30% bonus depreciation mess up

[Kram BergGold]

I have a return prepared by someone else where bonus depreciation was not claimed nor did they elect out in 2003.
From the research I have done this does not appear to be a correctable error on Form 3115. It seems to fall through the cracks. Any thoughts?

[OldJack]

Just as a thought!

I never claimed the 30% or 50% depreciation for any client as my state would not recognize the deduction and would require me to keep separate depreciation schedules for state and federal. OK... my software would keep the 2 schedules with no problem but I just didn't like the idea. Instead I made use of 100% code sec. 179 deduction as needed which made the issue mute on those assets.

The first year the bonus depreciation was available was I believe the year you are talking about and I doubt if anyone that didn't take the deduction probably did not "elect out" with a proper election attached to the tax return. However, I would contend if audited that the fact that I intentionally did not take the deduction was itself electing out. I doubt that the IRS is going to make any issue about it.

I have not checked my returns to see if I elected out by statement in those years, and I don't plan to do so. Even if I did not attach an election statement I would not do anything about it today.