2008

Increased section 179 limits. The maximum section 179 deduction you can elect for qualified section 179 property you placed in service in tax years that begin in 2008 has increased to $250,000 ($285,000 for qualified enterprise zone property and qualified renewal community property). This limit is reduced by the amount by which the cost of section 179 property placed in service in the tax year exceeds $800,000. For qualified section 179 Gulf Opportunity (GO) Zone property, qualified section 179 recovery assistance property, and qualified section 179 disaster assistance property, the maximum deduction is higher than the deduction for most other section 179 property. See chapter 2 of Publication 946, How to Depreciate Property.

Depreciation limits on business vehicles. The total depreciation deduction (including the section 179 deduction) you can take for a passenger automobile (that is not a truck or a van) you use in your business and first placed in service in 2008 is $2,960 ($10,960 for automobiles for which the special depreciation allowances applies). The maximum deduction you can take for a truck or a van you use in your business and first placed in service in 2008 is $3,160 ($11,160 for trucks or vans for which the special depreciation allowance applies). See chapter 5 of Publication 946.

   Caution: These limits are reduced if the business use of the vehicle is less than 100%.

Special depreciation allowance for qualified property.  You may be able to take an additional first year special depreciation allowance for qualified recovery assistance property, certain qualified property acquired after 2007, qualified reuse and recycling property, qualified cellulosic biofuel plant property, and qualified disaster assistance property placed in service during the tax year. The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 expense deduction and before figuring your regular depreciation deduction). For more information, see chapter 3 of Publication 946.

Qualified recovery assistance property. A special depreciation allowance is available for qualified recovery assistance property you acquired after May 4, 2007, and placed in service in the Kansas disaster area.

   Certain qualified property acquired after 2007. A special depreciation allowance is available for certain qualified property acquired after 2007 and placed in service before 2010 (before 2011 for certain property with a long production period and certain aircraft).

   Qualified reuse and recycling property. A special depreciation allowance is available for qualified reuse and recycling property acquired after August 31, 2008.

   Qualified cellulosic biofuel plant property. A special depreciation allowance is available for qualified cellulosic biofuel plant property placed in service after October 3, 2008, and before 2013.

   Qualified disaster assistance property. A special depreciation allowance is available for qualified disaster assistance property placed in service in federally declared disaster areas in which the disaster occurred after 2007.

2009

Section 179 limits. The maximum section 179 expense deduction you can elect for qualified section 179 property you placed in service in tax years that begin in 2009 remains at $250,000 ($285,000 for qualified enterprise zone property and qualified renewal community property). This limit is reduced by the amount by which the cost of section 179 property placed in service in the tax year exceeds $800,000

Depreciation limits on business vehicles. The total depreciation deduction (including the section 179 expense deduction) you can take for a passenger automobile (that is not a truck or a van) you use in your business and first placed in service in 2009 is $2,960 ($10,960 for automobiles for which the special depreciation allowance applies). The maximum deduction you can take for a truck or van you use in your business and first placed in service in 2009 is $3,060 ($11,060 for trucks or vans for which the special depreciation allowance applies).

      Caution. These limits are reduced if the business use of the vehicle is less than 100%.