Amortization is discussed further in chapter 9 of Publication 535 . Under certain circumstances, you may be able to treat a limited amount of the cost of qualifying property as a current expense rather than a capital expense. Generally, use Form 4562 to report depreciation, amortization, and the section 179 deduction. Form 4562 is illustrated in an example in Publication 946 . Section 179 Deduction You can elect to deduct all or part of the cost of certain qualifying property in the year you place it in service.
Property is placed in service when it is ready and available for a specific use.
Qualifying property includes tangible personal property for which depreciation is allowable. See chapter 2 in Publication 946 for more information. Maximum dollar limit. Taxable income limit. The total cost you can deduct each year is further limited to the taxable income from the active conduct of any trade or business during the year.