If I take the Special Depreciation Allowance this year will my property still be depreciated as usual next year?

[Dave_B]

Hi kalanicole_07 - 

Yes, your property will still be depreciated as usual next year.

Although, when you take the Special Depreciation Allowance, you receive a deduction for 50% of the cost of the asset.  Because you received that deduction, you calculate depreciation expense on the remaining 50% cost of that property.

So, for example, if you have a 10,000 asset, you would receive a 5,000 deduction on your 2015 taxes, and you would depreciate the remaining balance of 5,000 over the life of the asset, starting in 2015.

[danexmart]

With the 100% Special Depreciation Allowance as of 2018, wouldn't this mean that assets that take the 100% allowance have no basis left to depreciate in future years?

Example: I claimed the 100% allowance on an asset purchase in FY2019. For FY2020, my understanding is the basis should be $0 and thus no depreciation can be claimed on this asset. Is this correct? On TT Business I'm not able to get to a $0 depreciation, it seems to assume 50% instead of 100%.

[DaveF1006]

If you have already claimed full depreciation on your property, then there is no basis to depreciate. You are correct in your assumption.

[Edited 02-16-2021|04:54 PM PST]