Tax legislation doesn’t stand still, and the One Big Beautiful Bill Act (OBBBA) is the latest example of how quickly the landscape can shift. In response, CCH tax experts have introduced key updates for CCH Axcess Tax and CCH ProSystem fx Tax to help firms stay aligned with new federal requirements. The updates include changes to AMT treatment of Section 1202 stock, revised bonus depreciation rules for fiscal year filers, and enhancements to the Tax Projector for planning into 2025.
Individual & fiduciary: AMT adjustments for Section 1202 stock
Form 6251 (Alternative Minimum Tax) and Schedule I (1041) have been updated to reflect OBBBA provisions excluding gain on Section 1202 stock from AMT calculations, provided the stock was issued after September 27, 2010.
To apply this change to prior year returns:
- Individual returns: Use Interview Form T-8, Box 47 under Qualified small business stock – adjustment.
- Fiduciary returns: Use Interview Form T-6, Box 51 under Section 1202 exclusion – override.
These updates ensure accurate treatment of qualified small business stock under the revised AMT rules.
Entity returns: Bonus depreciation changes
For fiscal year returns only in Tax Year 2024, assets placed in service after January 19, 2025 will automatically calculate 100% bonus depreciation unless an election is made to opt out. Firms preferring 40% or 60% bonus depreciation must explicitly force the desired rate.
If an asset is considered Qualified Production Property, users can force 100% bonus depreciation for the nonresidential property using the bonus code option. A diagnostic will be issued indicating that a statement may be needed, though IRS guidance on this election is still pending.
