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Publication 225

Claiming the Special Depreciation Allowance(p41)

For qualified property (defined below) placed in service in 2016, you can take an additional 50% special depreciation allowance. The allowance is an additional deduction you can take before you figure regular depreciation under MACRS. Figure the special depreciation allowance by multiplying the depreciable basis of the qualified property by 50%.

What is Qualified Property?(p41)

For farmers, qualified property generally is certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2020, and certain specified plants.

Certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2020.(p41)

Certain qualified property (defined below) acquired after December 31, 2007, and before January 1, 2020, is eligible for a 50% special depreciation allowance.
Qualified property includes the following:
Qualified property must also meet all of the following tests:

Certain specified plants.(p41)

You can elect to claim a 50% special depreciation allowance for the adjusted basis of certain specified plants (defined later) bearing fruits and nuts planted or grafted after December 31, 2015, and before January 1, 2020.
A specified plant is:
The election once made cannot be revoked without IRS consent.
See section 168(k)(5) of the Internal Revenue Code.
For more information, see chapter 3 of Pub. 946.

How Can You Elect Not To Claim the Allowance?(p41)

You can elect, for any class of property, not to deduct the special depreciation allowance for all property in such class placed in service during the tax year. To make the election, attach a statement to your return indicating the class of property for which you are making the election.
Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Attach the election statement to the amended return. On the amended return, write "Filed pursuant to section 301.9100-2."
Once made, the election may not be revoked without IRS consent.
If you elect not to have the special depreciation allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation.

When Must You Recapture an Allowance(p41)

When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. For more information, see chapter 3 of Pub. 946.