Section 168 K

K special allowance for certain property acquired after december 31 2007 and before january 1 2020.

Section 168 k. First bonus depreciation is another name for the additional first year depreciation deduction provided by section 168 k. Section 168 k allows a taxpayer to take an additional first year depreciation deduction in the placed in service year of qualified property. 168 k 5 allows a taxpayer to elect to deduct additional first year depreciation for certain plants.

Internal revenue code section 168 k 5 accelerated cost recovery system. 168 k 7 allows a taxpayer to elect not to deduct additional first year depreciation for any class of qualified property placed in service by the taxpayer during the tax year. Section 168 k allows taxpayers to expense 100 of the cost of qualified assets bought and placed in service between september 28 2017 and december 31 2022.

Prior to enactment of the tcja the additional first year depreciation deduction applied only to property where the original use began with the taxpayer. The depreciable property must be of a specific type. Internal revenue code section 168 k accelerated cost recovery system a general rule.

This section provides the rules for determining the 30 percent additional first year depreciation deduction allowable under section 168 k 1 for qualified property and the 50 percent additional first year depreciation deduction allowable under section 168 k 4 for 50 percent bonus depreciation property. In order to be eligible for the extended and modified 100 bonus depreciation your property must meet four key requirements. Download the full publication bonus depreciation final and proposed regulations released.