The same bonus depreciation that is allowed for Federal purposes is allowed for AMT eliminating AMT differences.
The Fixed Assets form automatically makes an entry for bonus depreciation for any year in which the additional depreciation allowance was allowed. To suppress the special allowance you must open the Bonus Depreciation Elections tab (Asset Global Settings tab) and select specific or all classes of property to elect out.
The Job Creation and Worker Assistance Act of 2002 allowed an additional 30% first year depreciation deduction for qualifying property placed in service after Sept. 10, 2001 and before Jan. 1, 2005 or Jan 1, 2006 for certain long period production property.
The Jobs and Growth Act of 2003 increased the 30% Bonus allowance to 50% for property acquired after May 5, 2003 and placed in service before Jan. 1, 2005 or Jan. 1, 2006 for certain long period production property. The 30% could be elected in lieu of 50%.
Only very specific asset types and properties placed in service in certain Zones were allowed the additional 50% depreciation allowance with dates placed in service 2005 to 2007.
The Economic Stimulus Act of 2008 amended the tax code to allow 50% Bonus for qualifying assets placed in service between 1/1/2008 and 12/31/2008, then the American Recovery and Reinvestment Act extended the placed in service date to before Jan 1. 2010, thus allowing Bonus for 2009. Consistent with prior legislation, long period production property was allowed a one year extended placed in service deadline to before Jan 1, 2011.
Recent legislation passed Sept. 2010 in The Small Business Jobs Act extended the 50% allowance by one year to apply to qualifying property placed in service before Jan. 1, 2011, but the Tax Relief Act signed into law Dec 17, 2010 extends the date placed in service by two years to apply to qualifying property placed in service before Jan. 1, 2013 (or Jan. 1, 2014 for long period production property).
The Tax Relief Act of 2010 also increases the 50% to 100% additional depreciation allowance for qualifying property if placed in service after 9/8/2010 and before 1/1/2012 reverting back to 50% allowable from 1/1/2012 to 12/31/2012 (or 12/31/2013 for certain long period production property). Note: When 100% applies you cannot elect 50% in lieu of 100%. Therefore the Fixed Assets form will default 100% for qualifying assets with placed in service dates from 9/9/2010 to 12/31/2011.
Special rules apply to Specified Go Zone Extension property, QCBPP property, Qualified reuse and recycling property, qualified disaster assistance property in 2010. See the 4562 final instructions.
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