Tax Bonus Depreciation - Transfer Asset in Yr 1
Bonus Depreciation – ideally bonus should be taken in the first month, we understand why it is not in Oracle based on rates being used. We are running into issues where we purchase an asset and during the first year we transfer the asset. What we should be reporting is that the initial owners take the bonus and the second owners only have non-bonus depreciation from the time they take ownership – since Oracle is rate based both parties get a piece of the bonus and both parties are separate legal entities which are reported separately – this has become