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J.K. Lasser's Your Income Tax Professional Edition 2017 by J.K. Lasser Institute

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Chapter 42 Claiming Depreciation Deductions

There are several methods of claiming expense deductions for your purchases in 2016 of equipment, fixtures, autos, and trucks used in your business:

  • First-year expensing (Section 179 deduction), which allows a deduction of up to $500,000 (42.3).
  • Bonus depreciation, which is another first-year deduction at 50% of cost for eligible property (42.20).
  • Regular depreciation, which allows a prorated deduction over a period of years. Most business equipment is depreciable under MACRS (modified accelerated cost recovery system) over a six-year period. MACRS applies to new and used property. The objective of ...

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