Hello Dynamics community,
One of my clients in the USA has a fixed asset purchased on January 1, 2022 for $48,101.61. For 2022, there is 100% bonus depreciation.
I have set up a BONUS depreciation book. I know it is set up properly because bonus depreciation is calculating correctly when testing for vehicles purchased in other years where the bonus depreciation rate is 80%.
The problem... I have tried every which way to get 100%% bonus depreciation and $0 of normal depreciation. I cannot get it to work.
Here are the various setups that I tried which did not work:
- Straight-Line with a Fixed Depr. Amount: BC calculated 100% bonus depreciation plus an extra amount for the fixed depreciation amount (in other words, calculated more depreciation than the cost of the fixed asset - if I posted this journal, the book value would be negative)
- Straight-line with a depreciation starting date and depreciation ending date: nothing calculated, did not create any journal
- Manual depreciation: nothing calculated, no journal created
- User-Defined with a Depreciation Table Code: if the depreciation table is set up to have $0 depreciation in the first year, then nothing calculates when running calculate depreciation. If I use a depreciation table that does have amounts in the first year then it calculates 100% depreciation plus an additional amount of depreciation based off of the Depreciation Table setup.
- Declining Balance 1: nothing is calculated and no journal lines created.
Business Central should calculate $41,101.61 of bonus depreciation and $0 of regular depreciation.
Is it possible to get this to work in this way?
Bonus depreciation rate is 100% for any fixed assets placed in service after 1/20/2025 (due to One Big Beautiful Bill Act), so we will have a problem getting bonus depreciation to work for a lot of fixed assets!
