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Form 1040ez Booklet

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Form 1040ez Booklet

Form 1040ez booklet Publication 551 - Introductory Material Table of Contents What's New Reminder IntroductionOrdering forms and publications. Form 1040ez booklet Tax questions. Form 1040ez booklet Useful Items - You may want to see: What's New Property acquired from a decedent who died in 2010. Form 1040ez booklet  Property acquired from a decedent dying in 2010 will no longer have an automatic increase in basis. Form 1040ez booklet See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. Form 1040ez booklet Reminder Photographs of missing children. Form 1040ez booklet  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Form 1040ez booklet Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Form 1040ez booklet You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Form 1040ez booklet Introduction Basis is the amount of your investment in property for tax purposes. Form 1040ez booklet Use the basis of property to figure depreciation, amortization, depletion, and casualty losses. Form 1040ez booklet Also use it to figure gain or loss on the sale or other disposition of property. Form 1040ez booklet You must keep accurate records of all items that affect the basis of property so you can make these computations. Form 1040ez booklet This publication is divided into the following sections. Form 1040ez booklet Cost Basis Adjusted Basis Basis Other Than Cost The basis of property you buy is usually its cost. Form 1040ez booklet You may also have to capitalize (add to basis) certain other costs related to buying or producing the property. Form 1040ez booklet Your original basis in property is adjusted (increased or decreased) by certain events. Form 1040ez booklet If you make improvements to the property, increase your basis. Form 1040ez booklet If you take deductions for depreciation or casualty losses, reduce your basis. Form 1040ez booklet You cannot determine your basis in some assets by cost. Form 1040ez booklet This includes property you receive as a gift or inheritance. Form 1040ez booklet It also applies to property received in an involuntary conversion and certain other circumstances. Form 1040ez booklet Comments and suggestions. Form 1040ez booklet   We welcome your comments about this publication and your suggestions for future editions. Form 1040ez booklet   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Form 1040ez booklet NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Form 1040ez booklet Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Form 1040ez booklet   You can email us at taxforms@irs. Form 1040ez booklet gov. Form 1040ez booklet Please put “Publications Comment” on the subject line. Form 1040ez booklet You can also send us comments from www. Form 1040ez booklet irs. Form 1040ez booklet gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. Form 1040ez booklet ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Form 1040ez booklet Ordering forms and publications. Form 1040ez booklet   Visit www. Form 1040ez booklet irs. Form 1040ez booklet gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 business days after your request is received. Form 1040ez booklet  Internal Revenue Service  1201 N. Form 1040ez booklet Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Form 1040ez booklet   If you have a tax question, visit IRS. Form 1040ez booklet gov or call 1-800-829-1040. Form 1040ez booklet We cannot answer tax questions sent to either of the above addresses. Form 1040ez booklet Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 525 Taxable and Nontaxable Income 527 Residential Rental Property 530 Tax Information for First-Time Homeowners 535 Business Expenses 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 559 Survivors, Executors, and Administrators 587 Business Use of Your Home 946 How To Depreciate Property Form (and Instructions) 706 United States Estate (and Generation-Skipping Transfer) Tax Return 706-A United States Additional Estate Tax Return 8594 Asset Acquisition Statement See How To Get Tax Help near the end of this publication for information about getting publications and forms. Form 1040ez booklet Prev  Up  Next   Home   More Online Publications
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The Form 1040ez Booklet

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