How Do You Elect the Deduction?

Words you may need to know (see Glossary):

• Listed property
• Placed in service

You elect the section 179 deduction by completing Part I of Form 4562.

If you elect the deduction for listed property (described in chapter 4), complete Part V of Form 4562 before completing Part I.

File Form 4562 with either of the following.

• Your original tax return filed for the year the property was placed in service (whether or not you file it timely).
• An amended return filed by the due date (including extensions) for your return for the year the property was placed in service. (You cannot make an election for the section 179 deduction on an amended return filed after the due date (including extensions).)

If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within six months of the due date of the return (excluding extensions). For more information, see the instructions for Part I of Form 4562.

You must keep records that show the specific identification of each piece of qualifying section 179 property. These records must show how you acquired the property, the person you acquired it from, and when you placed it in service.

Revoking an election. Once you elect a section 179 deduction, you cannot change your selection of qualifying property or revoke your election without IRS approval. The IRS will grant approval only in extraordinary circumstances. A request to change or revoke the election is subject to a user fee.

When you file your request you must include the following information.

• Your name.
• Your address.
• Your taxpayer identification number (TIN).
• A statement showing the year and property involved and your reasons, in detail, for the request.

The request must be signed by you or your representative.

You must file your request with the:
Commissioner of Internal Revenue
Washington, DC 20224