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taxmap/pubs/p946-000.htm#en_us_publink1000107281
Publication 946

How To  
Depreciate  
Property

rule

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

What's New for 2011(p2)


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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 2011 is $500,000 ($535,000 for qualified enterprise zone property). This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2,000,000. See Dollar Limits under How Much Can You Deduct in chapter 2.
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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 2011 is $3,060, 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 2011 is $3,260, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.
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Special depreciation allowance for certain qualified property acquired after September 8, 2010.(p2)
You may be able to take a 100% special depreciation allowance for certain qualified property acquired after September 8, 2010, and placed in service before January 1, 2012. See What Property Qualifies? in chapter 3.
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Extension of the special depreciation allowance for certain qualified property acquired after December 31, 2007.(p2)
You may be able to take a 50% special depreciation allowance for certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2013. See What Property Qualifies? in chapter 3.
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Future developments.(p2)
The IRS has created a page on IRS.gov for information about Publication 946, at www.irs.gov/pub946. Information about any future developments affecting Publication 946 (such as legislation enacted after we release it) will be posted on that page.

What's New for 2012(p2)


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Expiration of the increased section 179 deduction limits.(p2)
For tax years beginning after 2011, the increased section 179 expense deduction limit and threshold amount before reduction in limitation will no longer apply. Also, the definition of section 179 property will no longer include certain qualified real property.
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Expiration of the 100% special depreciation for certain property.(p2)
The 100% special depreciation allowance will not apply to most property placed in service after December 31, 2011.
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Expiration of the special depreciation allowance for GO Zone extension of property.(p2)
The special depreciation allowance will not apply to specified GO Zone Extension property placed in service after December 31, 2011.
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Expiration of the 7-year recovery period for motor sports entertainment complexes.(p2)
Qualified motor sports entertainment complex property placed in service after December 31, 2011, will not be treated as 7-year property under MACRS.
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Expiration of the 15-year recovery period for qualified leasehold improvement, restaurant, and retail improvement properties.(p2)
Qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property placed in service after December 31, 2011, will not be treated as 15-year property under MACRS.
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Expiration of the accelerated depreciation for qualified Indian reservation property.(p2)
The accelerated depreciation of property on an Indian Reservation will not apply to property placed in service after December 31, 2011.

Reminders(p2)


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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#TXMP0c9fcf5cIntroduction

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.
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Definitions.(p2)

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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.
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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
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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. Please put "Publications Comment" on the subject line. You can also send us comments from www.irs.gov/formspubs/, select "Comment on Tax Forms and Publications" under "Information about."
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
taxmap/pubs/p946-000.htm#en_us_publink1000257399
Ordering forms and publications.(p3)
Visit www.irs.gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received.

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


taxmap/pubs/p946-000.htm#en_us_publink1000257400
Tax questions.(p3)
If you have a tax question, check the information available on IRS.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.