• Section 179 Deduction
• Special Depreciation
• Listed Property
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.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.
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.
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.
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
The following table shows where you can get more detailed information when depreciating certain types of property.
|A car||463, Travel, Entertainment, Gift, and Car Expenses|
|Residential rental property||527, Residential Rental Property (Including Rental of Vacation Home)|
|Office space in your home||587, Business Use of Your Home (Including Use by Daycare Providers)|
|Farm property||225, Farmer's Tax Guide|
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