Claiming Bonus Depreciation for 2015 Assets

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Posted by Kim Chen on September 5th, 2016

Businesses with tax years beginning in 2014 and ending in 2015 that filed their 2014 returns before the PATH ACT was enacted, permanently extending the 50% first-year depreciation deduction under IRC Sec. 168(k) , may be uncertain how to claim the deduction for business equipment and software placed into service after 2014. In a Revenue Procedure, the IRS explains that the bonus depreciation can be claimed by filing an amended tax return for 2014 or the 2015 short tax year or by filing a Form 3115 (Application for Change in Accounting Method). Also included is guidance on electing to claim the Section 179 deduction for qualified real property under IRC Sec. 179(f) and foregoing bonus depreciation to claim the AMT credit under IRC Sec. 168(k)(4). Rev. Proc. 2016-48, 2016-37 IRB .