Bonus depreciation opt-out - checking myself

[jasdlm]

Taxpayer purchased a large piece of equipment.  If bonus deprecation is taken, then negative capital account and distributions are I excess of basis.  I elected out of bonus depreciation for the asset class (7 year), and manually entered 50% depreciation.  2 questions:

1)  I believe this follows the most recent rules, and this is all I need to do (no 3115 since I made the election)

2)  This is a one-year election, correct?

Am I missing something huge here?

Thanks so much.

[Lee B]

Yes you can elect out by asset class or or by all classes. It s a year by year election.

Bonus depreciation % for 2021 is 100 %. If you elect out then Section 179 or standard depreciation applies.

Don't know what you mean by "manually entered 50% depreciation"?

[jasdlm]

55 minutes ago, cbslee said:

Yes you can elect out by asset class or or by all classes. It s a year by year election.

Bonus depreciation % for 2021 is 100 %. If you elect out then Section 179 or standard depreciation applies.

Don't know what you mean by "manually entered 50% depreciation"?

Sorry.  50% under 179 and depreciate the remainder.  Poor word structure on my part.

[schirallicpa]

NYS doesn't like the bonus depreciation so I almost always elect out and then use Sec 179 so the deprecation stays the same on the Fed and State.  

[jasdlm]

Just FYI ...ATX gave me real fits over the opt out.  I opted out, but it continued to take the bonus depreciation.  I would try to override it, and it would give me a popup warning telling me to go to the elections screen to opt out.  This song and dance went on for a long time.  I tried saving and reopening the file, restarting the program, etc.  I finally chose 'custom' under the bonus tab, and then it let me override the bonus depreciation it had calculated with zeros.  I have no idea what I didn't toggle, etc.  Almost caused me to say a bad word.

[jklcpa]

2 hours ago, jasdlm said:

Almost caused me to say a bad word.

 

This made me actually laugh because I've been cussing up a storm all day, mostly in my head though.  Somehow my sister has pretty good timing at sending me stuff when I need a laugh, and today's meme was this one.  Also, sorry for the aggravation and the hijack.

 

 

[BulldogTom]

14 hours ago, jasdlm said:

Just FYI ...ATX gave me real fits over the opt out.  I opted out, but it continued to take the bonus depreciation.  I would try to override it, and it would give me a popup warning telling me to go to the elections screen to opt out.  This song and dance went on for a long time.  I tried saving and reopening the file, restarting the program, etc.  I finally chose 'custom' under the bonus tab, and then it let me override the bonus depreciation it had calculated with zeros.  I have no idea what I didn't toggle, etc.  Almost caused me to say a bad word.

It is not on the elections page, it is in the fixed assets - Asset Global Settings - Bonus Elections.   Took me a while to find them as well (don't do it very often).   Kept going to the "Elections Tab" and trying to make it work from there.

Tom
Longview TX

[XP4ME]

I love the tip of the day.  Have done this several times just this week!

 

[mcb39]

Just got off the phone with Barclay Bank!!!!  Believe me, I had to bite my tongue!!!

[jasdlm]

5 hours ago, BulldogTom said:

It is not on the elections page, it is in the fixed assets - Asset Global Settings - Bonus Elections.   Took me a while to find them as well (don't do it very often).   Kept going to the "Elections Tab" and trying to make it work from there.

Tom
Longview TX

This would be a game changer!

[Lee B]

3 hours ago, mcb39 said:

Just got off the phone with Barclay Bank!!!!  Believe me, I had to bite my tongue!!!

Yeah, they are definitly on my s**t list!