Publication 946 - Introductory Material
Increased section 179 deduction dollar limits. The maximum amount you can elect to deduct for most section 179 property you placed in service in 2007 is $125,000 ($160,000
enterprise zone and renewal community property). This limit is reduced by the amount by which the cost of the property placed
in service during the
tax year exceeds $500,000. See Dollar Limits under How Much Can You Deduct in chapter 2. For qualified section 179 Gulf
Opportunity Zone (GO Zone) property, the maximum section 179 deduction and the $500,000 threshold are increased. See Dollar limits under
Gulf Opportunity Zone (GO Zone) Property in chapter 2.
Depreciation limits on business vehicles. The total section 179 deduction and depreciation you can deduct for a passenger automobile (that is not a truck or van) you
use in your business
and first placed in service in 2007 is $3,060. The maximum deduction you can take for a truck or van you use in your business
and first placed in
service in 2007 is $3,260. See Maximum Depreciation Deduction in chapter 5.
Property classification for qualified motorsports entertainment complex. Qualified motorsports complexes placed in service before January 1, 2008, will be treated as 7-year property. See Which Property Class Applies
Under GDS in chapter 4.
Property classification for qualified leasehold improvement and restaurant property. Qualified leasehold improvement property and qualified restaurant property placed in service before January 1, 2008, is treated
as 15-year property
under MACRS. See Which Property Class Applies Under GDS in chapter 4.
Recovery periods for Indian Reservation property. The shorter recovery periods for qualified property placed in service on an Indian reservation applies to property placed
in service before January
1, 2008. See Indian Reservation Property under Which Recovery Period Applies in chapter 4.
Bonus depreciation for qualified cellulosic biomass ethanol plant property. A 50% special depreciation allowance is available for qualified cellulosic biomass ethanol plant property placed in service
after December 20,
2006. See Qualified Cellulosic Biomass Ethanol Plant Property in chapter 3.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
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
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
The depreciation methods discussed in this publication generally do not apply to property placed in service before 1987. For
more information, see
Publication 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?
The following table shows where you can get more detailed information when depreciating certain types of property.
463, Travel, Entertainment, Gift, and Car Expenses
Residential rental property
527, Residential Rental Property (Including Rental of Vacation Home)
Office space in your home
587, Business Use of Your Home (Including Use by Daycare Providers)
225, Farmer's Tax Guide
|Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Business Forms and Publications Branch
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
You can email us at
. The asterisk must be included in the
address. Please put “Publications Comment
” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Ordering forms and publications.
to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
If you have a tax question, visit
or call 1-800-829-4933. We cannot answer tax questions sent to
either of the addresses listed above.