168(k) Allowance Applicable for LPP and NCA

Issue

Assets with longer production period lives (LPP) and certain non-commercial aircraft (NCA) are generally permitted a higher 168(k) allowance amount than other qualifying assets.

Resolution

You have placed assets in service with a 168(k) allowance percentage indicating that these are either LPP or NCA assets. Please review the group named AA (for Audit Advisor), followed by “168 Allowance,” followed by LPP, followed by the book name, followed by the fiscal year-end [AA-168_<Pct>LPP_XXX-mm/yy where XXX is the book name] to verify the assets are qualifying ‘longer production period assets’ or ‘certain noncommercial aircraft’. If you need to edit the Allowance percent for non-qualifying assets, go to Depreciation > 168 Allowance Switch and select a percentage under Change the qualifying assets to.