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New 168 Allowance percentage selection

Created on  | Last modified on 

Summary

Information on the 100% allowance for assets in Sage Fixed Assets Depreciation 2026.0 and higher.

Description

  • Tax rules differ between the federal and state levels. We’ve added flexibility so you can apply bonus depreciation percentages even when state guidelines don’t match U.S. federal rules.
  • The 168 Extra feature lets you use a specific 168 percentage in a year even if it’s not valid for Federal tax purposes. Starting with assets placed-in-service in 2023, you can turn on any previous 168 percentage (20, 30, 40, 50, 60, 80, 100) for a U.S. company. 
  • After enabling the Sec. 168 Extra in File, Edit Company, you'll need to apply it to the assets. You can do this in bulk using the 168 Allowance Switch. For individual assets, you can edit them in the asset Detail View.

Resolution

NOTE:

  • This feature is available in Sage Fixed Assets 2026.0 and above. Update to apply the percentages added in the One Big Beautiful Bill Act (OBBBA).
  • You can only apply the Sec. 168 Extra feature to one company at a time. This feature will only effect assets Placed-in-Service in 2024 or later.
 
In Sage Fixed Asset Depreciation with a U.S. Company open:
  1. Go to File, Edit Company, and put a Check in the box for Sec. 168 Extra.
  2. Click the Select % button.
  3. Select the desired amount of extra 168 Percentage.
  4. Click Save and then OK to save the changes.
  5. Use the 168 allowance switch to apply the 100% allowance to existing assets. See How to apply the 168 allowance and What assets qualify for the 168 Allowance switch? for more information.