§163(j)(7) Real Property / Farming Election

Election to be an electing real property or farming trade or business, exempt from the §163(j) business interest limitation.

IRC § 163(j)(7)Rev. Proc. 2018-59

Taxpayer name *

Taxpayer EIN / TIN *

Tax year of election *

Electing business type

Address

Trade or business *

Principal business activity code

Signed by

Title / capacity

Date

Preview

ELECTION UNDER IRC § 163(j)(7)(B) — ELECTING REAL PROPERTY TRADE OR BUSINESS

Taxpayer:                       [Taxpayer name]
Taxpayer Identification Number: [EIN/TIN]
Address:                        [Address]
Tax year:                       [Year]

Pursuant to Internal Revenue Code § 163(j)(7)(B) and the regulations thereunder, the
above-named taxpayer hereby elects to be an electing real property trade or business with respect to
the trade or business described below, which is therefore not subject to the limitation
on business interest expense under § 163(j):

Trade or business:               [Describe the trade or business]
Principal business activity code: [code, if available]

The taxpayer acknowledges that this election is irrevocable and that the electing trade
or business must use the Alternative Depreciation System (ADS) under § 168(g) for its
applicable property.


_______________________________
[Signature]
[Title]
Date: [Date]

How & when to file: Attach to a timely filed original return (including extensions) for the election year. The election is IRREVOCABLE. An electing trade or business must depreciate its applicable property under the Alternative Depreciation System (ADS) and may not claim bonus depreciation on that property.

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ELECTION UNDER IRC § 163(j)(7)(B) — ELECTING REAL PROPERTY TRADE OR BUSINESS Taxpayer: [Taxpayer name] Taxpayer Identification Number: [EIN/TIN] Address: [Address] Tax year: [Year] Pursuant to Internal Revenue Code § 163(j)(7)(B) and the regulations thereunder, the above-named taxpayer hereby elects to be an electing real property trade or business with respect to the trade or business described below, which is therefore not subject to the limitation on business interest expense under § 163(j): Trade or business: [Describe the trade or business] Principal business activity code: [code, if available] The taxpayer acknowledges that this election is irrevocable and that the electing trade or business must use the Alternative Depreciation System (ADS) under § 168(g) for its applicable property. _______________________________ [Signature] [Title] Date: [Date]