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Calculation

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:
    1. In the
      Asset List
       window, select
      Setup
       then
      Options
      .
    2. In the
      Calculation
       tab, mark the
      Located in the GO Zone
       checkbox.
      note
      This checkbox is available only if the current client's processing period is between 8/28/05 and 12/31/11.
    3. Select
      OK
       to save your changes and return to the
      Calculations
       tab.
  • To indicate that an asset is located in the GO Zone:
    1. In the
      Asset List
       window, double-click the asset that is located in the GO Zone.
    2. In the
      Asset Detail
       window, select the
      Other
       tab.
    3. Go to GO Zone/168(k) (force) and select
      Located in GO Zone
      .
    4. Select
      Done
       to return to the
      Asset List
       window.
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.

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