Internal Revenue Bulletin 2019-34 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2019–34
August 19, 2019
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
REV PROC 2019-33, page 662.
This revenue procedure provides guidance allowing a taxpay-
er to make a late election, or to revoke an election, under
section 168(k)(5), (7), or (10) of the Internal Revenue Code
for certain property acquired by the taxpayer after Septem-
ber 27, 2017, and placed in service or planted or grafted,
as applicable, by the taxpayer during its taxable year that
includes September 28, 2017.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
August 19, 2019 Bulletin No. 2019–34

Part III.
26 CFR 1.168(k)-1: Additional first year deprecia-
tion.
(Also Part I, §§ 168, 446; 1.446-1)
Rev. Proc. 2019-33
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance allowing a taxpayer to make a late
election, or to revoke an election, under
§ 168(k)(5), (7), or (10) of the Internal
Revenue Code (Code) for certain property
acquired by the taxpayer after September
27, 2017, and placed in service or planted
or grafted, as applicable, by the taxpayer
during its taxable year that includes Sep-
tember 28, 2017. Section 168(k)(5) allows
a taxpayer to elect to deduct additional
first year depreciation for certain plants.
Section 168(k)(7) allows a taxpayer to
elect not to deduct additional first year
depreciation for any class of qualified
property placed in service by the taxpay-
er during the taxable year to which the
election applies. Section 168(k)(10) was
added to the Code by § 13201 of Public
Law 115-97 (131 Stat. 2054), commonly
referred to as the Tax Cuts and Jobs Act
(TCJA), and allows a taxpayer to elect to
deduct 50-percent, instead of 100-percent,
additional first year depreciation for cer-
tain qualified property.
SECTION 2. BACKGROUND
.01 Amendments to § 168(k).
(1) Prior to amendment by § 13201 of
the TCJA, § 168(k)(1) allowed a 50-per-
cent additional first year depreciation
deduction for qualified property for the
taxable year in which the qualified prop-
erty is placed in service by the taxpayer.
Qualified property was defined in part as
property the original use of which begins
with the taxpayer.
(2) Section 13201 of the TCJA made
several amendments to § 168(k). For ex-
ample, the additional first year deprecia-
tion deduction percentage was increased
from 50 percent to 100 percent; the prop-
erty eligible for the additional first year
depreciation deduction was expanded to
include certain used depreciable property
and certain film, television, or live theat-
rical productions; the placed-in-service
date was extended from before January
1, 2020, to before January 1, 2027 (from
before January 1, 2021, to before January
1, 2028, for property described in § 168(k)
(2)(B) or (C)); and the date on which a
specified plant is planted or grafted by the
taxpayer was extended from before Janu-
ary 1, 2020, to before January 1, 2027.
(3) Section 13201(e) of the TCJA also
amended § 168(k) by adding § 168(k)(10)
to the Code. It allows a taxpayer to elect to
deduct 50-percent, instead of 100-percent,
additional first year depreciation for qual-
ified property acquired by the taxpayer af-
ter September 27, 2017, and placed in ser-
vice by the taxpayer or planted or grafted,
as applicable, during its taxable year that
includes September 28, 2017.
(4) Section 13201(h) of the TCJA pro-
vides the effective dates of the amend-
ments to § 168(k) made by § 13201 of the
TCJA. Except as provided in § 13201(h)
(2) of the TCJA, these amendments apply
to property acquired and placed in ser-
vice after September 27, 2017. However,
property is not treated as acquired after
the date on which a written binding con-
tract is entered into for such acquisition.
Section 13201(h)(2) of the TCJA provides
that these amendments apply to specified
plants planted or grafted after September
27, 2017.
(5) Additionally, § 12001(b)(13) of the
TCJA repealed § 168(k)(4), relating to
the election to accelerate alternative min-
imum tax credits in lieu of the additional
first year depreciation deduction, for tax-
able years beginning after December 31,
2017. Further, § 13204(a)(4)(B)(ii) of the
TCJA repealed § 168(k)(3), relating to
qualified improvement property, for prop-
erty placed in service after December 31,
2017.
(6) Unless otherwise provided, all
references in this revenue procedure to
§ 168(k) hereinafter are references to
§ 168(k) as amended by the TCJA.
.02 Elections.
(1) Section 168(k)(5) allows a taxpay-
er to elect to deduct additional first year
depreciation for any specified plant, as
defined in § 168(k)(5)(B), that is planted
before January 1, 2027, or grafted before
that date to a plant that has already been
planted, by the taxpayer in the ordinary
course of its farming business, as defined
in § 263A(e)(4) (§ 168(k)(5) election). If
the taxpayer makes this election, the ad-
ditional first year depreciation deduction
is allowable for the specified plant for the
taxable year in which that specified plant
is planted or grafted, and that specified
plant is not treated as qualified proper-
ty under § 168(k) in the year the plant is
placed in service. Section 168(k)(5)(C)
provides that once made, the § 168(k)
(5) election may be revoked only with
the consent of the Commissioner of In-
ternal Revenue (Commissioner). Except
for the date, the TCJA did not amend
§ 168(k)(5).
Section 4.05 of Rev. Proc. 2017-33,
2017-19 I.R.B. 1236, provides the proce-
dures for making the § 168(k)(5) election.
Section 4.05(1)(b) of Rev. Proc. 2017-33
provides that, in general, the § 168(k)(5)
election must be made by the due date,
including extensions, of the federal tax re-
turn for the taxable year in which the tax-
payer plants or grafts the specified plant
to which the election applies, and must be
made in the manner prescribed on Form
4562, Depreciation and Amortization, and
its instructions. The instructions to the
Form 4562 for the 2016 and 2017 taxable
years provide that the election is made by
attaching a statement to the taxpayer’s
timely filed tax return indicating that the
taxpayer is electing to apply § 168(k)(5)
and identifying the specified plant(s) for
which the taxpayer is making the election.
(2) Section 168(k)(7) allows a taxpayer
to elect not to deduct additional first year
depreciation for all qualified property that
is in the same class of property and placed
in service by the taxpayer in the same tax-
able year (§ 168(k)(7) election). Section
168(k)(7) provides that once made, the
§ 168(k)(7) election may be revoked only
with the consent of the Commissioner.
The TCJA did not amend § 168(k)(7).
Section 4.04(2) of Rev. Proc. 2017-33
provides that rules similar to the rules in
§ 1.168(k)-1(e)(3) of the Income Tax Reg-
ulations apply for purposes of § 168(k)(7).
Section 1.168(k)-1(e)(3) provides the pro-
cedures for making the election not to de-
duct the additional first year depreciation
August 19, 2019 662 Bulletin No. 2019–34

deduction for all qualified property that is
in the same class of property and placed
in service by the taxpayer in the same tax-
able year. In accordance with § 1.168(k)-
1(e)(3), the § 168(k)(7) election must be
made by the due date, including exten-
sions, of the federal tax return for the tax-
able year in which the taxpayer places in
service the qualified property, and must be
made in the manner prescribed on Form
4562 and its instructions. The instructions
to the Form 4562 for the 2016 and 2017
taxable years provide that the election is
made by attaching a statement to the tax-
payer’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 taxpay-
er is making the election.
(3) Section 168(k)(10) allows a taxpay-
er to elect to deduct 50-percent, instead of
100-percent, additional first year depreci-
ation for qualified property acquired after
September 27, 2017, by the taxpayer and
placed in service or planted or grafted,
as applicable, by the taxpayer during its
taxable year that includes September 28,
2017 (§ 168(k)(10) election). The TCJA
added § 168(k)(10) to the Code. Section
6 of this revenue procedure provides the
time and manner for making this election.
.03 Proposed § 168(k) regulations. On
August 8, 2018, the Department of the
Treasury (Treasury Department) and the
Internal Revenue Service (IRS) published
a notice of proposed rulemaking (REG-
104397-18) in the Federal Register (83 FR
39292) containing proposed regulations
under § 168(k). The Treasury Department
and the IRS received written and electron-
ic comments responding to the proposed
regulations. Several commenters request-
ed relief to make late elections under
§ 168(k)(7) or (10) for property placed in
service during the taxpayer’s taxable year
that includes September 28, 2017, because
some taxpayers had already filed their fed-
eral tax returns for that taxable year before
the proposed regulations were issued. The
commenters also noted that a taxpayer
with a due date (with extensions) of Sep-
tember 15, 2018, or October 15, 2018, for
its federal tax return for the taxable year
that includes September 28, 2017, may
not have had sufficient time to analyze
the proposed regulations to make a time-
ly election under § 168(k)(7) or (10). The
Treasury Department and the IRS agree
with this request. Sections 4, 5, and 6 of
this revenue procedure provide the proce-
dures for making late elections, or revok-
ing elections, under § 168(k)(5), (7), or
(10) for property acquired by a taxpayer
after September 27, 2017, and placed in
service or planted or grafted, as applica-
ble, by the taxpayer during its taxable year
that includes September 28, 2017.
.04 Method of accounting.
(1) Section 446(e) and § 1.446-1(e)(2)
require a taxpayer to secure the consent
of the Commissioner before changing a
method of accounting for federal income
tax purposes. Section 1.446-1(e)(3)(ii)
authorizes the Commissioner to prescribe
administrative procedures setting forth the
limitations, terms, and conditions neces-
sary to permit a taxpayer to obtain consent
to change a method of accounting.
(2) Section 1.446-1(e)(2)(ii)(d)(3)(iii)
provides that the making of a late depre-
ciation election or the revocation of a
timely valid depreciation election is not
a change in method of accounting, except
as otherwise expressly provided by the
Code, the regulations under the Code, or
other guidance published in the Internal
Revenue Bulletin. Section 1.446-1(e)(2)
(ii)(d)(5)(iii) provides that except as oth-
erwise expressly provided by the Code,
the regulations under the Code, or other
guidance published in the Internal Reve-
nue Bulletin, no § 481 adjustment is re-
quired or permitted for a change from one
permissible method of computing depre-
ciation to another permissible method of
computing depreciation. Because of the
administrative burden of filing amended
returns, the Treasury Department and the
IRS have determined that it is appropri-
ate to treat the making of late elections,
or the revocation of elections, under
§ 168(k)(5), (7), or (10) for property ac-
quired by a taxpayer after September 27,
2017, and placed in service or planted or
grafted, as applicable, by the taxpayer
during its taxable year that includes Sep-
tember 28, 2017, as a change in method
of accounting with a § 481(a) adjustment
for a limited period of time. Section 7
of this revenue procedure provides the
procedures for a taxpayer to obtain auto-
matic consent for a change in method of
accounting to make these late elections
or to revoke these elections.
SECTION 3. SCOPE
This revenue procedure applies to a
taxpayer that:
(1) Acquired qualified property after
September 27, 2017, and placed in ser-
vice such property during the taxpayer’s
taxable year beginning in 2016 and end-
ing on or after September 28, 2017 (2016
taxable year);
(2) Acquired qualified property after
September 27, 2017, and placed in service
such property during the taxpayer’s tax-
able year beginning in 2017 and ending on
or after September 28, 2017 (2017 taxable
year); or
(3) Planted or grafted a specified plant
after September 27, 2017, and during the
taxpayer’s 2016 taxable year or 2017 tax-
able year.
SECTION 4. SECTION 168(k)(5)
ELECTION
.01 Section 168(k)(5) election made.
(1) In general. A taxpayer that timely
filed its federal tax return for the 2016
taxable year or the 2017 taxable year has
made the § 168(k)(5) election for a spec-
ified plant that is planted or grafted by
the taxpayer after September 27, 2017,
and during its 2016 taxable year or 2017
taxable year, if the taxpayer made the
§ 168(k)(5) election under Rev. Proc.
2017-33, as described in section 2.02(1)
of this revenue procedure, or under sec-
tion 4.02 of this revenue procedure, and
did not revoke the § 168(k)(5) election un-
der section 4.03 of this revenue procedure.
(2) Deemed election. If section 4.01(1)
of this revenue procedure does not apply, a
taxpayer that timely filed its federal tax re-
turn for the 2016 taxable year or the 2017
taxable year also will be treated as mak-
ing the § 168(k)(5) election for a specified
plant planted or grafted by the taxpayer
after September 27, 2017, and during its
2016 taxable year or 2017 taxable year, if
the taxpayer:
(a) On that return, claimed the 100-per-
cent additional first year depreciation for
that specified plant or, if the taxpayer
made the § 168(k)(10) election as provid-
ed in section 6 of this revenue procedure,
claimed the 50-percent additional first
year depreciation deduction for that spec-
ified plant; and
Bulletin No. 2019–34 663 August 19, 2019

August 19, 2019 664 Bulletin No. 2019–34
(b) Did not revoke the § 168(k)(5) elec-
tion for that specified plant under section
4.03 of this revenue procedure.
.02 Making a late § 168(k)(5) election.
If a taxpayer timely filed its federal tax re-
turn for the 2016 taxable year or 2017 tax-
able year, did not deduct on that return the
100-percent additional first year depre-
ciation, or the 50-percent additional first
year depreciation if the taxpayer made
the § 168(k)(10) election as provided in
section 6 of this revenue procedure, for a
specified plant that was planted or grafted
by the taxpayer after September 27, 2017,
and during its 2016 taxable year or 2017
taxable year did not make the § 168(k)
(5) election under Rev. Proc. 2017-33, as
described in section 2.02(1) of this reve-
nue procedure, the taxpayer may make
the § 168(k)(5) election for that specified
plant by filing either:
(1) An amended federal tax return,
or an administrative adjustment request
(AAR) by a partnership subject to the
centralized partnership audit regime en-
acted as part of the Bipartisan Budget Act
of 2015 (BBA partnership), for the 2016
taxable year or 2017 taxable year before
the taxpayer files its federal tax return for
the first taxable year succeeding the 2016
taxable year or 2017 taxable year. This
amended return or AAR must include the
adjustment to taxable income for the late
§ 168(k)(5) election and any collateral
adjustments to taxable income or to tax
liability. Such collateral adjustments also
must be made on amended federal tax re-
turns or AARs for any affected succeeding
taxable year; or
(2) A Form 3115, Application for
Change in Accounting Method, with the
taxpayer’s timely filed federal tax return
for the first, second, or third taxable year
succeeding the 2016 taxable year or the
2017 taxable year. The late § 168(k)(5)
election under this section 4.02(2) will be
treated as a change in method of account-
ing with a § 481(a) adjustment only during
this limited period of time. The time and
manner of making this late election are
described in section 7 of this revenue pro-
cedure.
.03 Consent granted to revoke § 168(k)
(5) election. If, on its timely filed feder-
al tax return for the 2016 taxable year or
the 2017 taxable year, a taxpayer made
the § 168(k)(5) election under Rev. Proc.
2017-33, as described in section 2.02(1)
of this revenue procedure, or under sec-
tion 4.01(2) of this revenue procedure, the
Commissioner grants the taxpayer con-
sent to revoke that election, provided the
taxpayer makes this revocation within the
time and in the manner described in this
section 4.03 of this revenue procedure.
The taxpayer may revoke the § 168(k)(5)
election by filing either:
(1) An amended federal tax return, or
an AAR by a BBA partnership, for the
2016 taxable year or 2017 taxable year
before the taxpayer files its federal tax
return for the first taxable year succeed-
ing the 2016 taxable year or 2017 taxable
year. This amended return or AAR must
include the adjustment to taxable income
for the revocation of the § 168(k)(5) elec-
tion and any collateral adjustments to tax-
able income or to tax liability. Such col-
lateral adjustments also must be made on
amended federal tax returns or AARs for
any affected succeeding taxable year; or
(2) A Form 3115 with the taxpayer’s
timely filed federal tax return for the first,
second, or third taxable year succeeding
the 2016 taxable year or the 2017 taxable
year. The revocation of the § 168(k)(5)
election under this section 4.03(2) will be
treated as a change in method of account-
ing with a § 481(a) adjustment only during
this limited period of time. The time and
manner of making this revocation are de-
scribed in section 7 of this revenue pro-
cedure.
SECTION 5. SECTION 168(k)(7)
ELECTION
.01 In general. A taxpayer may make
the § 168(k)(7) election not to deduct
additional first year depreciation for all
qualified property that is in the same class
of property and placed in service by the
taxpayer in the same taxable year. For
purposes of section 5 of this revenue pro-
cedure, the term class of property means:
(1) Except for the property described in
sections 4 and 5.01(2) of this revenue pro-
cedure, each class of property described in
§ 168(e) (for example, 5-year property);
(2) Water utility property as defined in
§ 168(e)(5) and depreciated under § 168;
(3) Computer software as defined in,
and depreciated under, § 167(f)(1) and the
regulations under § 167(f)(1);
(4) Qualified improvement property as
defined in § 168(k)(3) as in effect on the
day before amendment by § 13204(a)(4)
(B) of the TCJA that: (i) is acquired by
the taxpayer after September 27, 2017;
(ii) is placed in service by the taxpayer
after September 27, 2017, and before Jan-
uary 1, 2018; (iii) meets the requirements
in § 168(k)(2)(A)(ii) as amended by §
13201(c)(1) of the TCJA; and (iv) is de-
preciated under § 168;
(5) Each separate production, as de-
fined in § 1.181-3(b), of a qualified film or
television production;
(6) Each separate production, as de-
fined in § 181(e)(2), of a qualified live
theatrical production; or
(7) A partner’s basis adjustment in
partnership assets under § 743(b) for each
class of property described in section 4 of
this revenue procedure and section 5.01(1)
through (6) of this revenue procedure.
.02 Section 168(k)(7) election made.
(1) In general. A taxpayer that timely
filed its federal tax return for the 2016
taxable year or the 2017 taxable year has
made the § 168(k)(7) election for a class
of property that is qualified property ac-
quired after September 27, 2017, by the
taxpayer and placed in service by the
taxpayer during its 2016 taxable year or
2017 taxable year, if the taxpayer made
the § 168(k)(7) election under Rev. Proc.
2017-33, as described in section 2.02(2)
of this revenue procedure, or under sec-
tion 5.03 of this revenue procedure, and
did not revoke the § 168(k)(7) election un-
der section 5.04 of this revenue procedure.
(2) Deemed election. If section 5.02(1)
of this revenue procedure does not apply,
a taxpayer that timely filed its federal tax
return for the 2016 taxable year or the
2017 taxable year also will be treated as
making the § 168(k)(7) election for a class
of property that is qualified property ac-
quired after September 27, 2017, by the
taxpayer and placed in service by the tax-
payer during its 2016 taxable year or 2017
taxable year, if the taxpayer:
(a) On that return, did not claim the
100-percent additional first year depreci-
ation for that class of property;
(b) Did not revoke the § 168(k)(7) elec-
tion for that class of property under sec-
tion 5.04 of this revenue procedure; and
(c) Did not make a § 168(k)(10) elec-
tion for the 2016 taxable year or the 2017

Bulletin No. 2019–34 665 August 19, 2019
taxable year under section 6 of this reve-
nue procedure.
.03 Making a late § 168(k)(7) election.
If a taxpayer timely filed its federal tax re-
turn for the 2016 taxable year or the 2017
taxable year and claimed on that return the
100-percent additional first year additional
depreciation for a class of property that is
qualified property acquired after Septem-
ber 27, 2017, by the taxpayer and placed
in service by the taxpayer during its 2016
taxable year or 2017 taxable year, the tax-
payer may make the § 168(k)(7) election
for such class of property by filing either:
(1) An amended federal tax return, or
an AAR by a BBA partnership, for the
2016 taxable year or the 2017 taxable year
before the taxpayer files its federal tax re-
turn for the first taxable year succeeding
the 2016 taxable year or the 2017 taxable
year. This amended return or AAR must
include the adjustment to taxable income
for the late § 168(k)(7) election and any
collateral adjustments to taxable income
or to tax liability. Such collateral adjust-
ments also must be made on amended fed-
eral tax returns or AARs for any affected
succeeding taxable year; or
(2) A Form 3115 with the taxpayer’s
timely filed federal tax return for the first,
second, or third taxable year succeeding
the 2016 taxable year or the 2017 taxable
year. The late § 168(k)(7) election under
this section 5.03(2) will be treated as a
change in method of accounting with a
§ 481(a) adjustment only during this lim-
ited period of time. The time and manner
of making this late election are described
in section 7 of this revenue procedure.
.04 Consent granted to revoke the
§ 168(k)(7) election. If, on its timely filed
federal tax return for the 2016 taxable year
or the 2017 taxable year, a taxpayer made
the § 168(k)(7) election under Rev. Proc.
2017-33, as described in section 2.02(2)
of this revenue procedure, or under sec-
tion 5.02(2) of this revenue procedure, the
Commissioner grants the taxpayer con-
sent to revoke that election, provided the
taxpayer makes this revocation within the
time and in the manner described in this
section 5.04 of this revenue procedure.
The taxpayer may revoke the § 168(k)(7)
election by filing either:
(1) An amended federal tax return, or
an AAR by a BBA partnership, for the
2016 taxable year or 2017 taxable year
before the taxpayer files its federal tax
return for the first taxable year succeed-
ing the 2016 taxable year or 2017 taxable
year. This amended return or AAR must
include the adjustment to taxable income
for the revocation of the § 168(k)(7)
election and any collateral adjustments
to taxable income or to tax liability. Such
collateral adjustments also must be made
on amended federal tax returns or AARs
for any affected succeeding taxable year;
or
(2) A Form 3115 with the taxpayer’s
timely filed federal tax return for the first,
second, or third taxable year succeeding
the 2016 taxable year or the 2017 taxable
year. The revocation of the § 168(k)(7)
election under this section 5.04(2) will be
treated as a change in method of account-
ing with a § 481(a) adjustment only during
this limited period of time. The time and
manner of making this revocation are de-
scribed in section 7 of this revenue pro-
cedure.
SECTION 6. SECTION 168(k)(10)
ELECTION
.01 In general. A taxpayer may elect
under § 168(k)(10) to deduct 50-percent,
instead of 100-percent, additional first
year depreciation for all qualified proper-
ty acquired after September 27, 2017, by
the taxpayer and placed in service by the
taxpayer during its 2016 taxable year or
2017 taxable year. If a taxpayer makes an
election to apply § 168(k)(5) for its 2016
taxable year or 2017 taxable year, the
taxpayer also may make a § 168(k)(10)
election to deduct 50-percent, instead of
100-percent, additional first year depreci-
ation for all specified plants that are plant-
ed or grafted after September 27, 2017, by
the taxpayer for which the taxpayer has
made a § 168(k)(5) election under section
4 of this revenue procedure.
.02 Time and manner for making elec-
tion. The § 168(k)(10) election must be
made by the due date, including exten-
sions, of the federal tax return for the tax-
payer’s taxable year that includes Septem-
ber 28, 2017, and in the manner prescribed
on the 2017 Form 4562 and its instruc-
tions. The instructions to the Form 4562
for the 2017 taxable year provide that the
election is made by attaching a statement
to the taxpayer’s timely filed tax return
indicating that the taxpayer is electing to
deduct 50-percent additional first year de-
preciation for all qualified property.
.03 Section 168(k)(10) election made.
(1) In general. A taxpayer that timely
filed its federal tax return for the 2016
taxable year or the 2017 taxable year has
made the § 168(k)(10) election for all
qualified property acquired after Septem-
ber 27, 2017, by the taxpayer and placed
in service by the taxpayer during its 2016
taxable year or 2017 taxable year, or all
specified plants that are planted or graft-
ed after September 27, 2017, by the tax-
payer for which the taxpayer has made
a § 168(k)(5) election under section 4
of this revenue procedure, if the taxpay-
er made the § 168(k)(10) election under
section 6.02 of this revenue procedure or
under section 6.04 of this revenue proce-
dure, and did not revoke the § 168(k)(10)
election under section 6.05 of this revenue
procedure.
(2) Deemed election. If section
6.03(1) of this revenue procedure does
not apply, a taxpayer that timely filed its
federal tax return for the 2016 taxable
year or the 2017 taxable year also will be
treated as making the § 168(k)(10) elec-
tion for all qualified property acquired
after September 27, 2017, by the taxpay-
er and placed in service by the taxpay-
er during its 2016 taxable year or 2017
taxable year, or all specified plants that
are planted or grafted after September
27, 2017, by the taxpayer for which the
taxpayer has made a § 168(k)(5) election
under section 4 of this revenue proce-
dure, if the taxpayer:
(a) On that return, claimed the 50-per-
cent additional first year depreciation for
all such qualified property or all such
specified plants, as applicable; and
(b) Did not revoke the § 168(k)(10)
election under section 6.05 of this revenue
procedure.
.04 Making a late § 168(k)(10) elec-
tion. If a taxpayer timely filed its federal
tax return for the 2016 taxable year or the
2017 taxable year, and claimed on that re-
turn the 100-percent additional first year
additional depreciation for all qualified
property acquired after September 27,
2017, by the taxpayer and placed in ser-
vice by the taxpayer during its 2016 tax-

August 19, 2019 666 Bulletin No. 2019–34
able year or 2017 taxable year, or all spec-
ified plants that are planted or grafted after
September 27, 2017, by the taxpayer for
which the taxpayer has made a § 168(k)
(5) election under section 4 of this revenue
procedure, or did not claim on that return
any additional first year depreciation de-
duction for all such qualified property or
all such specified plants and revoked the
§ 168(k)(7) election made on that return
under section 5.04 of this revenue proce-
dure, the taxpayer may make the § 168(k)
(10) election for all such qualified prop-
erty or all such specified plants by filing
either:
(1) An amended federal tax return, or
an AAR by a BBA partnership, for the
2016 taxable year or the 2017 taxable year
before the taxpayer files its federal tax re-
turn for the first taxable year succeeding
the 2016 taxable year or the 2017 taxable
year. This amended return or AAR must
include the adjustment to taxable income
for the late § 168(k)(10) election and any
collateral adjustments to taxable income
or to tax liability. Such collateral adjust-
ments also must be made on amended fed-
eral tax returns or AARs for any affected
succeeding taxable year; or
(2) A Form 3115 with the taxpayer’s
timely filed federal tax return for the first,
second, or third taxable year succeeding
the 2016 taxable year or the 2017 tax-
able year. The late § 168(k)(10) election
under this section 6.04 will be treated as
a change in method of accounting with a
§ 481(a) adjustment only during this limit-
ed period of time. The time and manner of
making this late election are described in
section 7 of this revenue procedure.
.05 Consent granted to revoke the
§ 168(k)(10) election. If, on its timely filed
federal tax return for the 2016 taxable year
or the 2017 taxable year, a taxpayer made
the § 168(k)(10) election under section
6.02 of this revenue procedure or under
section 6.03(2) of this revenue procedure,
the Commissioner grants the taxpayer
consent to revoke that election, provided
the taxpayer makes the revocation under
this section 6.05. The taxpayer may re-
voke the § 168(k)(10) election by filing
either:
(1) An amended federal tax return, or
an AAR by a BBA partnership, for the
2016 taxable year or 2017 taxable year
before the taxpayer files its federal tax
return for the first taxable year succeed-
ing the 2016 taxable year or 2017 taxable
year. This amended return or AAR must
include the adjustment to taxable income
for the revocation of the § 168(k)(10)
election and any collateral adjustments
to taxable income or to tax liability. Such
collateral adjustments also must be made
on amended federal tax returns or AARs
for any affected succeeding taxable year;
or
(2) A Form 3115 with the taxpayer’s
timely filed federal tax return for the first,
second, or third taxable year succeeding
the 2016 taxable year or the 2017 taxable
year, as applicable. The revocation of
the § 168(k)(10) election under this sec-
tion 6.05(2) will be treated as a change
in method of accounting with a § 481(a)
adjustment only during this limited period
of time. The time and manner of making
this revocation are described in section 7
of this revenue procedure.
SECTION 7. CHANGE IN METHOD
OF ACCOUNTING
.01 In general. The making of a late
election, or the revocation of an election,
under sections 4, 5, and 6 of this revenue
procedure is treated as a change in method
of accounting for a limited period of time
to which §§ 446(e) and 481, and the cor-
responding regulations, apply. A taxpayer
that wants to make a late election, or re-
voke an election, described in sections 4,
5, and 6 of this revenue procedure must
use the automatic change procedures in
Rev. Proc. 2015-13, 2015-5 I.R.B. 419, or
its successor.
.02 Automatic change. Rev. Proc.
2018-31, 2018-22 I.R.B. 637, is modified
to add new section 6.18 to read as follows:
.18 Late elections or revocation of
elections under § 168(k)(5), (7), and (10).
(1) Description of Change.
(a) Applicability. This change applies
to a taxpayer within the scope of Rev.
Proc. 2019-33 that wants to make a late
election, or to revoke an election, provid-
ed in sections 4, 5, and 6 of Rev. Proc.
2019-33 under § 168(k)(5), (7), or (10).
(b) Inapplicability. The IRS will treat
the making of a late election, or the revo-
cation of an election, provided in sections
4, 5, and 6 of Rev. Proc. 2019-33 under
§ 168(k)(5), (7), and (10) as a change in
method of accounting with a § 481(a) ad-
justment only for the taxable years speci-
fied in section 6.18(2) of this revenue pro-
cedure. This treatment does not apply to
a taxpayer that makes these late elections
or revocations before or after the time
specified in section 6.18(2) of this revenue
procedure, and any such late election or
revocation is not a change in method of
accounting pursuant to § 1.446-1(e)(2)(ii)
(d)(3)(iii).
(2) Time for making the change. The
change under this section 6.18 must be
made for the taxpayer’s first, second, or
third taxable year succeeding the taxpay-
er’s taxable year beginning in 2016 and
ending on or after September 28, 2017
(2016 taxable year) or beginning in 2017
and ending on or after September 28, 2017
(2017 taxable year).
(3) Certain eligibility rules inapplica-
ble. The eligibility rules in section 5.01(1)
(d) and (f) of Rev. Proc. 2015-13, 2015-5
I.R.B. 419, do not apply to this change for
the taxpayer’s 2016 taxable year or 2017
taxable year.
(4) Concurrent automatic change.
(a) A taxpayer making this change for
more than one specified plant under sec-
tion 4 of Rev. Proc. 2019-33 for the same
year of change should file a single Form
3115 for all such specified plants. The sin-
gle Form 3115 must provide a single net
§ 481(a) adjustment for all such changes.
(b) A taxpayer making this change for
more than one class of property under
section 5 of Rev. Proc. 2019-33 for the
same year of change should file a single
Form 3115 for all such classes of proper-
ty. The single Form 3115 must provide a
single net § 481(a) adjustment for all such
changes.
(c) A taxpayer making this change for
all qualified property under section 6 of
Rev. Proc. 2019-33 should provide a sin-
gle net § 481(a) adjustment for all assets
that are qualified property.
(d) A taxpayer making a late elec-
tion, or revoking an election, under more
than one section of Rev. Proc. 2019-33
(for example, under sections 4 and 6 of
Rev. Proc. 2019-33) for the same year of
change should file a single Form 3115 for
all such changes. The single Form 3115

Bulletin No. 2019–34 667 August 19, 2019
must provide a single net § 481(a) adjust-
ment for all such changes.
(5) Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change to the method of
accounting under this section 6.18 is
“241.”
(6) Contact information. For further
information regarding a change under this
section, contact Elizabeth R. Binder at
(202) 317-7005 (not a toll-free number).
SECTION 8. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2018-31 is modified to in-
clude the accounting method change pro-
vided in section 7.02 of this revenue pro-
cedure in section 6 of Rev. Proc. 2018-31.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
July 31, 2019.
SECTION 10. DRAFTING
INFORMATION
The principal authors of this reve-
nue procedure are Elizabeth Binder and
Kathleen Reed of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regard-
ing this revenue procedure, contact Ms.
Binder at (202) 317-7005 (not a toll-free
number).

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI
—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2019–34 i August 19, 2019

Numerical Finding List
1
Bulletin 2019–34
Announcements:
2019-07, 2019-27 I.R.B. 62
2019-08, 2019-32 I.R.B. 621
Notices:
2019-12, 2019-27 I.R.B. 57
2019-40, 2019-27 I.R.B. 59
2019-41, 2019-28 I.R.B. 256
2019-42, 2019-29 I.R.B. 352
2019-27, 2019-31 I.R.B. 484
2019-43, 2019-31 I.R.B. 487
2019-24, 2019-31 I.R.B. 489
2019-45, 2019-32 I.R.B. 593
Proposed Regulations:
REG-105476-18, 2019-27 I.R.B. 63
REG-106282-18, 2019-28 I.R.B. 259
REG-101828-19, 2019-29 I.R.B. 412
REG-106877-18, 2019-30 I.R.B. 441
REG-121508-18, 2019-30 I.R.B. 456
REG-105474-18, 2019-31 I.R.B. 493
REG-118425-18, 2019-31 I.R.B. 539
Revenue Rulings:
2019-16, 2019-28 I.R.B. 96
2019-17, 2019-32 I.R.B. 583
Revenue Procedures:
2019-24, 2019-29 I.R.B. 353
2019-28, 2019-32 I.R.B. 596
2019-29, 2019-32 I.R.B. 620
2019-30, 2019-33 I.R.B. 638
2019-31, 2019-33 I.R.B. 643
2019-32, 2019-33 I.R.B. 659
2019-33, 2019-34 I.R.B. 662
Treasury Decisions:
9863, 2019-27 I.R.B. 1
9864, 2019-27 I.R.B. 6
9865, 2019-27 I.R.B. 27
9867, 2019-28 I.R.B. 98
9868, 2019-28 I.R.B. 252
9866, 2019-29 I.R.B. 261
9861, 2019-30 I.R.B. 433
9869, 2019-30 I.R.B. 438
9862, 2019-31 I.R.B. 477
9872, 2019-32 I.R.B. 585
9871, 2019-33 I.R.B. 624
9873, 2019-33 I.R.B. 630
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.
August 19, 2019 ii Bulletin No. 2019–34

Bulletin No. 2019–34 iii August 19, 2019
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2019–34
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

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