Table of Contents
For the latest information about developments related to Pub. 946, such as legislation enacted after this publication was published, go to www.irs.gov/pub946.
Increased section 179 deduction dollar limits. The maximum amount you can elect to deduct for most section 179 property you placed in service in tax years beginning in 2016 is $500,000 ($535,000 for qualified enterprise zone property). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,010,000. See Dollar Limits in chapter 2.
Special depreciation allowance for qualified second generation biofuel plant property. The special depreciation allowance will not apply to qualified second generation biofuel plant property placed in service after December 31, 2016. See Qualified Second Generation Biofuel Plant Property in chapter 3.
Special depreciation allowance for certain plants. . You can elect to claim the special depreciation allowance for certain specified plants bearing fruits and nuts for the tax year in which the specified plants are planted or grafted. This election applies to specified plants planted or grafted after December 31, 2015. See Certain plants bearing fruits and nuts in chapter 3.
Certain race horses. . The 3-year recovery period for race horses two years old or younger will not apply to horses placed in service after December 31, 2016. See Which Property Class Applies Under GDS in chapter 4.
Qualified motor sports entertainment complexes. . Qualified motor sports entertainment complex property placed in service after December 31, 2016, will not be treated as 7-year property under MACRS. See Which Property Class Applies Under GDS in chapter 4.
Accelerated depreciation for qualified Indian reservation property. The accelerated depreciation of property on an Indian reservation will not apply to property placed in service after December 31, 2016, or, if you make an irrevocable election out of all property in a class of property that is placed in service in a tax year beginning after December 31, 2015. See Indian Reservation Property in chapter 4.
Depreciation limits on business vehicles. . 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 2016 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 2016 is $3,560, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.
Section 179 deduction dollar limits. . The maximum amount you can elect to deduct for most section 179 property you placed in service in tax years beginning in 2017 is $510,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,030,000.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC) . 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.
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.
|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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