Related topics

Calculating the 168 Allowance

Plus 168 Depreciation Methods

Section 168 Extra Bonus Window

Note: 100% 168 Allowance is available for assets placed in service as of January 20, 2025, and later.

The 168 Extra feature allows you to apply any available 168 Allowance percentage—including 100%—to assets placed in service in tax years 2023 and later. It offers flexibility by enabling the use of these percentages outside the periods in which they are valid for U.S. Federal tax purposes. Common use cases include applying a state-specific first-year bonus rate that differs from federal rules or using a custom rate for internal planning or modeling purposes.

To enable the 168 Extra feature and apply an Extra Bonus percentage:

  1. Go to File > Edit Company

  2. Select the Sec. 168 Extra checkbox to open this dialog

  3. If the checkbox is already selected, the Select % button opens the dialog

  4. Select the checkbox next to a percentage

    That percentage will then display in the 168 Allowance % field dropdown as an option in any book with a Plus 168 method selected (MA, AA, SB). Different percentages can be selected for different books.

    If the 168 Extra percent is selected when entering a new asset in 2023 or later in one or more books, the 168 Allowance % label bolds, and a plus sign is added to the field.

Items in this window

Item Notes
100% Allowance Check this box to use the 100% Allowance.
80% Allowance Check this box to use the 80% Allowance.
60% Allowance Check this box to use the 60% Allowance.
50% Allowance Check this box to use the 50% Allowance.
40% Allowance Check this box to use the 40% Allowance.
30% Allowance Check this box to use the 30% Allowance.
20% Allowance Check this box to use the 20% Allowance.
[Select All] / [Unselect All] Select this button to either select the check boxes or to clear the check boxes for all allowance percentages.
[Save] Select this button to save your selections and close the dialog.

 

Using the 168 Extra feature

  • Enable the 168 Extra bonus feature, then apply it to newly added assets.

Note: Unchecking the 168 Extra checkbox does not remove the bonus percentage where it was previously applied.

  • Once the 168 Extra bonus percentage is activated for an asset, it remains available for selection, even if you later decide to:

    • Select a depreciation method other than MA, AA, or SB

    • Select a valid U.S. Federal 168 Allowance percentage (e.g. 100%)

  • After enabling the 168 Extra feature, the 168 Allowance Switch can apply a 168 Extra percentage to any newly added assets.

  • If the selected 168 Extra percentage matches a valid U.S. Federal 168 Allowance percentage, it will be treated as a standard Federal bonus rate.

Note: See Utility Reports Overview for instructions on verifying the 168 Extra setup for your company.