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1040a Instructions

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1040a Instructions

1040a instructions Publication 947 - Introductory Material Table of Contents What's New Practitioners' Hotline IntroductionOrdering forms and publications. 1040a instructions Tax questions. 1040a instructions Useful Items - You may want to see: What's New Registered tax return preparers. 1040a instructions  Registered tax return preparers may prepare and sign as the preparer tax returns and claims for refund and other documents for submission to the IRS. 1040a instructions They may also represent taxpayers before revenue agents, customer service representatives, and similar IRS employees during an examination if they signed the return or claim for refund for the tax year or period under examination. 1040a instructions Future developments. 1040a instructions  The IRS has created a page on IRS. 1040a instructions gov for information about Publication 947 at www. 1040a instructions irs. 1040a instructions gov/pub947. 1040a instructions Information about any future developments (such as legislation enacted after we release it) will be posted on that page. 1040a instructions Practitioners' Hotline The Practitioner Priority Service® is a nationwide, toll-free hotline that provides professional support to practitioners with account-related questions. 1040a instructions The toll-free number for this service is 1-866-860-4259. 1040a instructions Introduction This publication discusses who can represent a taxpayer before the IRS and what forms or documents are used to authorize a person to represent a taxpayer. 1040a instructions Usually, attorneys, certified public accountants (CPAs), enrolled agents, enrolled retirement plan agents, and enrolled actuaries can represent taxpayers before the IRS. 1040a instructions Under special circumstances, other individuals, including registered tax return preparers, unenrolled return preparers, and students can represent taxpayers before the IRS. 1040a instructions For details regarding taxpayer representation, see Who Can Practice Before the IRS, later. 1040a instructions Definitions. 1040a instructions   Many of the terms used in this publication, such as “enrolled agent” and “practitioner” are defined in the Glossary at the back of this publication. 1040a instructions Comments and suggestions. 1040a instructions   We welcome your comments about this publication and your suggestions for future editions. 1040a instructions   You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. 1040a instructions NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040a instructions Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040a instructions   You can email us at taxforms@irs. 1040a instructions gov . 1040a instructions Please put “Publications Comment” on the subject line. 1040a instructions You can also send us comments from www. 1040a instructions irs. 1040a instructions gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information About. 1040a instructions ” Ordering forms and publications. 1040a instructions   Visit www. 1040a instructions irs. 1040a instructions gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. 1040a instructions Internal Revenue Service 1201 N. 1040a instructions Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040a instructions   If you have a tax question, check the information available on IRS. 1040a instructions gov or call 1-800-829-1040. 1040a instructions We cannot answer tax questions sent to either of the above addresses. 1040a instructions Useful Items - You may want to see: Publications 1 Your Rights as a Taxpayer 470 Limited Practice Without Enrollment Circular No. 1040a instructions 230 Regulations Governing Practice before the Internal Revenue Service Forms and Instructions 2848 Power of Attorney and Declaration of Representative 8821 Tax Information Authorization Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Idaho Attorney Generals Office

Website: Idaho Attorney Generals Office

Address: Idaho Attorney Generals Office
Consumer Protection Division
954 W. Jefferson, 2nd Floor
Boise, ID 83720

Phone Number: 208-334-2424

Toll-free: 1-800-432-3545 (ID)

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Finance

Website: Department of Finance

Address: Department of Finance
Financial Institutions Bureau
PO Box 83720
Boise, ID 83720-0031

Phone Number: 208-332-8005

Toll-free: 1-888-346-3378 (ID)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
Consumer's Bureau
700 W. State St.
PO Box 83720
Boise, ID 83720-0043

Phone Number: 208-334-4250

Toll-free: 1-800-721-3272 (ID)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Finance

Website: Department of Finance

Address: Department of Finance
Securities Bureau
PO Box 83720
Boise, ID 83720-0031

Phone Number: 208-332-8000

Toll-free: 1-888-346-3378 (ID)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Assistance Section
PO Box 83720
Boise, ID 83720-0074

Phone Number: 208-334-0369

Toll-free: 1-800-432-0369 (ID)

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The 1040a Instructions

1040a instructions Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. 1040a instructions Property not disposed of or abandoned. 1040a instructions Special rule for normal retirements from item accounts. 1040a instructions Abandoned property. 1040a instructions Single item accounts. 1040a instructions Multiple property account. 1040a instructions Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. 1040a instructions If your property qualified for MACRS, you must depreciate it under MACRS. 1040a instructions See Publication 946. 1040a instructions However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. 1040a instructions Also, you can elect to exclude certain property from being depreciated under MACRS. 1040a instructions Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. 1040a instructions Intangible property. 1040a instructions   You cannot depreciate intangible property under ACRS or MACRS. 1040a instructions You depreciate intangible property using any other reasonable method, usually, the straight line method. 1040a instructions Note. 1040a instructions The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. 1040a instructions For more information, see chapter 12 of Publication 535. 1040a instructions Public utility property. 1040a instructions   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. 1040a instructions This type of property is subject to depreciation under a special rule. 1040a instructions Videocassettes. 1040a instructions   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. 1040a instructions You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. 1040a instructions The straight line method, salvage value, and useful life are discussed later under Methods To Use. 1040a instructions You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. 1040a instructions How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. 1040a instructions These methods are straight line and declining balance. 1040a instructions To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. 1040a instructions They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. 1040a instructions The amount of the deduction in any year also depends on which method of depreciation you choose. 1040a instructions Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. 1040a instructions The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. 1040a instructions Your original basis is usually the purchase price. 1040a instructions However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. 1040a instructions Adjusted basis. 1040a instructions   Events will often change the basis of property. 1040a instructions When this occurs, the changed basis is called the adjusted basis. 1040a instructions Some events, such as improvements you make, increase basis. 1040a instructions Events such as deducting casualty losses and depreciation decrease basis. 1040a instructions If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. 1040a instructions   Publication 551 explains how to figure basis for property acquired in different ways. 1040a instructions It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. 1040a instructions Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. 1040a instructions It is the length of time over which you will make yearly depreciation deductions of your basis in the property. 1040a instructions It is how long it will continue to be useful to you, not how long the property will last. 1040a instructions Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. 1040a instructions The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. 1040a instructions Consider all these factors before you arrive at a useful life for your property. 1040a instructions The useful life of the same type of property varies from user to user. 1040a instructions When you determine the useful life of your property, keep in mind your own experience with similar property. 1040a instructions You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. 1040a instructions Change in useful life. 1040a instructions   You base your estimate of useful life on certain facts. 1040a instructions If these facts change significantly, you can adjust your estimate of the remaining useful life. 1040a instructions However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. 1040a instructions Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. 1040a instructions You generally cannot depreciate property below a reasonable salvage value. 1040a instructions Determining salvage value. 1040a instructions   Salvage value is the estimated value of property at the end of its useful life. 1040a instructions It is what you expect to get for the property if you sell it after you can no longer use it productively. 1040a instructions You must estimate the salvage value of a piece of property when you first acquire it. 1040a instructions   Salvage value is affected both by how you use the property and how long you use it. 1040a instructions If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. 1040a instructions However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. 1040a instructions Changing salvage value. 1040a instructions   Once you determine the salvage value for property, you should not change it merely because prices have changed. 1040a instructions However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. 1040a instructions When you redetermine the salvage value, take into account the facts that exist at the time. 1040a instructions Net salvage. 1040a instructions   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. 1040a instructions You can choose either salvage value or net salvage when you figure depreciation. 1040a instructions You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. 1040a instructions However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. 1040a instructions Your salvage value can never be less than zero. 1040a instructions Ten percent rule. 1040a instructions   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. 1040a instructions You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. 1040a instructions If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. 1040a instructions Methods To Use Two methods of depreciation are the straight line and declining balance methods. 1040a instructions If ACRS or MACRS does not apply, you can use one of these methods. 1040a instructions The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. 1040a instructions Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. 1040a instructions One of these methods was the straight line method. 1040a instructions This method was also used for intangible property. 1040a instructions It lets you deduct the same amount of depreciation each year. 1040a instructions To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. 1040a instructions Subtract the salvage value, if any, from the adjusted basis. 1040a instructions The balance is the total amount of depreciation you can take over the useful life of the property. 1040a instructions Divide the balance by the number of years remaining in the useful life. 1040a instructions This gives you the amount of your yearly depreciation deduction. 1040a instructions Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. 1040a instructions If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. 1040a instructions Example. 1040a instructions In April 1994, Frank bought a franchise for $5,600. 1040a instructions It expires in 10 years. 1040a instructions This property is intangible property that cannot be depreciated under MACRS. 1040a instructions Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. 1040a instructions He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). 1040a instructions He must prorate the $560 for his 9 months of use in 1994. 1040a instructions This gives him a deduction of $420 ($560 ÷ 9/12). 1040a instructions In 1995, Frank can deduct $560 for the full year. 1040a instructions Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. 1040a instructions The rate cannot be more than twice the straight line rate. 1040a instructions Rate of depreciation. 1040a instructions   Under this method, you must determine your declining balance rate of depreciation. 1040a instructions The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. 1040a instructions (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. 1040a instructions ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. 1040a instructions Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. 1040a instructions Depreciation deductions. 1040a instructions   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. 1040a instructions This gives you the amount of your deduction. 1040a instructions For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). 1040a instructions To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. 1040a instructions Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). 1040a instructions Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). 1040a instructions Your depreciation deduction for the second year is $1,600. 1040a instructions   As you can see from this example, your adjusted basis in the property gets smaller each year. 1040a instructions Also, under this method, deductions are larger in the earlier years and smaller in the later years. 1040a instructions You can make a change to the straight line method without consent. 1040a instructions Salvage value. 1040a instructions   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. 1040a instructions However, you cannot depreciate the property below its reasonable salvage value. 1040a instructions Determine salvage value using the rules discussed earlier, including the special 10% rule. 1040a instructions Example. 1040a instructions If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. 1040a instructions But if your estimate of salvage value was $900, you can only deduct $100. 1040a instructions This is because $100 is the amount that would lower your adjusted basis to equal salvage value. 1040a instructions Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. 1040a instructions You can group the videocassettes by title for making this projection. 1040a instructions You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. 1040a instructions The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. 1040a instructions For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. 1040a instructions How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. 1040a instructions If you change your method of depreciation, it is generally a change in your method of accounting. 1040a instructions You must get IRS consent before making the change. 1040a instructions However, you do not need permission for certain changes in your method of depreciation. 1040a instructions The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. 1040a instructions For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. 1040a instructions Change to the straight line method. 1040a instructions   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. 1040a instructions However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. 1040a instructions When the change is made, figure depreciation based on your adjusted basis in the property at that time. 1040a instructions Your adjusted basis takes into account all previous depreciation deductions. 1040a instructions Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. 1040a instructions   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. 1040a instructions You cannot make the change on an amended return filed after the due date of the original return (including extensions). 1040a instructions   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. 1040a instructions   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. 1040a instructions Changes that require permission. 1040a instructions   For most other changes in method of depreciation, you must get permission from the IRS. 1040a instructions To request a change in method of depreciation, file Form 3115. 1040a instructions File the application within the first 180 days of the tax year the change is to become effective. 1040a instructions In most cases, there is a user fee that must accompany Form 3115. 1040a instructions See the instructions for Form 3115 to determine if a fee is required. 1040a instructions Changes granted automatically. 1040a instructions   The IRS automatically approves certain changes of a method of depreciation. 1040a instructions But, you must file Form 3115 for these automatic changes. 1040a instructions   However, IRS can deny permission if Form 3115 is not filed on time. 1040a instructions For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. 1040a instructions B. 1040a instructions 420. 1040a instructions Changes for which approval is not automatic. 1040a instructions   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. 1040a instructions   You must request and receive permission for these changes. 1040a instructions To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. 1040a instructions Change from an improper method. 1040a instructions   If the IRS disallows the method you are using, you do not need permission to change to a proper method. 1040a instructions You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. 1040a instructions If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. 1040a instructions However, you must file the amended return before the filing date for the next tax year. 1040a instructions Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. 1040a instructions You can do this by selling, exchanging, or abandoning the item of property. 1040a instructions You can also withdraw it from use without disposing of it. 1040a instructions For example, you could place it in a supplies or scrap account. 1040a instructions Retirements can be either normal or abnormal depending on all facts and circumstances. 1040a instructions The rules discussed next do not apply to MACRS and ACRS property. 1040a instructions Normal retirement. 1040a instructions   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. 1040a instructions A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. 1040a instructions Abnormal retirement. 1040a instructions   A retirement can be abnormal if you withdraw the property early or under other circumstances. 1040a instructions For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. 1040a instructions Gain or loss on retirement. 1040a instructions   There are special rules for figuring the gain or loss on retirement of property. 1040a instructions The gain or loss will depend on several factors. 1040a instructions These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. 1040a instructions A single property account contains only one item of property. 1040a instructions A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. 1040a instructions Sale or exchange. 1040a instructions   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. 1040a instructions See Publication 544. 1040a instructions Property not disposed of or abandoned. 1040a instructions   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. 1040a instructions You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. 1040a instructions However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. 1040a instructions   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. 1040a instructions Special rule for normal retirements from item accounts. 1040a instructions   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. 1040a instructions However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. 1040a instructions   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. 1040a instructions Abandoned property. 1040a instructions   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. 1040a instructions However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. 1040a instructions Basis of property retired. 1040a instructions   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. 1040a instructions Single item accounts. 1040a instructions   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. 1040a instructions This is generally the cost or other basis of the item of property less depreciation. 1040a instructions See Publication 551. 1040a instructions Multiple property account. 1040a instructions   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. 1040a instructions If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. 1040a instructions   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. 1040a instructions The method of depreciation used for the multiple property account is used. 1040a instructions You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. 1040a instructions Prev  Up  Next   Home   More Online Publications