Applying the One Big Beautiful Bill changes to Depreciation in ProSeries Fixed Asset Manager

Table of contents:

What's new for tax year 2025

The One Big Beautiful Bill brings many changes to Section 179 and Special Deprecation Allowance. Here are some of the key updates:

• Qualified production property placed in service after July 4, 2025, the construction of which began after January 19, 2025, may be eligible for a 100% special depreciation allowance.
• Section 179 deduction dollar limits have been increased, including the amount for SUV's.
• For certain qualified property placed in service before January 20, 2025, a phase-down of the special depreciation allowance is in place.
• Certain qualified property placed in service after January 19, 2025 may be eligible for 100% special depreciation allowance or you can elect to take 40%.
• Domestic research and experimental expenditures may be amortized over either a 60 month, or 10-year period. Different periods apply for foreign research.

For full details, review the 4562 instructions.

To take the 100% Special Depreciation Allowance in tax year 2025:

1. Go to the Asset tab.
2. Enter the General Asset Information.
3. Enter the asset details for Federal.
4. On the line (Check both to elect 30% if post-5/5/03) line check the 50/100% box.

Back to Table of Contents

To elect out of the 100% Special Depreciation Allowance in tax year 2025:

You can opt this to use the pre-One Big Beautiful Bill Act percentages (Either 40 or 60% depending on the asset) by completing the following:

1. Go to the Asset tab.
2. Enter the General Asset Information.
3. Enter the asset details for Federal.
4. On the line (Check both to elect 30% if post-5/5/03) line check the 50/100% box.
5. Check the Elect bonus phasedown in place of 100% Special Depr. Allowance if post - 1/19/25 checkbox.

Back to Table of Contents