Manage bonus depreciation assets
The following steps will help you manage assets for bonus depreciation.
- Review the following information to learn how the application calculates the bonus depreciation:
- Complete additional data entry for clients with possible bonus assets.
- 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
- Modify clients who will elect out asset classes for bonus depreciation.
- By default, all treatments—except Book and some state treatments—comply with bonus depreciation.
- 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, selectFilethenPrintand 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.
noteIf 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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Bonus depreciation overview
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