Where do I find "bonus depreciation"/"special depreciation allowance" for an asset?
I'm adding a new depreciable asset for 50% business use, and I can't find the option to use a "bonus depreciation" or "special depreciation allowance," like TurboTax lets me do.
The FAQ entry suggests that it exists:
"Bonus depreciation is also referred to as a special depreciation allowance. You can enter it when you enter a depreciable asset.
Bonus depreciation is a one-time deduction that can increase the amount of depreciation deduction that you get in the first year that you take it. This essentially depreciates your asset faster than normal, so depreciation in future years will be lower than it otherwise would be without taking the bonus depreciation.
Bonus depreciation is not always available and the amount of bonus depreciation can also change depending on current legislation."
However, this option does not exist on the page where I add the depreciable asset. Where do I find this functionality?
Best Answer
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Nevermind, I figured it out. If you set your business use to 51% or higher, then the option appears.
Answers
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Hello,
I'm glad you were able to figure it out. According to the instructions for 4562, qualified property does not include property used 50% or less in a qualified business use. Or in other words, it needs to be more than 50% used in the business. (See page 6: )
