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Generally, to find the basis for depreciation:

  1. Multiply the cost or other basis of the property by the percentage of business/investment use.
  2. Subtract any section 179 expense deduction.
  3. Subtract any special depreciation allowance (50% and 30%).

For additional information, please refer to IRS Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) and IRS Publication 946 How to Depreciate Property.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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