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Special Depreciation Allowance

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Question
Special Depreciation Allowance

Answer
  • New 50% additional first-year special depreciation allowance applies to most new property purchased and placed in service after 2007.
  • To be eligible, the property must be property with a recovery period of 20 years or less, off-the shelf computer software, qualified leasehold property, or water utility property. The special allowance does not apply if the ADS method is required.
  • The taxpayer may elect out for any class of property.
  • The allowance is figured after the section 179 deduction and before regular depreciation.
  • If the special allowance applies, the limit on depreciation and section 179 deduction for automobiles is increased by $8,000. 

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Views: 1168 Created on: Jun 15, 2013
Date updated: Dec 11, 2018

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