Resources · Tax Planning

IRS Tax Elections: Complete Reference Guide

Every major federal tax election in one place — automatic elections, non-automatic elections, how to make each one, deadlines, and revocation rules.

Last updated: July 2026·38 elections covered·Automatic, elective, and non-automatic elections

Informational only — not legal or tax advice. This table is for informational purposes only and does not constitute tax or legal advice. Election rules are complex and fact-specific. Consult a qualified tax professional before making or revoking any election.

38 of 38 elections

				Form	Revocable
Bonus Depreciation (§ 168(k))	IRC § 168(k)	Depreciation	Automatic	No form — attach statement to return to elect out	Irrevocable
Cash vs. Accrual Accounting Method	IRC § 446	Accounting	Automatic	None (initial adoption); Form 3115 (change)	Irrevocable
Charitable Contribution Carryover Method	IRC § 170(d)	Income / Gain	Automatic	Schedule A (individuals); Form 1120 Schedule O (corporations)	Irrevocable
Check-the-Box Entity Classification	Treas. Reg. § 301.7701-3	Entity	Must Elect	Form 8832	Revocable
Consolidated Return Election (§ 1501)	IRC § 1501; Treas. Reg. § 1.1502	Entity	Must Elect	Form 1120 (consolidated); Form 1122 (subsidiary consent)	Irrevocable
Cost Segregation / Component Depreciation	IRC § 168; Rev. Proc. 87-56	Depreciation	Must Elect	Form 4562; Form 3115 for catch-up	Irrevocable
Electing Large Partnership (§ 775) — Simplified Reporting	IRC § 775 (pre-BBA); BBA Centralized Audit Regime (§ 6221–6241)	Entity	Must Elect	Form 1065 (opt-out checkbox + partner list attachment)	Revocable
Electing Out of Partnership (§ 761(a))	IRC § 761(a)	Entity	Must Elect	No form — written statement to IRS	Irrevocable
Electing Small Business Trust (ESBT)	IRC § 1361(e)	Entity	Must Elect	No form — written statement to IRS service center	Revocable
Farm Income Averaging (§ 1301)	IRC § 1301	Income / Gain	Must Elect	Schedule J (Form 1040)	Revocable
Foreign Tax Credit vs. Deduction	IRC § 901; § 164	International	Must Elect	Form 1116 (individuals); Form 1118 (corporations)	Revocable
GILTI High-Tax Exclusion	IRC § 951A; Treas. Reg. § 1.951A-2(c)(7)	International	Must Elect	Form 8992	Revocable
Installment Sale Reporting	IRC § 453	Income / Gain	Automatic	Form 6252 (to report); no form to elect out — report full gain on Schedule D/Form 4797	Irrevocable
Like-Kind Exchange (§ 1031)	IRC § 1031	Real Estate	Must Elect	Form 8824	Irrevocable
MACRS Depreciation (ADS vs. GDS)	IRC § 168(g)	Depreciation	Must Elect	Form 4562	Irrevocable
Mark-to-Market Election (§ 475(f))	IRC § 475(f)	Income / Gain	Must Elect	No form — written statement attached to prior-year return or extension	Irrevocable
Net Investment Income Tax — Regrouping	IRC § 1411; Treas. Reg. § 1.1411-7	Real Estate	Must Elect	No form — written statement attached to return	Irrevocable
Passive Activity Grouping	IRC § 469; Treas. Reg. § 1.469-4	Real Estate	Must Elect	No form — written statement attached to return	Irrevocable
Qualified Business Income (QBI) Deduction — Aggregation	IRC § 199A; Treas. Reg. § 1.199A-4	Entity	Must Elect	No form — written disclosure attached to return (required annually)	Revocable
Qualified Joint Venture (§ 761(f))	IRC § 761(f)	Entity	Must Elect	Schedule C (each spouse); Schedule SE (each spouse)	Revocable
Qualified Opportunity Zone Investment	IRC § 1400Z-2	Income / Gain	Must Elect	Form 8949; Form 8997	Irrevocable
Qualified Subchapter S Subsidiary (QSub)	IRC § 1361(b)(3)	Entity	Must Elect	Form 8869	Revocable
Qualified Subchapter S Trust (QSST)	IRC § 1361(d)	Entity	Must Elect	No form — written statement by income beneficiary to IRS service center	Irrevocable
Real Property Trade or Business Election (§ 469(c)(7))	IRC § 469(c)(7)	Real Estate	Must Elect	No form — written statement attached to return	Revocable
Recurring Item Exception (§ 461(h)(3))	IRC § 461(h)(3)	Accounting	Must Elect	None (initial adoption); Form 3115 (change)	Irrevocable
Rental Real Estate $25,000 Allowance — Active Participation (§ 469(i))	IRC § 469(i)	Real Estate	Automatic	Form 8582	Irrevocable
S Corporation Election	IRC § 1362	Entity	Must Elect	Form 2553	Revocable
Section 1045 — Rollover of QSBS Gain	IRC § 1045	Income / Gain	Must Elect	Schedule D; written statement attached to return	Irrevocable
Section 1202 — Qualified Small Business Stock (QSBS) Exclusion	IRC § 1202	Income / Gain	Must Elect	Schedule D; Form 8949	Revocable
Section 179 Expensing	IRC § 179	Depreciation	Must Elect	Form 4562	Revocable
Section 336(e) — Deemed Asset Sale (Non-Consolidated)	IRC § 336(e); Treas. Reg. § 1.336-2	Entity	Must Elect	No form — written election statement attached to seller's return	Irrevocable
Section 338(h)(10) — Deemed Asset Sale Election	IRC § 338(h)(10)	Entity	Must Elect	Form 8023	Irrevocable
Section 59(e) — Ratable Deduction of Specified Expenditures	IRC § 59(e)	Income / Gain	Must Elect	No form — written statement attached to return	Irrevocable
Section 645 Election — Treat Revocable Trust as Part of Estate	IRC § 645	Estate & Trust	Must Elect	Form 8855	Irrevocable
Section 754 — Partnership Basis Adjustment Election	IRC § 754	Entity	Must Elect	Form 1065 (with attached election statement); Form 8308 (for § 751 assets)	Revocable
Section 83(b) — Restricted Property Inclusion Election	IRC § 83(b)	Income / Gain	Must Elect	No IRS form — written statement to IRS service center (copy to transferor)	Irrevocable
Straight-Line Depreciation Election (§ 168(b)(3))	IRC § 168(b)(3)	Depreciation	Must Elect	Form 4562	Irrevocable
Subpart F High-Tax Exception	IRC § 954(b)(4)	International	Must Elect	Form 5471	Revocable

Automatic = applies by default; elect OUT to avoidMust Elect = requires affirmative filing to obtain Irrevocable = IRS consent required to change

IRS Representation: What Happens When the IRS Comes Knocking

Former IRS agents explain audit triggers, examination procedures, and how to respond when the IRS challenges your elections or accounting methods.

Explore IRS representation

Business Sales & Succession: Asset vs. Stock Sale Elections

Section 338(h)(10) and 336(e) elections, installment sale structuring, and how entity type affects your options when selling a business.

Explore business sales

Need help making — or undoing — a tax election?

Missed deadlines, late election relief, accounting method changes, and IRS consent requests — our former IRS and Treasury professionals handle it all.

Talk to a Tax Professional