opt out of bonus depreciation

[gman]

I have a client that started a business in late Nov. Has very little income, but purchased some large equipment. Are there any attachments or forms to be filed to opt out of bonus depreciation?

thanks

[TaxmannEA]

Your software should have an elections page where you can elect out of the bonus depreciation. It's location vearies with the software.

[gman]

Opt Out

Yes, I know where in my software to check that states does not qualify and it will not calculate the bonus depreciation, but is any notice or attachment required with the return to let them know I am opting out?

thanks

[MilTaxEA]

Electing out is different than saying it does not qualify because when you elect out for one item, all other items within the same class must not take special depreciation for that tax year. Most software has an option for you to elect out of taking special depreciation allowance for all property within that class. If not, then you will need to attach your own statement to the return.

[thomtax]

Yes, I know where in my software to check that states does not qualify and it will not calculate the bonus depreciation, but is any notice or attachment required with the return to let them know I am opting out?

thanks

If you find the correct place to indicate the opt out of Bonus Depreciation and are filing electronically, the software should take care of this for you. For instance, in Drake under the tab "Income", at the bottom right of the page there is a line 10 "Additional Depreciation Elections" which will bring up a page to make these elections.

LT

[oceanlovin'ea]

You don't have to send any paper in, if that is what you mean.

The election is electronically sent with the return.

Linda, EA

[gman]

o.k

Thanks, I just need to find it in my software.

[RitaB]

My software

Thanks, I just need to find it in my software.

I use ATX, and I have an "Asset Manager" that opens at the same time I add Form 4562. Then at the bottom of the Asset Manager (where you add everything you would ever want to know about your asset) there are tabs. One is "Global Settings." That's where I go to elect out of Bonus Depreciation. And, no, the tab name is definitely not a context clue.

Hope this helps. Tell us your software, and I'll bet somebody will chime in.