The IRS today released an advance version of Rev. Proc. 2017-33 providing guidance under the Protecting Americans for Tax Hikes Act of 2015 (PATH Act) regarding amendments to expensing section 179 property, the additional first year depreciation deduction under section 168(k), and the qualified Indian reservation property depreciation provision under section 168(j).
Read Rev. Proc. 2017-33 [PDF 78 KB]
This revenue procedure does not reflect any proposed technical corrections to the PATH Act, and does not provide guidance relating to the extension and modification of the election under section 168(k)(4) to increase the alternative minimum tax (AMT) credit limitation in lieu of the additional first year depreciation deduction. Treasury and the IRS anticipate issuing guidance regarding the extension and modification of the election under section 168(k)(4) in a separate revenue procedure.
Sections 124(c)(2), (d), and (e) of the PATH Act amended section 179 of the Internal Revenue Code by:
Section 143(b) of the PATH Act amended Code section 168(k) by:
Section 167(b) of the PATH Act amended Code section 168(j) by adding new section 168(j)(8), which allows a taxpayer to elect not to apply section 168(j) for any class of property.
Today’s revenue procedure provides guidance with respect to implementation of certain of these legislative changes.
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.