skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map

previous page Previous Page: Publication 225 - Farmer's Tax Guide - Section 179 Expense Deduction
next page Next Page: Publication 225 - Farmer's Tax Guide - Figuring Depreciation Under MACRS
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p225-031.htm#en_us_publink100079252

Claiming the Special Depreciation Allowance(p42)


rule
spacer

For qualified property (defined below) placed in service in 2008, you can take an additional 50% special depreciation allowance. The allowance is an additional deduction you can take after any section 179 expense deduction and before you figure regular depreciation under MACRS. Figure the special depreciation allowance by multiplying the depreciable basis of the qualified property by 50%.
taxmap/pubs/p225-031.htm#en_us_publink100079253

What is Qualified Property?(p42)


rule
spacer

What is Qualified Property?

For farmers, qualified property generally is qualified GO Zone property, qualified Recovery Assistance property, certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2009, and qualified disaster assistance property.
taxmap/pubs/p225-031.htm#en_us_publink100079254

Qualified GO Zone property.(p42)


rule
spacer

Farmers may be able to take a special depreciation allowance for qualified GO Zone property (including specified GO Zone extension property (as defined in section 1400N(d)(6)(C) of the Internal Revenue Code)). This is depreciable property that meets the following requirements.
For more information, including a description of the areas in the GO Zone, and a list of qualified GO Zone property and specified GO Zone extension property, see chapter 3 of Publication 946.
taxmap/pubs/p225-031.htm#en_us_publink100079255

Qualified Recovery Assistance property.(p42)


rule
spacer

You may be able to take a special depreciation allowance for qualified Recovery Assistance property you acquired after May 4, 2007, and placed in service in the Kansas disaster area. For more information, see Publication 4492-A and Notice 2008-67, 2008-32 I.R.B. 307, available at www.irs.gov/irb/2008-32_irb/ar14.html.
taxmap/pubs/p225-031.htm#en_us_publink100079256

Certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2009.(p42)


rule
spacer

Certain qualified property (defined below) acquired after December 31, 2007, and before January 1, 2009, is eligible for a 50% special depreciation allowance.
Qualified property includes the following:
Qualified property must also meet all of the following tests:
Deposit
You may be able to take a special depreciation allowance for qualified disaster assistance property placed in service in federally declared disaster areas during the tax year. A list of the federally declared disaster areas is available at the Federal Emergency Management Agency (FEMA) web site at www.fema.gov. For more information, including the definition of qualified disaster assistance property and the eligible disaster areas, see chapter 3 of Publication 946.
taxmap/pubs/p225-031.htm#en_us_publink100079258

How Can You Elect Not To Claim the Allowance?(p42)


rule
spacer

You can elect, for any class of property, not to deduct the special depreciation allowance for all property in such class placed in service during the tax year. To make the election, attach a statement to your return indicating the class of property for which you are making the election.
Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Attach the election statement to the amended return. On the amended return, write "Filed pursuant to section 301.9100-2."
Once made, the election may not be revoked without IRS consent.
EIC
If you elect not to have the special depreciation allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation.
taxmap/pubs/p225-031.htm#en_us_publink100079260

When Must You Recapture an Allowance(p42)


rule
spacer

When Must You Recapture an Allowance

When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. For more information, see chapter 3 of Publication 946.
previous pagePrevious Page: Publication 225 - Farmer's Tax Guide - Section 179 Expense Deduction
next pageNext Page: Publication 225 - Farmer's Tax Guide - Figuring Depreciation Under MACRS
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication