Misconception · MIS:seventy-five-and-ninety-percent-are-mandatory-lines

Mistaken idea “Seventy-five and ninety percent are mandatory lines”

Mistaken reasoning: This mistake turns classification indicators into universal Topic 842 bright lines.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

“Major part” and “substantially all” are principles. Indicators can inform a documented policy; they do not replace the full classification evidence.

Where to watch

When this mistake may appear

  • Term or present value falls near a familiar percentage.
Check your work

Your work may contain this mistake if:

  • Classify from the percentage alone and omit ownership, option, alternative-use, and policy evidence.