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18 March 2026

IRS releases guidance on withdrawing IRC Section 163(j) elections for real property businesses

The IRS on March 18, 2026, in Revenue Procedure 202617, released guidance on how certain taxpayers can withdraw prior elections under IRC Section 163(j) to be a real property trade or business and make late elections under IRC Section 168(k) to opt out of bonus depreciation. The revenue procedure also provides relief for controlled foreign corporations (CFCs) seeking to revoke or make CFC group elections without regard to the 60-month limitation and offers eligible partnerships an option to file amended partnership returns for tax years 2022—2024. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2026-0669

 

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