Special Depreciation Allowance
Article ID: 59732

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. 

Article Details

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Created on: Jun 15, 2013