Article: 50114

Overview

Bonus depreciation is an additional special depreciation allowance that may be available for qualified property placed in service during the tax year. It allows taxpayers to take a larger deduction in the first year the property is placed in service. The allowance is an additional deduction you can take after any section 179 expense deduction and before you figure regular depreciation under MACRS.

Elect Out of Bonus Depreciation

To elect out of bonus depreciation on your return:

1. Go to the Federal taxes section.
2. Click on the Review tab on the left-hand side.
3. Select I’d like to see the forms I’ve filled out or search for a form.
4. In the search box, enter Bonus Depreciation. Click Form 4562 Additional Depreciation Elections to add and open the form.
5. Select the appropriate check boxes.
6. Click Save to apply changes.

Additional Information

Refer to the following or additional information regarding bonus depreciation:

• The IRS’s Additional First Year Depreciation Deduction (Bonus) – FAQ page
• About Form 4562
• Publication 946, How to Depreciate Property