Note: Versions of the program before 2021.1 don’t have the option to take 80 allowance on assets Placed in Service in 2023. It’s recommended to update to version 2023.1 or higher

When applying the 168 Allowance switch, only qualified assets placed-in-service in the year entered will change. See How to apply 168 allowance.  

 

Qualifying assets:

• Activity Code is A (Active). (Assets that haven’t been Transferred or Disposed.)
• Placed-in-Service date is 09/11/2001 to 12/31/2004 or 01/01/2008 to 12/31/2027.
• Depreciation method is a MACRS method or SF.
• Property type is P, A, T, Q, R, S, C, E, or F.
• Estimated Life Less than 25 years (certain properties with a 39-year life do qualify)
• Business use is 51% or greater.

Dates when 168 Allowance Percentages apply:

• Assets Placed in Service between 09/11/2001 to 05/22/2003 take 30% allowance
• Assets Placed in Service between 05/23/2003 to 12/31/2004 take 50% allowance
• Assets Placed in Service between 01/01/2008 to 09/07/2010 take 50% allowance
• Assets Placed in Service between 09/08/2010 to 12/31/2011 take 100% allowance
• Assets Placed in Service between 01/01/2012 to 09/27/2017 take 50% allowance
• Assets Placed in Service between 09/28/2017 to 12/31/2022 take 100% allowance
• Assets Placed in Service between 01/01/2023 to 12/31/2023 take 80% allowance
• Assets Placed in Service between 01/01/2024 to 12/31/2024 take 60% allowance
• Assets Placed in Service between 01/01/2025 to 01/19/2025 take 40% allowance
• Assets Placed in Service on or after 01/20/2025 onward take 100% allowance