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 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Car and Truck Expenses
next page Next Page: Publication 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Employees' Pay
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p334-024.htm#en_us_publink100025336

Depreciation(p33)


rule
spacer

previous topic occurrence Depreciation next topic occurrence

If property you acquire to use in your business is expected to last more than one year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. You must spread the cost over more than one tax year and deduct part of it each year on Schedule C. This method of deducting the cost of business property is called depreciation.
The discussion here is brief. You will find more information about depreciation in Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink100025337

What property can be depreciated?(p33)


rule
spacer

You can depreciate property if it meets all the following requirements.
taxmap/pubs/p334-024.htm#en_us_publink100025338

Repairs.(p33)


rule
spacer

You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ.
taxmap/pubs/p334-024.htm#en_us_publink100025339

Depreciation method.(p33)


rule
spacer

The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). MACRS is discussed in detail in Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink100025340

Section 179 deduction.(p33)


rule
spacer

You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. This deduction is known as the "section 179 deduction." The maximum amount you can elect to deduct during 2008 is generally $250,000 (higher limits apply to certain property). This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $800,000. The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2008 is $2,960. Special rules apply to trucks and vans. For more information, see Publication 946. It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction.
EIC
Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. For more information, see the Instructions for Form 4562 or Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink100025342

Listed property.(p33)


rule
spacer

You must follow special rules and recordkeeping requirements when depreciating listed property. Listed property is any of the following.
For more information about listed property, see Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink100025343

Form 4562.(p33)


rule
spacer

Use Form 4562, Depreciation and Amortization, if you are claiming any of the following.
EIC
If you have to use Form 4562, you must file Schedule C. You cannot use Schedule C-EZ. 
previous pagePrevious Page: Publication 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Car and Truck Expenses
next pageNext Page: Publication 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Employees' Pay
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication