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The status of our corporation changed from an S corporation to a C corporation. How does this status change affect the federal bonus depreciation subtraction?

April 26, 2017affect Bonus changed corporation depreciation Federal Status

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The status of our corporation changed from an S corporation to a C corporation. How does this status change affect the federal bonus depreciation subtraction?

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If the shareholder added back 80 percent for the year the bonus depreciation is taken, there is a subtraction in equal parts for the following five years, regardless of any subsequent change in status for the entity. (M.S. 290.01, subd. 19b. subp. 10).