Introduction

You can take a special depreciation allowance to recover part or all of the cost of certain property (described next) placed in service during the tax year. The allowance applies only for the first year you place the property in service. The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service.

This chapter explains what types of property for which you may claim a special depreciation allowance. It also includes rules regarding how to figure an allowance, how to

22 Chapter 3 Claiming a Special Depreciation Allowance Publication 946 (2025)

elect to claim or not to claim an allowance, and when you must recapture an allowance.

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