How is the bonus depreciation treated when retiring assets in the tax book?
Patricia Seder-Oracle Silver Medal
That depends on the type of Bonus Depreciation rule you are using. There is no special handling for Tax Books compared to Corp Books for asset retirement.
Are you using Bonus Depreciation Rule with Calculation Basis = 'Change in Cost' ? If yes, please review the following document which also clarifies how bonus depreciation is handled during asset retirements:
- How to Setup the Enhancement to Bonus Depreciation Calculation to Claim Investment Allowance Deduction as Bonus Depreciation? (Doc ID 2589590.1)