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IRS.gov Website
Publication 334
taxmap/pubs/p334-024.htm#en_us_publink1000313521

Depreciation(p32)

For Use in Tax Year 2013
rule
If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. This method of deducting the cost of business property is called depreciation.
The discussion here is brief. You will find more information about depreciation in Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink1000313522

What property can be depreciated?(p32)

For Use in Tax Year 2013
rule
You can depreciate property if it meets all the following requirements.
taxmap/pubs/p334-024.htm#en_us_publink1000313523

Repairs.(p33)

For Use in Tax Year 2013
rule
You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ.
taxmap/pubs/p334-024.htm#en_us_publink1000313524

Depreciation method.(p33)

For Use in Tax Year 2013
rule
The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). MACRS is discussed in detail in Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink1000313525

Section 179 deduction.(p33)

For Use in Tax Year 2013
rule
You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. This deduction is known as the "section 179 deduction." The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). See IRC 179(e).
This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Special rules apply to trucks and vans. For more information, see Publication 946. It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction.
EIC
Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. For more information, see the Instructions for Form 4562 or Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink1000313527

Listed property.(p33)

For Use in Tax Year 2013
rule
You must follow special rules and recordkeeping requirements when depreciating listed property. Listed property is any of the following.
For more information about listed property, see Publication 946.
taxmap/pubs/p334-024.htm#en_us_publink1000313528

Form 4562.(p33)

For Use in Tax Year 2013
rule
Use Form 4562, Depreciation and Amortization, if you are claiming any of the following.
EIC
If you have to use Form 4562, you must file Schedule C. You cannot use Schedule C-EZ.