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Audit Advisor Validations

Reviewing Assets for Tax Compliance

168(k) 100% Allowance applicable on 1/20/2025 and later

This Audit Advisor identifies assets placed in service after 1/19/2025, that use a +168 depreciation method and claim less than 100% bonus depreciation.

Issue

Section 168(k) allows 100% first-year bonus depreciation for qualifying property placed in service on or after January 20, 2025. This review highlights assets using a bonus method (MA, AA, SB) with less than 100% bonus applied.

Other bonus percentages may be used for specific reasons:

  • Electing 40% or 60% for assets placed in service between 1/20/2025 and 12/31/2025, or

  • Reuse and recycling property – 50%.

Resolution

The system has identified assets that may be eligible for 100% bonus. Review the asset group created below to verify any qualifying assets.

For qualifying assets, select Depreciation > 168 Allowance Switch, enter the fiscal year end, and select Change qualifying assets to 100% allowance.

Group Created

AA-168_100>24-XXXX-mm/yy: where XXXX stands for book name