Table of Contents

• Publication 946 - Introductory Material
  • What's New
  • Important Reminders
  • Introduction
    • Ordering forms and publications.
    • Tax questions.
• 1.   Overview of Depreciation
  • Introduction
  • Useful Items - You may want to see:
  • What Property Can Be Depreciated?
    • Terms you may need to know (see Glossary):
    • Property You Own
    • Property Used in Your Business or Income-Producing Activity
    • Property Having a Determinable Useful Life
    • Property Lasting More Than One Year
  • What Property Cannot Be Depreciated?
    • Terms you may need to know (see Glossary):
    • Land
    • Excepted Property
  • When Does Depreciation Begin and End?
    • Terms you may need to know (see Glossary):
    • Placed in Service
    • Idle Property
    • Cost or Other Basis Fully Recovered
    • Retired From Service
  • What Method Can You Use To Depreciate Your Property?
    • Terms you may need to know (see Glossary):
    • Property You Placed in Service Before 1987
    • Property Owned or Used in 1986
    • Intangible Property
    • Corporate or Partnership Property Acquired in a Nontaxable Transfer
    • Election To Exclude Property From MACRS
  • What Is the Basis of Your Depreciable Property?
    • Terms you may need to know (see Glossary):
    • Cost as Basis
    • Other Basis
    • Adjusted Basis
  • How Do You Treat Repairs and Improvements?
  • Do You Have To File Form 4562?
    • Terms you may need to know (see Glossary):
  • How Do You Correct Depreciation Deductions?
    • Filing an Amended Return
    • Changing Your Accounting Method
• 2.   Electing the Section 179 Deduction
  • Introduction
  • Useful Items - You may want to see:
  • What Property Qualifies?
    • Terms you may need to know (see Glossary):
    • Eligible Property
    • Property Acquired for Business Use
    • Property Acquired by Purchase
  • What Property Does Not Qualify?
    • Terms you may need to know (see Glossary):
    • Land and Improvements
    • Excepted Property
  • How Much Can You Deduct?
    • Terms you may need to know (see Glossary):
    • Dollar Limits
    • Business Income Limit
    • Partnerships and Partners
    • S Corporations
    • Other Corporations
  • How Do You Elect the Deduction?
    • Terms you may need to know (see Glossary):
  • When Must You Recapture the Deduction?
    • Terms you may need to know (see Glossary):
• 3.   Claiming the Special Depreciation Allowance
  • Introduction
  • What Is Qualified Property?
    • Terms you may need to know (see Glossary):
    • Qualified Liberty Zone Property
    • Qualified Gulf Opportunity Zone Property
    • Long Production Period Property and Noncommercial Aircraft
    • Qualified Cellulosic Biomass Ethanol Plant Property
  • How Much Can You Deduct?
    • Terms you may need to know (see Glossary):
  • How Can You Elect Not To Claim an Allowance?
  • When Must You Recapture an Allowance?
• 4.   Figuring Depreciation Under MACRS
  • Introduction
  • Useful Items - You may want to see:
  • Which Depreciation System (GDS or ADS) Applies?
    • Terms you may need to know (see Glossary):
  • Which Property Class Applies Under GDS?
    • Terms you may need to know (see Glossary):
    • Rent-to-own dealer.
    • Rent-to-own contract.
    • Election out.
  • What Is the Placed-in-Service Date?
    • Terms you may need to know (see Glossary):
  • What Is the Basis for Depreciation?
    • Terms you may need to know (see Glossary):
  • Which Recovery Period Applies?
    • Terms you may need to know (see Glossary):
    • Recovery Periods Under GDS
    • Recovery Periods Under ADS
    • Additions and Improvements
  • Which Convention Applies?
    • Terms you may need to know (see Glossary):
  • Which Depreciation Method Applies?
    • Terms you may need to know (see Glossary):
    • Depreciation Methods for Farm Property
    • Electing a Different Method
  • How Is the Depreciation Deduction Figured?
    • Terms you may need to know (see Glossary):
    • Using the MACRS Percentage Tables
    • Figuring the Deduction Without Using the Tables
    • Figuring the Deduction for Property Acquired in a Nontaxable Exchange
    • Figuring the Deduction for a Short Tax Year
  • How Do You Use General Asset Accounts?
    • Terms you may need to know (see Glossary):
    • Grouping Property
    • Figuring Depreciation for a GAA
    • Disposing of GAA Property
    • Terminating GAA Treatment
    • Electing To Use a GAA
  • When Do You Recapture MACRS Depreciation?
    • Terms you may need to know (see Glossary):
• 5.   Additional Rules for Listed Property
  • Introduction
  • Useful Items - You may want to see:
  • What Is Listed Property?
    • Terms you may need to know (see Glossary):
    • Passenger Automobiles
    • Other Property Used for Transportation
    • Computers and Related Peripheral Equipment
  • Can Employees Claim a Deduction?
  • What Is the Business-Use Requirement?
    • Terms you may need to know (see Glossary):
    • How To Allocate Use
    • Qualified Business Use
    • Recapture of Excess Depreciation
    • Lessee's Inclusion Amount
  • Do the Passenger Automobile Limits Apply?
    • Terms you may need to know (see Glossary):
    • Maximum Depreciation Deduction
    • Deductions After the Recovery Period
    • Deductions For Passenger Automobiles Acquired in a Trade-in
  • What Records Must Be Kept?
    • Terms you may need to know (see Glossary):
    • Adequate Records
  • How Is Listed Property Information Reported?
• 6.   How To Get Tax Help
  • Low income tax clinics (LITCs).
• Publication 946 - Additional Material
  • Appendix B — Table of Class Lives and Recovery Periods
    • How To Use the Tables
  • Glossary
• Index