Bonus Depreciation

[JG EA]

I quickly looked into TTB but I'm afraid of the answer so I'm just going to yell at the preparer across the room.

Can my client take bonus depreciation in 2010 if he hasn't yet filed? (On extension but didn't file yet.)

[appelman]

I don't see why not.

The only reference I find for timely filed returns relates to the election NOT to take the special allowance.

[S T]

Special Depreciation

Another quick search

TTB 9-16

Elect out. Special depreciation is the default method for qualifying
property in the year placed in service. The taxpayer may elect
out of special depreciation for all property in a class by attaching
a statement to a timely-filed tax return (including extensions) indicating
the class of property and that the taxpayer elects not to
use special depreciation for any property in that class.
If the return was filed without making the election, an election
may be made on an amended return within six months of the due
date of the return (excluding extensions). Write “Filed pursuant
to section 301.9100-2” on the amended return.
Alternative minimum tax. If special depreciation has been used,

Appears you have to ELECT OUT on a timely filed return or an Amended Return within 6 months - including extensions. Default includes the Special Depreciation.

If you are filing late - default is to include the Special Depreciation ----- my interpretation.

Sandy

[JG EA]

Thanks so much!! I appreciate the help.