Going forward the passive loss limitation is capped with a MAGI above 150k which they will be so it does them no tax benefit to take full bonus depreciation this year and the state does not follow federal so its best to not take it for improvements made in 2020.

In Lacerte when entering in the asset there is a box to check to not calculate bonus or SDA depreciation. By checking the box on screen 22 the asset input screen you change the calc to the entire useful life not the full year first year depreciation in 2020. However it does not add in the election to the tax return, it has an informational diagnostic stating you did not make the election but it does not prevent an efiling of the return. So my question is is the election required to opt out of bonus depr if its not there will it bring any IRS questions or any unwanted correspondence or do we have to make the official election and make it part of the return?