Hello Lauren,

The bonus is a reduction of the depreciable basis, not a calculation of the depreciation.

If you are looking at the asset details, the 168 Allowance Amount field will hold that reduction.

If you are looking at a report, by default it does not appear in the YTD column, but it can show up there if, in the Edit Company, you check the box to Include Sec. 168 Allowance and Sec. 179 in expense.

~Delray

understood but my confusion lies in the fact that the differences I am seeing are asset by asset not company by company. so why would it show in the current YTD of some assets vs others?

The 168 does not appear as YTD, only any calculated amount would appear in the YTD field. If you are seeing something else in the asset details, I would need to see that.

~Delray

ok I cant figure out how to insert a picture but the layout is as follows, notice how one asset shows bonus on the current ytd while the other does not. these assets are in the same company so they should in theory be following the same rule.

Hello Lauren,

Ok, if these are Property Type A assets, the 168 amount is not hitting the limit so it is calculating depreciation on the remaining basis which is why you are seeing a YTD of these.

The same would be true for all other assets since the 168 amount is 80%, there is some amount available to do a further calculation after the 168 allowance reduces the basis.

~Delray

property type P

and *7year life. apologies i miswrote that in the example

And now there appears there is going to be a change, see Keeping you informed: Proposed 2024 tax law changes which is just bound to make things interesting.

~Delray