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 Federal Tax Form 1040

Free 1040 Ez FormsState Tax Forms To Print OutHow To Amend 2012 Tax ReturnFree 2010 Tax SoftwareWhere Can I File State And Federal Taxes For FreeFiling 2011 Tax Return In 20131040ez FormsFree E File Form 4868Back Tax DebtLast Day To File Taxes 20131040x Amended Return FormH And R Block Active Duty1040a InstructionsFree State Tax Return FileMyfreetaxes ComForm 1040a 2012Free State E-file1080ezI Did Not File 2011 Taxes1040ezformI Need To File 2012 TaxesIrs Free Tax ReturnFederal Tax ExtensionFederal Income Tax FormAmend A 2013 Tax Return2007 Free Tax SoftwareState Taxes Phone NumberUnemployment Taxes 2011Form 1040 XVita Tax PreparationFree Irs Form 1040ezCan I Efile My 2011 Taxes In 2013Irs Amended Tax ReturnHow Do I Amend My 2012 Tax Return1040nr Software FreeFed Tax Form 1040xHow To File State TaxesH & R Block Free FileForm 1040ezNew Folder

2010 Federal Tax Form 1040

2010 federal tax form 1040 Publication 936 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Tribal Land and the Environment

Find resources on farming, disaster management, water, and more.

The 2010 Federal Tax Form 1040

2010 federal tax form 1040 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. 2010 federal tax form 1040 Property not disposed of or abandoned. 2010 federal tax form 1040 Special rule for normal retirements from item accounts. 2010 federal tax form 1040 Abandoned property. 2010 federal tax form 1040 Single item accounts. 2010 federal tax form 1040 Multiple property account. 2010 federal tax form 1040 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. 2010 federal tax form 1040 If your property qualified for MACRS, you must depreciate it under MACRS. 2010 federal tax form 1040 See Publication 946. 2010 federal tax form 1040 However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. 2010 federal tax form 1040 Also, you can elect to exclude certain property from being depreciated under MACRS. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Intangible property. 2010 federal tax form 1040   You cannot depreciate intangible property under ACRS or MACRS. 2010 federal tax form 1040 You depreciate intangible property using any other reasonable method, usually, the straight line method. 2010 federal tax form 1040 Note. 2010 federal tax form 1040 The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. 2010 federal tax form 1040 For more information, see chapter 12 of Publication 535. 2010 federal tax form 1040 Public utility property. 2010 federal tax form 1040   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. 2010 federal tax form 1040 This type of property is subject to depreciation under a special rule. 2010 federal tax form 1040 Videocassettes. 2010 federal tax form 1040   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. 2010 federal tax form 1040 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. 2010 federal tax form 1040 The straight line method, salvage value, and useful life are discussed later under Methods To Use. 2010 federal tax form 1040 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. 2010 federal tax form 1040 How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. 2010 federal tax form 1040 These methods are straight line and declining balance. 2010 federal tax form 1040 To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. 2010 federal tax form 1040 They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. 2010 federal tax form 1040 The amount of the deduction in any year also depends on which method of depreciation you choose. 2010 federal tax form 1040 Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. 2010 federal tax form 1040 The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. 2010 federal tax form 1040 Your original basis is usually the purchase price. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Adjusted basis. 2010 federal tax form 1040   Events will often change the basis of property. 2010 federal tax form 1040 When this occurs, the changed basis is called the adjusted basis. 2010 federal tax form 1040 Some events, such as improvements you make, increase basis. 2010 federal tax form 1040 Events such as deducting casualty losses and depreciation decrease basis. 2010 federal tax form 1040 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. 2010 federal tax form 1040   Publication 551 explains how to figure basis for property acquired in different ways. 2010 federal tax form 1040 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. 2010 federal tax form 1040 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. 2010 federal tax form 1040 It is the length of time over which you will make yearly depreciation deductions of your basis in the property. 2010 federal tax form 1040 It is how long it will continue to be useful to you, not how long the property will last. 2010 federal tax form 1040 Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Consider all these factors before you arrive at a useful life for your property. 2010 federal tax form 1040 The useful life of the same type of property varies from user to user. 2010 federal tax form 1040 When you determine the useful life of your property, keep in mind your own experience with similar property. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Change in useful life. 2010 federal tax form 1040   You base your estimate of useful life on certain facts. 2010 federal tax form 1040 If these facts change significantly, you can adjust your estimate of the remaining useful life. 2010 federal tax form 1040 However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. 2010 federal tax form 1040 Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. 2010 federal tax form 1040 You generally cannot depreciate property below a reasonable salvage value. 2010 federal tax form 1040 Determining salvage value. 2010 federal tax form 1040   Salvage value is the estimated value of property at the end of its useful life. 2010 federal tax form 1040 It is what you expect to get for the property if you sell it after you can no longer use it productively. 2010 federal tax form 1040 You must estimate the salvage value of a piece of property when you first acquire it. 2010 federal tax form 1040   Salvage value is affected both by how you use the property and how long you use it. 2010 federal tax form 1040 If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. 2010 federal tax form 1040 However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. 2010 federal tax form 1040 Changing salvage value. 2010 federal tax form 1040   Once you determine the salvage value for property, you should not change it merely because prices have changed. 2010 federal tax form 1040 However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. 2010 federal tax form 1040 When you redetermine the salvage value, take into account the facts that exist at the time. 2010 federal tax form 1040 Net salvage. 2010 federal tax form 1040   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. 2010 federal tax form 1040 You can choose either salvage value or net salvage when you figure depreciation. 2010 federal tax form 1040 You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. 2010 federal tax form 1040 However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. 2010 federal tax form 1040 Your salvage value can never be less than zero. 2010 federal tax form 1040 Ten percent rule. 2010 federal tax form 1040   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. 2010 federal tax form 1040 You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. 2010 federal tax form 1040 If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. 2010 federal tax form 1040 Methods To Use Two methods of depreciation are the straight line and declining balance methods. 2010 federal tax form 1040 If ACRS or MACRS does not apply, you can use one of these methods. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. 2010 federal tax form 1040 One of these methods was the straight line method. 2010 federal tax form 1040 This method was also used for intangible property. 2010 federal tax form 1040 It lets you deduct the same amount of depreciation each year. 2010 federal tax form 1040 To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. 2010 federal tax form 1040 Subtract the salvage value, if any, from the adjusted basis. 2010 federal tax form 1040 The balance is the total amount of depreciation you can take over the useful life of the property. 2010 federal tax form 1040 Divide the balance by the number of years remaining in the useful life. 2010 federal tax form 1040 This gives you the amount of your yearly depreciation deduction. 2010 federal tax form 1040 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. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Example. 2010 federal tax form 1040 In April 1994, Frank bought a franchise for $5,600. 2010 federal tax form 1040 It expires in 10 years. 2010 federal tax form 1040 This property is intangible property that cannot be depreciated under MACRS. 2010 federal tax form 1040 Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. 2010 federal tax form 1040 He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). 2010 federal tax form 1040 He must prorate the $560 for his 9 months of use in 1994. 2010 federal tax form 1040 This gives him a deduction of $420 ($560 ÷ 9/12). 2010 federal tax form 1040 In 1995, Frank can deduct $560 for the full year. 2010 federal tax form 1040 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. 2010 federal tax form 1040 The rate cannot be more than twice the straight line rate. 2010 federal tax form 1040 Rate of depreciation. 2010 federal tax form 1040   Under this method, you must determine your declining balance rate of depreciation. 2010 federal tax form 1040 The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. 2010 federal tax form 1040 (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. 2010 federal tax form 1040 ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. 2010 federal tax form 1040 Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. 2010 federal tax form 1040 Depreciation deductions. 2010 federal tax form 1040   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. 2010 federal tax form 1040 This gives you the amount of your deduction. 2010 federal tax form 1040 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%). 2010 federal tax form 1040 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. 2010 federal tax form 1040 Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). 2010 federal tax form 1040 Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). 2010 federal tax form 1040 Your depreciation deduction for the second year is $1,600. 2010 federal tax form 1040   As you can see from this example, your adjusted basis in the property gets smaller each year. 2010 federal tax form 1040 Also, under this method, deductions are larger in the earlier years and smaller in the later years. 2010 federal tax form 1040 You can make a change to the straight line method without consent. 2010 federal tax form 1040 Salvage value. 2010 federal tax form 1040   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. 2010 federal tax form 1040 However, you cannot depreciate the property below its reasonable salvage value. 2010 federal tax form 1040 Determine salvage value using the rules discussed earlier, including the special 10% rule. 2010 federal tax form 1040 Example. 2010 federal tax form 1040 If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. 2010 federal tax form 1040 But if your estimate of salvage value was $900, you can only deduct $100. 2010 federal tax form 1040 This is because $100 is the amount that would lower your adjusted basis to equal salvage value. 2010 federal tax form 1040 Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. 2010 federal tax form 1040 You can group the videocassettes by title for making this projection. 2010 federal tax form 1040 You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. 2010 federal tax form 1040 The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. 2010 federal tax form 1040 For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. 2010 federal tax form 1040 How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. 2010 federal tax form 1040 If you change your method of depreciation, it is generally a change in your method of accounting. 2010 federal tax form 1040 You must get IRS consent before making the change. 2010 federal tax form 1040 However, you do not need permission for certain changes in your method of depreciation. 2010 federal tax form 1040 The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. 2010 federal tax form 1040 For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. 2010 federal tax form 1040 Change to the straight line method. 2010 federal tax form 1040   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. 2010 federal tax form 1040 However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. 2010 federal tax form 1040 When the change is made, figure depreciation based on your adjusted basis in the property at that time. 2010 federal tax form 1040 Your adjusted basis takes into account all previous depreciation deductions. 2010 federal tax form 1040 Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. 2010 federal tax form 1040   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. 2010 federal tax form 1040 You cannot make the change on an amended return filed after the due date of the original return (including extensions). 2010 federal tax form 1040   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. 2010 federal tax form 1040   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. 2010 federal tax form 1040 Changes that require permission. 2010 federal tax form 1040   For most other changes in method of depreciation, you must get permission from the IRS. 2010 federal tax form 1040 To request a change in method of depreciation, file Form 3115. 2010 federal tax form 1040 File the application within the first 180 days of the tax year the change is to become effective. 2010 federal tax form 1040 In most cases, there is a user fee that must accompany Form 3115. 2010 federal tax form 1040 See the instructions for Form 3115 to determine if a fee is required. 2010 federal tax form 1040 Changes granted automatically. 2010 federal tax form 1040   The IRS automatically approves certain changes of a method of depreciation. 2010 federal tax form 1040 But, you must file Form 3115 for these automatic changes. 2010 federal tax form 1040   However, IRS can deny permission if Form 3115 is not filed on time. 2010 federal tax form 1040 For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. 2010 federal tax form 1040 B. 2010 federal tax form 1040 420. 2010 federal tax form 1040 Changes for which approval is not automatic. 2010 federal tax form 1040   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. 2010 federal tax form 1040   You must request and receive permission for these changes. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Change from an improper method. 2010 federal tax form 1040   If the IRS disallows the method you are using, you do not need permission to change to a proper method. 2010 federal tax form 1040 You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. 2010 federal tax form 1040 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. 2010 federal tax form 1040 However, you must file the amended return before the filing date for the next tax year. 2010 federal tax form 1040 Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. 2010 federal tax form 1040 You can do this by selling, exchanging, or abandoning the item of property. 2010 federal tax form 1040 You can also withdraw it from use without disposing of it. 2010 federal tax form 1040 For example, you could place it in a supplies or scrap account. 2010 federal tax form 1040 Retirements can be either normal or abnormal depending on all facts and circumstances. 2010 federal tax form 1040 The rules discussed next do not apply to MACRS and ACRS property. 2010 federal tax form 1040 Normal retirement. 2010 federal tax form 1040   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. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Abnormal retirement. 2010 federal tax form 1040   A retirement can be abnormal if you withdraw the property early or under other circumstances. 2010 federal tax form 1040 For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. 2010 federal tax form 1040 Gain or loss on retirement. 2010 federal tax form 1040   There are special rules for figuring the gain or loss on retirement of property. 2010 federal tax form 1040 The gain or loss will depend on several factors. 2010 federal tax form 1040 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. 2010 federal tax form 1040 A single property account contains only one item of property. 2010 federal tax form 1040 A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. 2010 federal tax form 1040 Sale or exchange. 2010 federal tax form 1040   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. 2010 federal tax form 1040 See Publication 544. 2010 federal tax form 1040 Property not disposed of or abandoned. 2010 federal tax form 1040   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. 2010 federal tax form 1040 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. 2010 federal tax form 1040 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. 2010 federal tax form 1040   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. 2010 federal tax form 1040 Special rule for normal retirements from item accounts. 2010 federal tax form 1040   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. 2010 federal tax form 1040 However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. 2010 federal tax form 1040   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. 2010 federal tax form 1040 Abandoned property. 2010 federal tax form 1040   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Basis of property retired. 2010 federal tax form 1040   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. 2010 federal tax form 1040 Single item accounts. 2010 federal tax form 1040   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. 2010 federal tax form 1040 This is generally the cost or other basis of the item of property less depreciation. 2010 federal tax form 1040 See Publication 551. 2010 federal tax form 1040 Multiple property account. 2010 federal tax form 1040   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. 2010 federal tax form 1040 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. 2010 federal tax form 1040   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. 2010 federal tax form 1040 The method of depreciation used for the multiple property account is used. 2010 federal tax form 1040 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. 2010 federal tax form 1040 Prev  Up  Next   Home   More Online Publications