IRS written determination 202607009

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 202607009
Release Date: 2/13/2026
Index Number: 9100.04-00

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November 14, 2025

Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:ITA:B07
PLR-111411-25
Date:
Re: Request for Extension of Time to Make the § 168(k)(7) Election
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Legend

Taxpayer = -------------------------------------------------------------------------------------------
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Firm = -----------------------
Taxable Year = -----------------------------------------------------
Date1 = ----------------
Date2 = ---------------------------
Date3 = ---------------------------
Date4 = --------------------------

Dear ----------:
This letter refers to a letter dated May 19, 2025, submitted on behalf of Taxpayer
by Taxpayer’s authorized representative, requesting an extension of time pursuant to
§§ 301.9100 and 301.9100-3 of the Procedure and Administration Regulations to make
the election not to deduct the additional first year depreciation under § 168(k) of the
Internal Revenue Code (Code) for all classes of qualified property placed in service by
Taxpayer during the Taxable Year.
All references in this letter ruling to § 168(k) are treated as a reference to
§ 168(k) as in effect after amendment by Public Law 115-97, 131 Stat. 2054 (Dec. 22,
2017), commonly known as the Tax Cuts and Jobs Act (TCJA), and prior to amendment
by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big,
Beautiful Bill Act (OBBBA).

PLR-111411-25

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FACTS

Taxpayer represents that the facts are as follows:
Taxpayer, a limited liability company, files a Form 1065, U.S. Return of
Partnership Income, on a calendar-year basis. Taxpayer's overall method of accounting
is an accrual method.
Taxpayer engaged Firm to prepare and file its federal income tax return for the
Taxable Year. Between Date1 and Date2, Taxpayer’s team provided Firm with draft
financial models to use in preparing Taxpayer’s federal income tax return for the
Taxable Year, and Firm provided Taxpayer’s team with draft federal income tax returns
for the Taxable Year based on these draft financial models. The draft financial models
and draft federal income tax returns reflected an election not to deduct additional first
year depreciation for all classes of property that are qualified property and that were
placed in service by Taxpayer during the Taxable Year.
On Date2, Firm provided Taxpayer with a final draft federal income tax return,
consistent with an election not to claim the additional first year depreciation deduction
under § 168(k) for all classes of property placed in service in the Taxable Year.
On Date3, Taxpayer’s Form 1065 was timely filed. However, Firm personnel
inadvertently failed to attach the required election statement to the Form 1065.
On Date4, an employee of Taxpayer discovered Firm’s error and notified Firm.
Firm then advised Taxpayer to file this request to obtain an extension of time pursuant
to §§ 301.9100-1 and 301.9100-3 to make the election not to deduct additional first year
depreciation.
RULING REQUESTED
Accordingly, Taxpayer requests an extension of time pursuant to §§ 301.9100-1
and 301.9100-3 to make the election under § 168(k)(7) not to deduct the additional first
year depreciation for all classes of qualified property that were placed in service by
Taxpayer during the Taxable Year.
LAW
Section 168(k)(1) allows, for the taxable year that qualified property is placed in
service, an additional first year depreciation deduction equal to the applicable
percentage of the adjusted basis of that qualified property.

Section 168(k)(6) provides the applicable percentages for qualified property
acquired by a taxpayer after September 27, 2017. Each applicable percentage
depends on the date that such qualified property is placed in service by the taxpayer.

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Section 168(k)(7) allows a taxpayer to elect out of additional first year
depreciation for any class of property placed in service during the taxable year.

For property acquired after September 27, 2017, § 1.168(k)-2(f)(1) of the Income
Tax Regulations provides the rules for making the § 168(k)(7) election. Pursuant to
§ 1.168(k)-2(f)(1)(i), the § 168(k)(7) election applies to all qualified property that is in the
same class of property and placed in service in the same taxable year.

Section 1.168(k)-2(f)(1)(ii) defines the term “class of property” as meaning,
among other things, each class of property described in § 168(e) (for example, 5-year
property).

Section 1.168(k)-2(f)(1)(iii) provides the time and manner of making the
§ 168(k)(7) election.

Section 1.168(k)-2(f)(1)(iii)(A) provides that the election not to deduct the
additional first year depreciation must be made by the due date, including extensions, of
the Federal tax return for the taxable year in which the qualified property is placed in
service by the taxpayer.

Section 1.168(k)-2(f)(1)(iii)(B) provides that the election not to deduct the
additional first year depreciation must be made in the manner prescribed on Form 4562,
“Depreciation and Amortization,” and its instructions. The instructions to Form 4562 for
the Taxable Year provide that the election not to deduct the additional first year
depreciation is made by attaching a statement to the taxpayer's timely-filed tax return
indicating that the taxpayer is electing not to deduct the additional first year depreciation
and the class of property for which the taxpayer is making the election.

Sections 301.9100-1 through 301.9100-3 provide the standards the
Commissioner of Internal Revenue will use to determine whether to grant an extension
of time to make a regulatory election. Under § 301.9100-1(a), the Commissioner has
discretion to grant a reasonable extension of time under the rules set forth in
§§ 301.9100-2 and 301.9100-3 to make a regulatory election.

Section 301.9100-2 provides automatic extensions of time for making certain
elections. Section 301.9100-3 provides extensions of time for making elections that do
not meet the requirements of § 301.9100-2.

Section 301.9100-1(b) provides that the term “regulatory election” includes an
election whose due date is prescribed by a regulation published in the Federal Register,
a revenue ruling, revenue procedure, notice, or announcement published in the Internal
Revenue Bulletin.

Section 301.9100-3(a) provides that requests for relief under § 301.9100-3 will be
granted when the taxpayer provides evidence to establish to the satisfaction of the

PLR-111411-25

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Commissioner that the taxpayer acted reasonably and in good faith and that granting
relief will not prejudice the interests of the Government.
CONCLUSION
Based solely on the facts and representations submitted, we conclude that the
requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied. Accordingly,
Taxpayer is granted an extension of 60 calendar days from the date of this letter ruling
to make the election under § 168(k)(7) not to deduct the additional first year
depreciation deduction under § 168(k) for all classes of property that are qualified
property and that were placed in service by Taxpayer in the Taxable Year. This election
must be made by Taxpayer filing an amended federal income tax return for the Taxable
Year, with a statement indicating that Taxpayer is electing not to deduct the additional
first year depreciation for all classes of property that are qualified property placed in
service by Taxpayer in Taxable Year.

A copy of this letter should be attached to the amended Form 1065. A taxpayer
filing its federal return electronically may satisfy this requirement by attaching a
statement to their return that provides the date and control number of the letter ruling.

Except as specifically set forth above, no opinion is expressed or implied
concerning the federal income tax consequences of the facts described above under
any other provisions of the Code (including other subsections of § 168). Specifically, no
opinion is expressed or implied on whether: (1) any item of depreciable property placed
in service by Taxpayer in the Taxable Year is eligible for the additional first year
depreciation deduction under § 168(k) or (2) Taxpayer's classification of any item of
depreciable property under § 168(e) or Rev. Proc. 87-56, 1987-2 C.B. 674, is correct.

The ruling contained in this letter is based upon information and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. While this office has not verified any of the material submitted
in support of the request for rulings, it is subject to verification on examination.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of
the Code provides that it may not be used or cited as precedent.

In accordance with the Power of Attorney on file with this office, a copy of this
letter is being sent to your authorized representatives. We are also sending a copy of
this letter to the appropriate operating division director.

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Sincerely,

Charles J. Magee
Senior Counsel, Branch 7
Office of Associate Chief Counsel
(Income Tax & Accounting)

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