IRS Publication 946 – How To Depreciate Property?

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IRS Publication 946

What’s New for 2020

Section 179 deduction dollar limits. For tax years beginning in 2020, the maximum section 179 expense deduction is $1,040,000 ($1,075,000 for qualified enterprise 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 $2,590,000.Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2020 is $25,900.

The increased section 179 deduction will not apply to qualified empowerment zone property placed in service after December 31, 2020.

Expiration of the special depreciation allowance for qualified second generation biofuel plant property. The special depreciation allowance will not apply to qualified second generation biofuel plant property placed in service after December 31, 2020.

Expiration of the treatment for certain race horses. The 3-year recovery period for race horses 2 years old or younger will not apply to horses placed in service after December 31, 2020.

Expiration of the treatment for qualified motorsports entertainment complexes. Qualified motorsports entertainment complexes placed in service after December 31, 2020, will not be treated as 7-year property under MACRS.

Expiration of the accelerated depreciation for qualified Indian reservation property. The accelerated recovery period for qualified Indian reservation property will not apply to property placed in service after December 31, 2020.