Why is the program not allowing me to elect 50% Bonus on Question 2 of the Asset Entry Worksheet? The only way it allows this is an override.

[Just-Lisa-Now-]

what type of asset is it?

[tmarie1957]

MACRS 7 year property

[IRonMaN]

I'm thinking it won't allow you to take 50% because 50% isn't an option for 2018.

[dd4vols]

Bonus depreciation is only 0% or 100% in 2018.

[tmarie1957]

The information I am seeing says there is a transitional rule providing that a taxpayer may elect for all qualifying property placed in service in the first tax year ending after September 27, 2017 to apply 50% bonus rather than 100% bonus (IRC Sec 168(k)(10)(A)

[Terry53029]

Tmarie, I think it means 2017. !!!!  In the case of qualified property placed in service by the taxpayer during the first taxable year ending after September 27, 2017, if the taxpayer elects to have this paragraph apply for such taxable year, paragraphs (1)(A) and (5)(A)(i) shall be applied by substituting “50 percent” for “the applicable percentage”

[tmarie1957]

OK.  Thank you for the clarification.  

[TaxGuyBill · Accepted solution]

As the others have said, it is not allowed on 2018 tax returns.

If this is on a calendar year return, the "first tax year ending after September 27, 2017" was 2017, so it is not allowed in 2018.  If this is on a fiscal year return, you should probably be using the 2017 software, which should allow 50%.