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Free Tax Filing H&r Block

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Free Tax Filing H&r Block

Free tax filing h&r block Index A Abatement of interest and penalties, Abatement of interest and penalties. Free tax filing h&r block Accidents, Deductible losses. Free tax filing h&r block , Nondeductible losses. Free tax filing h&r block Adjusted basis, Adjusted Basis Adjustments to basis, Basis adjustment to corporation's property. Free tax filing h&r block , Adjustments to Basis Amended returns, Amended return. Free tax filing h&r block Appraisals, Appraisal. Free tax filing h&r block , Costs of photographs and appraisals. Free tax filing h&r block Assistance (see Tax help) B Bad debts, Nonbusiness bad debt. Free tax filing h&r block Basis Adjusted, Adjusted Basis Adjustments to, Basis adjustment to corporation's property. Free tax filing h&r block , Adjustments to Basis Replacement property, Basis of replacement property. Free tax filing h&r block Business or income-producing property, Business or income-producing property. Free tax filing h&r block Business purposes, property used partly for, Property used partly for business and partly for personal purposes. Free tax filing h&r block C Cars Accidents, Deductible losses. Free tax filing h&r block Fair market value of, Car value. Free tax filing h&r block Cash gifts, Cash gifts. Free tax filing h&r block Casualty losses, Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss Deductible losses, Deductible losses. Free tax filing h&r block Definition, Casualty Deposits, loss on, Casualty loss or ordinary loss. Free tax filing h&r block Nondeductible losses, Nondeductible losses. Free tax filing h&r block Progressive deterioration, Progressive deterioration. Free tax filing h&r block Proof of, Casualty loss proof. Free tax filing h&r block When to report, Losses. Free tax filing h&r block Workbooks for listing property, Workbooks for casualties and thefts. Free tax filing h&r block Clean up costs, Cost of cleaning up or making repairs. Free tax filing h&r block Condemnation, Condemnations. Free tax filing h&r block Corrosive drywall, Special Procedure for Damage From Corrosive Drywall Costs Appraisals, Costs of photographs and appraisals. Free tax filing h&r block Clean up, Cost of cleaning up or making repairs. Free tax filing h&r block Incidental expenses, Related expenses. Free tax filing h&r block Landscaping, Landscaping. Free tax filing h&r block Photographs taken after loss, Costs of photographs and appraisals. Free tax filing h&r block Protection, Cost of protection. Free tax filing h&r block Repair, Cost of cleaning up or making repairs. Free tax filing h&r block Replacement, Replacement cost. Free tax filing h&r block D Death of taxpayer Postponement of gain, Death of a taxpayer. Free tax filing h&r block Deductible losses, Deductible losses. Free tax filing h&r block Deduction limits, Deduction Limits $100 rule, $100 Rule 10% rule, 10% Rule 2% rule, 2% Rule Deposit losses, Mislaid or lost property. Free tax filing h&r block , Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss Reporting of (Table 1), Table 1. Free tax filing h&r block Reporting Loss on Deposits When to report, Loss on deposits. Free tax filing h&r block Disaster area losses, Lessee's loss. Free tax filing h&r block Claiming on amended return, Claiming a disaster loss on an amended return. Free tax filing h&r block Federal loan canceled, Federal loan canceled. Free tax filing h&r block Federally declared disaster, Business or income-producing property located in a federally declared disaster area. Free tax filing h&r block , Disaster Area Losses Figuring loss deduction, Figuring the loss deduction. Free tax filing h&r block Form 1040X, How to report the loss on Form 1040X. Free tax filing h&r block Home made unsafe, Home made unsafe by disaster. Free tax filing h&r block How to deduct loss in preceding year, How to deduct your loss in the preceding year. Free tax filing h&r block Inventory, Disaster loss to inventory. Free tax filing h&r block Main home rules, Main home in disaster area. Free tax filing h&r block , Gains. Free tax filing h&r block Qualified disaster mitigation payments, Qualified disaster mitigation payments. Free tax filing h&r block Qualified disaster relief payments, Qualified disaster relief payments. Free tax filing h&r block Records to keep, Records. Free tax filing h&r block Tax deadlines postponed, Covered disaster area. Free tax filing h&r block When to deduct, When to deduct the loss. Free tax filing h&r block Table 3, Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss Disaster mitigation payments, Qualified disaster mitigation payments. Free tax filing h&r block Disaster relief grants, Disaster relief. Free tax filing h&r block Drywall, corrosive, Special Procedure for Damage From Corrosive Drywall Due dates Tax deadlines postponed, Postponed Tax Deadlines E Employer's emergency disaster fund, Employer's emergency disaster fund. Free tax filing h&r block F Fair market value (FMV) Decline in value of property in or near casualty area, Decline in market value of property in or near casualty area. Free tax filing h&r block Measuring decrease in, Decrease in Fair Market Value Items not to consider, Figuring Decrease in FMV — Items Not To Consider Items to consider, Figuring Decrease in FMV — Items To Consider Federal disaster relief grants, Federal disaster relief grants. Free tax filing h&r block Federal Emergency Management Agency (FEMA), contacting, Contacting the Federal Emergency Management Agency (FEMA) Federally declared disasters, Business or income-producing property located in a federally declared disaster area. Free tax filing h&r block , Disaster Area Losses Figuring gain, Property used partly for business and partly for personal purposes. Free tax filing h&r block Figuring loss, Theft loss proof. Free tax filing h&r block , Figuring the Deduction Adjusted basis, Adjusted Basis Disaster area losses, Figuring the loss deduction. Free tax filing h&r block Insurance and other reimbursements, Insurance and Other Reimbursements Form 1040, Schedule A, Personal-use property. Free tax filing h&r block Form 1040, Schedule D, Personal-use property. Free tax filing h&r block Form 1040X Disaster area losses, How to report the loss on Form 1040X. Free tax filing h&r block Form 4684 Reporting gains and losses on personal-use property, Personal-use property. Free tax filing h&r block Free tax services, Free help with your tax return. Free tax filing h&r block G Gains Figuring, Figuring a Gain Postponement of, Postponement of Gain, How To Postpone a Gain Reimbursements, Gain from reimbursement. Free tax filing h&r block Reporting of, Contacting the Federal Emergency Management Agency (FEMA) When to report, Changing your mind. Free tax filing h&r block H Help (see Tax help) I Incidental expenses, Related expenses. Free tax filing h&r block Insurance, Insurance and Other Reimbursements Living expenses, payments for, Insurance payments for living expenses. Free tax filing h&r block Interest abatement, Abatement of interest and penalties. Free tax filing h&r block Inventory losses, Loss of inventory. Free tax filing h&r block Disaster area losses, Disaster loss to inventory. Free tax filing h&r block L Landscaping, Landscaping. Free tax filing h&r block Leased property, Leased property. Free tax filing h&r block When to report, Lessee's loss. Free tax filing h&r block Losses Casualty (see Casualty losses) Deposits (see Deposit losses) Disaster areas (see Disaster area losses) Figuring amount (see Figuring loss) Proof of, Deducted loss recovered. Free tax filing h&r block Records of, Theft loss proof. Free tax filing h&r block Reporting of, Contacting the Federal Emergency Management Agency (FEMA) Theft (see Theft losses) When to report, Changing your mind. Free tax filing h&r block (Table 3), Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss M Married taxpayers Deduction limits, Married taxpayers. Free tax filing h&r block , Married taxpayers. Free tax filing h&r block Mislaid or lost property, Mislaid or lost property. Free tax filing h&r block Missing children, photographs of, Reminders N Nonbusiness bad debts, Nonbusiness bad debt. Free tax filing h&r block Nondeductible losses, Nondeductible losses. Free tax filing h&r block P Payments for living expenses, Insurance payments for living expenses. Free tax filing h&r block Penalty abatement, Abatement of interest and penalties. Free tax filing h&r block Personal property Loss deduction, figuring of, Personal property. Free tax filing h&r block Personal-use property Reporting gains and losses, Personal-use property. Free tax filing h&r block Personal-use real property, Exception for personal-use real property. Free tax filing h&r block Photographs Documentation of loss, Costs of photographs and appraisals. Free tax filing h&r block Ponzi-type investment schemes, Losses from Ponzi-type investment schemes. Free tax filing h&r block Postponed tax deadlines, Postponed Tax Deadlines Postponement of gain, Postponement of Gain, How To Postpone a Gain Amended return, Amended return. Free tax filing h&r block Changing mind, Changing your mind. Free tax filing h&r block Replacement property acquired after return filed, Replacement property acquired after return filed. Free tax filing h&r block Replacement property acquired before return filed, Replacement property acquired before return filed. Free tax filing h&r block Required statement, Required statement. Free tax filing h&r block Substituting replacement property, Substituting replacement property. Free tax filing h&r block Three-year limit, Three-year limit. Free tax filing h&r block Proof of loss, Proof of Loss Protection costs, Cost of protection. Free tax filing h&r block Publications (see Tax help) R Records of loss, Theft loss proof. Free tax filing h&r block Recovered stolen property, Recovered stolen property. Free tax filing h&r block Reimbursements Cash gifts, Cash gifts. Free tax filing h&r block Disaster relief, Disaster relief. Free tax filing h&r block Employer's emergency disaster fund, Employer's emergency disaster fund. Free tax filing h&r block Failure to file a claim, Failure to file a claim for reimbursement. Free tax filing h&r block Received after deducting loss, Reimbursement Received After Deducting Loss Types of, Types of Reimbursements Related expenses, Related expenses. Free tax filing h&r block Related person, replacement property bought from, Buying replacement property from a related person. Free tax filing h&r block Repair costs, Cost of cleaning up or making repairs. Free tax filing h&r block Replacement cost, Replacement cost. Free tax filing h&r block Replacement period, Replacement Period Extension of, Extension. Free tax filing h&r block Replacement property, Replacement Property Advance payment, Advance payment. Free tax filing h&r block Basis adjustment to corporation's property, Basis adjustment to corporation's property. Free tax filing h&r block Basis of, Basis of replacement property. Free tax filing h&r block Main home, Main home replaced. Free tax filing h&r block In disaster area, Main home in disaster area. Free tax filing h&r block Postponement of gain, Replacement property acquired before return filed. Free tax filing h&r block Reporting gains and losses, Reporting a gain. Free tax filing h&r block , How To Report Gains and Losses Basis, adjustments to, Adjustments to Basis Business and income-producing property, Business and income-producing property. Free tax filing h&r block Deductions exceeding income, If Deductions Are More Than Income Deposits, How to report. Free tax filing h&r block Table 1, Table 1. Free tax filing h&r block Reporting Loss on Deposits Disaster area losses, How to report the loss on Form 1040X. Free tax filing h&r block Personal-use property, Personal-use property. Free tax filing h&r block Timing of, When To Report Gains and Losses S Sentimental value, Sentimental value. Free tax filing h&r block State disaster relief grants for businesses, State disaster relief grants for businesses. Free tax filing h&r block Stolen property (see Theft losses) T Tables and figures Reporting loss on deposits (Table 1), Table 1. Free tax filing h&r block Reporting Loss on Deposits When to deduct losses (Table 3), Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss Tax help, How To Get Tax Help Theft losses, Theft FMV of stolen property, FMV of stolen property. Free tax filing h&r block Mislaid or lost property, Mislaid or lost property. Free tax filing h&r block Proof of, Theft loss proof. Free tax filing h&r block When to deduct (Table 3), Table 3. Free tax filing h&r block When To Deduct a Casualty or Theft Loss When to report, Losses. Free tax filing h&r block Workbooks for listing property, Workbooks for casualties and thefts. Free tax filing h&r block Timber loss, Timber loss. Free tax filing h&r block W Workbooks for property lost due to casualties and thefts, Workbooks for casualties and thefts. Free tax filing h&r block Prev  Up     Home   More Online Publications
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Mortgages for Home Buyers and Homeowners

Find mortgage programs and resources to get and manage a mortgage.


Finding a mortgage is one of the first steps involved in buying a home. The Department of Housing and Urban Development (HUD) is the nation's housing agency. They have a helpful list of 9 steps to buying a home, which includes figuring out how much you can afford, knowing your rights, shopping for a loan, making an offer, getting a home inspection, and much more.

Shop for a Loan

One of the first steps you'll take in buying a home is shopping for a loan. Learn about common types of home mortgages. There are many sites that can help you find a housing loan:

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Home Buying Programs

There are many home buying programs to help you:

  • Home Buying Programs in Your State – Find state or local government home buying programs in your state.
  • Good Neighbor Next Door – If you're a law enforcement officer, pre-kindergarten through 12th grade teacher, or a firefighter/emergency medical technician, this program allows you to become a homeowner. If approved, you'll receive a 50% discount off the list price of a home, on the condition that you commit to live in the property as a sole residence for 36 months.
  • Local Public Housing Agency – This program helps public housing residents own a home by converting rent into a mortgage payment.

Mortgage Calculator

Use these calculators to estimate your potential mortgage and costs. 

Check the tips that HUD provides to avoid loan fraud and predatory lenders. The Federal Reserve also has a great collection of featured publications and resources on homes and mortgages.

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Mortgage Refinancing

Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing rate and if you plan to keep the new mortgage for several years. Learn more about refinancing your mortgage.

Mortgage Payment Assistance

  • Making Home Affordable – The Department of Treasury and HUD can help struggling homeowners get mortgage relief through a variety of programs.
  • Housing Counseling Agencies – HUD helps these agencies provide homeowners with free or low-cost advice on home related issues.
  • Reverse Mortgages – HUD provides answers to frequently asked questions about reverse mortgages.

Foreclosures

You can find more information on foreclosures on our Foreclosure Resources page and HUD's Avoiding Foreclosure page.

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The Free Tax Filing H&r Block

Free tax filing h&r block 3. Free tax filing h&r block   Claiming the Special Depreciation Allowance Table of Contents Introduction What Is Qualified Property?Qualified Reuse and Recycling Property Qualified Cellulosic Biofuel Plant Property Qualified Disaster Assistance Property Certain Qualified Property Acquired After December 31, 2007 Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance How Much Can You Deduct? How Can You Elect Not To Claim an Allowance? When Must You Recapture an Allowance? Introduction You can take a special depreciation allowance to recover part of the cost of qualified property (defined next), placed in service during the tax year. Free tax filing h&r block The allowance applies only for the first year you place the property in service. Free tax filing h&r block For qualified property placed in service in 2013, you can take an additional 50% special allowance. Free tax filing h&r block The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service. Free tax filing h&r block This chapter explains what is qualified property. Free tax filing h&r block It also includes rules regarding how to figure an allowance, how to elect not to claim an allowance, and when you must recapture an allowance. Free tax filing h&r block Corporations can elect to accelerate certain minimum tax credits in lieu of claiming the special depreciation allowance for eligible qualified property. Free tax filing h&r block See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance , later. Free tax filing h&r block See chapter 6 for information about getting publications and forms. Free tax filing h&r block What Is Qualified Property? Your property is qualified property if it is one of the following. Free tax filing h&r block Qualified reuse and recycling property. Free tax filing h&r block Qualified cellulosic biofuel plant property. Free tax filing h&r block Qualified disaster assistance property. Free tax filing h&r block Certain qualified property acquired after December 31, 2007. Free tax filing h&r block The following discussions provide information about the types of qualified property listed above for which you can take the special depreciation allowance. Free tax filing h&r block Qualified Reuse and Recycling Property You can take a 50% special depreciation allowance for qualified reuse and recycling property. Free tax filing h&r block Qualified reuse and recycling property is any machinery or equipment (not including buildings or real estate), along with any appurtenance, that is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials (as defined in section 168(m)(3)(B) of the Internal Revenue Code). Free tax filing h&r block Qualified reuse and recycling property also includes software necessary to operate such equipment. Free tax filing h&r block The property must meet the following requirements. Free tax filing h&r block The property must be depreciated under MACRS. Free tax filing h&r block The property must have a useful life of at least 5 years. Free tax filing h&r block The original use of the property must begin with you after August 31, 2008. Free tax filing h&r block You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after August 31, 2008, with no binding written contract for the acquisition in effect before September 1, 2008. Free tax filing h&r block The property must be placed in service for use in your trade or business after August 31, 2008. Free tax filing h&r block Excepted Property Qualified reuse and recycling property does not include any of the following. Free tax filing h&r block Any rolling stock or other equipment used to transport reuse or recyclable materials. Free tax filing h&r block Property required to be depreciated using the Alternative Depreciation System (ADS). Free tax filing h&r block For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Free tax filing h&r block Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Free tax filing h&r block Property for which you elected not to claim any special depreciation allowance (discussed later). Free tax filing h&r block Property placed in service and disposed of in the same tax year. Free tax filing h&r block Property converted from business use to personal use in the same tax year acquired. Free tax filing h&r block Property converted from personal use to business use in the same or later tax year may be qualified reuse and recycling property. Free tax filing h&r block Qualified Cellulosic Biofuel Plant Property You can take a 50% special depreciation allowance for qualified cellulosic biofuel plant property. Free tax filing h&r block Cellulosic biofuel is any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. Free tax filing h&r block Examples include bagasse (from sugar cane), corn stalks, and switchgrass. Free tax filing h&r block The property must meet the following requirements. Free tax filing h&r block The property is used in the United States solely to produce cellulosic biofuel. Free tax filing h&r block The original use of the property must begin with you after December 20, 2006. Free tax filing h&r block You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after December 20, 2006, with no binding written contract for acquisition in effect before December 21, 2006. Free tax filing h&r block The property must be placed in service for use in your trade or business or for the production of income after October 3, 2008, and before January 3, 2013. Free tax filing h&r block Note. Free tax filing h&r block For property placed in service after January 2, 2013, and before January 1, 2014, you can take a 50% special depreciation allowance for qualified second generation biofuel plant property that is used solely in the United States to produce second generation biofuel (as defined in section 40(b)(6)(E)). Free tax filing h&r block The other requirements for qualified second generation biofuel plant property to be eligible for the special depreciation allowance are identical to the requirements discussed for Qualified Cellulosic Biofuel Plant Property above. Free tax filing h&r block Special Rules Sale-leaseback. Free tax filing h&r block   If you sold qualified cellulosic biofuel plant property you placed in service after October 3, 2008, and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Free tax filing h&r block   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before December 21, 2006. Free tax filing h&r block Syndicated leasing transactions. Free tax filing h&r block   If qualified cellulosic biofuel plant property is originally placed in service by a lessor after October 3, 2008, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Free tax filing h&r block   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. Free tax filing h&r block Excepted Property Qualified cellulosic biofuel plant property does not include any of the following. Free tax filing h&r block Property placed in service and disposed of in the same tax year. Free tax filing h&r block Property converted from business use to personal use in the same tax year it is acquired. Free tax filing h&r block Property converted from personal use to business use in the same or later tax year may be qualified cellulosic biomass ethanol plant property. Free tax filing h&r block Property required to be depreciated using the Alternative Depreciation System (ADS). Free tax filing h&r block For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Free tax filing h&r block Property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section 103 of the Internal Revenue Code. Free tax filing h&r block Property for which you elected not to claim any special depreciation allowance (discussed later). Free tax filing h&r block Property for which a deduction was taken under section 179C for certain qualified refinery property. Free tax filing h&r block Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Free tax filing h&r block Qualified Disaster Assistance Property You can take a 50% special depreciation allowance for qualified disaster assistance property placed in service in federally declared disaster areas in which the disaster occurred in 2009. Free tax filing h&r block A list of the federally declared disaster areas is available at the FEMA website at www. Free tax filing h&r block fema. Free tax filing h&r block gov. Free tax filing h&r block Your property is qualified disaster assistance property if it meets the following requirements. Free tax filing h&r block The property is nonresidential real property or residential real property placed in service before January 1, 2014, in a federally declared disaster area in which the disaster occurred in 2009. Free tax filing h&r block You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) on or after the applicable disaster date, with no binding written contract for the acquisition in effect before the applicable disaster date. Free tax filing h&r block The property must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the applicable federally declared disaster. Free tax filing h&r block The property must be similar in nature to, and located in the same county as, the rehabilitated or replaced property. Free tax filing h&r block The original use of the property within the applicable disaster area must have begun with you on or after the applicable disaster date. Free tax filing h&r block The property is placed in service by you on or before the date which is the last day of the fourth calendar year. Free tax filing h&r block Substantially all (80% or more) of the use of the property must be in the active conduct of your trade or business in a federally declared disaster area, occurring in 2009. Free tax filing h&r block It is not excepted property (explained later in Excepted Property ). Free tax filing h&r block Special Rules Sale-leaseback. Free tax filing h&r block   If you sold qualified disaster assistance property you placed in service after the applicable disaster date and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Free tax filing h&r block   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before the applicable disaster date. Free tax filing h&r block Syndicated leasing transactions. Free tax filing h&r block   If qualified disaster assistance property is originally placed in service by a lessor after the applicable disaster date, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Free tax filing h&r block   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. Free tax filing h&r block Excepted Property Qualified disaster assistance property does not include any of the following. Free tax filing h&r block Property required to be depreciated using the Alternative Depreciation System (ADS). Free tax filing h&r block For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Free tax filing h&r block Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103 of the Internal Revenue Code. Free tax filing h&r block Any qualified revitalization building (defined later) placed in service before January 1, 2010, for which you have elected to claim a commercial revitalization deduction for qualified revitalization expenditures. Free tax filing h&r block Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Free tax filing h&r block Any property for which the special allowance under section 168(k) or section 1400N(d) of the Internal Revenue Code applies. Free tax filing h&r block Property for which you elected not to claim any special depreciation allowance (discussed later). Free tax filing h&r block Property placed in service and disposed of in the same tax year. Free tax filing h&r block Property converted from business use to personal use in the same tax year acquired. Free tax filing h&r block Property converted from personal use to business use in the same or later tax year may be qualified disaster assistance property. Free tax filing h&r block Any gambling or animal racing property (defined later). Free tax filing h&r block Qualified revitalization building. Free tax filing h&r block   This is a commercial building and its structural components that you placed in service in a renewal community before January 1, 2010. Free tax filing h&r block If the building is new, the original use of the building must begin with you. Free tax filing h&r block If the building is not new, you must substantially rehabilitate the building and then place it in service. Free tax filing h&r block For more information, including definitions of substantially rehabilitated building and qualified revitalization expenditure, see section 1400I(b) of the Internal Revenue Code. Free tax filing h&r block Gambling or animal racing property. Free tax filing h&r block   Gambling or animal racing property includes the following personal and real property. Free tax filing h&r block Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing. Free tax filing h&r block Any real property determined by square footage (other than any portion that is less than 100 square feet) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing. Free tax filing h&r block Certain Qualified Property Acquired After December 31, 2007 You can take a 50% special depreciation deduction allowance for certain qualified property acquired after December 31, 2007. Free tax filing h&r block Your property is qualified property if it meets the following requirements. Free tax filing h&r block It is one of the following types of property. Free tax filing h&r block Tangible property depreciated under MACRS with a recovery period of 20 years or less. Free tax filing h&r block Water utility property. Free tax filing h&r block Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Free tax filing h&r block (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Free tax filing h&r block ) Qualified leasehold improvement property (defined under Qualified leasehold improvement property later). Free tax filing h&r block You must have acquired the property after December 31, 2007, with no binding written contract for the acquisition in effect before January 1, 2008. Free tax filing h&r block The property must be placed in service for use in your trade or business or for the production of income before January 1, 2014 (before January 1, 2015, for certain property with a long production period and certain aircraft (defined next)). Free tax filing h&r block The original use of the property must begin with you after December 31, 2007. Free tax filing h&r block It is not excepted property (explained later in Excepted property). Free tax filing h&r block Qualified leasehold improvement property. Free tax filing h&r block    Generally, this is any improvement to an interior part of a building that is nonresidential real property, if all the following requirements are met. Free tax filing h&r block The improvement is made under or according to a lease by the lessee (or any sublessee) or the lessor of that part of the building. Free tax filing h&r block That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Free tax filing h&r block The improvement is placed in service more than 3 years after the date the building was first placed in service by any person. Free tax filing h&r block The improvement is section 1250 property. Free tax filing h&r block See chapter 3 in Publication 544, Sales and Other Dispositions of Assets, for the definition of section 1250 property. Free tax filing h&r block   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Free tax filing h&r block The enlargement of the building. Free tax filing h&r block Any elevator or escalator. Free tax filing h&r block Any structural component benefiting a common area. Free tax filing h&r block The internal structural framework of the building. Free tax filing h&r block   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. Free tax filing h&r block However, a lease between related persons is not treated as a lease. Free tax filing h&r block Related persons. Free tax filing h&r block   For this purpose, the following are related persons. Free tax filing h&r block Members of an affiliated group. Free tax filing h&r block An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. Free tax filing h&r block A corporation and an individual who directly or indirectly owns 80% or more of the value of the outstanding stock of that corporation. Free tax filing h&r block Two corporations that are members of the same controlled group. Free tax filing h&r block A trust fiduciary and a corporation if 80% or more of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. Free tax filing h&r block The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Free tax filing h&r block The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. Free tax filing h&r block A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. Free tax filing h&r block Two S corporations, and an S corporation and a regular corporation, if the same persons own 80% or more of the value of the outstanding stock of each corporation. Free tax filing h&r block A corporation and a partnership if the same persons own both of the following. Free tax filing h&r block 80% or more of the value of the outstanding stock of the corporation. Free tax filing h&r block 80% or more of the capital or profits interest in the partnership. Free tax filing h&r block The executor and beneficiary of any estate. Free tax filing h&r block Long Production Period Property To be qualified property, long production period property must meet the following requirements. Free tax filing h&r block It must meet the requirements in (2)-(5), above. Free tax filing h&r block The property has a recovery period of at least 10 years or is transportation property. Free tax filing h&r block Transportation property is tangible personal property used in the trade or business of transporting persons or property. Free tax filing h&r block The property is subject to section 263A of the Internal Revenue Code. Free tax filing h&r block The property has an estimated production period exceeding 1 year and an estimated production cost exceeding $1,000,000. Free tax filing h&r block Noncommercial Aircraft To be qualified property, noncommercial aircraft must meet the following requirements. Free tax filing h&r block It must meet the requirements in (2)-(5), above. Free tax filing h&r block The aircraft must not be tangible personal property used in the trade or business of transporting persons or property (except for agricultural or firefighting purposes). Free tax filing h&r block The aircraft must be purchased (as discussed under Property Acquired by Purchase in chapter 2 ) by a purchaser who at the time of the contract for purchase, makes a nonrefundable deposit of the lesser of 10% of the cost or $100,000. Free tax filing h&r block The aircraft must have an estimated production period exceeding four months and a cost exceeding $200,000. Free tax filing h&r block Special Rules Sale-leaseback. Free tax filing h&r block   If you sold qualified property you placed in service after December 31, 2007, and leased it back within 3 months after you originally placed in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Free tax filing h&r block   The property will not qualify for the special depreciation allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before January 1, 2008. Free tax filing h&r block Syndicated leasing transactions. Free tax filing h&r block   If qualified property is originally placed in service by a lessor after December 31, 2007, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Free tax filing h&r block   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of the last sale if the property is sold within 3 months after the final unit is placed in service and the period between the time the first and last units are placed in service does not exceed 12 months. Free tax filing h&r block Excepted Property Qualified property does not include any of the following. Free tax filing h&r block Property placed in service and disposed of in the same tax year. Free tax filing h&r block Property converted from business use to personal use in the same tax year acquired. Free tax filing h&r block Property converted from personal use to business use in the same or later tax year may be qualified property. Free tax filing h&r block Property required to be depreciated under the Alternative Depreciation System (ADS). Free tax filing h&r block This includes listed property used 50% or less in a qualified business use. Free tax filing h&r block For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Free tax filing h&r block Qualified restaurant property (as defined in section 168(e)(7) of the Internal Revenue Code). Free tax filing h&r block Qualified retail improvement property (as defined in section 168(e)(8) of the Internal Revenue Code). Free tax filing h&r block Property for which you elected not to claim any special depreciation allowance (discussed later). Free tax filing h&r block Property for which you elected to accelerate certain credits in lieu of the special depreciation allowance (discussed next). Free tax filing h&r block Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 2 extension property (as defined in section 168(k)(4)(I)(iv)), unless the corporation made an election not to apply the section 168(k)(4) election to round 2 extension property for its first tax year ending after December 31, 2010. Free tax filing h&r block For 2013, round 2 extension property generally is long production period and noncommercial aircraft if acquired after March 31, 2008, and placed in service after December 31, 2012, but before January 1, 2014. Free tax filing h&r block An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 3 extension property (as defined in section 168(k)(4)(J)(iv)), unless the corporation makes an election not to apply the section 168(k)(4) election to round 3 extension property. Free tax filing h&r block If a corporation did not make a section 168(k)(4) election for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, the corporation may elect for its first tax year ending after December 31, 2012, to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for only round 3 extension property. Free tax filing h&r block If you make an election to accelerate these credits in lieu of claiming the special depreciation allowance for eligible property, you must not take the 50% special depreciation allowance for the property and must depreciate the basis in the property under MACRS using the straight line method. Free tax filing h&r block See Which Depreciation Method Applies in chapter 4 . Free tax filing h&r block Once made, the election cannot be revoked without IRS consent. Free tax filing h&r block Additional guidance. Free tax filing h&r block   For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. Free tax filing h&r block Proc. Free tax filing h&r block 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www. Free tax filing h&r block irs. Free tax filing h&r block gov/pub/irs-irbs/irb08-44. Free tax filing h&r block pdf, Rev. Free tax filing h&r block Proc. Free tax filing h&r block 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www. Free tax filing h&r block irs. Free tax filing h&r block gov/pub/irs-irbs/irb09-06. Free tax filing h&r block pdf, and Rev. Free tax filing h&r block Proc. Free tax filing h&r block 2009-33 on page 150 of Internal Revenue Bulletin 2009-29, available at www. Free tax filing h&r block irs. Free tax filing h&r block gov/pub/irs-irbs/irb09-29. Free tax filing h&r block pdf. Free tax filing h&r block Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions. Free tax filing h&r block   Additional guidance regarding the election to accelerate the minimum tax credit in lieu of claiming the special depreciation allowance for round 2 extension property and round 3 extension property may also be available in later Internal Revenue Bulletins available at www. Free tax filing h&r block irs. Free tax filing h&r block gov/irb. Free tax filing h&r block How Much Can You Deduct? Figure the special depreciation allowance by multiplying the depreciable basis of qualified reuse and recycling property, qualified cellulosic biofuel plant property, qualified disaster assistance property, and certain qualified property acquired after December 31, 2007, by 50%. Free tax filing h&r block For qualified property other than listed property, enter the special allowance on line 14 in Part II of Form 4562. Free tax filing h&r block For qualified property that is listed property, enter the special allowance on line 25 in Part V of Form 4562. Free tax filing h&r block If you place qualified property in service in a short tax year, you can take the full amount of a special depreciation allowance. Free tax filing h&r block Depreciable basis. Free tax filing h&r block   This is the property's cost or other basis multiplied by the percentage of business/investment use, reduced by the total amount of any credits and deductions allocable to the property. Free tax filing h&r block   The following are examples of some credits and deductions that reduce depreciable basis. Free tax filing h&r block Any section 179 deduction. Free tax filing h&r block Any deduction for removal of barriers to the disabled and the elderly. Free tax filing h&r block Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. Free tax filing h&r block Basis adjustment to investment credit property under section 50(c) of the Internal Revenue Code. Free tax filing h&r block   For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. Free tax filing h&r block   For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property in chapter 1 . Free tax filing h&r block For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1 . Free tax filing h&r block Depreciating the remaining cost. Free tax filing h&r block   After you figure your special depreciation allowance for your qualified property, you can use the remaining cost to figure your regular MACRS depreciation deduction (discussed in chapter 4 . Free tax filing h&r block Therefore, you must reduce the depreciable basis of the property by the special depreciation allowance before figuring your regular MACRS depreciation deduction. Free tax filing h&r block Example. Free tax filing h&r block On November 1, 2013, Tom Brown bought and placed in service in his business qualified property that cost $450,000. Free tax filing h&r block He did not elect to claim a section 179 deduction. Free tax filing h&r block He deducts 50% of the cost ($225,000) as a special depreciation allowance for 2013. Free tax filing h&r block He uses the remaining $225,000 of cost to figure his regular MACRS depreciation deduction for 2013 and later years. Free tax filing h&r block Like-kind exchanges and involuntary conversions. Free tax filing h&r block   If you acquire qualified property in a like-kind exchange or involuntary conversion, the carryover basis of the acquired property is eligible for a special depreciation allowance. Free tax filing h&r block After you figure your special allowance, you can use the remaining carryover basis to figure your regular MACRS depreciation deduction. Free tax filing h&r block In the year you claim the allowance (the year you place in service the property received in the exchange or dispose of involuntarily converted property), you must reduce the carryover basis of the property by the allowance before figuring your regular MACRS depreciation deduction. Free tax filing h&r block See Figuring the Deduction for Property Acquired in a Nontaxable Exchange , in chapter 4 under How Is the Depreciation Deduction Figured . Free tax filing h&r block The excess basis (the part of the acquired property's basis that exceeds its carryover basis) is also eligible for a special depreciation allowance. Free tax filing h&r block How Can You Elect Not To Claim an Allowance? You can elect, for any class of property, not to deduct any special allowances for all property in such class placed in service during the tax year. Free tax filing h&r block To make an election, attach a statement to your return indicating what election you are making and the class of property for which you are making the election. Free tax filing h&r block When to make election. Free tax filing h&r block   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Free tax filing h&r block   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Free tax filing h&r block Attach the election statement to the amended return. Free tax filing h&r block On the amended return, write “Filed pursuant to section 301. Free tax filing h&r block 9100-2. Free tax filing h&r block ” Revoking an election. Free tax filing h&r block   Once you elect not to deduct a special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Free tax filing h&r block A request to revoke the election is a request for a letter ruling. Free tax filing h&r block If you elect not to have any special allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. Free tax filing h&r block When Must You Recapture an Allowance? When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. Free tax filing h&r block See When Do You Recapture MACRS Depreciation in chapter 4 or more information. Free tax filing h&r block Recapture of allowance deducted for qualified GO Zone property. Free tax filing h&r block   If, in any year after the year you claim the special depreciation allowance for qualified GO Zone property (including specified GO Zone extension property), the property ceases to be used in the GO Zone, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Free tax filing h&r block For additional guidance, see Notice 2008-25 on page 484 of Internal Revenue Bulletin 2008-9. Free tax filing h&r block Qualified cellulosic biomass ethanol plant property and qualified cellulosic biofuel plant property. Free tax filing h&r block   If, in any year after the year you claim the special depreciation allowance for any qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, the property ceases to be qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Free tax filing h&r block Recapture of allowance for qualified Recovery Assistance property. Free tax filing h&r block   If, in any year after the year you claim the special depreciation allowance for qualified Recovery Assistance property, the property ceases to be used in the Kansas disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Free tax filing h&r block For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Free tax filing h&r block Recapture of allowance for qualified disaster assistance property. Free tax filing h&r block   If, in any year after the year you claim the special depreciation allowance for qualified disaster assistance property, the property ceases to be used in the applicable disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Free tax filing h&r block   For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Free tax filing h&r block Prev  Up  Next   Home   More Online Publications