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such attachment shall include, “Except as otherwise provided in
the return or in the instructions accompanying the return”: (1)
The name, address, and taxpayer identification number of the
electing taxpayer, (2) the identification of the election, (3)
the section of the Code under which the election is made, (4) the
period for which the election is being made and/or the property
to which the election is to apply, and (5) any other information
required by the statute and necessary to show that the taxpayer
is entitled to make the election. Id.
Form 4562 provides a line specifically for taxpayers to
report the amount of depreciation taken for “Property subject to
section 168(f)(1) election”. The instructions for Form 4562
instruct the taxpayer to:
Report property that you elect, under section
168(f)(1), to depreciate under the unit-of-production
method or any other method not based on a term of years
(other than the retirement-replacement-betterment
method). Attach a separate sheet showing (a) a
description of the property and the depreciation method
you elect that excludes the property from ACRS or
MACRS; and (b) the depreciable basis.
Instructions for Form 4562, Line 17.
If all of the requirements have not been met, an election
may still be valid if the taxpayer substantially complied with
these requirements. ABC Rentals of San Antonio, Inc. v.
Commissioner, T.C. Memo. 1999-14. In ABC Rentals of San Antonio,
Inc., the Court held that a taxpayer failed to make a proper
election out of MACRS for one year (year 1) when the taxpayer
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Last modified: May 25, 2011