File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Tax Amendment Form 2013

Can I File 1040ez OnlineFiling A 1040 EzFiling An Amended Return For 2012Filing 2012 Taxes2010 Income TaxFree Tax HelpTurbo Tax Filing For 2010Form 1040ezIrs Gov Form 1040File State TaxesSelf Employment Tax FormIncome Tax Form 1040ezTaxes For UnemployedHttps Www Freefilefillableforms Com Ffa Checkstatus HtmTax Returns 2012How To File State TaxState Income Tax Forms 20131040ez 2011 Tax FormHow To E File State Taxes For FreeFree 2011 Tax Return OnlineFree TaxesIrs Easy FormFile My State Taxes For Free OnlineFree Ez FormFederal Form 1040xTurbotax 1040x2010 Income Tax Forms 1040ezFillable Tax Forms 2011Free Tax EstimatorIrs Amended Return FormHr Block Tax ReturnFree Federal And State Income Tax FilingFree E File 2013 Taxes2012 Amended Tax ReturnI Need To File My State Taxes OnlyFile Taxes IncomeSearch Freetaxusa ComOnline Tax ExtensionPa 1040xHttps Efile State Tax Free

Tax Amendment Form 2013

Tax amendment form 2013 Publication 3 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Tax amendment form 2013 Tax questions. Tax amendment form 2013 Useful Items - You may want to see: What's New Earned income credit. Tax amendment form 2013  The maximum income you can earn and still claim the earned income credit has increased. Tax amendment form 2013 You may be able to take the earned income credit if you earned less than $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children; $43,038 ($48,378 for married filing jointly) if you have two qualifying children; $37,870 ($43,210 for married filing jointly) if you have one qualifying child; and $14,340 ($19,680 for married filing jointly) if you do not have any qualifying children. Tax amendment form 2013 See Earned Income Credit , later, under Credits. Tax amendment form 2013 Standard mileage rate. Tax amendment form 2013  The standard mileage rate for the cost of operating your car for business use in 2013 is 56. Tax amendment form 2013 5 cents a mile. Tax amendment form 2013 The standard mileage rate for operating your car during 2013 to get medical care or to move is 24 cents a mile. Tax amendment form 2013 The standard mileage rate for charitable use of your vehicle is 14 cents a mile. Tax amendment form 2013 Filing status for same-sex married couples. Tax amendment form 2013  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Tax amendment form 2013 See Filing Returns , later. Tax amendment form 2013 Reminders Change of address. Tax amendment form 2013  If you change your mailing address, be sure to notify the Internal Revenue Service (IRS) using Form 8822, Change of Address. Tax amendment form 2013 Mail it to the Internal Revenue Service Center for your old address. Tax amendment form 2013 (Addresses for the Service Centers are on the back of the form. Tax amendment form 2013 ) Use Form 8822-B, Change of Address or Responsible Party—Business, if you are changing a business address. Tax amendment form 2013 Third party designee. Tax amendment form 2013  You can check the “Yes” box in the Third Party Designee area of your return to authorize the IRS to discuss your return with your preparer, a friend, a family member, or any other person you choose. Tax amendment form 2013 This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your tax return. Tax amendment form 2013 It also allows your designee to perform certain actions. Tax amendment form 2013 See your income tax instructions for details. Tax amendment form 2013 Future developments. Tax amendment form 2013  For the latest information about developments related to Publication 3, such as legislation enacted after it was published, go to www. Tax amendment form 2013 irs. Tax amendment form 2013 gov/pub3. Tax amendment form 2013 Photographs of missing children. Tax amendment form 2013  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax amendment form 2013 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax amendment form 2013 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax amendment form 2013 Introduction This publication covers the special tax situations of active members of the U. Tax amendment form 2013 S. Tax amendment form 2013 Armed Forces. Tax amendment form 2013 It does not cover military pensions or veterans' benefits or give the basic tax rules that apply to all taxpayers. Tax amendment form 2013 For information on military pensions or veterans' benefits, see Publication 525, Taxable and Nontaxable Income. Tax amendment form 2013 If you need the basic tax rules or information on another subject not covered here, you can check our other free publications. Tax amendment form 2013 See Publication 910, IRS Guide to Free Tax Services, for a list and descriptions of the different tax publications. Tax amendment form 2013 For federal tax purposes, the U. Tax amendment form 2013 S. Tax amendment form 2013 Armed Forces includes commissioned officers, warrant officers, and enlisted personnel in all regular and reserve units under control of the Secretaries of the Defense, Army, Navy, and Air Force. Tax amendment form 2013 The U. Tax amendment form 2013 S. Tax amendment form 2013 Armed Forces also includes the Coast Guard. Tax amendment form 2013 It does not include the U. Tax amendment form 2013 S. Tax amendment form 2013 Merchant Marine or the American Red Cross. Tax amendment form 2013 Members serving in an area designated or treated as a combat zone are granted special tax benefits. Tax amendment form 2013 In the event an area ceases to be a combat zone, the IRS will do its best to notify you. Tax amendment form 2013 Many of the relief provisions will end at that time. Tax amendment form 2013 Comments and suggestions. Tax amendment form 2013   We welcome your comments about this publication and your suggestions for future editions. Tax amendment form 2013   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Tax amendment form 2013 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax amendment form 2013 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax amendment form 2013   You can send your comments from www. Tax amendment form 2013 irs. Tax amendment form 2013 gov/formspubs. Tax amendment form 2013 Click on “More Information” and then on “Comment on Tax Forms and Publications. Tax amendment form 2013 ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax amendment form 2013 Ordering forms and publications. Tax amendment form 2013   Visit www. Tax amendment form 2013 irs. Tax amendment form 2013 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Tax amendment form 2013 Internal Revenue Service 1201 N. Tax amendment form 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Tax amendment form 2013   If you have a tax question, check the information available on IRS. Tax amendment form 2013 gov or call 1-800-829-1040. Tax amendment form 2013 We cannot answer tax questions sent to either of the above addresses. Tax amendment form 2013 Useful Items - You may want to see: Publication 54 Tax Guide for U. Tax amendment form 2013 S. Tax amendment form 2013 Citizens and Resident Aliens Abroad 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 503 Child and Dependent Care Expenses 505 Tax Withholding and Estimated Tax 516 U. Tax amendment form 2013 S. Tax amendment form 2013 Government Civilian Employees Stationed Abroad 519 U. Tax amendment form 2013 S. Tax amendment form 2013 Tax Guide for Aliens 521 Moving Expenses 523 Selling Your Home 525 Taxable and Nontaxable Income 527 Residential Rental Property 529 Miscellaneous Deductions 559 Survivors, Executors, and Administrators 590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) 970 Tax Benefits for Education 3920 Tax Relief for Victims of Terrorist Attacks Form (and Instructions) 1040X Amended U. Tax amendment form 2013 S. Tax amendment form 2013 Individual Income Tax Return 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer 2848 Power of Attorney and Declaration of Representative 3903 Moving Expenses 4868 Application for Automatic Extension of Time To File U. Tax amendment form 2013 S. Tax amendment form 2013 Individual Income Tax Return 8822 Change of Address 8822-B Change of Address or Responsible Party—Business 9465 Installment Agreement Request See How To Get Tax Help near the end of this publication, for information about getting IRS publications and forms. Tax amendment form 2013 Prev  Up  Next   Home   More Online Publications
Español

Federal Executive Boards

Federal Executive Boards operate in 28 US cities and provide a forum for collaboration and information exchange between federal field agencies. In this way, field agencies may share best best practices and lessons learned, or may coordinate efforts when different agencies adopt programs with similar goals.

Contact the Agency or Department

Website: Federal Executive Boards

E-mail:

Address: Theodore Roosevelt Building
1900 E St NW, Room 7673

Washington, DC 20415

The Tax Amendment Form 2013

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