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Free State Tax Return Forms

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Free State Tax Return Forms

Free state tax return forms Index A Accelerated death benefits, Accelerated Death Benefits Accounting periods Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Free state tax return forms Accrued leave payment Disability retirement and, Accrued leave payment. Free state tax return forms Adjusted gross income (AGI), Adjustments to Income Adjustments to income, Adjustments to Income Age Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Free state tax return forms Age 65, Qualified Individual American Association of Retired Persons (AARP), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Free state tax return forms Annuities, Pensions and Annuities Assistance (see Tax help) B Base amount, social security benefits, Base Amount Benefits Accident or health, Other compensation. Free state tax return forms Long-term care, Long-Term Care Insurance Contracts No-fault insurance, Other compensation. Free state tax return forms Sickness and injury, Sickness and Injury Benefits Social security, Are Any of Your Benefits Taxable? Veterans', Veterans' benefits. Free state tax return forms Bequests, Gifts and inheritances. Free state tax return forms Blind persons Standard deduction for, Higher standard deduction for blindness. Free state tax return forms C Child and dependent care credit, Child and Dependent Care Credit Children Standard deduction for, Standard Deduction for Dependents Chronically ill persons, Chronically ill individual. Free state tax return forms Chronically ill, defined, Terminally or chronically ill defined. Free state tax return forms Compensation For services, Compensation for Services Loss or disfigurement, Other compensation. Free state tax return forms Contributions Foreign employment, Foreign employment contributions. Free state tax return forms Pension or annuity, Cost. Free state tax return forms Cost, pension or annuity, Cost. Free state tax return forms Credit Child and dependent care, Child and Dependent Care Credit Earned income, Earned Income Credit (EIC) The elderly or the disabled, Credit for the Elderly or the Disabled Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Death benefit, accelerated, Accelerated Death Benefits Decedents, Dependents. Free state tax return forms Standard deduction, Decedent's final return. Free state tax return forms Deductions Generally, Deductions Insurance premiums, Medical Insurance Premiums Itemized, Itemized Deductions Meals and lodging, Meals and Lodging Medical and dental, Medical and Dental Expenses Standard, Standard Deduction Dependents, Dependents. Free state tax return forms Standard deduction for, Standard Deduction for Dependents Disabilities, individuals with Ownership and use test, Exception to use test for individuals with a disability. Free state tax return forms Disability Person with, Persons with disabilities. Free state tax return forms Physician's statement, Physician's statement. Free state tax return forms Total and permanent, Permanent and total disability. Free state tax return forms Disability income, Disability Pensions, Other compensation. Free state tax return forms , Disability income. Free state tax return forms Distributions, retirement plan, Retirement Plan Distributions Drugs (see Medicines) Dual-status taxpayers Standard deduction, Persons not eligible for the standard deduction. Free state tax return forms E Early distributions, tax, Tax on Early Distributions Earned income credit, Earned Income Credit (EIC) Elderly or disabled credit, Credit for the Elderly or the Disabled Elderly persons Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Free state tax return forms Employment tax withholding, Reminders Employment taxes, Employment taxes. Free state tax return forms Endowment proceeds, Endowment Contract Proceeds Estimated tax, Tax Withholding and Estimated Tax, Estimated Tax, Who Must Make Estimated Tax Payments Excess accumulation, tax on, Tax on Excess Accumulation Exclusion, gain on sale of home, Maximum Amount of Exclusion F Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Free state tax return forms Filing requirements Decedents, Dependents. Free state tax return forms General requirements, General Requirements Surviving spouse, Surviving spouse. Free state tax return forms Final return for decedent Standard deduction, Decedent's final return. Free state tax return forms First-time homebuyer credit Recapture, Repaying the first-time homebuyer credit because you sold your home. Free state tax return forms Form, Credit for the Elderly or the Disabled, Physician's statement. Free state tax return forms 1099-R, Form 1099-R. Free state tax return forms , Form 1099-R. Free state tax return forms 5329, Form 5329. Free state tax return forms 8853, Accelerated Death Benefits Schedule R, Credit for the Elderly or the Disabled, Physician's statement. Free state tax return forms W-4P, Withholding. Free state tax return forms Free tax services, Free help with your tax return. Free state tax return forms G Gain on sale of home (see Sale of home) General rule, pension or annuity, Pensions and Annuities Gifts, Gifts and inheritances. Free state tax return forms H Help (see Tax help) Home care (see Nursing services) Home improvements, Home Improvements Home, sale of, Sale of Home Hospital services, Hospital Services Household help, Household Help I Income Adjustments, Adjustments to Income Disability, Disability Pensions, Disability income. Free state tax return forms Gross, defined, Gross income. Free state tax return forms Nontaxable, Taxable and Nontaxable Income Sale of home, Sale of Home Self-employment, Self-employed persons. Free state tax return forms Taxable, Taxable and Nontaxable Income Individual retirement arrangement (IRA) Adjustments to income, Individual Retirement Arrangement (IRA) Contributions and Deductions Contributions, Contributions. Free state tax return forms Deductible contribution, Deductible contribution. Free state tax return forms Distributions, Individual Retirement Arrangements (IRAs) Inheritances, Gifts and inheritances. Free state tax return forms Injury benefits, Sickness and Injury Benefits, Cost paid by you. Free state tax return forms Insurance Accident and health, Other compensation. Free state tax return forms , Medical Insurance Premiums Benefits, long-term care, Long-Term Care Insurance Contracts Benefits, no-fault insurance, Other compensation. Free state tax return forms Life insurance proceeds, Life Insurance Proceeds Proceeds paid after death, Life Insurance Proceeds Proceeds paid before death, Accelerated Death Benefits Insurance premiums for retired public safety officers, Insurance Premiums for Retired Public Safety Officers Itemized deductions, Itemized Deductions Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Free state tax return forms L Life insurance proceeds, Life Insurance Proceeds Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. Free state tax return forms Maintenance and personal care services, Maintenance and personal care services. Free state tax return forms Qualified insurance contracts, Qualified long-term care insurance contracts. Free state tax return forms Qualified services, Qualified long-term care services. Free state tax return forms Long-term care insurance, Long-Term Care Insurance Contracts Loss or disfigurement compensation, Other compensation. Free state tax return forms Lump-sum distributions, Lump-sum distributions. Free state tax return forms Lump-sum election, social security, Lump-Sum Election M Maintenance and personal care services, Maintenance and personal care services. Free state tax return forms Married filing separately Itemized deductions One spouse has itemized so other must as well, Persons not eligible for the standard deduction. Free state tax return forms Married taxpayers Age 65 or older spouse Standard deduction, Spouse 65 or older or blind. Free state tax return forms Blind spouse Standard deduction, Spouse 65 or older or blind. Free state tax return forms Meals and lodging expenses, Meals and Lodging Medical expenses, Medical and Dental Expenses Medicare, Medicare Part A. Free state tax return forms , Medicare Part B. Free state tax return forms , Medicare Part D. Free state tax return forms Benefits, Medicare. Free state tax return forms Medicines, Medicines Imported, Imported medicines and drugs. Free state tax return forms Military retirement pay, Military Retirement Pay Minimum distributions, Tax on Excess Accumulation Minimum wage, Substantial gainful activity. Free state tax return forms Missing children, Reminders Mortgage assistance payments, Mortgage assistance payments. Free state tax return forms N Nonperiodic distributions, Nonperiodic Distributions Nonqualified use, Period of nonqualified use. Free state tax return forms Nonresident aliens Standard deduction, Persons not eligible for the standard deduction. Free state tax return forms Nontaxable income, Payments from a state fund for victims of crime. Free state tax return forms Accident or health insurance benefits, Other compensation. Free state tax return forms Bequests, Gifts and inheritances. Free state tax return forms Generally, Taxable and Nontaxable Income Gifts, Gifts and inheritances. Free state tax return forms Inheritances, Gifts and inheritances. Free state tax return forms Mortgage assistance payments, Mortgage assistance payments. Free state tax return forms No-fault insurance benefits, Other compensation. Free state tax return forms Nutrition program for elderly, Nutrition Program for the Elderly. Free state tax return forms Public assistance payments, Welfare benefits. Free state tax return forms Sickness and injury benefits, Sickness and Injury Benefits Veterans' benefits, Veterans' benefits. Free state tax return forms Winter energy use, Payments to reduce cost of winter energy use. Free state tax return forms Workers' compensation, Workers' Compensation Nursing home, Nursing home. Free state tax return forms Nursing services, Nursing Services Chronically ill individuals, Chronically ill individual. Free state tax return forms Nutrition program for elderly, Nutrition Program for the Elderly. Free state tax return forms O Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Free state tax return forms Other items, Other Items Overall limitation, Overall limitation. Free state tax return forms P Payments, estimated tax, Estimated Tax Pensions, Pensions and Annuities Pensions, disability, Disability Pensions Photographs, missing children, Reminders Physician's statement, disability, Physician's statement. Free state tax return forms Prepaid insurance premiums, Prepaid insurance premiums. Free state tax return forms Preparer, paid, Reminders Preparing your return, Return preparation assistance. Free state tax return forms Profit-sharing plan, Retirement and profit-sharing plans. Free state tax return forms Public assistance payments, Welfare benefits. Free state tax return forms Publications (see Tax help) Q Qualified retirement plan, Tax on Early Distributions R Railroad retirement benefits, Railroad Retirement Benefits, Social Security and Equivalent Railroad Retirement Benefits Repayments Social security benefits, Repayment of Benefits Reporting pension income, How to report. Free state tax return forms Residence, sale of, Sale of Home Retirement plans, distributions, Retirement Plan Distributions Returns Decedent, Dependents. Free state tax return forms Executors and administrators, Dependents. Free state tax return forms Filing requirements, 2013 Filing Requirements Surviving spouse, Surviving spouse. Free state tax return forms Reverse mortgages, Reverse Mortgages S Salaries (see Compensation) Sale of Home First-time homebuyer credit, Repaying the first-time homebuyer credit because you sold your home. Free state tax return forms Surviving spouse, Reminders Sale of home, Sale of Home Self-employed, Self-employed persons. Free state tax return forms Short tax year Change in annual accounting period, Persons not eligible for the standard deduction. Free state tax return forms Sickness and injury benefits, Sickness and Injury Benefits Simplified method, Pensions and Annuities Social security benefits, Social Security and Equivalent Railroad Retirement Benefits Standard deduction, Standard Deduction Age 65 or older, Higher standard deduction for age (65 or older). Free state tax return forms Blind persons, Higher standard deduction for blindness. Free state tax return forms Dependents, Standard Deduction for Dependents Final return of decedent, Decedent's final return. Free state tax return forms Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Free state tax return forms Starting date, annuity, Cost. Free state tax return forms State fund for victims of crime, Payments from a state fund for victims of crime. Free state tax return forms Substantial gainful activity, Substantial gainful activity. Free state tax return forms Surrender of Iife insurance, Surrender of policy for cash. Free state tax return forms Surviving Spouse, Reminders Surviving spouse, Surviving spouse. Free state tax return forms Surviving spouse, insurance, Surviving spouse. Free state tax return forms Survivors of retirees, Survivors of retirees. Free state tax return forms T Tax Early distributions, Tax on Early Distributions Estimated, Tax Withholding and Estimated Tax, Estimated Tax Excess accumulation, Tax on Excess Accumulation Tax counseling for the elderly (TCE), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Free state tax return forms Tax help, How To Get Tax Help Tax option, 10-year, Lump-sum distributions. Free state tax return forms Tax return preparers, Reminders Taxable income, Taxable and Nontaxable Income Taxation of benefits, Are Any of Your Benefits Taxable? Terminally ill, defined, Terminally or chronically ill defined. Free state tax return forms Total and permanent disability, defined, Permanent and total disability. Free state tax return forms Transportation expenses, Transportation TTY/TDD information, How To Get Tax Help U U. Free state tax return forms S. Free state tax return forms citizen or resident, U. Free state tax return forms S. Free state tax return forms citizen or resident alien. Free state tax return forms Unemployment compensation, Unemployment compensation. Free state tax return forms V Veterans' benefits, Veterans' benefits. Free state tax return forms Viatical settlement, Accelerated Death Benefits Victims of crime, Payments from a state fund for victims of crime. Free state tax return forms Volunteer income tax assistance (VITA), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Free state tax return forms Volunteer work, Volunteer work. Free state tax return forms W Wages (see Compensation) Winter energy use payments, Payments to reduce cost of winter energy use. Free state tax return forms Withholding Employment tax, Reminders Pensions and annuities, Withholding. Free state tax return forms Workers' compensation, Workers' Compensation Worksheets, social security, Which worksheet to use. Free state tax return forms Prev  Up     Home   More Online Publications

The Free State Tax Return Forms

Free state tax return forms Accelerated Cost Recovery System (ACRS) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: ACRS Defined What Can and Cannot Be Depreciated Under ACRSRecovery Property Nonrecovery Property How To Figure the DeductionUnadjusted Basis Classes of Recovery Property Recovery Periods Alternate ACRS Method (Modified Straight Line Method) ACRS Deduction in Short Tax Year DispositionsEarly dispositions of ACRS property other than 15-, 18-, or 19-year real property. Free state tax return forms Dispositions — mass asset accounts. Free state tax return forms Early dispositions — 15-year real property. Free state tax return forms Early dispositions — 18- and 19-year real property. Free state tax return forms Depreciation Recapture Topics - This chapter discusses: The definition of ACRS What can and cannot be depreciated under ACRS How to figure the deduction Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization The Accelerated Cost Recovery System (ACRS) applies to property first used before 1987. Free state tax return forms It is the name given to tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Free state tax return forms These rules are mandatory and generally apply to tangible property placed in service after 1980 and before 1987. Free state tax return forms If you placed property in service during this period, you must continue to figure your depreciation under ACRS. Free state tax return forms If you used listed property placed in service after June 18, 1984, less than 50% for business in 1995, see Predominant Use Test in chapter 3. Free state tax return forms Listed property includes cars, other means of transportation, and certain computers. Free state tax return forms Any additions or improvements placed in service after 1986, including any components of a building (such as plumbing, wiring, storm windows, etc. Free state tax return forms ), are depreciated using MACRS, discussed in chapter 3 of Publication 946. Free state tax return forms It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Free state tax return forms ACRS Defined ACRS consists of accelerated depreciation methods and an alternate ACRS method that could have been elected. Free state tax return forms The alternate ACRS method used a recovery percentage based on a modified straight line method. Free state tax return forms The law prescribes fixed percentages to be uses for each class of property. Free state tax return forms Property depreciable under ACRS is called recovery property. Free state tax return forms The recovery class of property determines the recovery period. Free state tax return forms Generally, the class life of property places it in a 3-year, 5-year, 10-year, 15-year, 18-year, or 19-year recovery class. Free state tax return forms Under ACRS, the prescribed percentages are used to recover the unadjusted basis of recovery property. Free state tax return forms To figure a depreciation deduction, you multiply the prescribed percentage for the recovery class by the unadjusted basis of the recovery property. Free state tax return forms You must continue to figure your depreciation under ACRS for property placed in service after 1980 and before 1987. Free state tax return forms For property you placed in service after 1986, you must use MACRS, discussed in chapter 3 of Publication 946. Free state tax return forms What Can and Cannot Be Depreciated Under ACRS ACRS applies to most depreciable tangible property placed in service after 1980 and before 1987. Free state tax return forms It includes new or used and real or personal property. Free state tax return forms The property must be for use in a trade or business or for the production of income. Free state tax return forms Property you acquired before 1981 or after 1986 is not ACRS recovery property. Free state tax return forms For information on depreciating property acquired before 1981, see chapter 2. Free state tax return forms For information on depreciating property acquired after 1986, see chapter 3 of Publication 946. Free state tax return forms Recovery Property Recovery property under ACRS is tangible depreciable property placed in service after 1980 and before 1987. Free state tax return forms It generally includes new or used property that you acquired after 1980 and before 1987 for use in your trade or business or for the production of income. Free state tax return forms Nonrecovery Property You cannot use ACRS for property you placed in service before 1981 or after 1986. Free state tax return forms Nonrecovery property also includes: Intangible property, Property you elected to exclude from ACRS that is properly depreciated under a method of depreciation that is not based on a term of years, Certain public utility property, and Certain property acquired and excluded from ACRS because of the antichurning rules. Free state tax return forms Intangible property. Free state tax return forms   Intangible property is not depreciated under ACRS. Free state tax return forms Property depreciated under methods not expressed in a term of years. Free state tax return forms   Certain property depreciated under a method not expressed in a term of years is not depreciated under ACRS. Free state tax return forms This included any property: If you made an irrevocable election to exclude such property, and In the first year that you could have claimed depreciation, you properly used the unit-of-production method or any method of depreciation not expressed in a term of years (not including the retirement-replacement-betterment method). Free state tax return forms Public utility property. Free state tax return forms   Public utility property for which the taxpayer does not use a normalization method of accounting is excluded from ACRS and is subject to depreciation under a special rule. Free state tax return forms Additions or improvements to ACRS property after 1986. Free state tax return forms   Any additions or improvements placed in service after 1986, including any components of a building (plumbing, wiring, storm windows, etc. Free state tax return forms ) are depreciated using MACRS, discussed in chapter 3 of Publication 946. Free state tax return forms It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Free state tax return forms How To Figure the Deduction After you determine that your property can be depreciated under ACRS, you are ready to figure your deduction. Free state tax return forms Because the conventions are built into the percentage table rates, you only need to know the following: The unadjusted basis of your recovery property, The classes of recovery property, The recovery periods, and Whether to use the prescribed percentages based on accelerated methods or percentages based on using the alternate ACRS method. Free state tax return forms Unadjusted Basis To figure your ACRS deduction, you multiply the unadjusted basis in your recovery property by its applicable percentage for the year. Free state tax return forms Unadjusted basis is the same amount you would use to figure gain on a sale, but it is figured without taking into account any depreciation taken in earlier years. Free state tax return forms However, reduce your original basis by the amount of amortization taken on the property and by any section 179 deduction claimed as discussed in chapter 2 of Publication 946. Free state tax return forms If you buy property, your unadjusted basis is usually its cost minus any amortized amount and minus any section 179 deduction elected. Free state tax return forms If you acquire property in some other way, such as by inheriting it, getting it as a gift, or building it yourself, you figure your unadjusted basis under other rules. Free state tax return forms See Publication 551. Free state tax return forms Classes of Recovery Property All recovery property under ACRS is in one of the following classes. Free state tax return forms The class for your property was determined when you began to depreciate it. Free state tax return forms 3-Year Property 3-year property includes automobiles, light-duty trucks (actual unloaded weight less than 13,000 pounds), and tractor units for use over-the-road. Free state tax return forms Race horses over 2 years old when placed in service are 3-year property. Free state tax return forms Any other horses over 12 years old when you placed them in service are also included in the 3-year property class. Free state tax return forms The ACRS percentages for 3-year recovery property are: Recovery Period Percentage 1st year 25% 2nd year 38% 3rd year 37% If you used the percentages above to depreciate your 3-year recovery property, your property, except for certain passenger automobiles, is fully depreciated. Free state tax return forms You cannot claim depreciation for this property after 1988. Free state tax return forms 5-Year Property 5-year property includes computers, copiers, and equipment, such as office furniture and fixtures. Free state tax return forms It also includes single purpose agricultural or horticultural structures and petroleum storage facilities (other than buildings and their structural components). Free state tax return forms The ACRS percentages for 5-year recovery property are: Recovery period Percentage 1st year 15% 2nd year 22% 3rd through 5th year 21% If you used the percentages above to depreciate your 5-year recovery property, it is fully depreciated. Free state tax return forms You cannot claim depreciation for this property after 1990. Free state tax return forms 10-Year Property 10-year property includes certain real property such as theme-park structures and certain public utility property. Free state tax return forms Manufactured homes (including mobile homes) and railroad tank cars are also 10-year property. Free state tax return forms You do not treat a building, and its structural components, as 10-year property by reason of a change in use after you placed the property in service. Free state tax return forms For example, a building (15-year real property) that was placed in service in 1981 and was converted to a theme-park structure in 1986 remains 15-year real property. Free state tax return forms The ACRS percentages for 10-year recovery property are: Recovery Period Percentage 1st year 8% 2nd year 14% 3rd year 12% 4th through 6th year 10% 7th through 10th year 9% If you used the percentages above, you cannot claim depreciation for this property after 1995. Free state tax return forms Example. Free state tax return forms On April 21, 1986, you bought and placed in service a new mobile home for $26,000 to be used as rental property. Free state tax return forms You paid $10,000 cash and signed a note for $16,000 giving you an unadjusted basis of $26,000. Free state tax return forms On June 8, 1986, you bought and placed in service a used mobile home for use as rental property at a total cost of $11,500. Free state tax return forms The total unadjusted basis of your 10-year recovery property placed in service in 1986 was $37,500 ($26,000 + $11,500). Free state tax return forms Your ACRS deduction was $3,000 (8% × $37,500). Free state tax return forms In 1987, your ACRS deduction was $5,250 (14% × $37,500). Free state tax return forms In 1988, your ACRS deduction was $4,500 (12% × $37,500). Free state tax return forms In 1989, 1990, and 1991, your ACRS deduction was $3,750 (10% × $37,500). Free state tax return forms In 1992, 1993, 1994, and 1995 your deduction for each year is $3,375 (9% × $37,500). Free state tax return forms 15-Year Real Property 15-year real property is real property that is recovery property placed in service before March 16, 1984. Free state tax return forms It includes all real property, such as buildings, other than that designated as 5-year or 10-year property. Free state tax return forms Unlike the 3-, 5-, or 10-year classes of property, the percentages for 15-year real property depend on when you placed the property in service during your tax year. Free state tax return forms You could group 15-year real property by month and year placed in service. Free state tax return forms In Table 1, at the end of this publication in the Appendix, find the month in your tax year that you placed the property in service in your trade or business or for the production of income. Free state tax return forms You use the percentages listed under that month for each year of the recovery period to determine your depreciation deduction each year. Free state tax return forms Example. Free state tax return forms On March 5, 1984, you placed an apartment building in service in your business. Free state tax return forms It is 15-year real property. Free state tax return forms After subtracting the value of the land, your unadjusted basis in the building is $250,000. Free state tax return forms You use the calendar year as your tax year. Free state tax return forms March is the third month of your tax year. Free state tax return forms Your ACRS deduction for 1984 was $25,000 (10% × $250,000). Free state tax return forms For 1985, the percentage for the third month of the second year of the recovery period is 11%. Free state tax return forms Your deduction was $27,500 (11% × $250,000). Free state tax return forms For the third, fourth, and fifth years of the recovery period (1986, 1987, and 1988), the percentages are 9%, 8%, and 7%. Free state tax return forms For 1989 through 1992, the percentage for the third month is 6%. Free state tax return forms Your deduction each year is $15,000 (6% × $250,000). Free state tax return forms For 1993, 1994, and 1995, the percentage for the third month is 5%. Free state tax return forms Your depreciation deduction is $12,500 (5% × $250,000) for 1993, 1994, and 1995. Free state tax return forms Low-Income Housing Low-income housing that was assigned a 15-year recovery period under ACRS includes the following types of property: Federally assisted housing projects where the mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, or housing financed or assisted by direct loan or tax abatement under similar provisions of state or local laws. Free state tax return forms Low-income rental housing for which a depreciation deduction for rehabilitation expenditures is allowed. Free state tax return forms Low-income rental housing held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of state or local laws that authorize similar subsidies for low-income families. Free state tax return forms Housing financed or assisted by direct loan or insured under Title V of the Housing Act of 1949. Free state tax return forms The ACRS percentages for low-income housing real property, like the regular 15-year real property percentages, depend on when you placed the property in service. Free state tax return forms Find the month in your tax year in Table 2 or 3 at the end of this publication in the Appendix that you first placed the property in service as rental housing. Free state tax return forms Use the percentages listed under that month for each year of the recovery period. Free state tax return forms Table 2 shows percentages for low-income housing placed in service before May 9, 1985. Free state tax return forms Table 3 shows percentages for low-income housing placed in service after May 8, 1985, and before 1987. Free state tax return forms Example. Free state tax return forms In May 1986, you acquired and placed in service a house that qualified as low-income rental housing under item 3) of the above listing. Free state tax return forms You use the calendar year as your tax year. Free state tax return forms You use Table C–3 because the property was placed in service after May 8, 1985. Free state tax return forms Your unadjusted basis for the property, not including the land, was $59,000. Free state tax return forms Your deduction for 1986 through 2001 is shown in the following table. Free state tax return forms Year Rate Deduction 1986 8. Free state tax return forms 9% $5,251 1987 12. Free state tax return forms 1% 7,139 1988 10. Free state tax return forms 5% 6,195 1989 9. Free state tax return forms 1% 5,369 1990 7. Free state tax return forms 9% 4,661 1991 6. Free state tax return forms 9% 4,071 1992 5. Free state tax return forms 9% 3,481 1993 5. Free state tax return forms 2% 3,068 1994 4. Free state tax return forms 6% 2,714 1995 4. Free state tax return forms 6% 2,714 1996 4. Free state tax return forms 6% 2,714 1997 4. Free state tax return forms 6% 2,714 1998 4. Free state tax return forms 6% 2,714 1999 4. Free state tax return forms 5% 2,655 2000 4. Free state tax return forms 5% 2,655 2001 1. Free state tax return forms 5% 885 18-Year Real Property 18-year real property is real property that is recovery property placed in service after March 15, 1984, and before May 9, 1985. Free state tax return forms It includes real property, such as buildings, other than that designated as 5-year, 10-year, 15-year real property, or low-income housing. Free state tax return forms The ACRS percentages for 18-year real property depend on when you placed the property in service in your trade or business or for the production of income during your tax year. Free state tax return forms There are also tables for 18-year real property in the Appendix. Free state tax return forms Table 4 shows the percentages for 18-year real property you placed in service after June 22, 1984, and before May 9, 1985. Free state tax return forms Table 5 is for 18-year real property placed in service after March 15, 1984, and before June 23, 1984. Free state tax return forms Find the month in your tax year that you placed the property in service in a trade or business or for the production of income. Free state tax return forms Use the percentages listed under that month for each year of the recovery period. Free state tax return forms Example. Free state tax return forms On April 28, 1985, you bought and placed in service a rental house. Free state tax return forms The house, not including the land, cost $95,000. Free state tax return forms This is your unadjusted basis for the house. Free state tax return forms You use the calendar year as your tax year. Free state tax return forms Because the house was placed in service after June 22, 1984, and before May 9, 1985, it is 18-year real property. Free state tax return forms You use Table 4 to figure your deduction for the house. Free state tax return forms April is the fourth month of your tax year. Free state tax return forms Your deduction for 1985 through 2003 is shown in the following table. Free state tax return forms Year Rate Deduction 1985 7. Free state tax return forms 0% $6,650 1986 9. Free state tax return forms 0% 8,550 1987 8. Free state tax return forms 0% 7,600 1988 7. Free state tax return forms 0% 6,650 1989 7. Free state tax return forms 0% 6,650 1990 6. Free state tax return forms 0% 5,700 1991 5. Free state tax return forms 0% 4,750 1992 5. Free state tax return forms 0% 4,750 1993 5. Free state tax return forms 0% 4,750 1994 5. Free state tax return forms 0% 4,750 1995 5. Free state tax return forms 0% 4,750 1996 5. Free state tax return forms 0% 4,750 1997 5. Free state tax return forms 0% 4,750 1998 4. Free state tax return forms 0% 3,800 1999 4. Free state tax return forms 0% 3,800 2000 4. Free state tax return forms 0% 3,800 2001 4. Free state tax return forms 0% 3,800 2002 4. Free state tax return forms 0% 3,800 2003 1. Free state tax return forms 0% 950 19-Year Real Property 19-year real property is real property that is recovery property placed in service after May 8, 1985, and before 1987. Free state tax return forms It includes all real property, other than that designated as 5-year, 10-year, 15-year, or 18-year real property, or low-income housing. Free state tax return forms The ACRS percentages for 19-year real property depend on when you placed the property in service in a trade or business or for the production of income during your tax year. Free state tax return forms Table 6 shows the percentages for 19-year real property. Free state tax return forms You find the month in your tax year that you placed the property in service. Free state tax return forms You use the percentages listed under that month for each year of the recovery period. Free state tax return forms Recovery Periods Each item of recovery property is assigned to a class of property. Free state tax return forms The classes of recovery property establish the recovery periods over which the unadjusted basis of items in a class is recovered. Free state tax return forms The classes of property are: 3-Year property 5-Year property 10-Year property 15-Year real property Low-income housing 18-Year real property 19-Year real property Alternate ACRS Method (Modified Straight Line Method) ACRS provides an alternate ACRS method that could be elected. Free state tax return forms This alternate ACRS method uses a recovery percentage based on a modified straight line method. Free state tax return forms This alternate ACRS method generally uses percentages other than those from the tables. Free state tax return forms If you elected the alternate ACRS method, you determine the recovery period by using the following schedule. Free state tax return forms This schedule is for other than 18- and 19-year real property and low-income housing: In the case of: You could have elected a recovery period of: 3-year property 3, 5, or 12 years 5-year property 5, 12, or 25 years 15-year real property 15, 35, or 45 years Percentages. Free state tax return forms   The straight-line percentages for the alternate ACRS method are: Recovery Period Percentage 5 years 20. Free state tax return forms 00% 10 years 10. Free state tax return forms 00% 12 years 8. Free state tax return forms 333% 15 years 6. Free state tax return forms 667% 25 years 4. Free state tax return forms 00% 35 years 2. Free state tax return forms 857%   You apply the percentage to the unadjusted basis(defined earlier) of the property to figure your ACRS deduction. Free state tax return forms There are tables for 18- and 19-year real property later in this publication in the Appendix. Free state tax return forms For 15-year real property, see 15-year real property, later. Free state tax return forms 3-, 5-, and 10-year property. Free state tax return forms   If you elected to use an alternate recovery percentage, you have to use the same recovery percentage for all property in that class that you placed in service in that tax year. Free state tax return forms This applies throughout the recovery period you selected. Free state tax return forms Half-year convention. Free state tax return forms   If you elected the alternate method, only a half-year of depreciation was deducted for the year you placed the property in service. Free state tax return forms This applied regardless of when in the tax year you placed the property in service. Free state tax return forms For each of the remaining years in the recovery period, you take a full year's deduction. Free state tax return forms If you hold the property for the entire recovery period, a half-year of depreciation is allowable for the year following the end of the recovery period. Free state tax return forms Example. Free state tax return forms You operate a small upholstery business. Free state tax return forms On March 19, 1986, you bought and placed in service a $13,000 light-duty panel truck to be used in your business and a $500 electric saw. Free state tax return forms You elected to use the alternate ACRS method. Free state tax return forms You did not elect to take a section 179 deduction. Free state tax return forms You decided to recover the cost of the truck, which is 3-year recovery property, over 5 years. Free state tax return forms The saw is 5-year property, but you decided to recover its cost over 12 years. Free state tax return forms For 1986, your ACRS deduction reflected the half-year convention. Free state tax return forms In the first year, you deducted half of the amount determined for a full year. Free state tax return forms Your ACRS deduction for 1986 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Free state tax return forms 00     Electric saw   12 years straight line = 8. Free state tax return forms 333% 8. Free state tax return forms 333% ÷ $500 = $41. Free state tax return forms 67 Half-year convention -½ of $41. Free state tax return forms 67= 20. Free state tax return forms 84 Total ACRS deduction for 1986 $1,320. Free state tax return forms 84       You take a full year of depreciation for both the truck and the saw for the years 1987 through 1990. Free state tax return forms Your ACRS deduction for each of those years is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600     Electric saw     12 years straight line = 8. Free state tax return forms 333% 8. Free state tax return forms 333% ÷ $500 = $41. Free state tax return forms 67 Total annual ACRS deduction for 1987 through 1990 $2,641. Free state tax return forms 67       In 1991, you take a half-year of depreciation for the truck and a full year of depreciation for the saw. Free state tax return forms Your ACRS deduction for 1991 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Free state tax return forms 00     Electric saw   12 years straight line = 8. Free state tax return forms 333% 8. Free state tax return forms 333% ÷ $500 = $41. Free state tax return forms 67 Total ACRS deduction for 1991 $1,341. Free state tax return forms 67       The truck is fully depreciated after 1991. Free state tax return forms You take a full year of depreciation for the saw for the years 1992 through 1997. Free state tax return forms Your ACRS deduction for each of those years is as follows: Electric saw     12 years straight line = 8. Free state tax return forms 333% 8. Free state tax return forms 333% ÷ $500 = $41. Free state tax return forms 67 Total annual ACRS deduction for 1992 through 1997 $41. Free state tax return forms 67       You take a half-year of depreciation for the saw for 1998. Free state tax return forms Your ACRS deduction for 1998 is as follows: Electric saw   12 years straight line = 8. Free state tax return forms 333% 8. Free state tax return forms 333% ÷ $500 = $41. Free state tax return forms 67 Half-year convention -½ of $41. Free state tax return forms 67= 20. Free state tax return forms 84 Total ACRS deduction for 1998 $20. Free state tax return forms 84       The saw is fully depreciated after 1998. Free state tax return forms 15-year real property. Free state tax return forms   Under ACRS, you could also elect to use the alternate ACRS method for 15-year real property. Free state tax return forms The alternate ACRS method allows you to depreciate your 15-year real property using the straight line ACRS method over the alternate recovery periods of 15, 35, or 45 years. Free state tax return forms If you selected a 15-year recovery period, you use the percentage (6. Free state tax return forms 667%) from the schedule above. Free state tax return forms You prorate this percentage for the number of months the property was in service in the first year. Free state tax return forms If you selected a 35- or 45-year recovery period, you use either Table 11 or 15. Free state tax return forms Alternate periods for 18-year real property. Free state tax return forms   For 18-year real property, the alternate recovery periods are 18, 35, or 45 years. Free state tax return forms The percentages for 18-year real property under the alternate method are in Tables 7, 8, 10, 11, 14, and 15 in the Appendix. Free state tax return forms There are two tables for each alternate recovery period. Free state tax return forms One table shows the percentage for property placed in service after June 22, 1984. Free state tax return forms The other table has the percentages for property placed in service after March 15, 1984, and before June 23, 1984. Free state tax return forms Alternate periods for 19-year real property. Free state tax return forms   For 19-year real property, the alternate recovery periods are 19, 35, or 45 years. Free state tax return forms If you selected a 19-year recovery period, use Table 9 to determine your deduction. Free state tax return forms If you select a 35- or 45-year recovery period, use either Table 13 or 14. Free state tax return forms Example. Free state tax return forms You placed in service an apartment building on August 3, 1986. Free state tax return forms The building is 19-year real property. Free state tax return forms The sales contract allocated $300,000 to the building and $100,000 to the land. Free state tax return forms You use the calendar year as your tax year. Free state tax return forms You chose the alternate ACRS method over a recovery period of 35 years. Free state tax return forms For 1986, you figure your ACRS deduction usingTable 13. Free state tax return forms August is the eighth month of your tax year. Free state tax return forms The percentage from Table 13 for the eighth month is 1. Free state tax return forms 1%. Free state tax return forms Your deduction was $3,300 ($300,000 ÷ 1. Free state tax return forms 1%). Free state tax return forms The deduction rate from ACRS Table 13 for years 2 through 20 is 2. Free state tax return forms 9% so that your deduction in 1987 through 2005 is $8,700 ($300,000 ÷ 2. Free state tax return forms 9%). Free state tax return forms Alternate periods for low-income housing. Free state tax return forms   For low-income housing, the alternate recovery periods are 15, 35, or 45 years. Free state tax return forms If you selected a 15-year period for this property, use 6. Free state tax return forms 667% as the percentage. Free state tax return forms If you selected a 35- or 45-year period, use either Table 11, 12, or 15. Free state tax return forms Election. Free state tax return forms   You had to make the election to use the alternate ACRS method by the return due date (including extensions) for the tax year you placed the property in service. Free state tax return forms Revocation of election. Free state tax return forms   Your election to use an alternate ACRS method, once made, can be changed only with the consent of the Commissioner. Free state tax return forms The Commissioner grants consent only in extraordinary circumstances. Free state tax return forms Any request for a revocation will be considered a request for a ruling. Free state tax return forms ACRS Deduction in Short Tax Year For a tax year that is less than 12 months, the ACRS deduction is prorated on a 12-month basis. Free state tax return forms Figure the amount of the ACRS deduction for a short tax year as follows: First, you figure the ACRS deduction for a full year. Free state tax return forms You figure this by multiplying the unadjusted basis by the recovery percentage. Free state tax return forms You then multiply the ACRS deduction determined for a full tax year by a fraction. Free state tax return forms The numerator (top number) of the fraction is the number of months in the short tax year and the denominator (bottom number) is 12. Free state tax return forms For example, a corporation placed in service in June 1986 an item of 3-year property with an unadjusted basis of $10,000. Free state tax return forms The corporation files a tax return, because of a change in its accounting period, for the 6-month short tax year ending June 30, 1986. Free state tax return forms The full year's ACRS deduction for this item is $2,500 ($10,000 ÷ 25%), the first year percentage from the 3-year table. Free state tax return forms The ACRS deduction for the short tax year is $1,250 ($2,500 ÷ 6/12). Free state tax return forms You use the full ACRS percentages during the remaining years of the recovery period. Free state tax return forms For the first tax year after the recovery period, the unrecovered basis will be deductible. Free state tax return forms Exception. Free state tax return forms   For the tax year in which you placed 15-, 18-, or 19-year real property in service or in the tax year you dispose of it, you compute the ACRS deduction for the number of months that the property is in service during that tax year. Free state tax return forms You compute the number of months using either a full month or mid-month convention. Free state tax return forms This is true regardless of the number of months in the tax year and the recovery period and method used. Free state tax return forms Dispositions A disposition is the permanent withdrawal of property from use in your trade or business or in the production of income. Free state tax return forms You can make a withdrawal by sale, exchange, retirement, abandonment, or destruction. Free state tax return forms You generally recognize gain or loss on the disposition of an asset by sale. Free state tax return forms However, nonrecognition rules can allow you to postpone some gain. Free state tax return forms See Publication 544. Free state tax return forms If you physically abandon property, you can deduct as a loss the adjusted basis of the asset at the time of its abandonment. Free state tax return forms Your intent must be to discard the asset so that you will not use it again or retrieve it for sale, exchange, or other disposition. Free state tax return forms Early dispositions. Free state tax return forms   The disposal of an asset before the end of its specified recovery period, is referred to as an early disposition. Free state tax return forms When an early disposition occurs, the depreciation deduction in the year of disposition depends on the class of property involved. Free state tax return forms Early dispositions of ACRS property other than 15-, 18-, or 19-year real property. Free state tax return forms   Generally, you get no ACRS deduction for the tax year in which you dispose of or retire recovery property, except for 15-, 18-, and 19-year real property. Free state tax return forms This means there is no depreciation deduction under ACRS in the year you dispose of or retire any of your 3-, 5-, or 10-year recovery property. Free state tax return forms Dispositions — mass asset accounts. Free state tax return forms   The law provides a special rule to avoid the calculation of gain on the disposition of assets from mass asset accounts. Free state tax return forms A mass asset account includes items usually minor in value in relation to the group, numerous in quantity, impractical to separately identify, and not usually accounted for on a separate basis, but on a total dollar value. Free state tax return forms Examples of mass assets include minor items of office, plant, and store furniture and fixtures. Free state tax return forms   Under the special rule, if you elected to use a mass asset account, you recognize gain to the extent of the proceeds from the disposition of the asset. Free state tax return forms You leave the unadjusted basis of the property in the account until recovered in future years. Free state tax return forms If you did this, include the total proceeds realized from the disposition in income on the tax return for the year of disposition. Free state tax return forms Early dispositions — 15-year real property. Free state tax return forms   If you dispose of 15-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Free state tax return forms You use a full-month convention. Free state tax return forms For a disposition at any time during a particular month before the end of the recovery period, no deduction is allowed for the month of disposition. Free state tax return forms This applies whether you use the regular ACRS method or elected the alternate ACRS method. Free state tax return forms Example. Free state tax return forms You purchased and placed in service a rental house on March 2, 1984, for $98,000 (not including the cost of land). Free state tax return forms You file your return based on a calendar year. Free state tax return forms Your rate from Table 1 for the third month is 10%. Free state tax return forms Your ACRS deduction for 1984 was $9,800 ($98. Free state tax return forms 000 ÷ 10%). Free state tax return forms For 1985 through 1988, you figured your ACRS deductions using 11%, 9%, 8%, and 7% ÷ $98,000. Free state tax return forms For 1989 through 1992, you figured your ACRS deductions using 6% for each year. Free state tax return forms The deduction each year was $98,000 ÷ 6%. Free state tax return forms For 1993 and 1994, the ACRS deduction is ($98,000 ÷ 5%) $4,900 for each year. Free state tax return forms You sell the house on June 1, 1995. Free state tax return forms You figure your ACRS deduction for 1995 for the full year and then prorate that amount for the months of use. Free state tax return forms The full ACRS deduction for 1995 is $4,900 ($98,000 ÷ 5%). Free state tax return forms You then prorate this amount to the 5 months in 1995 during which it was rented. Free state tax return forms Your ACRS deduction for 1995 is $2,042 ($4,900 ÷ 5/12). Free state tax return forms Early dispositions — 18- and 19-year real property. Free state tax return forms   If you dispose of 18- or 19-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Free state tax return forms For 18-year property placed in service before June 23, 1984, use a full-month convention on a disposition. Free state tax return forms For 18-year property placed in service after June 22, 1984, and for 19-year property, determine the number of months in use by using the mid-month convention. Free state tax return forms Under the mid-month convention,treat real property disposed of any time during a month as disposed of in the middle of that month. Free state tax return forms Count the month of disposition as half a month of use. Free state tax return forms Example. Free state tax return forms You purchased and placed in service a rental house on July 2, 1984, for $100,000 (not including the cost of land). Free state tax return forms You file your return based on a calendar year. Free state tax return forms Your rate from Table 4 for the seventh month is 4%. Free state tax return forms You figured your ACRS deduction for 1984 was $4,000 ($100,000 ÷ 4%). Free state tax return forms In 1985 through 1994, your ACRS deductions were 9%, 8%, 8%, 7%, 6%, 6%, 5%, 5%, and 5% ÷ $100,000. Free state tax return forms You sell the house on September 24, 1995. Free state tax return forms Figure your ACRS deduction for 1995 for the months of use. Free state tax return forms The full ACRS deduction for 1995 is $5,000 ($100,000 ÷ 5%). Free state tax return forms Prorate this amount for the 8. Free state tax return forms 5 months in 1995 that you held the property. Free state tax return forms Under the mid-month convention, you count September as half a month. Free state tax return forms Your ACRS deduction for 1995 is $3,542 ($5,000 ÷ 8. Free state tax return forms 5/12). Free state tax return forms Depreciation Recapture If you dispose of property depreciated under ACRS that is section 1245 recovery property, you will generally recognize gain or loss. Free state tax return forms Gain recognized on a disposition is ordinary income to the extent of prior depreciation deductions taken. Free state tax return forms This recapture rule applies to all personal property in the 3-year, 5-year, and 10-year classes. Free state tax return forms You recapture gain on manufactured homes and theme park structures in the 10-year class as section 1245 property. Free state tax return forms Section 1245 property generally includes all personal property. Free state tax return forms See Section 1245 property in chapter 4 of Publication 544 for more information. Free state tax return forms You treat dispositions of section 1250 real property on which you have a gain as section 1245 recovery property. Free state tax return forms You recognize gain on this property as ordinary income to the extent of prior depreciation deductions taken. Free state tax return forms Section 1250 property includes most real property. Free state tax return forms See Section 1250 property in chapter 4 of Publication 544 for more information. Free state tax return forms This rule applies to all section 1250 real property except the following property: Any 15-, 18-, or 19-year real property that is residential rental property. Free state tax return forms Any 15-, 18-, or 19-year real property that you elected to depreciate using the alternate ACRS method. Free state tax return forms Any 15-, 18-, or 19-year real property that is subsidized low-income housing. Free state tax return forms For these recapture rules, you treat the section 179 deduction and 50% of the investment credit that reduced your basis as depreciation. Free state tax return forms See Publication 544 for further discussion of dispositions of section 1245 and 1250 property. Free state tax return forms Prev  Up  Next   Home   More Online Publications