1 Reply Latest reply on Jan 24, 2018 2:29 PM by

    Tax depreciation - 100% when asset placed in service

    Leslie Stinson-DiFrank
    Visibility: Open to anyone

      Due to tax reform we need to change the tax depreciation for assets placed in service from October 1, 2017 forward to take 100% tax depreciation as soon it is placed in service. This would be for tax, AMT and ACE books in Fixed Assets. This is for all assets other than real property (which would include land, building and building improvements). This will be the depreciation process until 2022.

      How do we set up a depreciation key for this?

        • 1. Re: Tax depreciation - 100% when asset placed in service

          We already had keys set up from the the last time that there was 100% bonus i.e. September 9 2010 through December 31, 2011 so you might already have them as an available key.  We also had a key where we expense items for tax that are capitalized for GAAP i.e. internal software labor costs so had a couple of options.


          Note on the effective date that you reference above of Oct 1.  The date is 9/28 and keep in mind that this is for assets that were not under a written binding contract prior to 9/28.  That could mean that assets placed in service especially in October might have already been under a written binding contract pre-effective date so not subject to the 100% but the 50% bonus.  Note as well that qualified leasehold improvements do not qualify at this point.  Under the 50% bonus rules they were given a 15 year recovery and 50% bonus.


          Isn't this fun?