steps 5 and 6 for each class in the tax year you want to make an election for:noteIf you want to elect out classes for extra years, select the tab for the year, then repeat steps 5 and 6.
- SelectOKto save your changes and return to the Calculation tab.noteUltraTax CS doesn’t automatically print the federal election statement unless you opt out of bonus depreciation for all asset classes. When electing out of bonus depreciation for specific asset classes, you need to select the election statements on the Elect screen in the Elections folder.
