taxmap/pubs/p946-000.htm#en_us_publink1000107281Publication 946
• Section 179 Deduction
• Special Depreciation
Allowance
• MACRS
• 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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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. |
taxmap/pubs/p946-000.htm#en_us_publink1000107292Many 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_publink1000107293The following table shows where you can get more detailed information when depreciating certain types of property.
For information
on depreciating: | See Publication: |
|---|
| 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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editions.
You can write to us at the following address:
Internal Revenue Service
Business Forms and Publications Branch
SE:W:CAR:MP:T:B
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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_publink1000257399Visit
www.irs.gov/formspubs/
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below and receive a response within 10 days after your request is received.
Internal Revenue Service
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