Post Bonus Depreciation

For tax depreciation purposes, some assets may be eligible for bonus depreciation, where a business may depreciate an asset faster (in some cases, completely) in the first year.

In many cases, you may not know that an asset is eligible for bonus depreciation.  Your accountant may help you make the determination of what assets are eligible for bonus depreciation, or changes to tax law may occur during your fiscal year that make bonus depreciation available for certain assets or tax years.

If this happens, you have likely posted a year’s worth of depreciation entries that do not include the bonus depreciation amount.  In this case, the Post Bonus Depreciation option can be used to post the difference between what was posted (before the bonus amount was known) and what should have been posted if the bonus amount had been included.

Go to Fixed Assets > Post Bonus Depreciation.

Starting and Ending Date

Enter the Starting and Ending Date range that you want to post bonus depreciation for.

Type

Select the Type, either Federal State or Alt. Min. Tax.

Final Posting

Select this box if this is the Final Posting.