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How is the bonus depreciation treated when retiring assets in the tax book?

Received Response
Lakmi Anushika
Lakmi Anushika Green Ribbon
edited May 17, 2021 12:20PM in Assets 1 comment


  • Patricia Seder-Oracle
    Patricia Seder-Oracle Silver Medal
    edited May 20, 2021 11:20AM

    Hello Lakmi,

    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)

    Kind regards,