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Tax Act Online 2009

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Tax Act Online 2009

Tax act online 2009 20. Tax act online 2009   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. Tax act online 2009 Married persons who filed separate returns. Tax act online 2009 What's New Standard deduction increased. Tax act online 2009  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. Tax act online 2009 The amount depends on your filing status. Tax act online 2009 You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. Tax act online 2009 Introduction This chapter discusses the following topics. Tax act online 2009 How to figure the amount of your standard deduction. Tax act online 2009 The standard deduction for dependents. Tax act online 2009 Who should itemize deductions. Tax act online 2009 Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. Tax act online 2009 If you have a choice, you can use the method that gives you the lower tax. Tax act online 2009 The standard deduction is a dollar amount that reduces your taxable income. Tax act online 2009 It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). Tax act online 2009 The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. Tax act online 2009 You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. Tax act online 2009 Persons not eligible for the standard deduction. Tax act online 2009   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. Tax act online 2009 You are considered a dual-status alien if you were both a nonresident and resident alien during the year. Tax act online 2009 Note. Tax act online 2009 If you are a nonresident alien who is married to a U. Tax act online 2009 S. Tax act online 2009 citizen or resident alien at the end of the year, you can choose to be treated as a U. Tax act online 2009 S. Tax act online 2009 resident. Tax act online 2009 (See Publication 519, U. Tax act online 2009 S. Tax act online 2009 Tax Guide for Aliens. Tax act online 2009 ) If you make this choice, you can take the standard deduction. Tax act online 2009 If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. Tax act online 2009 See Standard Deduction for Dependents, later. Tax act online 2009 Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Tax act online 2009 Generally, the standard deduction amounts are adjusted each year for inflation. Tax act online 2009 The standard deduction amounts for most people are shown in Table 20-1. Tax act online 2009 Decedent's final return. Tax act online 2009   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. Tax act online 2009 However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. Tax act online 2009 Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. Tax act online 2009 You are considered 65 on the day before your 65th birthday. Tax act online 2009 Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. Tax act online 2009 Use Table 20-2 to figure the standard deduction amount. Tax act online 2009 Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. Tax act online 2009 Not totally blind. Tax act online 2009   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. Tax act online 2009   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. Tax act online 2009 You must keep the statement in your records. Tax act online 2009   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. Tax act online 2009 Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. Tax act online 2009 You cannot claim the higher standard deduction for an individual other than yourself and your spouse. Tax act online 2009 Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. Tax act online 2009 Example 1. Tax act online 2009 Larry, 46, and Donna, 33, are filing a joint return for 2013. Tax act online 2009 Neither is blind, and neither can be claimed as a dependent. Tax act online 2009 They decide not to itemize their deductions. Tax act online 2009 They use Table 20-1. Tax act online 2009 Their standard deduction is $12,200. Tax act online 2009 Example 2. Tax act online 2009 The facts are the same as in Example 1 except that Larry is blind at the end of 2013. Tax act online 2009 Larry and Donna use Table 20-2. Tax act online 2009 Their standard deduction is $13,400. Tax act online 2009 Example 3. Tax act online 2009 Bill and Lisa are filing a joint return for 2013. Tax act online 2009 Both are over age 65. Tax act online 2009 Neither is blind, and neither can be claimed as a dependent. Tax act online 2009 If they do not itemize deductions, they use Table 20-2. Tax act online 2009 Their standard deduction is $14,600. Tax act online 2009 Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). Tax act online 2009 However, if the individual is 65 or older or blind, the standard deduction may be higher. Tax act online 2009 If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. Tax act online 2009 Earned income defined. Tax act online 2009   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. Tax act online 2009    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. Tax act online 2009 See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. Tax act online 2009 Example 1. Tax act online 2009 Michael is single. Tax act online 2009 His parents can claim an exemption for him on their 2013 tax return. Tax act online 2009 He has interest income of $780 and wages of $150. Tax act online 2009 He has no itemized deductions. Tax act online 2009 Michael uses Table 20-3 to find his standard deduction. Tax act online 2009 He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. Tax act online 2009 His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). Tax act online 2009 Example 2. Tax act online 2009 Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. Tax act online 2009 Joe is married and files a separate return. Tax act online 2009 His wife does not itemize deductions on her separate return. Tax act online 2009 Joe has $1,500 in interest income and wages of $3,800. Tax act online 2009 He has no itemized deductions. Tax act online 2009 Joe finds his standard deduction by using Table 20-3. Tax act online 2009 He enters his earned income, $3,800 on line 1. Tax act online 2009 He adds lines 1 and 2 and enters $4,150 on line 3. Tax act online 2009 On line 5, he enters $4,150, the larger of lines 3 and 4. Tax act online 2009 Because Joe is married filing a separate return, he enters $6,100 on line 6. Tax act online 2009 On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. Tax act online 2009 Example 3. Tax act online 2009 Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. Tax act online 2009 She is 18 years old and blind. Tax act online 2009 She has interest income of $1,300 and wages of $2,900. Tax act online 2009 She has no itemized deductions. Tax act online 2009 Amy uses Table 20-3 to find her standard deduction. Tax act online 2009 She enters her wages of $2,900 on line 1. Tax act online 2009 She adds lines 1 and 2 and enters $3,250 on line 3. Tax act online 2009 On line 5, she enters $3,250, the larger of lines 3 and 4. Tax act online 2009 Because she is single, Amy enters $6,100 on line 6. Tax act online 2009 She enters $3,250 on line 7a. Tax act online 2009 This is the smaller of the amounts on lines 5 and 6. Tax act online 2009 Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. Tax act online 2009 She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. Tax act online 2009 Example 4. Tax act online 2009 Ed is single. Tax act online 2009 His parents can claim an exemption for him on their 2013 tax return. Tax act online 2009 He has wages of $7,000, interest income of $500, and a business loss of $3,000. Tax act online 2009 He has no itemized deductions. Tax act online 2009 Ed uses Table 20-3 to figure his standard deduction. Tax act online 2009 He enters $4,000 ($7,000 - $3,000) on line 1. Tax act online 2009 He adds lines 1 and 2 and enters $4,350 on line 3. Tax act online 2009 On line 5 he enters $4,350, the larger of lines 3 and 4. Tax act online 2009 Because he is single, Ed enters $6,100 on line 6. Tax act online 2009 On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. Tax act online 2009 Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. Tax act online 2009 Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . Tax act online 2009 You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. Tax act online 2009 You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). Tax act online 2009 See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. Tax act online 2009 When to itemize. Tax act online 2009   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. Tax act online 2009 These deductions are explained in chapters 21–28. Tax act online 2009    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. Tax act online 2009 Enter the amount from Schedule A, line 29, on Form 1040, line 40. Tax act online 2009 Electing to itemize for state tax or other purposes. Tax act online 2009   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. Tax act online 2009 You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. Tax act online 2009 To make this election, you must check the box on line 30 of Schedule A. Tax act online 2009 Changing your mind. Tax act online 2009   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. Tax act online 2009 S. Tax act online 2009 Individual Income Tax Return. Tax act online 2009 See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. Tax act online 2009 Married persons who filed separate returns. Tax act online 2009   You can change methods of taking deductions only if you and your spouse both make the same changes. Tax act online 2009 Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. Tax act online 2009    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. Tax act online 2009 You both must use the same method of claiming deductions. Tax act online 2009 If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. Tax act online 2009 See Persons not eligible for the standard deduction , earlier. Tax act online 2009 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Tax act online 2009 Table 20-1. Tax act online 2009 Standard Deduction Chart for Most People* If your filing status is. Tax act online 2009 . Tax act online 2009 . Tax act online 2009 Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. Tax act online 2009 Use Table 20-2 or 20-3 instead. Tax act online 2009 Table 20-2. Tax act online 2009 Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. Tax act online 2009 Then go to the chart. Tax act online 2009 You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. Tax act online 2009 . Tax act online 2009 . Tax act online 2009 AND the number in the box above is. Tax act online 2009 . Tax act online 2009 . Tax act online 2009 THEN your standard deduction is. Tax act online 2009 . Tax act online 2009 . Tax act online 2009 Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. Tax act online 2009 Table 20-3. Tax act online 2009 Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. Tax act online 2009 Check the correct number of boxes below. Tax act online 2009 Then go to the worksheet. Tax act online 2009 You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. Tax act online 2009 Enter your earned income (defined below). Tax act online 2009 If none, enter -0-. Tax act online 2009 1. Tax act online 2009   2. Tax act online 2009 Additional amount. Tax act online 2009 2. Tax act online 2009 $350 3. Tax act online 2009 Add lines 1 and 2. Tax act online 2009 3. Tax act online 2009   4. Tax act online 2009 Minimum standard deduction. Tax act online 2009 4. Tax act online 2009 $1,000 5. Tax act online 2009 Enter the larger of line 3 or line 4. Tax act online 2009 5. Tax act online 2009   6. Tax act online 2009 Enter the amount shown below for your filing status. Tax act online 2009 Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. Tax act online 2009   7. Tax act online 2009 Standard deduction. Tax act online 2009         a. Tax act online 2009 Enter the smaller of line 5 or line 6. Tax act online 2009 If born after January 1, 1949, and not blind, stop here. Tax act online 2009 This is your standard deduction. Tax act online 2009 Otherwise, go on to line 7b. Tax act online 2009 7a. Tax act online 2009     b. Tax act online 2009 If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. Tax act online 2009 7b. Tax act online 2009     c. Tax act online 2009 Add lines 7a and 7b. Tax act online 2009 This is your standard deduction for 2013. Tax act online 2009 7c. Tax act online 2009   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Tax act online 2009 It also includes any amount received as a scholarship that you must include in your income. Tax act online 2009 Prev  Up  Next   Home   More Online Publications
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The Tax Act Online 2009

Tax act online 2009 Internal Revenue Bulletin:  2013-12  March 18, 2013  Rev. Tax act online 2009 Proc. Tax act online 2009 2013-21 Table of Contents SECTION 1. Tax act online 2009 PURPOSE SECTION 2. Tax act online 2009 BACKGROUND SECTION 3. Tax act online 2009 SCOPE SECTION 4. Tax act online 2009 APPLICATION. Tax act online 2009 01 Limitations on Depreciation Deductions for Certain Automobiles. Tax act online 2009 . Tax act online 2009 02 Inclusions in Income of Lessees of Passenger Automobiles. Tax act online 2009 SECTION 5. Tax act online 2009 EFFECTIVE DATE SECTION 6. Tax act online 2009 DRAFTING INFORMATION SECTION 1. Tax act online 2009 PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. Tax act online 2009 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Tax act online 2009 SECTION 2. Tax act online 2009 BACKGROUND . Tax act online 2009 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Tax act online 2009 For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Tax act online 2009 The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Tax act online 2009 This change reflects the higher rate of price inflation for trucks and vans since 1988. Tax act online 2009 . Tax act online 2009 02 Section 331(a) of the American Taxpayer Relief Act of 2012, Pub. Tax act online 2009 L. Tax act online 2009 No. Tax act online 2009 112-240, 126 Stat. Tax act online 2009 2313 (Jan. Tax act online 2009 2, 2013) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2014, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2014. Tax act online 2009 Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Tax act online 2009 . Tax act online 2009 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Tax act online 2009 Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Tax act online 2009 Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2012, that is round 3 extension property (as defined in § 168(k)(4)(J)(iv)). Tax act online 2009 Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Tax act online 2009 This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer: (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2013 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Tax act online 2009 . Tax act online 2009 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Tax act online 2009 The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Tax act online 2009 Under § 1. Tax act online 2009 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Tax act online 2009 One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Tax act online 2009 Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Tax act online 2009 SECTION 3. Tax act online 2009 SCOPE . Tax act online 2009 01 The limitations on depreciation deductions in section 4. Tax act online 2009 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2013, and continue to apply for each taxable year that the passenger automobile remains in service. Tax act online 2009 . Tax act online 2009 02 The tables in section 4. Tax act online 2009 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2013. Tax act online 2009 Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Tax act online 2009 See Rev. Tax act online 2009 Proc. Tax act online 2009 2008-22, 2008-1 C. Tax act online 2009 B. Tax act online 2009 658, for passenger automobiles first leased during calendar year 2008; Rev. Tax act online 2009 Proc. Tax act online 2009 2009-24, 2009-17 I. Tax act online 2009 R. Tax act online 2009 B. Tax act online 2009 885, for passenger automobiles first leased during calendar year 2009; Rev. Tax act online 2009 Proc. Tax act online 2009 2010-18, 2010-09 I. Tax act online 2009 R. Tax act online 2009 B. Tax act online 2009 427, as amplified and modified by section 4. Tax act online 2009 03 of Rev. Tax act online 2009 Proc. Tax act online 2009 2011-21, 2011-12 I. Tax act online 2009 R. Tax act online 2009 B. Tax act online 2009 560, for passenger automobiles first leased during calendar year 2010; Rev. Tax act online 2009 Proc. Tax act online 2009 2011-21, for passenger automobiles first leased during calendar year 2011; and Rev. Tax act online 2009 Proc. Tax act online 2009 2012-23, 2012-14 I. Tax act online 2009 R. Tax act online 2009 B. Tax act online 2009 712, for passenger automobiles first leased during calendar year 2012. Tax act online 2009 SECTION 4. Tax act online 2009 APPLICATION . Tax act online 2009 01 Limitations on Depreciation Deductions for Certain Automobiles. Tax act online 2009 (1) Amount of the inflation adjustment. Tax act online 2009 (a) Passenger automobiles (other than trucks or vans). Tax act online 2009 Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Tax act online 2009 Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Tax act online 2009 The new car component of the CPI was 115. Tax act online 2009 2 for October 1987 and 143. Tax act online 2009 787 for October 2012. Tax act online 2009 The October 2012 index exceeded the October 1987 index by 28. Tax act online 2009 587. Tax act online 2009 Therefore, the automobile price inflation adjustment for 2013 for passenger automobiles (other than trucks and vans) is 24. Tax act online 2009 8 percent (28. Tax act online 2009 587/115. Tax act online 2009 2 x 100%). Tax act online 2009 The dollar limitations in § 280F(a) are multiplied by a factor of 0. Tax act online 2009 248, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2013. Tax act online 2009 This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2013. Tax act online 2009 (b) Trucks and vans. Tax act online 2009 To determine the dollar limitations for trucks and vans first placed in service during calendar year 2013, the Service uses the new truck component of the CPI instead of the new car component. Tax act online 2009 The new truck component of the CPI was 112. Tax act online 2009 4 for October 1987 and 149. Tax act online 2009 386 for October 2012. Tax act online 2009 The October 2012 index exceeded the October 1987 index by 36. Tax act online 2009 986. Tax act online 2009 Therefore, the automobile price inflation adjustment for 2013 for trucks and vans is 32. Tax act online 2009 9 percent (36. Tax act online 2009 986/112. Tax act online 2009 4 x 100%). Tax act online 2009 The dollar limitations in § 280F(a) are multiplied by a factor of 0. Tax act online 2009 329, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Tax act online 2009 This adjustment applies to all trucks and vans that are first placed in service in calendar year 2013. Tax act online 2009 (2) Amount of the limitation. Tax act online 2009 Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2013. Tax act online 2009 Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction applies. Tax act online 2009 Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction does not apply. Tax act online 2009 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 . Tax act online 2009 02 Inclusions in Income of Lessees of Passenger Automobiles. Tax act online 2009 A taxpayer must follow the procedures in § 1. Tax act online 2009 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2013. Tax act online 2009 In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Tax act online 2009 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 2 4 6 7 8 19,500 20,000 2 5 6 9 9 20,000 20,500 2 5 8 9 11 20,500 21,000 3 6 8 10 12 21,000 21,500 3 6 10 11 13 21,500 22,000 3 7 10 13 14 22,000 23,000 4 8 11 14 16 23,000 24,000 4 9 14 16 18 24,000 25,000 5 10 15 18 21 25,000 26,000 5 12 16 21 23 26,000 27,000 6 12 19 23 25 27,000 28,000 6 14 20 25 28 28,000 29,000 7 15 22 27 30 29,000 30,000 7 16 24 29 33 30,000 31,000 8 17 26 31 35 31,000 32,000 8 19 27 33 38 32,000 33,000 9 20 29 35 40 33,000 34,000 10 21 31 37 43 34,000 35,000 10 22 33 39 45 35,000 36,000 11 23 35 41 48 36,000 37,000 11 25 36 43 50 37,000 38,000 12 26 38 45 53 38,000 39,000 12 27 40 47 55 39,000 40,000 13 28 42 49 58 40,000 41,000 13 29 44 52 59 41,000 42,000 14 30 45 54 63 42,000 43,000 14 32 47 56 64 43,000 44,000 15 33 48 59 67 44,000 45,000 15 34 51 60 69 45,000 46,000 16 35 52 63 72 46,000 47,000 17 36 54 65 74 47,000 48,000 17 38 55 67 77 48,000 49,000 18 39 57 69 79 49,000 50,000 18 40 59 71 82 50,000 51,000 19 41 61 73 84 51,000 52,000 19 42 63 75 87 52,000 53,000 20 43 65 77 89 53,000 54,000 20 45 66 79 92 54,000 55,000 21 46 68 81 94 55,000 56,000 21 47 70 84 96 56,000 57,000 22 48 72 85 99 57,000 58,000 22 50 73 88 101 58,000 59,000 23 51 75 90 103 59,000 60,000 24 52 76 92 106 60,000 62,000 24 54 79 95 110 62,000 64,000 25 56 83 99 115 64,000 66,000 27 58 87 103 120 66,000 68,000 28 60 90 108 125 68,000 70,000 29 63 93 112 130 70,000 72,000 30 65 97 117 134 72,000 74,000 31 68 100 121 139 74,000 76,000 32 70 104 125 144 76,000 78,000 33 73 107 129 149 78,000 80,000 34 75 111 133 154 80,000 85,000 36 79 117 141 162 85,000 90,000 39 85 126 151 174 90,000 95,000 41 91 135 162 186 95,000 100,000 44 97 144 172 199 100,000 110,000 48 106 157 188 217 110,000 120,000 53 118 174 210 241 120,000 130,000 59 129 193 230 266 130,000 140,000 64 141 210 252 290 140,000 150,000 70 153 227 273 315 150,000 160,000 75 165 245 294 339 160,000 170,000 80 177 263 315 363 170,000 180,000 86 189 280 336 388 180,000 190,000 91 201 298 357 412 190,000 200,000 97 212 316 378 436 200,000 210,000 102 224 333 400 461 210,000 220,000 107 236 351 420 486 220,000 230,000 113 248 368 442 509 230,000 240,000 118 260 386 463 534 240,000 And up 124 272 403 484 558 REV. Tax act online 2009 PROC. Tax act online 2009 2013-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 1 3 4 5 6 19,500 20,000 2 3 5 6 7 20,000 20,500 2 4 6 7 8 20,500 21,000 2 5 7 8 9 21,000 21,500 2 5 8 9 11 21,500 22,000 3 6 8 10 12 22,000 23,000 3 7 10 11 14 23,000 24,000 4 8 11 14 16 24,000 25,000 4 9 14 16 18 25,000 26,000 5 10 15 18 21 26,000 27,000 5 12 17 20 23 27,000 28,000 6 13 18 23 25 28,000 29,000 6 14 20 25 28 29,000 30,000 7 15 22 27 30 30,000 31,000 7 16 24 29 33 31,000 32,000 8 17 26 31 35 32,000 33,000 8 19 27 33 38 33,000 34,000 9 20 29 35 41 34,000 35,000 10 21 31 37 43 35,000 36,000 10 22 33 39 46 36,000 37,000 11 23 35 41 48 37,000 38,000 11 25 36 43 51 38,000 39,000 12 26 38 45 53 39,000 40,000 12 27 40 48 55 40,000 41,000 13 28 42 49 58 41,000 42,000 13 29 44 52 60 42,000 43,000 14 30 46 54 62 43,000 44,000 14 32 47 56 65 44,000 45,000 15 33 48 59 67 45,000 46,000 15 34 51 60 70 46,000 47,000 16 35 52 63 72 47,000 48,000 17 36 54 65 74 48,000 49,000 17 38 55 67 77 49,000 50,000 18 39 57 69 79 50,000 51,000 18 40 59 71 82 51,000 52,000 19 41 61 73 84 52,000 53,000 19 42 63 75 87 53,000 54,000 20 43 65 77 89 54,000 55,000 20 45 66 80 91 55,000 56,000 21 46 68 81 94 56,000 57,000 21 47 70 84 96 57,000 58,000 22 48 72 86 98 58,000 59,000 22 50 73 88 101 59,000 60,000 23 51 75 90 103 60,000 62,000 24 52 78 93 108 62,000 64,000 25 55 81 97 113 64,000 66,000 26 57 85 101 118 66,000 68,000 27 60 88 106 122 68,000 70,000 28 62 92 110 127 70,000 72,000 29 64 96 114 132 72,000 74,000 30 67 99 118 137 74,000 76,000 31 69 103 122 142 76,000 78,000 32 72 105 127 147 78,000 80,000 34 73 110 131 151 80,000 85,000 35 78 116 138 160 85,000 90,000 38 84 124 149 172 90,000 95,000 41 90 133 160 184 95,000 100,000 44 95 142 171 196 100,000 110,000 48 104 156 186 214 110,000 120,000 53 116 173 207 240 120,000 130,000 58 128 191 228 264 130,000 140,000 64 140 208 249 288 140,000 150,000 69 152 226 270 313 150,000 160,000 75 164 243 292 336 160,000 170,000 80 176 261 312 361 170,000 180,000 85 188 278 334 386 180,000 190,000 91 199 296 355 410 190,000 200,000 96 211 314 376 434 200,000 210,000 101 223 332 397 459 210,000 220,000 107 235 349 418 483 220,000 230,000 112 247 367 439 507 230,000 240,000 118 259 384 460 532 240,000 And up 123 271 401 482 556 SECTION 5. Tax act online 2009 EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2013. Tax act online 2009 SECTION 6. Tax act online 2009 DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Tax act online 2009 Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Tax act online 2009 For further information regarding this revenue procedure, contact Mr. Tax act online 2009 Harvey at (202) 622-4930 (not a toll-free call). Tax act online 2009 Prev  Up  Next   Home   More Internal Revenue Bulletins