MDavis1506
Level 1
‎03-11-2021 12:54 PM

In 2020 if a partnership buys and places into service a commercial rental building, can it claim any bonus depreciation?  The partnership has a loss for 2020 before any depreciation is deducted, so it doesn't qualify for Section 179.   My read of the bonus depreciation indicates that any assets with a useful life of greater than 20 years is not eligible for the bonus depreciation deduction.

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sjrcpa
Level 15
‎03-11-2021 12:56 PM

Buildings are not eligible for bonus depreciation.


The more I know the more I don’t know.
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sm965897
Employee
Employee
‎03-11-2021 12:58 PM

Your interpretation is correct. If this asset type is entered on the asset entry worksheet, the program will not allow you to select bonus depreciation since it is not a qualified property type. 

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MDavis1506
Level 1
‎03-11-2021 12:58 PM

Thank you for confirming my research.  Much appreciated.

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