skip navigation
Search Help
Navigation Help

Tax Map Index

Tax Topic Index

Affordable Care Act
Tax Topic Index

Exempt Organization
Tax Topic Index

Tax Topics

About Tax Map Website
Publication 946
How to Depreciate Property
Introduction, Useful Items and Important Changes
For use in Preparing 2015 Returns

Chapter 1
Overview of Depreciation

What Property Can Be Depreciated?

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?

Excepted Property

When Does Depreciation Begin and End?

Placed in Service
Idle Property
Cost or Other Basis Fully Recovered
Retired From Service

What Method Can You Use To Depreciate Your Property?

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?

Cost as Basis
Other Basis
Adjusted Basis

How Do You Treat Repairs and Improvements?

Do You Have To File Form 4562?

How Do You Correct Depreciation Deductions?

Filing an Amended Return
Changing Your Accounting Method

Chapter 2
Electing the Section 179 Deduction

What Property Qualifies?

Eligible Property
Property Acquired for Business Use
Property Acquired by Purchase

What Property Does Not Qualify?

Land and Improvements
Excepted Property

How Much Can You Deduct?

Dollar Limits
Business Income Limit
Partnerships and Partners
S Corporations
Other Corporations

How Do You Elect the Deduction?

When Must You Recapture the Deduction?

Chapter 3
Claiming the Special Depreciation Allowance

What Is Qualified Property?

Qualified Reuse and Recycling Property
Qualified Second Generation Biofuel Plant Property
Certain Qualified Property Acquired After December 31, 2007, and Placed in Service Before January 1, 2016

Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance

How Much Can You Deduct?

How Can You Elect Not To Claim an Allowance?

When Must You Recapture an Allowance?

Chapter 4
Figuring Depreciation Under MACRS

Which Depreciation System (GDS or ADS) Applies?

Which Property Class Applies Under GDS?

What Is the Placed in Service Date?

What Is the Basis for Depreciation?

Which Recovery Period Applies?

Recovery Periods Under GDS
Recovery Periods Under ADS
Additions and Improvements

Which Convention Applies?

Which Depreciation Method Applies?

Depreciation Methods for Farm Property
Electing a Different Method

How Is the Depreciation Deduction Figured?

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?

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?

Chapter 5
Additional Rules for Listed Property

What Is Listed Property?

Passenger Automobiles
Other Property Used for Transportation
Computers and Related Peripheral Equipment

Can Employees Claim a Deduction?

What Is the Business-Use Requirement?

How To Allocate Use
Qualified Business Use
Recapture of Excess Depreciation
Lessee's Inclusion Amount

Do the Passenger Automobile Limits Apply?

Maximum Depreciation Deduction
Deductions After the Recovery Period
Deductions For Passenger Automobiles Acquired in a Trade-in

What Records Must Be Kept?

Adequate Records

How Is Listed Property Information Reported?

Chapter 6
How To Get Tax Help

The Taxpayer Advocate Service Is Here To Help You

Low Income Taxpayer Clinics

Appendix B — Table of Class Lives and Recovery Periods

How To Use the Tables