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previous page Previous Page: Publication 939 - General Rule for Pensions and Annuities - How To Get Tax Help
next page Next Page: Publication 946 - How to Depreciate Property - Overview of Depreciation
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p946-000.htm#en_us_publink1000107281
Publication 946

How To  
Depreciate  
Property


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• Section 179 Deduction 
• Special Depreciation  
 Allowance 
• MACRS 
• Listed Property


What's New(p2)


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taxmap/pubs/p946-000.htm#en_us_publink1000107283

Increased section 179 deduction dollar limits.(p2)

The maximum amount you can elect to deduct for most section 179 property you placed in service in 2008 is $250,000 ($285,000 for qualified enterprise zone and renewal community property). This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $800,000. See Dollar Limits under How Much Can You Deduct in chapter 2. For qualified section 179 Gulf Opportunity Zone (GO Zone) property, the maximum section 179 deduction and the $800,000 threshold may be increased. See Dollar limits under Gulf Opportunity Zone (GO Zone) Property in chapter 2.
taxmap/pubs/p946-000.htm#en_us_publink1000107284

Depreciation limits on business vehicles.(p2)

The total section 179 deduction and depreciation you can deduct for a passenger automobile (that is not a truck or van) you use in your business and first placed in service in 2008 is $2,960, if the special depreciation allowance does not apply. The maximum deduction you can take for a truck or van you use in your business and first placed in service in 2008 is $3,160, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.
taxmap/pubs/p946-000.htm#en_us_publink1000136828

Additional tax relief for businesses affected by Kansas storms and tornadoes.(p2)

An increased section 179 deduction and a special depreciation allowance are available for qualified Recovery Assistance property. For more information, see Recovery Assistance Property under Dollar Limits in chapter 2, and Qualified Recovery Assistance Property in chapter 3.
taxmap/pubs/p946-000.htm#en_us_publink1000146249

Special depreciation allowance for property acquired and placed in service after 2007.(p2)

A 50% additional first year depreciation deduction is available for qualified property acquired after December 31, 2007, and placed in service before January 1, 2010. See Certain Qualified Property Acquired After December 31, 2007 in chapter 3.
taxmap/pubs/p946-000.htm#en_us_publink1000146251

Qualified cellulosic biofuel plant property.(p2)

A 50% additional first year depreciation deduction is available for qualified cellulosic biofuel plant property placed in service after October 3, 2008, and before January 1, 2013. See Qualified Cellulosic Biofuel Plant Property in chapter 3.
taxmap/pubs/p946-000.htm#en_us_publink1000146252

Qualified reuse and recycling property.(p2)

A 50% additional first year depreciation deduction is available for qualified reuse and recycling property acquired after August 31, 2008. See Qualified Reuse and Recycling Property in chapter 3.
taxmap/pubs/p946-000.htm#en_us_publink1000146253

Additional tax relief for businesses affected by federally declared disasters.(p2)

An increased section 179 deduction and a special depreciation allowance are available for qualified disaster assistance property. See Disaster Assistance Property under Dollar Limits in chapter 2, and Qualified Disaster Assistance Property in chapter 3.
taxmap/pubs/p946-000.htm#en_us_publink1000154064

Election to accelerate certain credits in lieu of the special depreciation allowance.(p2)

Generally, corporations and certain automotive partnerships can elect to accelerate pre-2006 unused research credits or minimum tax credits in lieu of claiming the special depreciation allowance for certain eligible qualified property acquired after March 31, 2008, and placed in service before January 1, 2010. See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance in chapter 3.

Reminders(p2)


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taxmap/pubs/p946-000.htm#en_us_publink1000107290

Photographs of missing children.(p2)

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

taxmap/pubs/p946-000.htm#TXMP5e453e2aIntroduction

This publication explains how you can recover the cost of business or income-producing property through deductions for depreciation (for example, the special depreciation allowance and deductions under the Modified Accelerated Cost Recovery System (MACRS)). It also explains how you can elect to take a section 179 deduction, instead of depreciation deductions, for certain property, and the additional rules for listed property.
EIC
The depreciation methods discussed in this publication generally do not apply to property placed in service before 1987. For more information, see Publication 534, Depreciating Property Placed in Service Before 1987.
taxmap/pubs/p946-000.htm#en_us_publink1000107292

Definitions.(p3)


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Many of the terms used in this publication are defined in the Glossary near the end of the publication. Glossary terms used in each discussion under the major headings are listed before the beginning of each discussion throughout the publication.
taxmap/pubs/p946-000.htm#en_us_publink1000107293

Do you need a different publication?(p3)


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The following table shows where you can get more detailed information when depreciating certain types of property.
For information
on depreciating:
See Publication:
A car463, Travel, Entertainment, Gift, and Car Expenses
Residential rental property527, Residential Rental Property (Including Rental of Vacation Home)
Office space in your home587, Business Use of Your Home (Including Use by Daycare Providers)
Farm property225, Farmer's Tax Guide
taxmap/pubs/p946-000.htm#en_us_publink1000107294

Comments and suggestions.(p3)


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We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:

Internal Revenue Service 
Business Forms and Publications Branch 
SE:W:CAR:MP:T:B 
1111 Constitution Ave. NW, IR-6526 
Washington, DC 20224


We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
You can email us at *taxforms@irs.gov. The asterisk must be included in the address. Please put "Publications Comment" on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.
taxmap/pubs/p946-000.htm#en_us_publink1000107295

Ordering forms and publications.(p3)
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Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the address below.

Internal Revenue Service 
National Distribution Center  
1201 N. Mitsubishi Motorway 
Bloomington, IL 61705-6613


taxmap/pubs/p946-000.htm#en_us_publink1000107296

Tax questions.(p3)
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If you have a tax question, visit www.irs.gov or call 1-800-829-4933. We cannot answer tax questions sent to either of the addresses listed above.
previous pagePrevious Page: Publication 939 - General Rule for Pensions and Annuities - How To Get Tax Help
next pageNext Page: Publication 946 - How to Depreciate Property - Overview of Depreciation
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication