SECTION 5. ELECTION NOT TO

APPLY § 168(j)

.01 In General . The § 168(j)(8) election applies to all qualified Indian reservation property, as defined in § 168(j)(4),

Bulletin No. 2017–19 1241 May 8, 2017

that is in the same class of property and placed in service in the same taxable year. If the § 168(j)(8) election is made for a class of property that is qualified Indian reservation property placed in service during the taxable year, the applicable recovery period for that property for purposes of § 168(a) is determined in accordance with the table contained in § 168(c), and the depreciation adjustments under § 56 and the regulations under § 56 apply to that property for purposes of computing the taxpayer’s alternative minimum taxable income. Once made, the § 168(j)(8) election is irrevocable.

.02 Definition of Class of Property . For purposes of § 168(j)(8) and this section 5, the term “class of property” means each class of property described in the table contained in § 168(j)(2) (for example, 3-year property). .03 Time and Manner for Making the § 168(j)(8) Election .

(1) In general . Except as provided in section 5.03(2) of this revenue procedure, the § 168(j)(8) election must be made by

the due date, including extensions, of the Federal tax return for the taxable year in which the taxpayer places in service the qualified Indian reservation property. Except as provided in section 5.03(2) of this revenue procedure, the § 168(j)(8) election must be made in the manner prescribed on Form 4562, Depreciation and Amortization, and its instructions.

(2) Deemed election . This section 5.03(2) applies to a taxpayer that did not make the § 168(j)(8) election within the time and in the manner provided in section 5.03(1) of this revenue procedure for a class of property that is qualified Indian reservation property placed in service by the taxpayer in its taxable year of less than 12 months beginning and ending in 2016. If this section 5.03(2) applies, the taxpayer will be treated as making the § 168(j)(8) election for a class of property that is qualified Indian reservation property if the taxpayer, on its timely filed Federal tax return for that taxable year, determined depreciation for that class of property under the general depreciation

system of § 168(a) by using the applicable recovery period for that class of property in accordance with the table contained in § 168(c).