Why are 15 year depreciable assets (QLIP/QRIP) not allowing me to elect 100% bonus depreciation without override in ProSeries 2018?

[n_ferland]

I am trying to include bonus depreciation on qualified leasehold improvements (15 year life) but I cannot elect it without overriding.

[TaxGuyBill · Accepted solution]

As of now, they DON'T have a 15 year life and DON'T qualify for Bonus Depreciation.

However, because the INTENT of the TCJA was to make it 15 years and qualify for Bonus, there is VERY likely going to be a change to that.

Until/unless Congress changes that, you probably should not claim 15 years and Bonus.  If/when they change that, you can go to the Federal Info Worksheet (where you enter the taxpayer's name, address, etc.) and check the box to apply the 15 year rules (see picture).

[IntuitCharlene]

I'm seeing the same behavior for 2018. I know there were a few depreciation rules that changed around Qualified Leasehold Improvements for the year. Let me do some digging on this and get back to you. 

[rbynaker]

I'm not in front of the software right now, but isn't there a new checkbox on the Info Wks re:QIP?  I think we're still waiting on a technical correction since, as written, the law contradicts itself.  I've been wondering what that checkbox actually does. 🙂

Rick

[IntuitCharlene]

Great call out! On the Federal Info Worksheet there is a box for 2017 Tax Cuts and Job Act that uses the 15-year recovery period. If you check that YES it does allow you to check the Qualified Property box on the asset entry worksheet.