if you buy Computer machinery in 2018 and place it in service in the united states and then in 2019 you decide to move it to Canada can you still take a bonus depreciation since it was not a foreign property in 2018?
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Since the computer equipment is a "server that is set up in the facility" in Canada, it was used predominantly outside the US as defined under §1.48-1(g)(1)(i) for purposes of §168 from the get-go. Why was it treated otherwise to start with?
If the server was located in the US and was subsequently relocated to Canada (assuming it does not trigger PE in Canada), it would constitute a change in use and require an adjustment to how the asset should be depreciated. You may refer to §1.168(i)-4(d) for the details and Example 3, in particular, which clearly lays out the exact treatment.
Since the computer equipment is a "server that is set up in the facility" in Canada, it was used predominantly outside the US as defined under §1.48-1(g)(1)(i) for purposes of §168 from the get-go. Why was it treated otherwise to start with?
If the server was located in the US and was subsequently relocated to Canada (assuming it does not trigger PE in Canada), it would constitute a change in use and require an adjustment to how the asset should be depreciated. You may refer to §1.168(i)-4(d) for the details and Example 3, in particular, which clearly lays out the exact treatment.
Can a business claim Bonus Depreciation on equipment (say worth $6 Millions) which is bought by a company in USA and then leased out to a company outside the USA - bought and placed on lease in 2020?
If yes, then up to what amount can the Bonus Deduction be claimed?
Also, the provisions of S.168 pertaining to equipment predominantly used outside USA would not apply for Bonus Depreciation, isn't it?
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