Hello Josh,

The good news is you updated to version 2026.1 or you would not be seeing this.

That would be because due to the legislation which was passed on July 4^th of last year changed the rules so that 20% no longer exists, making 100% the rule now.

See What assets qualify for the 168 Allowance switch? which lists all the current 168%.

~Delray

The legislation says that property acquired and placed in service after 1/20/2025 will be 100%, we have property acquired prior to 2025 so it would still be subject to the TCJA so the 20% phase down should not give any errors.

20% was only for assets Placed-in Service in 2026, Assets Placed-in Server from 1/1/2025 - 1/19/2025 are still at 40%, and that's where TCJA now ended. The rules were changed with the new legislation.

~Delray

Correct, we have assets being placed in service in 2026 that were acquired prior to 2025. So by the wording of the legislation of the OBBBA, they are not acquired and placed in service after 1/19/2025, anything acquired prior and placed in service should still use the TCJA, which would be the 20% for this year 2026, so not seeing why Sage says it cannot be used.

O' you are doing one of those delayed Placed-in Service things. See New 168 Allowance percentage selection where there is a new function in the program which would allow the 20% to be used.

~Delray 

For Tax book assets with a service date on or before 1/19/2025 can have 40% 168 bonus from what the rules indicate for Federal Tax rules in the TCJA before the OBBBA. If you would like to test out the 168 extra which is an option in the edit company you can do so and select the 168% that are listed so you can pick what you deem correct.

For Tax book assets with a service date on or before 1/19/2025 can have 40% 168 bonus from what the rules indicate for Federal Tax rules in the TCJA before the OBBBA. If you would like to test out the 168 extra which is an option in the edit company you can do so and select the 168% that are listed so you can pick what you deem correct.