Related topics

Audit Advisor Validations

Reviewing Assets for Tax Compliance

168(k) Allowance of 100%

Issue

The 168(k) Allowance of 100% has been reinstated for qualifying assets placed in service after 9/27/2017 to 12/31/2022 (through 2023 for assets with longer production lives and certain aircraft). Different percentages apply for qualifying assets acquired before 9/28/2017.

Resolution

The system has detected that you may have assets placed in service that qualify for the 168 Allowance of 100%. Please review your current year acquisitions to determine whether an asset qualifies. If an asset does qualify, select the Depreciation>168 Allowance Switch, enter the fiscal year end and select Change qualifying assets to 100% allowance.

  1. In the Asset List, display the group of assets that the Audit Advisor created. The group is named AA (for Audit Advisor), followed by “168 Allowance,” followed by the book name, followed by the fiscal year-end. For example, if you selected the Tax book and a fiscal year ending in December, 2023 in the Audit Advisor dialog, then the group would be called AA-168_100Allw-Tax-12/23.
  2. Review the assets in the group to determine which, if any, of the assets should be switched to 100%.
  3. Select Depreciation>168 Allowance Switch and select Change qualifying assets to 100% allowance for these assets.