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OBBBA Depreciation Change for Fiscal Year Ends

Logan Hundley
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How will the update impact fiscal year-end companies that have already been closed? What will the impact be if the assets placed in service in 2025 have already been depreciated through 2026 vs if they have not?

For example, one of our companies is a 3/31 year-end has already been depreciated through 3/31/2026, while our 5/31 year-end company has been depreciated through 5/31/2025. In both cases the financials are done with bonus depreciation at 40%, but we'll take 100% on the tax return.

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    Hello Logan Hundley,
    The update on the product does not impact the fiscal year-end companies that have already been closed unless you go in and retroactively change this to apply the new updated rules for 100% bonus for 2025. For the assets that have been depreciated through 2026 can be retroacively changed however they will not change unless you do the change on them. The product update will have the tax rules and regulations available would you wish to take part of using them on the assets.

    The 100% bonus will be available in the release 2026.0 with an estimated release date end of summer 2025. The other rules and regulations for this OBBBA will be available in the tax release 2026.1 due out beginning of 2026.

*Community Hub is the new name for Sage City