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R11i to R12.1 Missing 50% AMT Bonus Methods Under IRS Pre-2012 Taxpayer Relief Act Law (Doc ID 1638126.1)

Last updated on FEBRUARY 03, 2019

Applies to:

Oracle Assets - Version to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.
Depreciation Methods


On : 12.1.3 version, Deprn Method

Need 50% AMT Bonus Methods to meet IRS requirements with pre-2012 Taxpayer Relief Act law (pre-Act law), the Code Sec. 168(k):

The American Taxpayer Relief Act extends (and in some cases modifies) a number of depreciation breaks, including:

(1) increased Section 179 expensing limitations and treatment of certain real property as eligible Section 179 property;
(2) 50% bonus depreciation; and
(3) 15-year straight line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.

Under pre-2012 Taxpayer Relief Act law (pre-Act law), the Code Sec. 168(k) additional first-year depreciation deduction (also called bonus first-year depreciation) generally is allowed equal to 50% of the adjusted basis of qualified property acquired and placed in service after Dec. 31, 2011, and before Jan. 1, 2013 (before Jan. 1, 2014 for certain longer-lived and transportation property). The additional first-year depreciation deduction is allowed for both regular tax and alternative minimum tax (AMT) purposes, but is not allowed for purposes of computing earnings and profits. The basis of the property and the depreciation allowances in the year of purchase and later years are appropriately adjusted to reflect the additional first-year depreciation deduction. A taxpayer may elect out of additional first-year depreciation for any class of property for any tax year.


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