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Calculation

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.
    note
    Changing 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.
  1. In the Asset List window, select
    Setup
    , then
    Options
    .
  2. In the Options window, select
    Calculations
    .
  3. Select
    Bonus Depreciation Elections
    .
  4. 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.
    note
    Tabs are only present for current and prior years.
  5. Locate the class for which you want to make a bonus depreciation election.
    note
    The Disaster Area asset classes are available in the Bonus Depreciation Elections window only when a federal disaster is selected using the
    Available Dates
     option.
  6. Select a checkbox to make an election for bonus depreciation.
    note
    For 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.
  7. Repeat steps 5 and 6 for each class in the tax year you want to make an election for:
    note
    If you want to elect out classes for extra years, select the tab for the year, then repeat steps 5 and 6.
  8. Select
    OK
     to save your changes and return to the Calculation tab.
    note
    UltraTax 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.

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