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iambene21
New Member

Special Depreciation Allowance Deduction & AMT Special Depreciation Allowance Deduction

I am trying to file my taxes with TurboTax but now I am stuck with these two sections I don't know how to answer. Schedule C k: Special Depreciation Allowance Deduction, and l: AMT Special Depreciation Allowance Deduction. Please help

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JamesG1
Employee Tax Expert

Special Depreciation Allowance Deduction & AMT Special Depreciation Allowance Deduction

Do you have a question about special depreciation or are you receiving Review errors about special depreciation?  Please clarify.

 

Taking bonus or special depreciation is an election that you may make on the tax return if the asset or assets that were purchased qualifiy for the bonus or special depreciation treatment.  You may elect one asset for bonus or special depreciation treatment and another asset not to receive bonus or special depreciation treatment.

 

Bonus or special depreciation allows for 100% bonus "expensing" of assets that are new or used.  See TurboTax Help here.

 

The percentage of bonus depreciation phases down in 2023 to 80%, 2024 to 60%, 2025 to 40%, and 2026 to 20%. After 2026 there is no further bonus depreciation. 

 

This bonus "expensing" should not be confused with expensing under Code Section 179 which has entirely separate rules, see the TurboTax Help.

 

All depreciable items are re-computed under the Alternate Minimum Tax rules.  

 

AMT special depreciation reports the depreciation under the Alternate Minimum Tax rules.

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