MACRS 80% and 60% Bonus Half-Year & Mid-Quarter Depreciation Methods as per the Tax Cuts and Jobs Act (Doc ID 2860300.1)

Last updated on MAY 17, 2024

Applies to:

Goal

New MACRS bonus depreciation methods are needed as per the Tax Cuts and Jobs Act (26 U.S. Code § 168 - Accelerated cost recovery system):

26 U.S. Code (Internal Revenue Code) § 168 - Accelerated cost recovery system

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(k)SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

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(6) APPLICABLE PERCENTAGE For purposes of this subsection—
(A) In general Except as otherwise provided in this paragraph, the term “applicable percentage” means—
(i) in the case of property placed in service after September 27, 2017, and before January 1, 2023, 100 percent,
(ii) in the case of property placed in service after December 31, 2022, and before January 1, 2024, 80 percent,
(iii) in the case of property placed in service after December 31, 2023, and before January 1, 2025, 60 percent,
(iv) in the case of property placed in service after December 31, 2024, and before January 1, 2026, 40 percent, and
(v) in the case of property placed in service after December 31, 2025, and before January 1, 2027, 20 percent.

Oracle Fusion Assets already provides 100% bonus methods to meet requirements in (i) and 40% bonus methods to meet requirements in (iv).

Solution

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