For tax years beginning in 2006, the maximum section 179 expense deduction is $108,000 ($143,000 for qualified enterprise zone, renewal community, and New York Liberty Zone (Liberty 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 $430,000. For qualified section 179 Gulf Opportunity Zone (GO Zone) property, the maximum deduction is higher than the deduction for most section 179 property. See the instructions for Part I.

You may be able to claim the special depreciation allowance for certain aircraft and certain property with a long production period placed in service or manufactured before January 1, 2007, in areas affected by Hurricane Katrina, Rita, or Wilma. See the instructions for line 14 (for listed property, see the instructions for line 25).

You can elect to amortize certain expenses paid or incurred in creating or acquiring musical compositions or copyrights to musical compositions over a 5-year period instead of depreciating the property using the income forecast method. See page 5 of the instructions.