Taxpayers who wish to make the election to take the Section 179 deduction must do so:

Taxpayers who wish to make the election to take the Section 179 deduction must do so in the tax year the property is placed in service. The election is made by completing Part I of IRS Form 4562, Depreciation and Amortization, and attaching it to their tax return for that year. The taxpayer must specify the amount of Section 179 expense they wish to claim and list the specific property for which the deduction is being taken. It's important to note that there are limits and thresholds for the Section 179 deduction, which can change annually based on inflation adjustments and legislative changes. For the tax year in which the election is made, the taxpayer must also ensure that the business use of the property is more than 50% to qualify for the deduction. If the business use drops to 50% or less in a subsequent year, a portion of the deduction may need to be recaptured as ordinary income. If a taxpayer does not elect Section 179 or chooses to revoke the election, it must be done by the due date (including extensions) of the tax return. Once made, the election is irrevocable without IRS consent. However, the taxpayer can amend the return to take or revoke the Section 179 election within the time prescribed by tax law, typically within three years from the date the original return was filed or two years from the date the tax was paid, whichever is later.

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