skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

Affordable Care Act
Tax Topic Index

International
Tax Topic Index

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website

Frequently Asked Tax Questions

Sale or Trade of Business, Depreciation, Rentals - Depreciation & Recapture

  1. Can the entire acquisition cost of a computer that I purchased for my business be deducted as a business expense or do I have to use depreciation?
  2. On what form and line do I deduct the standard mileage rate for my business travel, and do I also need to figure depreciation of the vehicle?
  3. I have a home office. Can I deduct expenses like mortgage, utilities, etc., but not deduct depreciation so that when I sell this house, the basis won't be affected?
  4. We have incurred substantial repairs to our residential rental property: new roof, gutters, windows, furnace, and outside paint. What are the IRS rules concerning depreciation?

Rev. date: 01/15/2013

Can the entire acquisition cost of a computer that I purchased for my business be deducted as a business expense or do I have to use depreciation?

The acquisition cost of a computer purchased for business use:
Note:  The American Taxpayer Relief Act of 2012 enhances the section 179 expense deduction. For tax years beginning in 2012, the maximum section 179 deduction you can elect for section 179 property placed in service during the tax year is limited to $500,000. Taxpayers must reduce this limit when the cost of the section 179 property placed in service for the year exceeds $2,000,000.

Rev. date: 10/29/2013

On what form and line do I deduct the standard mileage rate for my business travel, and do I also need to figure depreciation of the vehicle?

Many taxpayers find using the standard mileage rate an easier way to expense their vehicle. The standard mileage rate:
Instead of the standard mileage rate, you can use the actual expense method. If you use this method, you need to figure depreciation for the vehicle.
The business use of an automobile is claimed on:

Rev. date: 12/21/2012

I have a home office. Can I deduct expenses like mortgage, utilities, etc., but not deduct depreciation so that when I sell this house, the basis won't be affected?

If you qualify, for the part of your home that is a home office:
If you do not claim depreciation on that part of your home that is a home office, you are still required to reduce the basis of your home for the allowable depreciation of that part of your home that is a home office when reporting the sale of your home.

Rev. date: 12/21/2012

We have incurred substantial repairs to our residential rental property: new roof, gutters, windows, furnace, and outside paint. What are the IRS rules concerning depreciation?

Replacements of roof, rain gutters, windows and furnace on a residential rental property:
Repairs, such as repainting the residential rental property:
Note:  Repainting your property, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows are examples of repairs.  If you make repairs as part of an extensive remodeling or restoration of your property and these repairs directly benefit or are incurred by reason of this restoration of your property, then the whole job is a capital improvement.  In that case, you should capitalize and depreciate the repair costs as the same class of property that you have restored or remodeled as discussed above.