How to apply the 168 allowance

Use the 168 Allowance Switch to update qualifying assets for a selected fiscal year in Sage Fixed Assets Depreciation.

Before you begin

Create a backup before proceeding.

Apply 168 Allowance in Sage Fixed Assets - Depreciation

1. Go to Assets, then select the Asset List.
2. Select at least one asset.
3. From the menu, select Depreciation, then 168 Allowance Switch.
    NOTE: Highlight at least one asset to have the 168 Allowance Switch activate. 
4. Select the Group (Optional) and Book.
5. Enter the Fiscal Year End (FYE) when you placed the asset in service. Use Assets placed in service fiscal year-end field.
6. Select the Allowance Percentage under Change qualifying assets to.
7. Re-run depreciation for the books you applied the 168 allowance to using the Force Recalculate option. 

More Information

• Versions before 2026.0 can’t apply 100% allowance to assets placed in service after 01/20/2025.
• The 168 Allowance Switch won’t affect Disposed or Transferred assets. To update Disposed or Transferred assets, reverse the transaction first. From the Asset Detail view, go to Transactions, Delete Last Transaction, then apply the switch.
• The 168(k) Allowance Switch will affect one Fiscal Year at a time.
• The 168(k) Allowance Switch flips all qualified assets Placed-in-Service in a given year to the selected 168%.
• If books have different Fiscal Year Ends, run the 168(k) Allowance switch on each book separately.
• For information about time periods and percentages to select see What assets qualify for the 168 Allowance switch?