 Note for three, five, seven or 10 year property used in a farming business and placed in service after 2017 and tax years ending after 2017 that 150% declining balance method is no longer required. However, the 150 declining balance method will continue to apply to any 15 or 20 year property used in a farming business to which the straight line method does not apply or to property for which you elect the use of the 150 declining balance method. All right, so then we've got another somewhat unusual situation. I don't have, I've never seen this situation myself, more of a specialty area with the fruits or nut trees and vines. I would like to have some fruit and nut tree vines, but I don't depreciate trees and vines bearing fruits or nuts under GDS using straight line method over a recovery period of 10 years. Then you've got the ADS required for some farmers. If you elect not to apply the uniform capitalization rules to any plant produced in your farming business, you must use ADS, you must use ADS for all property you place in service in any year the election is in effect. See the regulations under section 263A of the internal revenue code for information on the uniform capitalization rules that apply to farm property. So electing a different method, what if I don't like the method that you want me to do? I want to elect a different. So as shown in table 4-1, you can elect a different method for depreciation for certain types of property. You must make the election by the due date of the return, including extensions for the year you place the property in service. However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within six months of the due date. So if you realize you made an error, you want to pick up that error soon and possibly be able to fix it with an amended return. And so you can go through that caution. If you elect to use a different method for one item in a property class, you must apply the same method to all property in that class placed in service during the year of the election. So they want some form of consistency. Once again, you can see in this rule. So however, you can make the election on a property by property basis for non-residential, real and residential rental property. And you would think that might be an exception because of the size of the nature of those property being quite large and expensive. So 150 election. So instead of using the 200% declining balance method over the GDS recovery period for property in the three, five, seven, or 10 year property classes, some of the more common property class, you can elect to use the 150 declining method. So note that 200% would often be the biggest benefit upfront. But you might say, well, maybe I don't want the 200 because I only want to deduct up to a certain point. And I'd like to put the rest of the benefit into future periods possibly because I'm going to drop them below the next tax bracket or something. So you might think, well, then I'd have to default to the straight line method. But you still have this in-between point, which is 150, which might be a good method in some cases. So you don't have to go from straight line all the way to 200 or 200 all the way down to straight line, but you can have the middle, they got the middle peer here at 150. So make the election by entering 150 double DB under column F in part three of form four, five, six, two. Then you got the straight line election. Instead of using either the 200% or 100, 150% declining balance method over the GDS recovery period, you can elect to use the straight line method over the GDS recovery period. So just to recap this, remember that you're saying, okay, now I've got a piece of property that I cannot extents upfront. I think I'm going to have to put it on the books as an asset and then depreciate it. Then I have to see the categorization of the asset. So then I look to see, does it fit under the categories of three, five, seven, 10 or so on? These are some of the more common categorization periods, three, five and seven, for example. That's usually going to also tell us what the useful life, how long I'm going to depreciate it over. We do have the added complication of then can I get a 179 or special depreciation and whether or not I want to take that depreciation upfront. And then we think about the method that's going to be used, which is usually driven by default from makers itself, which oftentimes for three, five, seven, 10 year property, some of the more common property is a double declining type of balance, half year convention oftentimes, unless an exception applies. Then the question is, well, if I have the double declining balance, the kind of default, do I want to take that, which is usually the most beneficial one? That's why it's the default because you get more expense upfront. Or do I want to taper that off going more towards a straight line method because I want more depreciation in later years than current year, possibly because I think I'm going to have a higher tax bracket in later years due to my income being higher. And do I want to taper it all the way back out to straight line, making an election to do that, which means I have to stick to straight line after I after I do that, or take the middle position going from double declining in essence to 150, 200 to 150. Okay. So make the election by entering straight line. If you want the straight line S slash L under column F in part three of form four, five, six, two, okay. Election of ADS as explained earlier under which depreciation system GDS or ADS applies, you can elect to use ADS even though your property may come under GDS. So usually your property, if it's under GDS, you would usually be picking that one and then be deciding under that whether or not you want the double declining, the straight line or the 150, that would be more common. But possibly you can elect to go to the ADS, which is usually less advantageous than the GDS. It might have, for example, a different, a different life or because usually you're going to have a straight line possibly for the ADS, which you might say, why don't I just elected the straight line up here with a GDS, but it might have a different other convention or different life period that you might want for some reason as well, which is more unusual of a situation. So ADS uses the straight line method of depreciation over fixed ADS recovery periods. Most ADS recovery periods are listed in appendix B or see the table under recovery period under ADS earlier. Make the election by completing line 20 in part three of form 4562. We've got the 20 or the 15 or 20 year farm property back to the farm property. Instead of using the 150 declining balance method over GDS recovery period for 15 or 20 year property, you use in a farming business other than real property, you can elect to depreciate it using either of the following methods, the straight line method over GDS recovery, or the straight line method over an ADS recovery period.