US Bonus tax depreciation key setup

[Former Member]

A new depreciation method for tax has recently been implemented for US and I am not sure that SAP has this depreciation key available to calculate the appropriate tax depreciation.

The new depreciation method is called bonus tax depreciation and is calculated as follows:

YR1: 50% of cost is depreciated; of the remaining 50% cost, the regular MACRS/ACRS depreciation method applies;

in YR2 and beyond, the remaining 50% of the cost basis is calculated using the MACRS/ACRS depreciation key.

How to setup the depreciation key for this in config?

[Former Member · Accepted solution]

Use depreciation key M20S from the US depreciation chart. You have to tune it in order to use it, so look through SAP notes first. Once you have it ready, change the current depreciation key you have and when you do so, double click on it and you'll get a field to insert the special depreciation (not in %, but you'll get it).

Regards

[Former Member]

One hour ago someone els had the same questen, do first a search

see the blog:

/people/nathan.genez/blog/2008/03/06/calculating-bonus-depreciation-for-2008-fixed-assets-part-1

[Former Member]

Thanks a lot. I will try today to setup a new depreciation key and see if it works.

[former_member1218262]

Hi there,

I am having same problem and trying to do the configuration as recommended by consultnats in this forum and considered OSS Note 505069 and 1148489.

Can you please let me know how you have done it?

Thanks,

Pawan

[Former Member]

Paul already provided the answer. Check out the blogs. Nathan provided detailed instructions.

[Former Member]

You guys are awesome. I setup exactly as the documents said. It works for the first year. But from second year and onwards it is off. What we need to do to make it work from second year onwards. Thanks for all your help. I read somewhere that it talks about multiple shift depreciation key. If I get some guidelines, I will be able to complete this.