Fixed Assets - EBS (MOSC)

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Seperate Bonus depreciation from Regular Depreciation for Tax Books

edited Jun 9, 2016 5:08AM in Fixed Assets - EBS (MOSC) 3 commentsAnswered

Hi

We have a requirement to separate the Bonus component from the Regular Depreciation . After apply the standard patch to calculate 50% Bonus in first year , the final depreciation amount includes the bonus value

However , Can we separate this bonus value from the regular depreciation value

Our requirement is such that suppose Asset cost is 10000 , 50% Bonus depreciation in first year to be calculated , Therefore adjusted cost = 50% of 10000 = 5000 on which we need to apply the MACRS rates ( Say for example for 5 years asset ) its 0.2

Hence  , the regular depreciation would be 0.2 * Adjusted cost basis = 0.2 * 5000 = 1000

Hence the total depreciation = 1000 + 5000 = 6000 for first year

Now if we use the MACRS  HY 50% Depreciation method , it calculates 6000 , However we cannot differentiate between regular depreciation & bonus depreciation .

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