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Publication 946

How To  


• Section 179 Deduction
• Special Depreciation
• Listed Property

Future Developments(p2)

For the latest information about developments related to Pub. 946, such as legislation enacted after this publication was published, go to

What's New for 2018(p2)

Increased section 179 deduction dollar limits.(p2)
The maximum you can elect to deduct for most section 179 property you placed in service in tax years beginning in 2018 is $1,000,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,500,000. See Dollar Limits in chapter 2.
Qualified section 179 real property.(p2)
For property placed in service in tax years beginning after 2017, qualified section 179 real property is qualified improvement property (as defined in section 168(e)(6)), and certain specified improvements to nonresidential real property placed in service after the nonresidential real property was first placed in service.
Computers and related peripheral equipment.(p2)
Computers and related peripheral equipment placed in service after 2017, in tax years ending after 2017, are no longer treated as listed property.
Electing real property trade or business and electing farm business.(p2)
An electing real property trade or business (as defined in section 163(j)(7)(B)) and electing farming business (as defined in section 163(j)(7)(C)) are required to use the alternative depreciation system for certain property to figure depreciation under MACRS for tax years beginning after 2017.
Recovery period for residential rental property.(p2)
For the property placed in service after 2017, the alternative depreciation system (ADS) recovery period for residential rental property has been shortened from 40 years to 30 years.
Depreciation limits on business vehicles. (p2)
The total section 179 deduction and depreciation you can deduct for a passenger automobile, including a truck or van, you use in your business and first placed in service in 2018 is $10,000, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.

What’s New for 2019(p2)

Section 179 deduction dollar limits.(p2)
The maximum amount you can deduct for most section 179 property you placed in service in tax years beginning in 2019 is $1,020,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,550,000.
Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2019 is $25,500.


Photographs of missing children.(p2)
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.
The depreciation methods discussed in this publication generally do not apply to property placed in service before 1987. For more information, see Pub. 534, Depreciating Property Placed in Service Before 1987.


Many of the terms used in this publication are defined in the Glossary near the end of the publication. Glossary terms used in each discussion under the major headings are listed before the beginning of each discussion throughout the publication.

Do you need a different publication?(p2)

The following table shows where you can get more detailed information when depreciating certain types of property.
For information
on depreciating:
See Publication:
A car463, Travel, Gift, and Car Expenses
Residential rental property527, Residential Rental Property (Including Rental of Vacation Home)
Office space in your home587, Business Use of Your Home (Including Use by Daycare Providers)
Farm property225, Farmer's Tax Guide

Comments and suggestions.(p3)

We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from Or you can write to:

Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
Ordering forms and publications.(p3)
Visit to download forms and publications. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business days.
Tax questions.(p3)
If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this publication.