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author's profile photo Former Member
Former Member

Bonus depreciation setup

I need help trying to tax reporting depreciation where the client posts 50% of acquisition value as bonus depreciation the 1st year with monthly depreciation at 50%. The following years as noted below:

How do I setup my depreciation type and is there anything else I need to do? Thank you!! - Lori

Acquisition Price

50,000

Date Placed in Service

1/10/2013

Depreciation Months

36

1st Year Depreciation

Period 1 -Bonus Depreciation

25,000

Period 1-12:

Monthly Depr - ((bonus Depr/3yrs)*.5)/12

347.22

2nd Year (NBV/24months)

868.06

3rd Year

868.06

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    author's profile photo Former Member
    Former Member
    Posted on Dec 26, 2013 at 09:41 PM

    No, I did not follow your advice by using manual depreciation. I created a "Special" depreciation type for the first year calculation and then a "Multi-level" for the following years. I set up the calculation tab to fit our situation and it worked.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 05, 2013 at 09:36 PM

    Hi,

    You probably need to set the depreciation as manual until next year to make it auto.

    Thanks,

    Gordon

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