Kathi_at_Intuit
Employee
Employee

Based on Publication 535, pg 51 I do not believe Straight Line qualifies as it states:

The depreciable period ends on the later of 10 years after the property is placed-in-service or the last day of the full year for the applicable recovery period under section 168.

Straight Line is a nonrecovery method and in Lacerte screen 22 Depreciation>Additional Information >Unadjsted Basis Immediately After Acquisition>1=include asset, 2=exclude asset [O] if you were to click in this box and type F1 on your keyboard it would bring up the in product help that states:


UBIA: 1=include asset, 2=exclude asset [O]
Additional Information Screen 22; Code 499


Enter 1 to include the asset in the UBIA calculation, or enter 2 to exclude the asset from the UBIA calculation.

If the asset has a MACRS Method selected, not sold during the year, not a 754 or 743 asset (Partnership), and not an amortized asset the basis is included in the UBIA calculation.

For assets marked to depreciate using Alternative Depreciation System then the recovery period used is the normal MACRS life (not the ADS life).

IRS guidance for assets to include:

(A) which is held by, and available for use in, the trade or business at the close of the taxable year,

(B) which is used at any point during the taxable year in the trade or business’s production of QBI, and

(C) the depreciable period for which has not ended before the close of the individual’s or RPE’s taxable year.

The depreciable period is

(A) The date that is 10 years after such date, or

(B) The last day of the last full year in the applicable recovery period that would apply to the property under section 168(c), regardless of any application of section 168(g).

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