Bonus depreciation recapture?

[JG EA]

I have a client that was in business, Sch C, in 2009. In order to take one year's worth of depreciation on his computer I am using ADS SL.

I didn't think of it but bonus depreciation popped up. So, will it need to be recaptured next year? (if so I'll leave it off.)

[ChEAr$]

I have a client that was in business, Sch C, in 2009. In order to take one year's worth of depreciation on his computer I am using ADS SL.

I didn't think of it but bonus depreciation popped up. So, will it need to be recaptured next year? (if so I'll leave it off.)

Why must be be recaptured next year? Will he not be in business next year?

Anyway, remember that in order not to take it, you must affirmatively opt out of it with an election statement with the return.

[JG EA]

Thanks for your answer.

Yes, he got a W-2 job for 2010. I forgot to mention that part of it. So, if we take regular depreciation then he'd need to recapture some next year. So, I was wondering if the Bonus would need to be also.

[taxcraft]

Recapture

Bonus depreciation is recaptured.

[ChEAr$]

Bonus depreciation is recaptured.

So in that case, I would simply have client elect out of bonus depreciation, taking only the usual macrs amount to simply next year's tax return.

But wait; that means one less form for me next year! uh oh....!

[JG EA]

Thanks again! I will do that.