Special Deprecation Allowance Rental Property

[mrichman333]

So I read this on the IRS website

"For 2013, your residential rental property may qualify for a special depreciation allowance. This allowance is figured before you figure your regular depreciation deduction. See Publication 946, chapter 3, for details. Also see the Instructions for Form 4562, Line 14."

I read through Pub. 946. 527 and the instructions for 4562 line 14

So why can I not figure out how to calculate the allowance??

[jklcpa]

The very simplified version would be

(basis - sec 179) * 50% = the special allowance.

basis - sec 179 - special allowance = the remaining basis to use for calc'g regular deprec expense

Explanation is in the instructions for 4562 on page 7, starting at the bottom of the middle column.

Is your software not doing this for you?

[David1980]

There is property placed in service in 2013 with a class life of 20 years or shorter?

[mrichman333]

The very simplified version would be

(basis - sec 179) * 50% = the special allowance.

basis - sec 179 - special allowance = the remaining basis to use for calc'g regular deprec expense

Explanation is in the instructions for 4562 on page 7, starting at the bottom of the middle column.

Is your software not doing this for you?

Thanks. Why I didn't see that is beyond me