Important Changes for 2000

Depreciation limits on business cars. The total section 179 deduction and depreciation you can take on a car you use in your business and first place in service in 2000 is $3,060. Special rules apply to certain clean-fuel vehicles. See Special Rules for Passenger Automobiles under Listed Property.

Section 179 deduction. For 2000, the total cost you can elect to deduct under section 179 of the Internal Revenue Code is increased to $20,000. See Maximum dollar limit.

Marginal production of oil and gas. The suspension of the taxable income limit on percentage depletion from the marginal production of oil and natural gas has been extended to tax years beginning after 1999 and before 2002. For more information on marginal production, see section 613A(c) of the Internal Revenue Code.

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