File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2010 Ez Tax Form

Do Students Have To File TaxesH&r BlockHow Do I Amend My 2013 Tax Return1040ez 2012 FormTurbo Tax 1040nr2014 Ez Tax FormTurbotax ComI Need To Print A Free 1040x FormE File Amended Return1040ez Irs2012 Tax Return FilingForm 1040x TurbotaxFree State And Federal Tax Filing For Low Income1040ez 2011 Form2012 Amended Tax FormIrs Free State FilingFree Tax PrepH&r Block At Home FreeFree Downloadable Irs Tax FormsTax Return Forms 2012Free File AllianceHow To File A Tax ExtensionHow To File 2011 Taxes Online For FreeWww Mypay GovFile State Returns For FreeState Tax Forms OnlineWww H And R Block ComIl 1040xFiling Income Tax ReturnLate Filing 2011 TaxesFile State Income Tax Online1040ez File Online FreeFillable 1040ezFile My 2011 TaxesIrs Gov FormsI Had Received Disability Can I File Income Tax Can I How Much Can I Money For RefurnEz Form OnlineCan I File My 2011 Taxes NowFile 2011 Taxes FreeTaxact 2008 Free Efile

2010 Ez Tax Form

2010 ez tax form Publication 535 - Introductory Material Table of Contents IntroductionOrdering forms and publications. 2010 ez tax form Tax questions. 2010 ez tax form Future Developments What's New for 2013 What's New for 2014 Reminders Introduction This publication discusses common business expenses and explains what is and is not deductible. 2010 ez tax form The general rules for deducting business expenses are discussed in the opening chapter. 2010 ez tax form The chapters that follow cover specific expenses and list other publications and forms you may need. 2010 ez tax form Comments and suggestions. 2010 ez tax form   We welcome your comments about this publication and your suggestions for future editions. 2010 ez tax form   You can send your comments to: Internal Revenue Service Tax Forms and Publications SE:W:CAR:MP:TFP 1111 Constitution Ave. 2010 ez tax form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2010 ez tax form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2010 ez tax form   You can send us comments from www. 2010 ez tax form irs. 2010 ez tax form gov/formspubs/. 2010 ez tax form Click on “More Information” and then on “Give us feedback. 2010 ez tax form ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax publications. 2010 ez tax form Ordering forms and publications. 2010 ez tax form   Visit www. 2010 ez tax form irs. 2010 ez tax form 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. 2010 ez tax form Internal Revenue Service 1201 N. 2010 ez tax form Mitsubishi Motorway Bloomington, IL 61705-6613 We cannot answer tax questions sent to either the “Comments and suggestions” or “Ordering forms and publications” address. 2010 ez tax form Tax questions. 2010 ez tax form   If you have a tax-related question, please go to Help With Tax Questions on IRS. 2010 ez tax form gov. 2010 ez tax form If you've looked around our site and still didn't find the answer to your general tax question, please call our toll-free tax assistance line at 1-800-829-1040 for individual tax questions or 1-800-829-4933 for business tax questions. 2010 ez tax form Future Developments For the latest information about developments related to Publication 535, such as legislation enacted after it was published, go to www. 2010 ez tax form irs. 2010 ez tax form gov/pub535. 2010 ez tax form What's New for 2013 The following items highlight some changes in the tax law for 2013. 2010 ez tax form Optional safe harbor method to determine the business use of a home deduction. 2010 ez tax form  Beginning in 2013, you can use the optional safe harbor method to determine the deduction for the business use of your home. 2010 ez tax form For more information, see chapter 1. 2010 ez tax form Standard mileage rate. 2010 ez tax form  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. 2010 ez tax form 5 cents per mile. 2010 ez tax form For more information, see chapter 11. 2010 ez tax form Additional Medicare Tax. 2010 ez tax form  Beginning in 2013, a 0. 2010 ez tax form 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er) with dependent child. 2010 ez tax form Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. 2010 ez tax form RRTA compensation should be separately compared to the threshold. 2010 ez tax form For more information, see chapter 5 or visit www. 2010 ez tax form irs. 2010 ez tax form gov and enter the following words in the search box: Additional Medicare Tax. 2010 ez tax form Retiree drug subsidy. 2010 ez tax form  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). 2010 ez tax form For more information, visit www. 2010 ez tax form irs. 2010 ez tax form gov and enter the following words in the search box: Retiree drug subsidy. 2010 ez tax form What's New for 2014 The following item highlights a change in the tax law for 2014. 2010 ez tax form Standard mileage rate. 2010 ez tax form  Beginning in 2014, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per mile. 2010 ez tax form Film and television productions costs. 2010 ez tax form  The election to expense film and television production costs does not apply to productions that begin in 2014. 2010 ez tax form For more information, see chapter 7. 2010 ez tax form Reminders The following reminders and other items may help you file your tax return. 2010 ez tax form IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. 2010 ez tax form The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. 2010 ez tax form You can use one of the following IRS e-file options. 2010 ez tax form Use an authorized IRS e-file provider. 2010 ez tax form Use a personal computer. 2010 ez tax form Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. 2010 ez tax form For details on these fast filing methods, see your income tax package. 2010 ez tax form Form 1099 MISC. 2010 ez tax form  File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds. 2010 ez tax form See the Instructions for Form 1099-MISC for more information and additional reporting requirements. 2010 ez tax form Photographs of missing children. 2010 ez tax form  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. 2010 ez tax form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 ez tax form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) (24-hours a day, 7 days a week) if you recognize a child. 2010 ez tax form Prev  Up  Next   Home   More Online Publications
Español

Public and Indian Housing

The Office of Public and Indian Housing works to ensure safe, decent and affordable housing.

Contact the Agency or Department

Website: Public and Indian Housing

Address: 451 7th St SW
Washington, DC 20410

Toll-free: (800) 955-2232

The 2010 Ez Tax Form

2010 ez tax form Depreciation Table of Contents Introduction Special Depreciation AllowanceQualified Property Election Not To Claim the Allowance Rules for Returns Filed Before June 1, 2002 Passenger Automobiles New York Liberty Zone BenefitsSpecial Liberty Zone Depreciation Allowance Increased Section 179 Deduction Liberty Zone Leasehold Improvement Property If you depreciate business property that you acquired and placed in service after September 10, 2001, new law contains provisions that may affect your depreciation deduction for that property. 2010 ez tax form Publication 946, How To Depreciate Property, contains information on depreciation. 2010 ez tax form However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. 2010 ez tax form The new provisions are in the Supplement to Publication 946, which is reprinted below. 2010 ez tax form Supplement to Publication 946 How To Depreciate Property   Introduction After Publication 946 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. 2010 ez tax form The new law made several changes in the tax rules explained in the publication. 2010 ez tax form Some of the changes apply to property placed in service during 2001. 2010 ez tax form This supplemental publication describes those changes and explains what you should do if you are affected by them. 2010 ez tax form The situations and examples in Publication 946 do not reflect any of the changes made by the Job Creation and Worker Assistance Act of 2002. 2010 ez tax form The new law contains the following provisions. 2010 ez tax form 30% depreciation deductions (special depreciation allowance and special New York Liberty Zone (Liberty Zone) depreciation allowance) for the year qualified property is placed in service after September 10, 2001. 2010 ez tax form An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. 2010 ez tax form A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. 2010 ez tax form An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. 2010 ez tax form If you believe you qualify for an increased deduction under any of these new rules, you must file the revised 2001 Form 4562 (dated March 2002) for 2001 calendar or fiscal years and 2000 fiscal years ending after September 10, 2001. 2010 ez tax form If you have already filed a tax return, this supplemental publication explains how to claim these benefits and how to elect not to claim the special depreciation allowance or special Liberty Zone depreciation allowance. 2010 ez tax form See Table 2 at the end of the supplement for an overview of the rules that apply if you filed your return before June 1, 2002. 2010 ez tax form Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. 2010 ez tax form The allowance is an additional deduction of 30% of the property's depreciable basis. 2010 ez tax form To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. 2010 ez tax form See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. 2010 ez tax form The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. 2010 ez tax form There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 2010 ez tax form In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. 2010 ez tax form Example 1. 2010 ez tax form On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. 2010 ez tax form You did not elect to claim a section 179 deduction. 2010 ez tax form You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. 2010 ez tax form You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. 2010 ez tax form Example 2. 2010 ez tax form The facts are the same as in Example 1, except that you choose to deduct $24,000 of the property's cost as a section 179 deduction. 2010 ez tax form You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). 2010 ez tax form You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. 2010 ez tax form Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. 2010 ez tax form It is new property of one of the following types. 2010 ez tax form Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. 2010 ez tax form See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. 2010 ez tax form Water utility property. 2010 ez tax form See 25-year property on page 22 in Publication 946. 2010 ez tax form Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. 2010 ez tax form (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 2010 ez tax form ) Qualified leasehold improvement property (defined later). 2010 ez tax form It meets the following tests (explained later under Tests To Be Met). 2010 ez tax form Acquisition date test. 2010 ez tax form Placed in service date test. 2010 ez tax form Original use test. 2010 ez tax form It is not excepted property (explained later under Excepted Property). 2010 ez tax form Qualified leasehold improvement property. 2010 ez tax form    Generally, this is any improvement to an interior part of a building that is nonresidential real property, provided all of the following requirements are met. 2010 ez tax form The improvement is made under or pursuant to a lease by the lessee (or any sublessee) or the lessor of that part of the building. 2010 ez tax form That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. 2010 ez tax form The improvement is placed in service more than 3 years after the date the building was first placed in service. 2010 ez tax form   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. 2010 ez tax form The enlargement of the building. 2010 ez tax form Any elevator or escalator. 2010 ez tax form Any structural component benefiting a common area. 2010 ez tax form The internal structural framework of the building. 2010 ez tax form   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. 2010 ez tax form However, a binding commitment between related persons is not treated as a lease. 2010 ez tax form Related persons. 2010 ez tax form   For this purpose, the following are related persons. 2010 ez tax form Members of an affiliated group. 2010 ez tax form The persons listed in items (1) through (9) under Related persons on page 8 of Publication 946 (except that “80% or more” should be substituted for “more than 10%” each place it appears). 2010 ez tax form An executor and a beneficiary of the same estate. 2010 ez tax form Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. 2010 ez tax form Acquisition date test. 2010 ez tax form    Generally, you must have acquired the property either: After September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or Pursuant to a written binding contract entered into after September 10, 2001, and before September 11, 2004. 2010 ez tax form   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001, and before September 11, 2004. 2010 ez tax form Placed in service date test. 2010 ez tax form   Generally, the property must be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. 2010 ez tax form   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. 2010 ez tax form Original use test. 2010 ez tax form   The original use of the property must have begun with you after September 10, 2001. 2010 ez tax form “Original use” means the first use to which the property is put, whether or not by you. 2010 ez tax form Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. 2010 ez tax form Excepted Property The following property does not qualify for the special depreciation allowance. 2010 ez tax form Property used by any person before September 11, 2001. 2010 ez tax form Property required to be depreciated using ADS. 2010 ez tax form This includes listed property used 50% or less in a qualified business use. 2010 ez tax form Qualified New York Liberty Zone leasehold improvement property (defined next). 2010 ez tax form Qualified New York Liberty Zone leasehold improvement property. 2010 ez tax form   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. 2010 ez tax form The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). 2010 ez tax form The improvement is placed in service after September 10, 2001, and before January 1, 2007. 2010 ez tax form No written binding contract for the improvement was in effect before September 11, 2001. 2010 ez tax form Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. 2010 ez tax form If you make this election for any property, it applies to all property in the same property class placed in service during the year. 2010 ez tax form To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. 2010 ez tax form When to make election. 2010 ez tax form   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. 2010 ez tax form   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). 2010 ez tax form Attach the election statement to the amended return. 2010 ez tax form At the top of the election statement, write “Filed pursuant to section 301. 2010 ez tax form 9100–2. 2010 ez tax form ” Revoking an election. 2010 ez tax form   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. 2010 ez tax form A request to revoke the election is subject to a user fee. 2010 ez tax form Rules for Returns Filed Before June 1, 2002 The following rules apply if you placed qualified property in service after September 10, 2001, and filed your return before June 1, 2002. 2010 ez tax form The rules apply to returns for the following years. 2010 ez tax form 2000 fiscal years that end after September 10, 2001. 2010 ez tax form 2001 calendar and fiscal years. 2010 ez tax form Claiming the allowance. 2010 ez tax form   If you did not claim the allowance on your return and did not make the election not to claim the allowance, you can do either of the following to claim the allowance. 2010 ez tax form File an amended return by the due date (not including extensions) of your return for the year following the year the property was placed in service. 2010 ez tax form Write “Filed Pursuant to Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33” at the top of the amended return. 2010 ez tax form File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. 2010 ez tax form Your return must be filed by the due date (including extensions). 2010 ez tax form Write “Automatic Change Filed Under Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33” on the appropriate line of Form 3115. 2010 ez tax form You must also file a copy (with signature) of the completed Form 3115 with the IRS National Office no later than when you file the original with your return. 2010 ez tax form For more information about filing Form 3115, including the address to send it to, see Revenue Procedure 2002–9, Revenue Procedure 2002–19, and Revenue Procedure 2002–33. 2010 ez tax form Example 1. 2010 ez tax form You are an individual and you use the calendar year. 2010 ez tax form You placed qualified property in service for your business in December 2001. 2010 ez tax form You filed your 2001 income tax return before April 15, 2002. 2010 ez tax form You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. 2010 ez tax form You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33” at the top of the amended return. 2010 ez tax form You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. 2010 ez tax form Example 2. 2010 ez tax form The facts concerning your 2001 return are the same as in Example 1. 2010 ez tax form In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. 2010 ez tax form You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. 2010 ez tax form You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. 2010 ez tax form Electing not to claim the allowance. 2010 ez tax form   Generally, you have elected not to claim the special depreciation allowance for a class of property if you: Filed your return timely (including extensions) for the year you placed qualified property in service and indicated on a statement with the return that you are not claiming the allowance, or Filed your return timely and filed an amended return within 6 months of the due date of the original return (not including extensions) and indicated on a statement with the amended return that you are not claiming the allowance. 2010 ez tax form The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. 2010 ez tax form The statement can be either attached to or written on the return. 2010 ez tax form You can, for example, write “not deducting 30%” on Form 4562. 2010 ez tax form Deemed election. 2010 ez tax form   If you have not followed either of the procedures described above to elect not to claim the allowance, you may still be treated as making the election. 2010 ez tax form You will be treated as making the election if you meet both of the following conditions. 2010 ez tax form You filed your return for the year you placed the property in service and claimed depreciation, but not the special allowance, for any class of property. 2010 ez tax form You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. 2010 ez tax form See Claiming the allowance, earlier. 2010 ez tax form Passenger Automobiles The limit on your depreciation deduction (including any section 179 deduction) for any passenger automobile that is qualified property (defined earlier) placed in service after September 10, 2001, and for which you claim the special depreciation allowance is increased. 2010 ez tax form Generally, the limit is increased from $3,060 to $7,660. 2010 ez tax form However, if the automobile is a qualified electric car, the limit is increased from $9,280 to $23,080 ($22,980 if placed in service in 2002). 2010 ez tax form Table 1 shows the maximum deduction amounts for 2001. 2010 ez tax form Table 1. 2010 ez tax form Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. 2010 ez tax form 11 Placed in Service After Sept. 2010 ez tax form 10 Passenger automobile $3,060 $7,660 Electric car 9,280 23,080 1 1$22,980 if you place an electric car in service in 2002. 2010 ez tax form Election not to claim the allowance. 2010 ez tax form   The increased maximum depreciation deduction does not apply if you elected not to claim the special depreciation allowance as explained earlier under Election Not To Claim the Allowance and Rules for Returns Filed Before June 1, 2002. 2010 ez tax form New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). 2010 ez tax form They include a special depreciation allowance for the year you place the property in service, an increased section 179 deduction, and the classification of certain leasehold improvement property as 5-year property. 2010 ez tax form Area defined. 2010 ez tax form   The New York Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. 2010 ez tax form Special Liberty Zone Depreciation Allowance You can take a special depreciation allowance for qualified Liberty Zone property you place in service after September 10, 2001. 2010 ez tax form The allowance is an additional deduction of 30% of the property's depreciable basis. 2010 ez tax form To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. 2010 ez tax form See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. 2010 ez tax form The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. 2010 ez tax form There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 2010 ez tax form In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. 2010 ez tax form You cannot claim the special Liberty Zone depreciation allowance for property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. 2010 ez tax form Qualified property is eligible for only one special depreciation allowance. 2010 ez tax form Example 1. 2010 ez tax form On November 1, 2001, you bought and placed in service in your business, which is in the Liberty Zone, qualified Liberty Zone property that cost $200,000. 2010 ez tax form You did not elect to claim a section 179 deduction. 2010 ez tax form You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. 2010 ez tax form You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. 2010 ez tax form Example 2. 2010 ez tax form The facts are the same as in Example 1, except that you choose to deduct $59,000 of the property's cost as a section 179 deduction. 2010 ez tax form (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). 2010 ez tax form You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). 2010 ez tax form You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. 2010 ez tax form Qualified Liberty Zone Property For a 2001 calendar or fiscal year and a 2000 fiscal year that ends after September 10, 2001, property qualifies for the special Liberty Zone depreciation allowance if it meets the following requirements. 2010 ez tax form It is one of the following types of property. 2010 ez tax form Used property depreciated under MACRS with a recovery period of 20 years or less. 2010 ez tax form See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. 2010 ez tax form Used water utility property. 2010 ez tax form See 25-year property on page 22 in Publication 946. 2010 ez tax form Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. 2010 ez tax form (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 2010 ez tax form ) Certain nonresidential real property and residential rental property (defined later). 2010 ez tax form It meets the following tests (explained later under Tests to be met). 2010 ez tax form Acquisition date test. 2010 ez tax form Placed in service date test. 2010 ez tax form Substantial use test. 2010 ez tax form Original use test. 2010 ez tax form It is not excepted property (explained later under Excepted property). 2010 ez tax form Nonresidential real property and residential rental property. 2010 ez tax form   This property is qualifying property only to the extent it rehabilitates real property damaged, or replaces real property destroyed or condemned, as a result of the terrorist attack of September 11, 2001. 2010 ez tax form Property is treated as replacing destroyed or condemned property if, as part of an integrated plan, such property replaces real property included in a continuous area that includes real property destroyed or condemned. 2010 ez tax form   For these purposes, real property is considered destroyed (or condemned) only if an entire building or structure was destroyed (or condemned) as a result of the terrorist attack. 2010 ez tax form Otherwise, the property is considered damaged real property. 2010 ez tax form For example, if certain structural components of a building (such as walls, floors, or plumbing fixtures) are damaged or destroyed as a result of the terrorist attack, but the building is not destroyed (or condemned), then only costs related to replacing the damaged or destroyed structural components qualify for the special Liberty Zone depreciation allowance. 2010 ez tax form Tests to be met. 2010 ez tax form   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. 2010 ez tax form Acquisition date test. 2010 ez tax form   You must have acquired the property by purchase after September 10, 2001, and there must not have been a binding written contract for the acquisition in effect before September 11, 2001. 2010 ez tax form   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. 2010 ez tax form   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001. 2010 ez tax form Placed in service date test. 2010 ez tax form   Generally, the property must be placed in service for use in your trade or business or for the production of income before January 1, 2007 (January 1, 2010, in the case of qualifying nonresidential real property and residential rental property). 2010 ez tax form   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. 2010 ez tax form Substantial use test. 2010 ez tax form   Substantially all use of the property must be in the Liberty Zone and in the active conduct of your trade or business in the Liberty Zone. 2010 ez tax form Original use test. 2010 ez tax form   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. 2010 ez tax form   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. 2010 ez tax form Also, additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test if the original use of the property in the Liberty Zone began with you. 2010 ez tax form Excepted property. 2010 ez tax form   The following property does not qualify for the special Liberty Zone depreciation allowance. 2010 ez tax form Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. 2010 ez tax form Property required to be depreciated using ADS. 2010 ez tax form This includes listed property used 50% or less in a qualified business use. 2010 ez tax form Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). 2010 ez tax form Example. 2010 ez tax form In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. 2010 ez tax form New office furniture with a MACRS recovery period of 7 years. 2010 ez tax form A used computer with a MACRS recovery period of 5 years. 2010 ez tax form The computer had not previously been used within the Liberty Zone. 2010 ez tax form Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. 2010 ez tax form Because the computer is used property that had not previously been used in the Liberty Zone, it qualifies for the special Liberty Zone depreciation allowance, but not the special depreciation allowance. 2010 ez tax form Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. 2010 ez tax form If you make this election for any property, it applies to all property in the same property class placed in service during the year. 2010 ez tax form To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. 2010 ez tax form When to make the election. 2010 ez tax form   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. 2010 ez tax form   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). 2010 ez tax form Attach the election statement to the amended return. 2010 ez tax form At the top of the election statement, write “Filed pursuant to section 301. 2010 ez tax form 9100–2. 2010 ez tax form ” Revoking an election. 2010 ez tax form   Once you elect not to deduct the special Liberty Zone depreciation allowance for a class of property, you cannot revoke the election without IRS consent. 2010 ez tax form A request to revoke the election is subject to a user fee. 2010 ez tax form Returns filed before June 1, 2002. 2010 ez tax form   The rules that apply to the special depreciation allowance discussed earlier in Rules for Returns Filed Before June 1, 2002 under Special Depreciation Allowance also apply to the special Liberty Zone depreciation allowance. 2010 ez tax form Increased Section 179 Deduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. 2010 ez tax form For tax years beginning in 2000, that limit was $20,000. 2010 ez tax form For tax years beginning in 2001 and 2002, that limit is generally $24,000. 2010 ez tax form If the cost of qualifying section 179 property placed in service in a year is over $200,000, you must reduce the dollar limit (but not below zero) by the amount of the cost over $200,000. 2010 ez tax form Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. 2010 ez tax form The increase is the smaller of the following amounts. 2010 ez tax form $35,000. 2010 ez tax form The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. 2010 ez tax form If you use the revised 2001 Form 4562 (dated March 2002) for a tax year beginning in 2000, you must reduce the section 179 dollar limit to $20,000 before adding the additional amount for qualified property. 2010 ez tax form Qualified property. 2010 ez tax form   To qualify for the increased section 179 deduction, your property must be section 179 property that is either: Qualified Liberty Zone property, or Property that would be qualified Liberty Zone property except that it is eligible for the special depreciation allowance. 2010 ez tax form Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. 2010 ez tax form Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. 2010 ez tax form For information on the requirements that must be met for property to qualify for the section 179 deduction, see What Property Qualifies? on page 14 of Publication 946. 2010 ez tax form Example 1. 2010 ez tax form In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. 2010 ez tax form Because this cost is less than $35,000, the dollar limit on the section 179 deduction is increased by $25,000 to $49,000 ($24,000 + $25,000). 2010 ez tax form Example 2. 2010 ez tax form In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. 2010 ez tax form Because $35,000 is less than the cost of the property you place in service, the dollar limit on the section 179 deduction you can claim is increased by $35,000 to $59,000 ($24,000 + $35,000). 2010 ez tax form Reduced Dollar Limit Generally, you must reduce the dollar limit for a year by the cost of qualifying section 179 property placed in service in the year that is more than $200,000. 2010 ez tax form However, if the cost of your Liberty Zone property exceeds $200,000, you take into account only 50% (instead of 100%) of the cost of qualified property placed in service in a year. 2010 ez tax form Example. 2010 ez tax form In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. 2010 ez tax form Your increased dollar limit is $59,000 ($35,000 + $24,000). 2010 ez tax form Because 50% of the cost of the property you place in service ($230,000) is $30,000 more than $200,000, you must reduce your $59,000 dollar limit to $29,000 ($59,000 - $30,000). 2010 ez tax form Recapture Rules Rules similar to those explained on page 20 of Publication 946 under When Must You Recapture the Deduction? apply with respect to any qualified property you stop using in the Liberty Zone. 2010 ez tax form Returns Filed Before June 1, 2002 If you filed a return before June 1, 2002, and did not deduct the increased section 179 amount for qualified property placed in service after September 10, 2001, you can deduct the increased amount by filing an amended return by the due date (not including extensions) of the return for the year after the year the property was placed in service. 2010 ez tax form This rule applies to returns for the following years. 2010 ez tax form 2000 fiscal years that end after September 10, 2001. 2010 ez tax form 2001 calendar and fiscal years. 2010 ez tax form On the amended return, write “Filed Pursuant to Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33. 2010 ez tax form ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. 2010 ez tax form This means that it is depreciated over a recovery period of 5 years. 2010 ez tax form For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. 2010 ez tax form The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. 2010 ez tax form Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. 2010 ez tax form Returns Filed Before June 1, 2002 If you filed either of the following returns before June 1, 2002, and did not depreciate qualified Liberty Zone leasehold improvement property placed in service during the tax year as 5-year property using the straight line method, you should file an amended return before you file your return for the year after the year the property was placed in service. 2010 ez tax form Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). 2010 ez tax form Your 2001 calendar or fiscal year return. 2010 ez tax form On the amended return, write “Filed Pursuant to Rev. 2010 ez tax form Proc. 2010 ez tax form 2002–33. 2010 ez tax form ” Table 2. 2010 ez tax form Rules for Returns Filed Before June 1, 2002 Note:This chart highlights the rules for returns affected by the Job Creation and Worker Assistance Act of 2002 that were filed before June 1, 2002, without accounting for any of the new benefits under the law. 2010 ez tax form See the text for definitions and examples. 2010 ez tax form Do not rely on this chart alone. 2010 ez tax form IF you want to. 2010 ez tax form . 2010 ez tax form . 2010 ez tax form THEN you. 2010 ez tax form . 2010 ez tax form . 2010 ez tax form BY. 2010 ez tax form . 2010 ez tax form . 2010 ez tax form claim the special depreciation allowance or special Liberty Zone depreciation allowance • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service, or • must file Form 3115, Application for Change in Accounting Method, with your return for the year after the year the property was placed in service • the due date (including extensions) of your return for the year after the year the property was placed in service, and • must file a copy of your completed Form 3115 with the IRS National Office • the date you file the original Form 3115 with your return for the year after the year the property was placed in service. 2010 ez tax form elect not to claim the special depreciation allowance or the special Liberty Zone depreciation allowance 1 • must have filed your return timely for the year the property was placed in service, and   • must file an amended return stating you are not claiming the allowance • the date that is 6 months after the due date of the original return (not including extensions). 2010 ez tax form deduct the increased section 179 amount • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service. 2010 ez tax form use a 5-year recovery period for depreciating qualified Liberty Zone leasehold improvement property • should file an amended return • the date you file your return for the year after the year the property was placed in service. 2010 ez tax form 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. 2010 ez tax form Prev  Up  Next   Home   More Online Publications