Related topics

Changing the Depreciation Method of a Single Asset

Performing a 168 Allowance Switch

Job Creation and Worker Assistance Act of 2002

Electing Out of the 168 Allowance

The 168 Allowance is taken by all qualifying assets, unless you elect out of the allowance. You can elect out of the allowance for each class of assets (that is, 3-year property, 5-year property, 7-year property, etc.) on a year-to-year basis.

To elect out of the allowance
  1. Select one of the depreciation methods that does not include the additional allowance, such as MACRS formula (MF) or MACRS table (MT).
  2. When you file the Form 4562, you must attach a statement indicating the class of property for which you are electing not to claim the additional depreciation allowance.