California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 7 - Net Income › Article 1 - Deductions › Section 24356(d) - Time and Manner of Making Election

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) Election. A separate election must be
					 made for each income year in which an additional first-year depreciation
					 allowance is claimed with respect to Section
					 24356 property. The election under
					 Section 24356 and Reg. 24356(a) to claim
					 an additional first-year depreciation allowance on Section
					 24356 property shall be made on
					 the taxpayer's tax return for the income year to which the election applies.
					 For the election to be valid, the return must be filed not later than the time
					 prescribed by law (including extensions thereof) for filing the return for such
					 income year. The election shall be made by showing as a separate item on the
					 taxpayer's tax return the total additional first-year depreciation claimed with
					 respect to Section
					 24356 property selected. The
					 additional first-year depreciation claimed with respect to Section
					 24356 property must not be
					 included in the depreciation claimed under Sections
					 24349 through
					 24354 with respect to such
					 property. The taxpayer shall maintain records which permit specific
					 identification of each piece of Section
					 24356 property and reflect how and
					 from whom such property was acquired. The election to claim an additional
					 first-year depreciation allowance under this regulation with respect to any
					 property is irrevocable and shall be binding on the taxpayer with respect to
					 such property for the income year for which the election is made and for all
					 subsequent income years, unless the Franchise Tax Board gives its consent to
					 revoke the election. Similarly, the selection of Section
					 24356 property by the taxpayer to
					 be subject to the additional first-year depreciation allowance must be adhered
					 to in computing the taxpayer's net income for the income year for which the
					 selection is made and for all subsequent income years, unless consent to change
					 the selection of property is given by the Franchise Tax Board.
(2) Revocation. A request to revoke an
					 election under Section
					 24356 and Reg. 24356(a) or to
					 change the property selected for the additional first-year depreciation
					 allowance shall be in writing and shall be addressed to the Franchise Tax
					 Board. The request shall include the name and address of the taxpayer and shall
					 be signed by a principal officer of the taxpayer or its duly authorized
					 representative. It must be filed no later than 6 months after the date
					 prescribed by law (without regard to extensions of time) for filing the tax
					 return for the year in which the allowance under Reg. 24356(a) was claimed,
					 shall be accompanied by a statement showing the year and property involved, and
					 shall set forth in detail the reasons for the request to revoke the election or
					 to change the selection of property. Ordinarily, a request for consent to
					 revoke the election or to change the selection of property will not be granted
					 if it appears from all the facts and circumstances that the only reason for the
					 desired change is to obtain a tax advantage.
(3) Effective Date. The provisions of this
					 regulation apply to all income years ending after December 31, 1958.
1. New
						section filed 3-31-70; effective thirtieth day thereafter (Register 70, No.
						14).[FN*]
This regulation is based on Section
						26 CFR
						1.179-4.
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code.