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Free federal and state tax filing 19. Free federal and state tax filing   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. Free federal and state tax filing Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. Free federal and state tax filing Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. Free federal and state tax filing No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. Free federal and state tax filing Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. Free federal and state tax filing Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. Free federal and state tax filing La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. Free federal and state tax filing Tabla 19-1. Free federal and state tax filing Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. Free federal and state tax filing Consulte el texto para más detalles. Free federal and state tax filing Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. Free federal and state tax filing Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. Free federal and state tax filing Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. Free federal and state tax filing Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. Free federal and state tax filing Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. Free federal and state tax filing Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. Free federal and state tax filing Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. Free federal and state tax filing Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. Free federal and state tax filing Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. Free federal and state tax filing Un plan calificado proporcionado por un empleador. Free federal and state tax filing Excepciones. Free federal and state tax filing   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. Free federal and state tax filing Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. Free federal and state tax filing Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). Free federal and state tax filing Plazo razonable. Free federal and state tax filing   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. Free federal and state tax filing   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. Free federal and state tax filing Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. Free federal and state tax filing   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. Free federal and state tax filing Período académico. Free federal and state tax filing   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. Free federal and state tax filing En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. Free federal and state tax filing Estudiante que reúne los requisitos. Free federal and state tax filing   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. Free federal and state tax filing Matriculado por lo menos a medio tiempo. Free federal and state tax filing   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. Free federal and state tax filing   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. Free federal and state tax filing No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. Free federal and state tax filing Pariente. Free federal and state tax filing   No puede deducir intereses sobre un préstamo que obtenga de un pariente. Free federal and state tax filing Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. Free federal and state tax filing ); Sus descendientes en línea directa (hijos, nietos, etc. Free federal and state tax filing ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. Free federal and state tax filing Plan calificado proporcionado por un empleador. Free federal and state tax filing   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. Free federal and state tax filing Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. Free federal and state tax filing Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. Free federal and state tax filing Alojamiento y comida. Free federal and state tax filing Libros, materiales y equipo. Free federal and state tax filing Otros gastos necesarios (tales como los de transporte). Free federal and state tax filing Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. Free federal and state tax filing Institución de enseñanza superior que reúne los requisitos. Free federal and state tax filing   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free federal and state tax filing Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free federal and state tax filing   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. Free federal and state tax filing   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. Free federal and state tax filing   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. Free federal and state tax filing La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. Free federal and state tax filing    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. Free federal and state tax filing Ajustes tributarios a gastos de estudios calificados. Free federal and state tax filing   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). Free federal and state tax filing Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. Free federal and state tax filing Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. Free federal and state tax filing Costo originario del préstamo. Free federal and state tax filing   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. Free federal and state tax filing Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. Free federal and state tax filing Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. Free federal and state tax filing Intereses capitalizados. Free federal and state tax filing    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. Free federal and state tax filing Intereses sobre líneas de crédito rotativas. Free federal and state tax filing   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. Free federal and state tax filing Vea Gastos de Estudios Calificados , anteriormente. Free federal and state tax filing Intereses sobre préstamos de estudios refinanciados. Free federal and state tax filing   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. Free federal and state tax filing Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. Free federal and state tax filing Pagos de intereses voluntarios. Free federal and state tax filing   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. Free federal and state tax filing No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. Free federal and state tax filing Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. Free federal and state tax filing Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. Free federal and state tax filing Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. Free federal and state tax filing ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. Free federal and state tax filing Nadie más reclama una exención por usted en su declaración de impuestos. Free federal and state tax filing Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. Free federal and state tax filing Usted pagó intereses sobre un préstamo de estudios calificado. Free federal and state tax filing Intereses pagados por otros. Free federal and state tax filing   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. Free federal and state tax filing Vea el capítulo 4 de la Publicación 970, en inglés, para más información. Free federal and state tax filing No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). Free federal and state tax filing ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. Free federal and state tax filing Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). Free federal and state tax filing No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). Free federal and state tax filing Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. Free federal and state tax filing ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. Free federal and state tax filing No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. Free federal and state tax filing Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. Free federal and state tax filing Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. Free federal and state tax filing Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. Free federal and state tax filing Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. Free federal and state tax filing No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. Free federal and state tax filing Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. Free federal and state tax filing Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. Free federal and state tax filing Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). Free federal and state tax filing No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. Free federal and state tax filing Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . Free federal and state tax filing La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. Free federal and state tax filing La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. Free federal and state tax filing Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. Free federal and state tax filing Puede escoger la opción que le proporcione una cantidad de impuesto menor. Free federal and state tax filing Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. Free federal and state tax filing ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. Free federal and state tax filing Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. Free federal and state tax filing Pagó los gastos de estudios de un estudiante que reúne los requisitos. Free federal and state tax filing El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. Free federal and state tax filing Los gastos de estudios calificados se definen bajo Gastos que Califican . Free federal and state tax filing La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . Free federal and state tax filing Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. Free federal and state tax filing Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. Free federal and state tax filing Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. Free federal and state tax filing Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). Free federal and state tax filing Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. Free federal and state tax filing Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. Free federal and state tax filing S. Free federal and state tax filing Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. Free federal and state tax filing Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. Free federal and state tax filing No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. Free federal and state tax filing Tabla 19-2. Free federal and state tax filing Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. Free federal and state tax filing Consulte el texto de este capítulo para más detalles. Free federal and state tax filing Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. Free federal and state tax filing ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. Free federal and state tax filing ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. Free federal and state tax filing ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. Free federal and state tax filing Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. Free federal and state tax filing La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. Free federal and state tax filing Pagos hechos con fondos de un préstamo. Free federal and state tax filing   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. Free federal and state tax filing Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. Free federal and state tax filing Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. Free federal and state tax filing Estudiante que se da de baja de su(s) clase(s). Free federal and state tax filing   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). Free federal and state tax filing Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. Free federal and state tax filing Institución de educación que reúne los requisitos. Free federal and state tax filing   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free federal and state tax filing Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free federal and state tax filing La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. Free federal and state tax filing   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. Free federal and state tax filing Período académico. Free federal and state tax filing   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. Free federal and state tax filing Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. Free federal and state tax filing Gastos relacionados. Free federal and state tax filing   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. Free federal and state tax filing Gastos pagados por adelantado. Free federal and state tax filing   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. Free federal and state tax filing Vea Período académico, anteriormente. Free federal and state tax filing Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. Free federal and state tax filing No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. Free federal and state tax filing No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. Free federal and state tax filing Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. Free federal and state tax filing Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). Free federal and state tax filing En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. Free federal and state tax filing Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. Free federal and state tax filing Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). Free federal and state tax filing Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free federal and state tax filing Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. Free federal and state tax filing Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. Free federal and state tax filing Ajustes a los gastos de estudios calificados. Free federal and state tax filing   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. Free federal and state tax filing El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. Free federal and state tax filing Ayuda económica para los estudios exenta de impuestos. Free federal and state tax filing   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. Free federal and state tax filing Vea Período académico, anteriormente. Free federal and state tax filing   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. Free federal and state tax filing   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. Free federal and state tax filing Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. Free federal and state tax filing La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Free federal and state tax filing    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. Free federal and state tax filing Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. Free federal and state tax filing   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. Free federal and state tax filing La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). Free federal and state tax filing   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Free federal and state tax filing Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. Free federal and state tax filing Reembolsos. Free federal and state tax filing   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. Free federal and state tax filing Vea el capítulo 6 de la Publicación 970 para obtener más información. Free federal and state tax filing Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Free federal and state tax filing Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. Free federal and state tax filing Reembolsos recibidos en 2013. Free federal and state tax filing   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. Free federal and state tax filing Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Free federal and state tax filing   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Free federal and state tax filing Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Free federal and state tax filing   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. Free federal and state tax filing Vea el capítulo 6 de la Publicación 970, en inglés, para más información. Free federal and state tax filing Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. Free federal and state tax filing   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). Free federal and state tax filing Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. Free federal and state tax filing Cantidades que no reducen los gastos de estudios calificados. Free federal and state tax filing   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. Free federal and state tax filing   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. Free federal and state tax filing El uso de dinero no se restringe. Free federal and state tax filing Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. Free federal and state tax filing Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. Free federal and state tax filing Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. Free federal and state tax filing   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. Free federal and state tax filing No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. Free federal and state tax filing Cuotas íntegras o en conjunto. Free federal and state tax filing   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. Free federal and state tax filing Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. Free federal and state tax filing La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free federal and state tax filing Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. Free federal and state tax filing Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). Free federal and state tax filing Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. Free federal and state tax filing La Tabla 19-3 resume quién puede reclamar la deducción. Free federal and state tax filing Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. Free federal and state tax filing Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. Free federal and state tax filing Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. Free federal and state tax filing Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free federal and state tax filing Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. Free federal and state tax filing Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. Free federal and state tax filing Tabla 19-3. Free federal and state tax filing Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. Free federal and state tax filing Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. Free federal and state tax filing SI su dependiente es un estudiante que reúne los requisitos y usted . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing Y. Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing ENTONCES. Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. Free federal and state tax filing Su dependiente no puede tomar la deducción. Free federal and state tax filing reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free federal and state tax filing no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free federal and state tax filing no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free federal and state tax filing Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. Free federal and state tax filing Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. Free federal and state tax filing No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. Free federal and state tax filing Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). Free federal and state tax filing Educador que reúne los requisitos. Free federal and state tax filing   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. Free federal and state tax filing Gastos calificados. Free federal and state tax filing   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. Free federal and state tax filing Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. Free federal and state tax filing Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. Free federal and state tax filing Un gasto no tiene que ser obligatorio para considerarse necesario. Free federal and state tax filing   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. Free federal and state tax filing   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. Free federal and state tax filing S. Free federal and state tax filing Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. Free federal and state tax filing Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free federal and state tax filing Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. Free federal and state tax filing Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. Free federal and state tax filing Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. Free federal and state tax filing Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. Free federal and state tax filing Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. Free federal and state tax filing Prev  Up  Next   Home   More Online Publications
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The Free Federal And State Tax Filing

Free federal and state tax filing 5. Free federal and state tax filing   Additional Rules for Listed Property Table of Contents Introduction Useful Items - You may want to see: What Is Listed Property?Passenger Automobiles Other Property Used for Transportation Computers and Related Peripheral Equipment Can Employees Claim a Deduction? What Is the Business-Use Requirement?How To Allocate Use Qualified Business Use Recapture of Excess Depreciation Lessee's Inclusion Amount Do the Passenger Automobile Limits Apply?Maximum Depreciation Deduction Deductions After the Recovery Period Deductions For Passenger Automobiles Acquired in a Trade-in What Records Must Be Kept?Adequate Records How Is Listed Property Information Reported? Introduction This chapter discusses the deduction limits and other special rules that apply to certain listed property. Free federal and state tax filing Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers. Free federal and state tax filing Deductions for listed property (other than certain leased property) are subject to the following special rules and limits. Free federal and state tax filing Deduction for employees. Free federal and state tax filing If your use of the property is not for your employer's convenience or is not required as a condition of your employment, you cannot deduct depreciation or rent expenses for your use of the property as an employee. Free federal and state tax filing Business-use requirement. Free federal and state tax filing If the property is not used predominantly (more than 50%) for qualified business use, you cannot claim the section 179 deduction or a special depreciation allowance. Free federal and state tax filing In addition, you must figure any depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS) using the straight line method over the ADS recovery period. Free federal and state tax filing You may also have to recapture (include in income) any excess depreciation claimed in previous years. Free federal and state tax filing A similar inclusion amount applies to certain leased property. Free federal and state tax filing Passenger automobile limits and rules. Free federal and state tax filing Annual limits apply to depreciation deductions (including section 179 deductions and any special depreciation allowance) for certain passenger automobiles. Free federal and state tax filing You can continue to deduct depreciation for the unrecovered basis resulting from these limits after the end of the recovery period. Free federal and state tax filing This chapter defines listed property and explains the special rules and depreciation deduction limits that apply, including the special inclusion amount rule for leased property. Free federal and state tax filing It also discusses the recordkeeping rules for listed property and explains how to report information about the property on your tax return. Free federal and state tax filing Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 4797 Sales of Business Property See chapter 6 for information about getting publications and forms. Free federal and state tax filing What Is Listed Property? Listed property is any of the following. Free federal and state tax filing Passenger automobiles (as defined later). Free federal and state tax filing Any other property used for transportation, unless it is an excepted vehicle. Free federal and state tax filing Property generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video-recording equipment). Free federal and state tax filing Computers and related peripheral equipment, unless used only at a regular business establishment and owned or leased by the person operating the establishment. Free federal and state tax filing A regular business establishment includes a portion of a dwelling unit that is used both regularly and exclusively for business as discussed in Publication 587. Free federal and state tax filing Improvements to listed property. Free federal and state tax filing   An improvement made to listed property that must be capitalized is treated as a new item of depreciable property. Free federal and state tax filing The recovery period and method of depreciation that apply to the listed property as a whole also apply to the improvement. Free federal and state tax filing For example, if you must depreciate the listed property using the straight line method, you also must depreciate the improvement using the straight line method. Free federal and state tax filing Passenger Automobiles A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (6,000 pounds or less of gross vehicle weight for trucks and vans). Free federal and state tax filing It includes any part, component, or other item physically attached to the automobile at the time of purchase or usually included in the purchase price of an automobile. Free federal and state tax filing The following vehicles are not considered passenger automobiles for these purposes. Free federal and state tax filing An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business. Free federal and state tax filing A vehicle used directly in the trade or business of transporting persons or property for pay or hire. Free federal and state tax filing A truck or van that is a qualified nonpersonal use vehicle. Free federal and state tax filing Qualified nonpersonal use vehicles. Free federal and state tax filing   Qualified nonpersonal use vehicles are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Free federal and state tax filing They include the trucks and vans listed as excepted vehicles under Other Property Used for Transportation , next. Free federal and state tax filing They also include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Free federal and state tax filing For a detailed discussion of passenger automobiles, including leased passenger automobiles, see  Publication 463. Free federal and state tax filing Other Property Used for Transportation Although vehicles used to transport persons or property for pay or hire and vehicles rated at more than the 6,000-pound threshold are not passenger automobiles, they are still “other property used for transportation” and are subject to the special rules for listed property. Free federal and state tax filing Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles used to transport persons or goods. Free federal and state tax filing Excepted vehicles. Free federal and state tax filing   Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ). Free federal and state tax filing Clearly marked police and fire vehicles. Free federal and state tax filing Unmarked vehicles used by law enforcement officers if the use is officially authorized. Free federal and state tax filing Ambulances used as such and hearses used as such. Free federal and state tax filing Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo. Free federal and state tax filing Bucket trucks (cherry pickers), cement mixers, dump trucks (including garbage trucks), flatbed trucks, and refrigerated trucks. Free federal and state tax filing Combines, cranes and derricks, and forklifts. Free federal and state tax filing Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat. Free federal and state tax filing Qualified moving vans. Free federal and state tax filing Qualified specialized utility repair trucks. Free federal and state tax filing School buses used in transporting students and employees of schools. Free federal and state tax filing Other buses with a capacity of at least 20 passengers that are used as passenger buses. Free federal and state tax filing Tractors and other special purpose farm vehicles. Free federal and state tax filing Clearly marked police and fire vehicle. Free federal and state tax filing   A clearly marked police or fire vehicle is a vehicle that meets all the following requirements. Free federal and state tax filing It is owned or leased by a governmental unit or an agency or instrumentality of a governmental unit. Free federal and state tax filing It is required to be used for commuting by a police officer or fire fighter who, when not on a regular shift, is on call at all times. Free federal and state tax filing It is prohibited from being used for personal use (other than commuting) outside the limit of the police officer's arrest powers or the fire fighter's obligation to respond to an emergency. Free federal and state tax filing It is clearly marked with painted insignia or words that make it readily apparent that it is a police or fire vehicle. Free federal and state tax filing A marking on a license plate is not a clear marking for these purposes. Free federal and state tax filing Qualified moving van. Free federal and state tax filing   A qualified moving van is any truck or van used by a professional moving company for moving household or business goods if the following requirements are met. Free federal and state tax filing No personal use of the van is allowed other than for travel to and from a move site or for minor personal use, such as a stop for lunch on the way from one move site to another. Free federal and state tax filing Personal use for travel to and from a move site happens no more than five times a month on average. Free federal and state tax filing Personal use is limited to situations in which it is more convenient to the employer, because of the location of the employee's residence in relation to the location of the move site, for the van not to be returned to the employer's business location. Free federal and state tax filing Qualified specialized utility repair truck. Free federal and state tax filing   A truck is a qualified specialized utility repair truck if it is not a van or pickup truck and all the following apply. Free federal and state tax filing The truck was specifically designed for and is used to carry heavy tools, testing equipment, or parts. Free federal and state tax filing Shelves, racks, or other permanent interior construction has been installed to carry and store the tools, equipment, or parts and would make it unlikely that the truck would be used, other than minimally, for personal purposes. Free federal and state tax filing The employer requires the employee to drive the truck home in order to be able to respond in emergency situations for purposes of restoring or maintaining electricity, gas, telephone, water, sewer, or steam utility services. Free federal and state tax filing Computers and Related Peripheral Equipment A computer is a programmable, electronically activated device capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention. Free federal and state tax filing It consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. Free federal and state tax filing Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. Free federal and state tax filing The following are neither computers nor related peripheral equipment. Free federal and state tax filing Any equipment that is an integral part of other property that is not a computer. Free federal and state tax filing Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment. Free federal and state tax filing Equipment of a kind used primarily for the user's amusement or entertainment, such as video games. Free federal and state tax filing Can Employees Claim a Deduction? If you are an employee, you can claim a depreciation deduction for the use of your listed property (whether owned or rented) in performing services as an employee only if your use is a business use. Free federal and state tax filing The use of your property in performing services as an employee is a business use only if both the following requirements are met. Free federal and state tax filing The use is for your employer's convenience. Free federal and state tax filing The use is required as a condition of your employment. Free federal and state tax filing If these requirements are not met, you cannot deduct depreciation (including the section 179 deduction) or rent expenses for your use of the property as an employee. Free federal and state tax filing Employer's convenience. Free federal and state tax filing   Whether the use of listed property is for your employer's convenience must be determined from all the facts. Free federal and state tax filing The use is for your employer's convenience if it is for a substantial business reason of the employer. Free federal and state tax filing The use of listed property during your regular working hours to carry on your employer's business generally is for the employer's convenience. Free federal and state tax filing Condition of employment. Free federal and state tax filing   Whether the use of listed property is a condition of your employment depends on all the facts and circumstances. Free federal and state tax filing The use of property must be required for you to perform your duties properly. Free federal and state tax filing Your employer does not have to require explicitly that you use the property. Free federal and state tax filing However, a mere statement by the employer that the use of the property is a condition of your employment is not sufficient. Free federal and state tax filing Example 1. Free federal and state tax filing Virginia Sycamore is employed as a courier with We Deliver, which provides local courier services. Free federal and state tax filing She owns and uses a motorcycle to deliver packages to downtown offices. Free federal and state tax filing We Deliver explicitly requires all delivery persons to own a car or motorcycle for use in their employment. Free federal and state tax filing Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. Free federal and state tax filing Example 2. Free federal and state tax filing Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. Free federal and state tax filing He must travel to these sites on a regular basis. Free federal and state tax filing Uplift does not furnish an automobile or explicitly require him to use his own automobile. Free federal and state tax filing However, it pays him for any costs he incurs in traveling to the various sites. Free federal and state tax filing The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. Free federal and state tax filing Example 3. Free federal and state tax filing Assume the same facts as in Example 2 except that Uplift furnishes a car to Bill, who chooses to use his own car and receive payment for using it. Free federal and state tax filing The use of his own car is neither for the convenience of Uplift nor required as a condition of employment. Free federal and state tax filing Example 4. Free federal and state tax filing Marilyn Lee is a pilot for Y Company, a small charter airline. Free federal and state tax filing Y requires pilots to obtain 80 hours of flight time annually in addition to flight time spent with the airline. Free federal and state tax filing Pilots usually can obtain these hours by flying with the Air Force Reserve or by flying part-time with another airline. Free federal and state tax filing Marilyn owns her own airplane. Free federal and state tax filing The use of her airplane to obtain the required flight hours is neither for the convenience of the employer nor required as a condition of employment. Free federal and state tax filing Example 5. Free federal and state tax filing David Rule is employed as an engineer with Zip, an engineering contracting firm. Free federal and state tax filing He occasionally takes work home at night rather than work late in the office. Free federal and state tax filing He owns and uses a home computer which is virtually identical to the office model. Free federal and state tax filing His use of the computer is neither for the convenience of his employer nor required as a condition of employment. Free federal and state tax filing What Is the Business-Use Requirement? You can claim the section 179 deduction and a special depreciation allowance for listed property and depreciate listed property using GDS and a declining balance method if the property meets the business-use requirement. Free federal and state tax filing To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. Free federal and state tax filing If this requirement is not met, the following rules apply. Free federal and state tax filing Property not used predominantly for qualified business use during the year it is placed in service does not qualify for the section 179 deduction. Free federal and state tax filing Property not used predominantly for qualified business use during the year it is placed in service does not qualify for a special depreciation allowance. Free federal and state tax filing Any depreciation deduction under MACRS for property not used predominantly for qualified business use during any year must be figured using the straight line method over the ADS recovery period. Free federal and state tax filing This rule applies each year of the recovery period. Free federal and state tax filing Excess depreciation on property previously used predominantly for qualified business use must be recaptured (included in income) in the first year in which it is no longer used predominantly for qualified business use. Free federal and state tax filing A lessee must add an inclusion amount to income in the first year in which the leased property is not used predominantly for qualified business use. Free federal and state tax filing Being required to use the straight line method for an item of listed property not used predominantly for qualified business use is not the same as electing the straight line method. Free federal and state tax filing It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. Free federal and state tax filing Exception for leased property. Free federal and state tax filing   The business-use requirement generally does not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. Free federal and state tax filing   You are considered regularly engaged in the business of leasing listed property only if you enter into contracts for the leasing of listed property with some frequency over a continuous period of time. Free federal and state tax filing This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of your business in its entirety. Free federal and state tax filing Occasional or incidental leasing activity is insufficient. Free federal and state tax filing For example, if you lease only one passenger automobile during a tax year, you are not regularly engaged in the business of leasing automobiles. Free federal and state tax filing An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. Free federal and state tax filing How To Allocate Use To determine whether the business-use requirement is met, you must allocate the use of any item of listed property used for more than one purpose during the year among its various uses. Free federal and state tax filing For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. Free federal and state tax filing You determine the percentage of qualified business use by dividing the number of miles you drove the vehicle for business purposes during the year by the total number of miles you drove the vehicle for all purposes (including business miles) during the year. Free federal and state tax filing For other listed property, allocate the property's use on the basis of the most appropriate unit of time the property is actually used (rather than merely being available for use). Free federal and state tax filing For example, you can determine the percentage of business use of a computer by dividing the number of hours you used the computer for business purposes during the year by the total number of hours you used the computer for all purposes (including business use) during the year. Free federal and state tax filing Entertainment use. Free federal and state tax filing   Treat the use of listed property for entertainment, recreation, or amusement purposes as a business use only to the extent you can deduct expenses (other than interest and property tax expenses) due to its use as an ordinary and necessary business expense. Free federal and state tax filing Commuting use. Free federal and state tax filing   The use of an automobile for commuting is not business use, regardless of whether work is performed during the trip. Free federal and state tax filing For example, a business telephone call made on a car telephone while commuting to work does not change the character of the trip from commuting to business. Free federal and state tax filing This is also true for a business meeting held in a car while commuting to work. Free federal and state tax filing Similarly, a business call made on an otherwise personal trip does not change the character of a trip from personal to business. Free federal and state tax filing The fact that an automobile is used to display material that advertises the owner's or user's trade or business does not convert an otherwise personal use into business use. Free federal and state tax filing Use of your automobile by another person. Free federal and state tax filing   If someone else uses your automobile, do not treat that use as business use unless one of the following conditions applies. Free federal and state tax filing That use is directly connected with your business. Free federal and state tax filing You properly report the value of the use as income to the other person and withhold tax on the income where required. Free federal and state tax filing You are paid a fair market rent. Free federal and state tax filing Treat any payment to you for the use of the automobile as a rent payment for purposes of item (3). Free federal and state tax filing Employee deductions. Free federal and state tax filing   If you are an employee, do not treat your use of listed property as business use unless it is for your employer's convenience and is required as a condition of your employment. Free federal and state tax filing See Can Employees Claim a Deduction , earlier. Free federal and state tax filing Qualified Business Use Qualified business use of listed property is any use of the property in your trade or business. Free federal and state tax filing However, it does not include the following uses. Free federal and state tax filing The leasing of property to any 5% owner or related person (to the extent the property is used by a 5% owner or person related to the owner or lessee of the property). Free federal and state tax filing The use of property as pay for the services of a 5% owner or related person. Free federal and state tax filing The use of property as pay for services of any person (other than a 5% owner or related person), unless the value of the use is included in that person's gross income and income tax is withheld on that amount where required. Free federal and state tax filing Property does not stop being used predominantly for qualified business use because of a transfer at death. Free federal and state tax filing Exception for leasing or compensatory use of aircraft. Free federal and state tax filing   Treat the leasing of any aircraft by a 5% owner or related person, or the compensatory use of any aircraft, as a qualified business use if at least 25% of the total use of the aircraft during the year is for a qualified business use. Free federal and state tax filing 5% owner. Free federal and state tax filing   For a business entity that is not a corporation, a 5% owner is any person who owns more than 5% of the capital or profits interest in the business. Free federal and state tax filing   For a corporation, a 5% owner is any person who owns, or is considered to own, either of the following. Free federal and state tax filing More than 5% of the outstanding stock of the corporation. Free federal and state tax filing Stock possessing more than 5% of the total combined voting power of all stock in the corporation. Free federal and state tax filing Related persons. Free federal and state tax filing   For a description of related persons, see Related persons in the discussion on property owned or used in 1986 under What Method Can You Use To Depreciate Your Property in chapter 1 . Free federal and state tax filing For this purpose, however, treat as related persons only the relationships listed in items (1) through (10) of that discussion and substitute “50%” for “10%” each place it appears. Free federal and state tax filing Examples. Free federal and state tax filing   The following examples illustrate whether the use of business property is qualified business use. Free federal and state tax filing Example 1. Free federal and state tax filing John Maple is the sole proprietor of a plumbing contracting business. Free federal and state tax filing John employs his brother, Richard, in the business. Free federal and state tax filing As part of Richard's pay, he is allowed to use one of the company automobiles for personal use. Free federal and state tax filing The company includes the value of the personal use of the automobile in Richard's gross income and properly withholds tax on it. Free federal and state tax filing The use of the automobile is pay for the performance of services by a related person, so it is not a qualified business use. Free federal and state tax filing Example 2. Free federal and state tax filing John, in Example 1, allows unrelated employees to use company automobiles for personal purposes. Free federal and state tax filing He does not include the value of the personal use of the company automobiles as part of their compensation and he does not withhold tax on the value of the use of the automobiles. Free federal and state tax filing This use of company automobiles by employees is not a qualified business use. Free federal and state tax filing Example 3. Free federal and state tax filing James Company Inc. Free federal and state tax filing owns several automobiles that its employees use for business purposes. Free federal and state tax filing The employees also are allowed to take the automobiles home at night. Free federal and state tax filing The fair market value of each employee's use of an automobile for any personal purpose, such as commuting to and from work, is reported as income to the employee and James Company withholds tax on it. Free federal and state tax filing This use of company automobiles by employees, even for personal purposes, is a qualified business use for the company. Free federal and state tax filing Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. Free federal and state tax filing However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. Free federal and state tax filing Example 1. Free federal and state tax filing Sarah Bradley uses a home computer 50% of the time to manage her investments. Free federal and state tax filing She also uses the computer 40% of the time in her part-time consumer research business. Free federal and state tax filing Sarah's home computer is listed property because it is not used at a regular business establishment. Free federal and state tax filing She does not use the computer predominantly for qualified business use. Free federal and state tax filing Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. Free federal and state tax filing She must depreciate it using the straight line method over the ADS recovery period. Free federal and state tax filing Her combined business/investment use for determining her depreciation deduction is 90%. Free federal and state tax filing Example 2. Free federal and state tax filing If Sarah uses her computer 30% of the time to manage her investments and 60% of the time in her consumer research business, it is used predominantly for qualified business use. Free federal and state tax filing She can elect a section 179 deduction and, if she does not deduct all the computer's cost, she can claim a special depreciation allowance and depreciate the computer using the 200% declining balance method over the GDS recovery period. Free federal and state tax filing Her combined business/investment use for determining her depreciation deduction is 90%. Free federal and state tax filing Recapture of Excess Depreciation If you used listed property more than 50% in a qualified business use in the year you placed it in service, you must recapture (include in income) excess depreciation in the first year you use it 50% or less. Free federal and state tax filing You also increase the adjusted basis of your property by the same amount. Free federal and state tax filing Excess depreciation is: The depreciation allowable for the property (including any section 179 deduction and special depreciation allowance claimed) for years before the first year you do not use the property predominantly for qualified business use, minus The depreciation that would have been allowable for those years if you had not used the property predominantly for qualified business use in the year you placed it in service. Free federal and state tax filing To determine the amount in (2) above, you must refigure the depreciation using the straight line method and the ADS recovery period. Free federal and state tax filing Example. Free federal and state tax filing In June 2009, Ellen Rye purchased and placed in service a pickup truck that cost $18,000. Free federal and state tax filing She used it only for qualified business use for 2009 through 2012. Free federal and state tax filing Ellen claimed a section 179 deduction of $10,000 based on the purchase of the truck. Free federal and state tax filing She began depreciating it using the 200% DB method over a 5-year GDS recovery period. Free federal and state tax filing The pickup truck's gross vehicle weight was over 6,000 pounds, so it was not subject to the passenger automobile limits discussed later under Do the Passenger Automobile Limits Apply. Free federal and state tax filing During 2013, she used the truck 50% for business and 50% for personal purposes. Free federal and state tax filing She includes $4,018 excess depreciation in her gross income for 2013. Free federal and state tax filing The excess depreciation is determined as follows. Free federal and state tax filing Total section 179 deduction ($10,000) and depreciation claimed ($6,618) for 2009 through 2012. Free federal and state tax filing (Depreciation is from Table A-1. Free federal and state tax filing ) $16,618 Minus: Depreciation allowable (Table A-8):     2009 – 10% of $18,000 $1,800   2010 – 20% of $18,000 3,600   2011 – 20% of $18,000 3,600   2012 – 20% of $18,000 3,600 12,600 Excess depreciation $4,018 If Ellen's use of the truck does not change to 50% for business and 50% for personal purposes until 2015, there will be no excess depreciation. Free federal and state tax filing The total depreciation allowable using Table A-8 through 2015 will be $18,000, which equals the total of the section 179 deduction and depreciation she will have claimed. Free federal and state tax filing Where to figure and report recapture. Free federal and state tax filing   Use Form 4797, Part IV, to figure the recapture amount. Free federal and state tax filing Report the recapture amount as other income on the same form or schedule on which you took the depreciation deduction. Free federal and state tax filing For example, report the recapture amount as other income on Schedule C (Form 1040) if you took the depreciation deduction on Schedule C. Free federal and state tax filing If you took the depreciation deduction on Form 2106, report the recapture amount as other income on Form 1040, line 21. Free federal and state tax filing Lessee's Inclusion Amount If you use leased listed property other than a passenger automobile for business/investment use, you must include an amount in your income in the first year your qualified business-use percentage is 50% or less. Free federal and state tax filing Your qualified business-use percentage is the part of the property's total use that is qualified business use (defined earlier). Free federal and state tax filing For the inclusion amount rules for a leased passenger automobile, see Leasing a Car in chapter 4 of Publication 463. Free federal and state tax filing The inclusion amount is the sum of Amount A and Amount B, described next. Free federal and state tax filing However, see the special rules for the inclusion amount, later, if your lease begins in the last 9 months of your tax year or is for less than one year. Free federal and state tax filing Amount A. Free federal and state tax filing   Amount A is: The fair market value of the property, multiplied by The business/investment use for the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A-19 in Appendix A . Free federal and state tax filing   The fair market value of the property is the value on the first day of the lease term. Free federal and state tax filing If the capitalized cost of an item of listed property is specified in the lease agreement, you must treat that amount as the fair market value. Free federal and state tax filing Amount B. Free federal and state tax filing   Amount B is: The fair market value of the property, multiplied by The average of the business/investment use for all tax years the property was leased that precede the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A–20 in Appendix A . Free federal and state tax filing Maximum inclusion amount. Free federal and state tax filing   The inclusion amount cannot be more than the sum of the deductible amounts of rent for the tax year in which the lessee must include the amount in gross income. Free federal and state tax filing Inclusion amount worksheet. Free federal and state tax filing   The following worksheet is provided to help you figure the inclusion amount for leased listed property. Free federal and state tax filing Inclusion Amount Worksheet for Leased Listed Property 1. Free federal and state tax filing Fair market value   2. Free federal and state tax filing Business/investment use for first year business use is 50% or less   3. Free federal and state tax filing Multiply line 1 by line 2. Free federal and state tax filing   4. Free federal and state tax filing Rate (%) from Table A-19   5. Free federal and state tax filing Multiply line 3 by line 4. Free federal and state tax filing This is Amount A. Free federal and state tax filing   6. Free federal and state tax filing Fair market value   7. Free federal and state tax filing Average business/investment use for years property leased before the first year business use is 50% or less . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing . Free federal and state tax filing   8. Free federal and state tax filing Multiply line 6 by line 7   9. Free federal and state tax filing Rate (%) from Table A-20   10. Free federal and state tax filing Multiply line 8 by line 9. Free federal and state tax filing This is Amount B. Free federal and state tax filing   11. Free federal and state tax filing Add line 5 and line 10. Free federal and state tax filing This is your inclusion amount. Free federal and state tax filing Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. Free federal and state tax filing )         Example. Free federal and state tax filing On February 1, 2011, Larry House, a calendar year taxpayer, leased and placed in service a computer with a fair market value of $3,000. Free federal and state tax filing The lease is for a period of 5 years. Free federal and state tax filing Larry does not use the computer at a regular business establishment, so it is listed property. Free federal and state tax filing His business use of the property (all of which is qualified business use) is 80% in 2011, 60% in 2012, and 40% in 2013. Free federal and state tax filing He must add an inclusion amount to gross income for 2013, the first tax year his qualified business-use percentage is 50% or less. Free federal and state tax filing The computer has a 5-year recovery period under both GDS and ADS. Free federal and state tax filing 2013 is the third tax year of the lease, so the applicable percentage from Table A-19 is −19. Free federal and state tax filing 8%. Free federal and state tax filing The applicable percentage from Table A-20 is 22. Free federal and state tax filing 0%. Free federal and state tax filing Larry's deductible rent for the computer for 2013 is $800. Free federal and state tax filing Larry uses the Inclusion amount worksheet. Free federal and state tax filing to figure the amount he must include in income for 2013. Free federal and state tax filing His inclusion amount is $224, which is the sum of −$238 (Amount A) and $462 (Amount B). Free federal and state tax filing Inclusion Amount Worksheet for Leased Listed Property 1. Free federal and state tax filing Fair market value $3,000   2. Free federal and state tax filing Business/investment use for first year business use is 50% or less 40 % 3. Free federal and state tax filing Multiply line 1 by line 2. Free federal and state tax filing 1,200   4. Free federal and state tax filing Rate (%) from Table A-19 −19. Free federal and state tax filing 8 % 5. Free federal and state tax filing Multiply line 3 by line 4. Free federal and state tax filing This is Amount A. Free federal and state tax filing −238   6. Free federal and state tax filing Fair market value 3,000   7. Free federal and state tax filing Average business/investment use for years property leased before the first year business use is 50% or less 70 % 8. Free federal and state tax filing Multiply line 6 by line 7 2,100   9. Free federal and state tax filing Rate (%) from Table A-20 22. Free federal and state tax filing 0 % 10. Free federal and state tax filing Multiply line 8 by line 9. Free federal and state tax filing This is Amount B. Free federal and state tax filing 462   11. Free federal and state tax filing Add line 5 and line 10. Free federal and state tax filing This is your inclusion amount. Free federal and state tax filing Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. Free federal and state tax filing ) $224           Lease beginning in the last 9 months of your tax year. Free federal and state tax filing    The inclusion amount is subject to a special rule if all the following apply. Free federal and state tax filing The lease term begins within 9 months before the close of your tax year. Free federal and state tax filing You do not use the property predominantly (more than 50%) for qualified business use during that part of the tax year. Free federal and state tax filing The lease term continues into your next tax year. Free federal and state tax filing Under this special rule, add the inclusion amount to income in the next tax year. Free federal and state tax filing Figure the inclusion amount by taking into account the average of the business/investment use for both tax years (line 2 of the Inclusion Amount Worksheet for Leased Listed Property) and the applicable percentage for the tax year the lease term begins. Free federal and state tax filing Skip lines 6 through 9 of the worksheet and enter zero on line 10. Free federal and state tax filing Example 1. Free federal and state tax filing On August 1, 2012, Julie Rule, a calendar year taxpayer, leased and placed in service an item of listed property. Free federal and state tax filing The property is 5-year property with a fair market value of $10,000. Free federal and state tax filing Her property has a recovery period of 5 years under ADS. Free federal and state tax filing The lease is for 5 years. Free federal and state tax filing Her business use of the property was 50% in 2012 and 90% in 2013. Free federal and state tax filing She paid rent of $3,600 for 2012, of which $3,240 is deductible. Free federal and state tax filing She must include $147 in income in 2013. Free federal and state tax filing The $147 is the sum of Amount A and Amount B. Free federal and state tax filing Amount A is $147 ($10,000 × 70% × 2. Free federal and state tax filing 1%), the product of the fair market value, the average business use for 2012 and 2013, and the applicable percentage for year one from Table A-19 . Free federal and state tax filing Amount B is zero. Free federal and state tax filing Lease for less than one year. Free federal and state tax filing   A special rule for the inclusion amount applies if the lease term is less than one year and you do not use the property predominantly (more than 50%) for qualified business use. Free federal and state tax filing The amount included in income is the inclusion amount (figured as described in the preceding discussions) multiplied by a fraction. Free federal and state tax filing The numerator of the fraction is the number of days in the lease term and the denominator is 365 (or 366 for leap years). Free federal and state tax filing   The lease term for listed property other than residential rental or nonresidential real property includes options to renew. Free federal and state tax filing If you have two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property, treat them as one lease. Free federal and state tax filing Example 2. Free federal and state tax filing On October 1, 2012, John Joyce, a calendar year taxpayer, leased and placed in service an item of listed property that is 3-year property. Free federal and state tax filing This property had a fair market value of $15,000 and a recovery period of 5 years under ADS. Free federal and state tax filing The lease term was 6 months (ending on March 31, 2013), during which he used the property 45% in business. Free federal and state tax filing He must include $71 in income in 2013. Free federal and state tax filing The $71 is the sum of Amount A and Amount B. Free federal and state tax filing Amount A is $71 ($15,000 × 45% × 2. Free federal and state tax filing 1% × 183/365), the product of the fair market value, the average business use for both years, and the applicable percentage for year one from Table A-19 , prorated for the length of the lease. Free federal and state tax filing Amount B is zero. Free federal and state tax filing Where to report inclusion amount. Free federal and state tax filing   Report the inclusion amount figured as described in the preceding discussions as other income on the same form or schedule on which you took the deduction for your rental costs. Free federal and state tax filing For example, report the inclusion amount as other income on Schedule C (Form 1040) if you took the deduction on Schedule C. Free federal and state tax filing If you took the deduction for rental costs on Form 2106, report the inclusion amount as other income on Form 1040, line 21. Free federal and state tax filing Do the Passenger Automobile Limits Apply? The depreciation deduction, including the section 179 deduction and special depreciation allowance, you can claim for a passenger automobile (defined earlier) each year is limited. Free federal and state tax filing This section describes the maximum depreciation deduction amounts for 2013 and explains how to deduct, after the recovery period, the unrecovered basis of your property that results from applying the passenger automobile limit. Free federal and state tax filing Exception for leased cars. Free federal and state tax filing   The passenger automobile limits generally do not apply to passenger automobiles leased or held for leasing by anyone regularly engaged in the business of leasing passenger automobiles. Free federal and state tax filing For information on when you are considered regularly engaged in the business of leasing listed property, including passenger automobiles, see Exception for leased property , earlier, under What Is the Business-Use Requirement . Free federal and state tax filing Maximum Depreciation Deduction The passenger automobile limits are the maximum depreciation amounts you can deduct for a passenger automobile. Free federal and state tax filing They are based on the date you placed the automobile in service. Free federal and state tax filing Passenger Automobiles The maximum deduction amounts for most passenger automobiles are shown in the following table. Free federal and state tax filing Maximum Depreciation Deduction for Passenger Automobiles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,1601 $5,100 $3,050 $1,875 2012 11,1601 5,100 3,050 1,875 2011 11,0602 4,900 2,950 1,775 2010 11,0602  4,900 2,950 1,775 2009 10,9603 4,800 2,850 1,775 2008 10,9603  4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6104 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7105 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6606 4,900 2,950 1,775 1If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Free federal and state tax filing 2If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,060. Free federal and state tax filing 3If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $2,960. Free federal and state tax filing 4If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $2,960. Free federal and state tax filing 5If you acquired the vehicle before 5/06/03, the maximum deduction is $7,660. Free federal and state tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. Free federal and state tax filing 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. Free federal and state tax filing If your business/investment use of the automobile is less than 100%, you must reduce the maximum deduction amount by multiplying the maximum amount by the percentage of business/investment use determined on an annual basis during the tax year. Free federal and state tax filing If you have a short tax year, you must reduce the maximum deduction amount by multiplying the maximum amount by a fraction. Free federal and state tax filing The numerator of the fraction is the number of months and partial months in the short tax year and the denominator is 12. Free federal and state tax filing Example. Free federal and state tax filing On April 15, 2013, Virginia Hart bought and placed in service a new car for $14,500. Free federal and state tax filing She used the car only in her business. Free federal and state tax filing She files her tax return based on the calendar year. Free federal and state tax filing She does not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Free federal and state tax filing Under MACRS, a car is 5-year property. Free federal and state tax filing Since she placed her car in service on April 15 and used it only for business, she uses the percentages in Table A-1 to figure her MACRS depreciation on the car. Free federal and state tax filing Virginia multiplies the $14,500 unadjusted basis of her car by 0. Free federal and state tax filing 20 to get her MACRS depreciation of $2,900 for 2013. Free federal and state tax filing This $2,900 is below the maximum depreciation deduction of $3,160 for passenger automobiles placed in service in 2013. Free federal and state tax filing She can deduct the full $2,900. Free federal and state tax filing Electric Vehicles The maximum depreciation deductions for passenger automobiles that are produced to run primarily on electricity are higher than those for other automobiles. Free federal and state tax filing The maximum deduction amounts for electric vehicles placed in service after August 5, 1997, and before January 1, 2007, are shown in the following table. Free federal and state tax filing Owners of electric vehicles placed in service after December 31, 2006, should use the table of maximum deduction amounts later for electric vehicles classified as passenger automobiles or use the table of maximum deduction amounts for trucks and vans later, for electric vehicles classified as trucks and vans. Free federal and state tax filing Maximum Depreciation Deduction For Electric Vehicles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2006 $8,980 $14,400 $8,650 $5,225 2005 8,880 14,200 8,450 5,125 2004 31,8301 14,300 8,550 5,125 5/06/2003– 12/31/2003 32,0302 14,600 8,750 5,225 1/01/2003– 5/05/2003 22,8803 14,600 8,750 5,225 1If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $8,880. Free federal and state tax filing 2If you acquired the vehicle before 5/06/03, the maximum deduction is $22,880. Free federal and state tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. Free federal and state tax filing 3 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. Free federal and state tax filing Trucks and Vans The maximum depreciation deductions for trucks and vans placed in service after 2002 are higher than those for other passenger automobiles. Free federal and state tax filing The maximum deduction amounts for trucks and vans are shown in the following table. Free federal and state tax filing Maximum Depreciation Deduction For Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 11,3601 5,300 3,150 1,875 2011 11,2602 5,200 3,150 1,875 2010 11,1603 5,100 3,050 1,875 2009 11,0604 4,900 2,950 1,775 2008 11,1605 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2006 3,260 5,200 3,150 1,875 2005 3,260 5,200 3,150 1,875 2004 10,9106 5,300 3,150 1,875 5/06/2003– 12/31/2003 11,0107 5,400 3,250 1,975 1/01/2003– 5/05/2003 7,9608 5,400 3,250 1,975 1 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,360. Free federal and state tax filing 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,260. Free federal and state tax filing 3 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Free federal and state tax filing 4 If you elect not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,060. Free federal and state tax filing 5If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,160. Free federal and state tax filing 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, or the maximum deduction is $3,260. Free federal and state tax filing 7 If you acquired the vehicle before 5/06/03, the maximum deduction is $7,960. Free federal and state tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. Free federal and state tax filing 8 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. Free federal and state tax filing Depreciation Worksheet for Passenger Automobiles You can use the following worksheet to figure your depreciation deduction using the percentage tables. Free federal and state tax filing Then use the information from this worksheet to prepare Form 4562. Free federal and state tax filing Depreciation Worksheet for Passenger Automobiles   Part I   1. Free federal and state tax filing MACRS system (GDS or ADS)     2. Free federal and state tax filing Property class     3. Free federal and state tax filing Date placed in service     4. Free federal and state tax filing Recovery period     5. Free federal and state tax filing Method and convention     6. Free federal and state tax filing Depreciation rate (from tables)     7. Free federal and state tax filing Maximum depreciation deduction for this year from the appropriate table       8. Free federal and state tax filing Business/investment-use percentage       9. Free federal and state tax filing Multiply line 7 by line 8. Free federal and state tax filing This is your adjusted maximum depreciation deduction       10. Free federal and state tax filing Section 179 deduction claimed this year (not more than line 9). Free federal and state tax filing Enter -0- if this is not the year you placed the car in service. Free federal and state tax filing         Note. Free federal and state tax filing  1) If line 10 is equal to line 9, stop here. Free federal and state tax filing Your combined section 179 and depreciation deduction (including your special depreciation allowance) is limited to the amount on line 9. Free federal and state tax filing  2) If line 10 is less than line 9, complete Part II. Free federal and state tax filing   Part II   11. Free federal and state tax filing Subtract line 10 from line 9. Free federal and state tax filing This is the limit on the amount you can deduct for depreciation (including any special depreciation allowance )       12. Free federal and state tax filing Cost or other basis (reduced by any alternative motor vehicle credit 1or credit for electric vehicles 2)       13. Free federal and state tax filing Multiply line 12 by line 8. Free federal and state tax filing This is your business/investment cost       14. Free federal and state tax filing Section 179 deduction claimed in the year you placed the car in service       15. Free federal and state tax filing Subtract line 14 from line 13. Free federal and state tax filing This is your tentative basis for depreciation       16. Free federal and state tax filing Multiply line 15 by . Free federal and state tax filing 50 if the 50% special depreciation allowance applies. Free federal and state tax filing This is your special depreciation allowance. Free federal and state tax filing Enter -0- if this is not the year you placed the car in service, the car is not qualified property, or you elected not to claim a special depreciation allowance       Note 1) If line 16 is equal to line 11, stop here. Free federal and state tax filing Your depreciation deduction (including your special depreciation allowance) is limited to the amount on line 11. Free federal and state tax filing  2) If line 16 is less than line 11, complete Part III. Free federal and state tax filing   Part III   17. Free federal and state tax filing Subtract line 16 from 11. Free federal and state tax filing This is the limit on the amount you can deduct for MACRS depreciation       18. Free federal and state tax filing Subtract line 16 from line 15. Free federal and state tax filing This is your basis for depreciation. Free federal and state tax filing       19. Free federal and state tax filing Multiply line 18 by line 6. Free federal and state tax filing This is your tentative MACRS depreciation deduction. Free federal and state tax filing       20. Free federal and state tax filing Enter the lesser of line 17 or line 19. Free federal and state tax filing This is your MACRS depreciation deduction. Free federal and state tax filing     1 When figuring the amount to enter on line 12, do not reduce your cost or other basis by any section 179 deduction you claimed for your car. Free federal and state tax filing 2 Reduce the basis by the lesser of $4,000 or 10% of the cost of the vehicle even if the credit is less than that amount. Free federal and state tax filing             Deductions After the Recovery Period If the depreciation deductions for your automobile are reduced under the passenger automobile limits, you will have unrecovered basis in your automobile at the end of the recovery period. Free federal and state tax filing If you continue to use the automobile for business, you can deduct that unrecovered basis after the recovery period ends. Free federal and state tax filing You can claim a depreciation deduction in each succeeding tax year until you recover your full basis in the car. Free federal and state tax filing The maximum amount you can deduct each year is determined by the date you placed the car in service and your business/investment-use percentage. Free federal and state tax filing See Maximum Depreciation Deduction , earlier. Free federal and state tax filing Unrecovered basis is the cost or other basis of the passenger automobile reduced by any clean-fuel vehicle deduction, electric vehicle credit, depreciation, and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use and the passenger automobile limits had not applied. Free federal and state tax filing You cannot claim a depreciation deduction for listed property other than passenger automobiles after the recovery period ends. Free federal and state tax filing There is no unrecovered basis at the end of the recovery period because you are considered to have used this property 100% for business and investment purposes during all of the recovery period. Free federal and state tax filing Example. Free federal and state tax filing In May 2007, you bought and placed in service a car costing $31,500. Free federal and state tax filing The car was 5-year property under GDS (MACRS). Free federal and state tax filing You did not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Free federal and state tax filing You used the car exclusively for business during the recovery period (2007 through 2012). Free federal and state tax filing You figured your depreciation as shown below. Free federal and state tax filing Year Percentage Amount Limit   Allowed 2007 20. Free federal and state tax filing 0% $6,300 $2,960   $2,960 2008 32. Free federal and state tax filing 0 10,080 4,800   4,800 2009 19. Free federal and state tax filing 2 6,048 2,850   2,850 2010 11. Free federal and state tax filing 52 3,629 1,675   1,675 2011 11. Free federal and state tax filing 52 3,629 1,675   1,675 2012 5. Free federal and state tax filing 76 1,814 1,675   1,675 Total   $15,635 At the end of 2012, you had an unrecovered basis of $15,865 ($31,500 − $15,635). Free federal and state tax filing If in 2013 and later years you continue to use the car 100% for business, you can deduct each year the lesser of $1,675 or your remaining unrecovered basis. Free federal and state tax filing If your business use of the car had been less than 100% during any year, your depreciation deduction would have been less than the maximum amount allowable for that year. Free federal and state tax filing However, in figuring your unrecovered basis in the car, you would still reduce your basis by the maximum amount allowable as if the business use had been 100%. Free federal and state tax filing For example, if you had used your car 60% for business instead of 100%, your allowable depreciation deductions would have been $9,519 ($15,865 × 60%), but you still would have to reduce your basis by $15,865 to determine your unrecovered basis. Free federal and state tax filing Deductions For Passenger Automobiles Acquired in a Trade-in If you acquire a passenger automobile in a trade-in, depreciate the carryover basis separately as if the trade-in did not occur. Free federal and state tax filing Depreciate the part of the new automobile's basis that exceeds its carryover basis (excess basis) as if it were newly placed in service property. Free federal and state tax filing This excess basis is the additional cash paid for the new automobile in the trade-in. Free federal and state tax filing The depreciation figured for the two components of the basis (carryover basis and excess basis) is subject to a single passenger automobile limit. Free federal and state tax filing Special rules apply in determining the passenger automobile limits. Free federal and state tax filing These rules and examples are discussed in section 1. Free federal and state tax filing 168(i)-6(d)(3) of the regulations. Free federal and state tax filing Instead of figuring depreciation for the carryover basis and the excess basis separately, you can elect to treat the old automobile as disposed of and both of the basis components for the new automobile as if placed in service at the time of the trade-in. Free federal and state tax filing For more information, including how to make this election, see Election out under Property Acquired in a Like-kind Exchange or Involuntary Conversion in chapter 4 and sections 1. Free federal and state tax filing 168(i)-6(i) and 1. Free federal and state tax filing 168(i)-6(j) of the regulations. Free federal and state tax filing What Records Must Be Kept? You cannot take any depreciation or section 179 deduction for the use of listed property unless you can prove your business/investment use with adequate records or with sufficient evidence to support your own statements. Free federal and state tax filing For listed property, you must keep records for as long as any recapture can still occur. Free federal and state tax filing Recapture can occur in any tax year of the recovery period. Free federal and state tax filing Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. Free federal and state tax filing You do not have to record information in an account book, diary, or similar record if the information is already shown on the receipt. Free federal and state tax filing However, your records should back up your receipts in an orderly manner. Free federal and state tax filing Elements of expenditure or use. Free federal and state tax filing   Your records or other documentary evidence must support all the following. Free federal and state tax filing The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses. Free federal and state tax filing The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year. Free federal and state tax filing The date of the expenditure or use. Free federal and state tax filing The business or investment purpose for the expenditure or use. Free federal and state tax filing   Written documents of your expenditure or use are generally better evidence than oral statements alone. Free federal and state tax filing You do not have to keep a daily log. Free federal and state tax filing However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time of the expenditure or use and backed up by other documents is preferable to a statement you prepare later. Free federal and state tax filing Timeliness. Free federal and state tax filing   You must record the elements of an expenditure or use at the time you have full knowledge of the elements. Free federal and state tax filing An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use generally is considered a timely record if, in the regular course of business: The statement is given by an employee to the employer, or The statement is given by an independent contractor to the client or customer. Free federal and state tax filing   For example, a log maintained on a weekly basis, that accounts for use during the week, will be considered a record made at or near the time of use. Free federal and state tax filing Business purpose supported. Free federal and state tax filing   Generally, an adequate record of business purpose must be in the form of a written statement. Free federal and state tax filing However, the amount of detail necessary to establish a business purpose depends on the facts and circumstances of each case. Free federal and state tax filing A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. Free federal and state tax filing For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. Free federal and state tax filing Business use supported. Free federal and state tax filing   An adequate record contains enough information on each element of every business or investment use. Free federal and state tax filing The amount of detail required to support the use depends on the facts and circumstances. Free federal and state tax filing For example, a taxpayer who uses a truck for both business and personal purposes and whose only business use of the truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. Free federal and state tax filing   Although you generally must prepare an adequate written record, you can prepare a record of the business use of listed property in a computer memory device that uses a logging program. Free federal and state tax filing Separate or combined expenditures or uses. Free federal and state tax filing   Each use by you normally is considered a separate use. Free federal and state tax filing However, you can combine repeated uses as a single item. Free federal and state tax filing   Record each expenditure as a separate item. Free federal and state tax filing Do not combine it with other expenditures. Free federal and state tax filing If you choose, however, you can combine amounts you spent for the use of listed property during a tax year, such as for gasoline or automobile repairs. Free federal and state tax filing If you combine these expenses, you do not need to support the business purpose of each expense. Free federal and state tax filing Instead, you can divide the expenses based on the total business use of the listed property. Free federal and state tax filing   You can account for uses that can be considered part of a single use, such as a round trip or uninterrupted business use, by a single record. Free federal and state tax filing For example, you can account for the use of a truck to make deliveries at several locations that begin and end at the business premises and can include a stop at the business in between deliveries by a single record of miles driven. Free federal and state tax filing You can account for the use of a passenger automobile by a salesperson for a business trip away from home over a period of time by a single record of miles traveled. Free federal and state tax filing Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. Free federal and state tax filing Confidential information. Free federal and state tax filing   If any of the information on the elements of an expenditure or use is confidential, you do not need to include it in the account book or similar record if you record it at or near the time of the expenditure or use. Free federal and state tax filing You must keep it elsewhere and make it available as support to the IRS director for your area on request. Free federal and state tax filing Substantial compliance. Free federal and state tax filing   If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the satisfaction of the IRS director for your area, you can establish this element by any evidence the IRS director for your area deems adequate. Free federal and state tax filing   If you fail to establish to the satisfaction of the IRS director for your area that you have substantially complied with the adequate records requirement for an element of an expenditure or use, you must establish the element as follows. Free federal and state tax filing By your own oral or written statement containing detailed information as to the element. Free federal and state tax filing By other evidence sufficient to establish the element. Free federal and state tax filing   If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct evidence, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. Free federal and state tax filing If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. Free federal and state tax filing Sampling. Free federal and state tax filing   You can maintain an adequate record for part of a tax year and use that record to support your business and investment use of listed property for the entire tax year if it can be shown by other evidence that the periods for which you maintain an adequate record are representative of the use throughout the year. Free federal and state tax filing Example 1. Free federal and state tax filing Denise Williams, a sole proprietor and calendar year taxpayer, operates an interior decorating business out of her home. Free federal and state tax filing She uses her automobile for local business visits to the homes or offices of clients, for meetings with suppliers and subcontractors, and to pick up and deliver items to clients. Free federal and state tax filing There is no other business use of the automobile, but she and family members also use it for personal purposes. Free federal and state tax filing She maintains adequate records for the first 3 months of the year showing that 75% of the automobile use was for business. Free federal and state tax filing Subcontractor invoices and paid bills show that her business continued at approximately the same rate for the rest of the year. Free federal and state tax filing If there is no change in circumstances, such as the purchase of a second car for exclusive use in her business, the determination that her combined business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. Free federal and state tax filing Example 2. Free federal and state tax filing Assume the same facts as in Example 1, except that Denise maintains adequate records during the first week of every month showing that 75% of her use of the automobile is for business. Free federal and state tax filing Her business invoices show that her business continued at the same rate during the later weeks of each month so that her weekly records are representative of the automobile's business use throughout the month. Free federal and state tax filing The determination that her business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. Free federal and state tax filing Example 3. Free federal and state tax filing Bill Baker, a sole proprietor and calendar year taxpayer, is a salesman in a large metropolitan area for a company that manufactures household products. Free federal and state tax filing For the first 3 weeks of each month, he occasionally uses his own automobile for business travel within the metropolitan area. Free federal and state tax filing During these weeks, his business use of the automobile does not follow a consistent pattern. Free federal and state tax filing During the fourth week of each month, he delivers all business orders taken during the previous month. Free federal and state tax filing The business use of his automobile, as supported by adequate records, is 70% of its total use during that fourth week. Free federal and state tax filing The determination based on the record maintained during the fourth week of the month that his business/investment use of the automobile for the tax year is 70% does not rest on sufficient supporting evidence because his use during that week is not representative of use during other periods. Free federal and state tax filing Loss of records. Free federal and state tax filing   When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. Free federal and state tax filing How Is Listed Property Information Reported? You must provide the information about your listed property requested in Part V of Form 4562, Section A, if you claim either of the following deductions. Free federal and state tax filing Any deduction for a vehicle. Free federal and state tax filing A depreciation deduction for any other listed property. Free federal and state tax filing If you claim any deduction for a vehicle, you also must provide the information requested in Section B. Free federal and state tax filing If you provide the vehicle for your employee's use, the employee must give you this information. Free federal and state tax filing If you provide any vehicle for use by an employee, you must first answer the questions in Section C to see if you meet an exception to completing Section B for that vehicle. Free federal and state tax filing Vehicles used by your employees. Free federal and state tax filing   You do not have to complete Section B, Part V, for vehicles used by your employees who are not more-than-5% owners or related persons if you meet at least one of the following requirements. Free federal and state tax filing You maintain a written policy statement that prohibits one of the following uses of the vehicles. Free federal and state tax filing All personal use including commuting. Free federal and state tax filing Personal use, other than commuting, by employees who are not officers, directors, or 1%-or-more owners. Free federal and state tax filing You treat all use of the vehicles by your employees as personal use. Free federal and state tax filing You provide more than five vehicles for use by your employees, and you keep in your records the information on their use given to you by the employees. Free federal and state tax filing For demonstrator automobiles provided to full-time salespersons, you maintain a written policy statement that limits the total mileage outside the salesperson's normal working hours and prohibits use of the automobile by anyone else, for vacation trips, or to store personal possessions. Free federal and state tax filing Exceptions. Free federal and state tax filing   If you file Form 2106, 2106-EZ, or Schedule C-EZ (Form 1040), and you are not required to file Form 4562, report information about listed property on that form and not on Form 4562. Free federal and state tax filing Also, if you file Schedule C (Form 1040) and are claiming the standard mileage rate or actual vehicle expenses (except depreciation) and you are not required to file Form 4562 for any other reason, report vehicle information in Part IV of Schedule C and not on Form 4562. Free federal and state tax filing Prev  Up  Next   Home   More Online Publications