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Former Member
Jan 29, 2011 at 12:29 AM

Bonus and Special Depreciation

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Hello,

I am just wondering if anyone has availed of the current tax cuts extension (Bush Tax cuts) that potentially allows business to deduct bonus depreciation (50% and 100%) and section 179 expensing on the same asset?

I have tried to configure a multi-level method, creating two lines, one for bonus and one for section 179 (same year-2010, but different period - just to make each unique). However, bonus depreciation should be calculated off APC less section 179 expensing (NBV).

After creating a depreciation key using the new multi-level method, I noticed that after creating an asset, the depreciation calculation for special depreciation only uses the first line of the multi-level method (section 179 expensing) totally ignoring the second line (bonus depreciation).

I've tried to play around different ways of configuring multi-level method but kept getting the same results.

If you have idea on how to handle this, please let me know.

Thank you.

Nancy