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 2012 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 2012 is $3,160, 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 2012 is $3,360, if the special depreciation allowance does not apply. See
Maximum Depreciation Deduction in chapter 5.
Expiration of the special depreciation allowance for certain qualified property acquired after September 8,
2010.
(p2)The 100% special depreciation allowance for certain property with a long production period and for certain aircraft will not apply to property placed in service after December 31, 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, 2014. See
What Property Qualifies in chapter 3.
Special allowance for qualified second generation biofuel plant property.
(p2)For tax years ending after December 31, 2012, you may be able to take a 50% special depreciation allowance for qualified second generation biofuel plant property placed in service after January 2, 2013, and before January 1,
2014.
Election to accelerate minimum tax credits for round 3 extension property.
(p2)For tax years ending after December 31, 2012, a corporation can elect to claim pre-2006 unused minimum tax credits in lieu of the special depreciation allowance for round 3 extension
property.
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, 2013, 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, 2013, 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,
2013.
Expiration of the 3-year recovery period for certain race horses.
(p2)The 3-year recovery period for race horses two years old or younger will expire for such horses placed in service after December 31,
2013.
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.
For the latest information about developments related to Publication 946 such as legislation enacted after this publication was published, go to
www.irs.gov/pub946.
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.
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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_publink1000290372Visit
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