Cal. Code Regs. Tit. 18, § 24356(d) - Time and Manner of Making Election

(1) Election. A separate election must be made for each income year in which an additional first-year depreciation allowance is claimed with respect to Section 24356 property. The election under Section 24356 and Reg. 24356(a) to claim an additional first-year depreciation allowance on Section 24356 property shall be made on the taxpayer's tax return for the income year to which the election applies. For the election to be valid, the return must be filed not later than the time prescribed by law (including extensions thereof) for filing the return for such income year. The election shall be made by showing as a separate item on the taxpayer's tax return the total additional first-year depreciation claimed with respect to Section 24356 property selected. The additional first-year depreciation claimed with respect to Section 24356 property must not be included in the depreciation claimed under Sections 24349 through 24354 with respect to such property. The taxpayer shall maintain records which permit specific identification of each piece of Section 24356 property and reflect how and from whom such property was acquired. The election to claim an additional first-year depreciation allowance under this regulation with respect to any property is irrevocable and shall be binding on the taxpayer with respect to such property for the income year for which the election is made and for all subsequent income years, unless the Franchise Tax Board gives its consent to revoke the election. Similarly, the selection of Section 24356 property by the taxpayer to be subject to the additional first-year depreciation allowance must be adhered to in computing the taxpayer's net income for the income year for which the selection is made and for all subsequent income years, unless consent to change the selection of property is given by the Franchise Tax Board.

(2) Revocation. A request to revoke an election under Section 24356 and Reg. 24356(a) or to change the property selected for the additional first-year depreciation allowance shall be in writing and shall be addressed to the Franchise Tax Board. The request shall include the name and address of the taxpayer and shall be signed by a principal officer of the taxpayer or its duly authorized representative. It must be filed no later than 6 months after the date prescribed by law (without regard to extensions of time) for filing the tax return for the year in which the allowance under Reg. 24356(a) was claimed, shall be accompanied by a statement showing the year and property involved, and shall set forth in detail the reasons for the request to revoke the election or to change the selection of property. Ordinarily, a request for consent to revoke the election or to change the selection of property will not be granted if it appears from all the facts and circumstances that the only reason for the desired change is to obtain a tax advantage.

(3) Effective Date. The provisions of this regulation apply to all income years ending after December 31, 1958.

Notes

Cal. Code Regs. Tit. 18, § 24356(d)

1. New section filed 3-31-70; effective thirtieth day thereafter (Register 70, No. 14).[FN*]
This regulation is based on Section 26 CFR 1.179-4.

Note: Authority cited: Section 26422, Revenue and Taxation Code.

1. New section filed 3-31-70; effective thirtieth day thereafter (Register 70, No. 14).