Publication 946 (2005), How To Depreciate Property

A

Addition to property, Additions and Improvements

Adjusted basis, Adjusted Basis

Agreement not to compete (see Section 197 intangibles)

Alternative Depreciation System (ADS):

Recovery periods, Recovery Periods Under ADS
Required use, Required use of ADS.

Amended return, Filing an Amended Return

Apartment:

Cooperative, Cooperative apartments.
Rental, Which Property Class Applies Under GDS?

Assistance (see Tax help)

Automobile (see Passenger automobile)

B

Basis:

Adjustments, Basis adjustment for depreciation allowed or allowable., Adjustment of partner's basis in partnership., Basis adjustment due to recapture of clean-fuel vehicle deduction or credit., Basis adjustment due to casualty loss.
Basis for depreciation, What Is the Basis for Depreciation?
Casualty loss, Basis adjustment due to casualty loss.
Change in use, Property changed from personal use.
Cost, Cost as Basis
Depreciable basis, Depreciable basis.
Other than cost, Other Basis
Recapture of clean-fuel vehicle deduction or credit, Basis adjustment due to recapture of clean-fuel vehicle deduction or credit.
Term interest, Basis adjustments.
Unadjusted, Figuring the Unadjusted Basis of Your Property

Business use of property, partial, Partial business or investment use.

Business-use limit, recapture of Section 179 deduction, When Must You Recapture the Deduction?

Business-use requirement, listed property, What Is the Business-Use Requirement?

C

Car (see Passenger automobile)

Carryover of section 179 deduction, Carryover of disallowed deduction.

Casualty loss, effect of, Basis adjustment due to casualty loss.

Cellular telephone (see Listed property)

Changing accounting method, Changing Your Accounting Method

Comments on publication, Comments and suggestions.

Communication equipment (see Listed property)

Commuting, Commuting use.

Computer (see Listed property)

Computer software, Computer software., Computer software., Off-the-shelf computer software.

Containers, Containers.

Conventions, Which Convention Applies?

Cooperative apartment, Cooperative apartments.

Copyright, Patents and copyrights.

(see also Section 197 intangibles)

Correcting depreciation deductions, How Do You Correct Depreciation Deductions?

Cost basis, Cost as Basis

Customer list (see Section 197 intangibles)

D

Declining balance:

Method, Declining Balance Method
Rates, Declining balance rate.

Deduction limit:

Automobile, Do the Passenger Automobile Limits Apply?
Exception for clean-fuel modifications, Exception for clean-fuel modifications.
Section 179, How Much Can You Deduct?

Depreciation allowable, Basis adjustment for depreciation allowed or allowable.

Depreciation allowed, Basis adjustment for depreciation allowed or allowable.

Depreciation deduction:

Listed property, What Is the Business-Use Requirement?

Depreciation:

Deduction:

Employee, Can Employees Claim a Deduction?
Listed property, Can Employees Claim a Deduction?

Determinable useful life, Property Having a Determinable Useful Life

Excepted property, Excepted Property

Incorrect amount deducted, How Do You Correct Depreciation Deductions?

Methods, Which Depreciation Method Applies?

Property lasting more than one year, Property Lasting More Than One Year

Property owned, Property You Own

Property used in business, Property Used in Your Business or Income-Producing Activity

Recapture, When Do You Recapture MACRS Depreciation?, Recapture of Excess Depreciation

Determinable useful life, Property Having a Determinable Useful Life

Disposition:

Before recovery period ends, Sale or Other Disposition Before the Recovery Period Ends
General asset account property, Disposing of GAA Property
Section 179 deduction, When Must You Recapture the Deduction?

E

Election:

ADS, Electing ADS., Election of ADS.
Declining balance (150% DB) method, 150% election.
Exclusion from MACRS, Election To Exclude Property From MACRS
General asset account, Electing To Use a GAA
Not to claim special depreciation allowance, How Can You Elect Not To Claim an Allowance?
Section 179 deduction, How Do You Elect the Deduction?
Straight line method, Straight line election.

Electric vehicle, Electric Vehicles

Employee deduction, listed property, Can Employees Claim a Deduction?

Employee:

Depreciation deduction, Can Employees Claim a Deduction?
How to claim depreciation, Employee.

Energy property, Energy property.

Exchange of MACRS property, Property Acquired in a Like-kind Exchange or Involuntary Conversion

F

Farm:

Property, Depreciation Methods for Farm Property

Figuring MACRS:

Using percentage tables, How Is the Depreciation Deduction Figured?
Without using percentage tables, Figuring the Deduction Without Using the Tables

Films, Films, video tapes, and recordings.

Franchise (see Section 197 intangibles)

Free tax services, How To Get Tax Help

G

General asset account:

Abusive transaction, Abusive transactions.
Disposing of property, Disposing of GAA Property
Grouping property in, Grouping Property
Nonrecognition transaction, Nonrecognition transactions.

General Depreciation System (GDS), recovery periods, Recovery Periods Under GDS

Gift (see Basis, other than cost)

Glossary, Glossary

H

Help (see Tax help)

I

Idle property, Idle Property

Improvements, How Do You Treat Improvements?, Additions and Improvements

Income forecast method, Income Forecast Method

Incorrect depreciation deductions, How Do You Correct Depreciation Deductions?

Indian reservation:

Defined, Indian reservation.
Qualified infrastructure property, Qualified infrastructure property.
Qualified property, Qualified property.
Recovery periods for qualified property, Indian Reservation Property
Related person, Related person.

Inheritance (see Basis, other than cost)

Intangible property:

Depreciation method, Intangible Property, Income Forecast Method
Income forecast method, Income Forecast Method
Straight line method, Intangible Property

Inventory, Inventory.

Investment use of property, partial, Partial business or investment use.

Involuntary conversion of MACRS property, Property Acquired in a Like-kind Exchange or Involuntary Conversion

L

Land:

Not depreciable, Land
Preparation costs, Land preparation costs.

Leased property, Leased property.

Leasehold improvement property, defined, Qualified leasehold improvement property., Qualified leasehold improvement property.

Liberty Zone leasehold improvement property, defined, Qualified Liberty Zone leasehold improvement property.

Life tenant, Life tenant.

(see also Term interests)

Limit on deduction:

Automobile, Do the Passenger Automobile Limits Apply?
Section 179, How Much Can You Deduct?

Listed property:

5% owner, 5% owner.
Computer, Computers and Related Peripheral Equipment
Condition of employment, Condition of employment.
Defined, What Is Listed Property?
Employee deduction, Can Employees Claim a Deduction?
Employer convenience, Employer's convenience.
Improvements to, Improvements to listed property.
Leased, Lessee's Inclusion Amount
Passenger automobile, Passenger Automobiles
Qualified business use, Qualified Business Use
Recordkeeping, Adequate Records
Related person, Related persons.
Reporting on Form 4562, How Is Listed Property Information Reported?

Lodging, Property used for lodging.

Long production period property, requirements for the special allowance, Long Production Period Property

Long production period property:

Acquisition date test, Acquisition date test.
Excepted property, Excepted Property
Original use test, Original use test.
Placed in service date test, Placed in service date test.

M

Maximum deduction:

Electric vehicles, Electric Vehicles
Passenger automobiles, Maximum Depreciation Deduction
Trucks, Trucks and Vans
Vans, Trucks and Vans

Mobile home (see Residential rental property)

Modified ACRS (MACRS):

Addition or improvement, Additions and Improvements
Alternative Depreciation System (ADS), Which Depreciation System (GDS or ADS) Applies?
Conventions, Which Convention Applies?
Declining balance method, Declining Balance Method
Depreciation methods, Which Depreciation Method Applies?
Farm property, Depreciation Methods for Farm Property
Figuring, short tax year, Property Placed in Service in a Short Tax Year
General Depreciation System (GDS), Which Depreciation System (GDS or ADS) Applies?
Percentage tables, Using the MACRS Percentage Tables
Property classes, Which Property Class Applies Under GDS?
Recovery periods, Which Recovery Period Applies?
Short tax year, Figuring the Deduction for a Short Tax Year
Straight line method, Straight Line Method

More information (see Tax help)

N

Noncommercial aircraft, requirements for the special allowance, Noncommercial Aircraft

Noncommercial aircraft:

Acquisition date test, Acquisition date test.
Excepted property, Excepted Property
Original use test, Original use test.
Placed in service date test, Placed in service date test.

Nonresidential real property, Which Property Class Applies Under GDS?

Nontaxable transfer of MACRS property, Property Acquired in a Nontaxable Transfer

O

Office in the home, Office in the home., Office in the home.
Ownership, incidents of, Incidents of ownership.

P

Partial business use, Partial business use.

Passenger automobile:

Defined, Passenger Automobiles
Electric vehicles, Electric Vehicles
Limit on, Do the Passenger Automobile Limits Apply?
Maximum depreciation deduction, Maximum Depreciation Deduction
Trucks, Trucks and Vans
Vans, Trucks and Vans

Patent, Patents and copyrights.

(see also Section 197 intangibles)

Personal property, Personal property.

Phonographic equipment (see Listed property)

Photographic equipment (see Listed property)

Placed in service:

Before 1987, Property You Placed in Service Before 1987
Date, What Is the Placed-in-Service Date?
Rule, Placed in Service

Property:

Classes, Which Property Class Applies Under GDS?
Depreciable, What Property Can Be Depreciated?
Idle, Idle Property
Improvements, How Do You Treat Improvements?
Intangible, Section 197 intangibles.
Leased, Leased property., Leased property.
Listed , What Is Listed Property?
Personal, Personal property.
Real, Real property.
Retired from service, Retired From Service
Tangible personal, Tangible personal property.
Term interest, Certain term interests in property.

Publications (see Tax help)

Q

Qualified Gulf Opportunity Zone property, requirements for the special allowance, Qualified Gulf Opportunity Zone Property

Qualified Gulf Opportunity Zone property:

Acquisition date test, Acquisition date test.
Excepted property, Excepted Property
Original use test, Original use test.
Placed in service date test, Placed in service date test.
Substantial use test, Substantial use test.

Qualified leasehold improvement property, defined, Qualified leasehold improvement property., Qualified leasehold improvement property.

Qualified Liberty Zone property, requirements for the special allowance, Qualified Liberty Zone Property

Qualified Liberty Zone property:

Acquisition date test, Acquisition date test.
Excepted property, Excepted Property
Original use test, Original use test.
Placed in service date test, Placed in service date test.
Substantial use test, Substantial use test.

Qualified property, special depreciation allowance, What Is Qualified Property?

R

Real property, Real property.

Recapture:

Clean-fuel vehicle deduction or credit, Basis adjustment due to recapture of clean-fuel vehicle deduction or credit.
General asset account, abusive transaction, Abusive transactions.
Listed property, Recapture of Excess Depreciation
MACRS depreciation, When Do You Recapture MACRS Depreciation?
Section 179 deduction, When Must You Recapture the Deduction?
Special depreciation allowance, When Must You Recapture the Allowance?

Recordkeeping:

Listed property, Adequate Records
Section 179, How Do You Elect the Deduction?

Recovery periods:

ADS, Recovery Periods Under ADS
GDS, Recovery Periods Under GDS

Rent-to-own property, defined, Qualified rent-to-own property.

Rental home (see Residential rental property)

Rented property, improvements, Improvements to rented property.

Repairs, Repairs.

Residential rental property, Which Property Class Applies Under GDS?

Retail motor fuels outlet, Retail motor fuels outlet.

Revoking:

ADS election, Electing ADS.
General asset account election, Revoking an election.
Section 179 election, Revoking an election.

S

Sale of property, Sale or Other Disposition Before the Recovery Period Ends

Section 179 deduction:

Business use required, Partial business use.

Carryover, Carryover of disallowed deduction.

Dispositions, When Must You Recapture the Deduction?

Electing, How Do You Elect the Deduction?

Limits:

Business (taxable) income, Business Income Limit
Business-use, recapture, When Must You Recapture the Deduction?
Dollar, Dollar Limits
Enterprise zone business, Enterprise Zone and Renewal Community Businesses
Gulf Opportunity Zone property, Gulf Opportunity Zone (GO Zone) Property
Liberty Zone property, Liberty Zone Property
Partial business use, Partial business use.

Married filing separate returns, Married Individuals

Partnership rules, Partnerships and Partners

Property:

Eligible, Eligible Property
Excepted, Excepted Property

Purchase required, Property Acquired by Purchase

Recapture, When Must You Recapture the Deduction?

Recordkeeping, How Do You Elect the Deduction?

S corporation rules, S Corporations

Section 197 intangibles, Section 197 intangibles.

Settlement fees, Settlement costs.

Short tax year:

Figuring depreciation, Property Placed in Service in a Short Tax Year
Figuring placed-in-service date, Using the Applicable Convention in a Short Tax Year

Software, computer, Computer software., Computer software., Off-the-shelf computer software.

Sound recording, Films, video tapes, and recordings.

Special depreciation allowance:

Election not to claim, How Can You Elect Not To Claim an Allowance?
Qualified Gulf Opportunity Zone property, Qualified Gulf Opportunity Zone Property
Qualified Liberty Zone property, Qualified Liberty Zone Property
Qualified property, What Is Qualified Property?
Recapture, When Must You Recapture the Allowance?

Stock, constructive ownership of, Constructive ownership of stock or partnership interest.

Straight line method, Intangible Property, Straight Line Method

Straight line method:

Created intangibles, Certain created intangibles.

Subscription list (see Section 197 intangibles)

Suggestions for publication, Comments and suggestions.

T

Tangible personal property, Tangible personal property.
Tax help, How To Get Tax Help
Taxpayer Advocate, Contacting your Taxpayer Advocate.
Term interest, Certain term interests in property.
Trade-in of property, Trade-in of other property.
Trucks, Trucks and Vans
TTY/TDD information, How To Get Tax Help

U

Unadjusted basis, Figuring the Unadjusted Basis of Your Property
Useful life, Property Having a Determinable Useful Life

V

Vans, Trucks and Vans
Video tape, Films, video tapes, and recordings.
Video-recording equipment (see Listed property)

W

When to use ADS, Which Depreciation System (GDS or ADS) Applies?

Worksheet:

Leased listed property, Inclusion amount worksheet.
MACRS, MACRS Worksheet
Passenger automobile, Depreciation Worksheet for Passenger Automobiles

Index

A

B

C

D

E

F

G

H

I

L

M

N

O

P

Q

R

S

T

U

V

W