depreciation of a qualified nonpersonal vehicle (school bus)

[lyndaj0331]

Does anyone have any experience with depreciation of qualified non-personal vehicles?  It is a school bus.  The last one was purchased before all of the qualified property options and was depreciated as asset type Z using the SL method for a recovery period of 12 years.  That was done by someone else and doesn't really apply to this new vehicle.  Thank you.

[TaxGuyBill]

What is your question?

What does "all of the qualified property options" mean?

If the prior method of depreciation was incorrect, you may need to file Form 3115 to fix it.

[lyndaj0331]

This is a new bus purchased in 2023 - I feel like i should still be using asset type Z, but not sure about the recovery period and/or method.  Also, was wondering if any bonus appreciation options might be allowed with qualified non-personal vehicles.  Thank you.

[TaxGuyBill · Accepted solution]

Buses are depreciated over 5 years (9 years for ADS purposes).

I'm not aware of any restrictions for how to depreciate it. You can use Straight-Line, 150%DB, 200%DB, Bonus and/or Section 179. 

[lyndaj0331]

Thank you.