Irc Section 168 K

Internal revenue code section 168 k 10 accelerated cost recovery system.

Irc section 168 k. 446 e requires a taxpayer to secure the consent of the irs before changing a method of accounting for federal income tax purposes. First bonus depreciation is another name for the additional first year depreciation deduction provided by section 168 k. Prior to enactment of the tcja the additional first year depreciation deduction applied only to property where the original use began with the taxpayer.

168 k 4 k to the code. Read the code on findlaw. 168 k 10 added by the tcja allows a taxpayer to elect to deduct 50 instead of 100 additional first year depreciation for certain qualified property.

The depreciable property must be of a specific type. Section 4 01 of this revenue procedure clarifies which eligible qualified property is round 4 extension property. Internal revenue code 26 usca section 168.

Except as otherwise provided in this section the depreciation deduction provided by section 167 a for any tangible property shall be determined by using 1 the applicable depreciation method 2 the applicable recovery period and 3 the applicable convention. This section provides the rules for determining the 30 percent additional first year depreciation deduction allowable under section 168 k 1 for qualified property and the 50 percent additional first year depreciation deduction allowable under section 168 k 4 for 50 percent bonus depreciation property. Internal revenue code section 168 k accelerated cost recovery system a general rule.

Section 168 k allows a taxpayer to take an additional first year depreciation deduction in the placed in service year of qualified property.