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

Turbotax 1040x

Back Tax DebtForm 1040a Instructions 2012Free File 2012 TaxesFile Back Tax OnlineHelp With 1040xTurbotax File 2010 Tax ReturnCan I File My 2012 Taxes With My 2013 TaxesWhere To File 1040x 2010Can I Still File My 2011 Tax ReturnMilitary Onesource Taxes2013 1040ez Instructions1040ez WorksheetIrs 1040nrHow Do You File Your State Taxes For FreeTurbotax Amended Return 2013How To File 1040ez Online For FreeWww.irs Tax Form 1040ez For 2012File My 2010 Taxes FreeState Tax Filing OnlineFile Taxes Online Free2007 Tax Software Free DownloadIrs E File 2011Efile 2012 TaxesAmmended Tax Return2010 1040ezFile 2012 Taxes Online Free1040ez Online FilingDo State Taxes Online FreeHow Can I Amend My Tax ReturnHow To File Unemployment TaxesIrs Income Tax Forms 2010Free H And R Block MilitaryTax Return AmendmentDo Students Need To File TaxesFree State Tax Return OnlineIrs Tax ReturnE File 2010 Taxes For FreeAmend Tax ReturnMypay Dfas10 40 Ez Tax Form

Turbotax 1040x

Turbotax 1040x 3. Turbotax 1040x   Environmental Taxes Table of Contents Oil Spill Liability Tax ODCs Imported Taxable Products Floor Stocks Tax Environmental taxes are imposed on crude oil and petroleum products (oil spill liability), the sale or use of ozone-depleting chemicals (ODCs), and imported products containing or manufactured with ODCs. Turbotax 1040x In addition, a floor stocks tax is imposed on ODCs held on January 1 by any person (other than the manufacturer or importer of the ODCs) for sale or for use in further manufacture. Turbotax 1040x Figure the environmental tax on Form 6627. Turbotax 1040x Enter the tax on the appropriate lines of Form 720 and attach Form 6627 to Form 720. Turbotax 1040x For environmental tax purposes, United States includes the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, the continental shelf areas (applying the principles of section 638), and foreign trade zones. Turbotax 1040x No one is exempt from the environmental taxes, including the federal government, state and local governments, Indian tribal governments, and nonprofit educational organizations. Turbotax 1040x Oil Spill Liability Tax The oil spill liability tax is reported on Form 6627, Environmental Taxes, and Form 720, Quarterly Federal Excise Tax Return (IRS Nos. Turbotax 1040x 18 and 21). Turbotax 1040x The oil spill liability tax rate is $. Turbotax 1040x 08 per barrel and generally applies to crude oil received at a U. Turbotax 1040x S. Turbotax 1040x refinery and to petroleum products entered into the United States for consumption, use, or warehousing. Turbotax 1040x The tax also applies to certain uses and the exportation of domestic crude oil. Turbotax 1040x Crude oil includes crude oil condensates and natural gasoline. Turbotax 1040x Petroleum products include crude oil, refined and residual oil, and other liquid hydrocarbon refinery products. Turbotax 1040x Crude oil. Turbotax 1040x   Tax is imposed on crude oil when it is received at a United Sates refinery. Turbotax 1040x The operator of the refinery is liable for the tax. Turbotax 1040x   Tax is imposed on domestic crude oil used or exported before it is received at a United States refinery. Turbotax 1040x However, the use of crude oil for extracting oil or natural gas on the premises where such crude oil was produced is not taxable. Turbotax 1040x The user or exporter is liable for the tax. Turbotax 1040x Imported petroleum products. Turbotax 1040x   Tax is imposed on petroleum products when they enter the United States for consumption, use, or warehousing. Turbotax 1040x The person entering the petroleum product into the country is liable for the tax, including the tax on imported crude oil, even if it is subsequently received at a U. Turbotax 1040x S. Turbotax 1040x refinery. Turbotax 1040x   Tax is imposed only once on any imported petroleum product. Turbotax 1040x Thus, the operator of a U. Turbotax 1040x S. Turbotax 1040x refinery that receives imported crude oil must establish that the petroleum tax has already been imposed on such crude oil in order not to be liable for the tax. Turbotax 1040x ODCs For a list of the taxable ODCs and tax rates, see the Form 6627 instructions. Turbotax 1040x Taxable event. Turbotax 1040x   Tax is imposed on an ODC when it is first used or sold by its manufacturer or importer. Turbotax 1040x The manufacturer or importer is liable for the tax. Turbotax 1040x Use of ODCs. Turbotax 1040x   You use an ODC if you put it into service in a trade or business or for the production of income. Turbotax 1040x Also, an ODC is used if you use it in the making of an article, including incorporation into the article, chemical transformation, or release into the air. Turbotax 1040x The loss, destruction, packaging, repackaging, or warehousing of ODCs is not a use of the ODC. Turbotax 1040x   The creation of a mixture containing an ODC is treated as a taxable use of the ODC contained in the mixture. Turbotax 1040x An ODC is contained in a mixture only if the chemical identity of the ODC is not changed. Turbotax 1040x Generally, tax is imposed when the mixture is created and not on its sale or use. Turbotax 1040x However, you can choose to have the tax imposed on its sale or use by checking the appropriate box on Form 6627. Turbotax 1040x You can revoke this choice only with IRS consent. Turbotax 1040x   The creation of a mixture for export or for use as a feedstock is not a taxable use of the ODCs contained in the mixture. Turbotax 1040x Exceptions. Turbotax 1040x   The following may be exempt from the tax on ODCs. Turbotax 1040x Metered-dose inhalers. Turbotax 1040x Recycled ODCs. Turbotax 1040x Exported ODCs. Turbotax 1040x ODCs used as feedstock. Turbotax 1040x Metered-dose inhalers. Turbotax 1040x   There is no tax on ODCs used or sold for use as propellants in metered-dose inhalers. Turbotax 1040x For a sale to be nontaxable, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Turbotax 1040x The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Turbotax 1040x 4682-2(d)(5). Turbotax 1040x The certificate may be included as part of the sales documentation. Turbotax 1040x Keep the certificate with your records. Turbotax 1040x Recycled ODCs. Turbotax 1040x   There is no tax on any ODC diverted or recovered in the United States as part of a recycling process (and not as part of the original manufacturing or production process). Turbotax 1040x There is no tax on recycled Halon-1301 or recycled Halon-2402 imported from a country that has signed the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol). Turbotax 1040x   The Montreal Protocol is administered by the United Nations (U. Turbotax 1040x N. Turbotax 1040x ). Turbotax 1040x To determine if a country has signed the Montreal Protocol, contact the U. Turbotax 1040x N. Turbotax 1040x The website is untreaty. Turbotax 1040x un. Turbotax 1040x org. Turbotax 1040x Exported ODCs. Turbotax 1040x   Generally, there is no tax on ODCs sold for export if certain requirements are met. Turbotax 1040x For a sale to be nontaxable, you and the purchaser must be registered. Turbotax 1040x See Form 637, Application for Registration (for Certain Excise Tax Activities). Turbotax 1040x Also, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Turbotax 1040x Keep the certificate with your records. Turbotax 1040x The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Turbotax 1040x 4682-5(d)(3). Turbotax 1040x The tax benefit of this exemption is limited. Turbotax 1040x For more information, see Regulations section 52. Turbotax 1040x 4682-5. Turbotax 1040x ODCs used as feedstock. Turbotax 1040x   There is no tax on ODCs sold for use or used as a feedstock. Turbotax 1040x An ODC is used as a feedstock only if the ODC is entirely consumed in the manufacture of another chemical. Turbotax 1040x The transformation of an ODC into one or more new compounds qualifies as use as a feedstock, but use of an ODC in a mixture does not qualify. Turbotax 1040x   For a sale to be nontaxable, you must obtain from the purchaser an exemption certificate that you rely on in good faith. Turbotax 1040x The certificate must be in substantially the form as the sample certificate set forth in Regulations section 52. Turbotax 1040x 4682-2(d)(2). Turbotax 1040x Keep the certificate with your records. Turbotax 1040x Credits or refunds. Turbotax 1040x   A credit or refund (without interest) of tax paid on ODCs may be claimed if a taxed ODC is: Used as a propellant in a metered-dose inhaler (the person who used the ODC as a propellant may file a claim), Exported (the manufacturer may file a claim), or Used as a feedstock (the person who used the ODC may file a claim). Turbotax 1040x For information on how to file for credits or refunds, see the Instructions for Form 720 or Schedule 6 (Form 8849). Turbotax 1040x Conditions to allowance for ODCs exported. Turbotax 1040x   To claim a credit or refund for ODCs that are exported, you must have repaid or agreed to repay the tax to the exporter, or obtained the exporter's written consent to allowance of the credit or refund. Turbotax 1040x You must also have the evidence required by the EPA as proof that the ODCs were exported. Turbotax 1040x Imported Taxable Products An imported product containing or manufactured with ODCs is subject to tax if it is entered into the United States for consumption, use, or warehousing and is listed in the Imported Products Table. Turbotax 1040x The Imported Products Table is listed in Regulations section 52. Turbotax 1040x 4682-3(f)(6). Turbotax 1040x The tax is based on the weight of the ODCs used in the manufacture of the product. Turbotax 1040x Use the following methods to figure the ODC weight. Turbotax 1040x The actual (exact) weight of each ODC used as a material in manufacturing the product. Turbotax 1040x If the actual weight cannot be determined, the ODC weight listed for the product in the Imported Products Table. Turbotax 1040x However, if you cannot determine the actual weight and the table does not list an ODC weight for the product, the rate of tax is 1% of the entry value of the product. Turbotax 1040x Taxable event. Turbotax 1040x   Tax is imposed on an imported taxable product when the product is first sold or used by its importer. Turbotax 1040x The importer is liable for the tax. Turbotax 1040x Use of imported products. Turbotax 1040x   You use an imported product if you put it into service in a trade or business or for the production of income or use it in the making of an article, including incorporation into the article. Turbotax 1040x The loss, destruction, packaging, repackaging, warehousing, or repair of an imported product is not a use of that product. Turbotax 1040x Entry as use. Turbotax 1040x   The importer may choose to treat the entry of a product into the United States as the use of the product. Turbotax 1040x Tax is imposed on the date of entry instead of when the product is sold or used. Turbotax 1040x The choice applies to all imported taxable products that you own and have not used when you make the choice and all later entries. Turbotax 1040x Make the choice by checking the box in Part II of Form 6627. Turbotax 1040x The choice is effective as of the beginning of the calendar quarter to which the Form 6627 applies. Turbotax 1040x You can revoke this choice only with IRS consent. Turbotax 1040x Sale of article incorporating imported product. Turbotax 1040x   The importer may treat the sale of an article manufactured or assembled in the United States as the first sale or use of an imported taxable product incorporated in that article if both the following apply. Turbotax 1040x The importer has consistently treated the sale of similar items as the first sale or use of similar taxable imported products. Turbotax 1040x The importer has not chosen to treat entry into the United States as use of the product. Turbotax 1040x Imported products table. Turbotax 1040x   The table lists all the products that are subject to the tax on imported taxable products and specifies the ODC weight (discussed later) of each product. Turbotax 1040x   Each listing in the table identifies a product by name and includes only products that are described by that name. Turbotax 1040x Most listings identify a product by both name and Harmonized Tariff Schedule (HTS) heading. Turbotax 1040x In those cases, a product is included in that listing only if the product is described by that name and the rate of duty on the product is determined by reference to that HTS heading. Turbotax 1040x A product is included in the listing even if it is manufactured with or contains a different ODC than the one specified in the table. Turbotax 1040x   Part II of the table lists electronic items that are not included within any other list in the table. Turbotax 1040x An imported product is included in this list only if the product meets one of the following tests. Turbotax 1040x It is an electronic component whose operation involves the use of nonmechanical amplification or switching devices such as tubes, transistors, and integrated circuits. Turbotax 1040x It contains components described in (1), which account for more than 15% of the cost of the product. Turbotax 1040x   These components do not include passive electrical devices, such as resistors and capacitors. Turbotax 1040x Items such as screws, nuts, bolts, plastic parts, and similar specially fabricated parts that may be used to construct an electronic item are not themselves included in the listing for electronic items. Turbotax 1040x Rules for listing products. Turbotax 1040x   Products are listed in the table according to the following rules. Turbotax 1040x A product is listed in Part I of the table if it is a mixture containing ODCs. Turbotax 1040x A product is listed in Part II of the table if the Commissioner has determined that the ODCs used as materials in the manufacture of the product under the predominant method are used for purposes of refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components. Turbotax 1040x A product is listed in Part III of the table if the Commissioner has determined that the product meets both the following tests. Turbotax 1040x It is not an imported taxable product. Turbotax 1040x It would otherwise be included within a list in Part II of the table. Turbotax 1040x   For example, floppy disk drive units are listed in Part III because they are not imported taxable products and would have been included in the Part II list for electronic items not specifically identified, but for their listing in Part III. Turbotax 1040x ODC weight. Turbotax 1040x   The Table ODC weight of a product is the weight, determined by the Commissioner, of the ODCs used as materials in the manufacture of the product under the predominant method of manufacturing. Turbotax 1040x The ODC weight is listed in Part II in pounds per single unit of product unless otherwise specified. Turbotax 1040x Modifying the table. Turbotax 1040x   A manufacturer or importer of a product may request the IRS add a product and its ODC weight to the table. Turbotax 1040x They also may request the IRS remove a product from the table, or change or specify the ODC weight of a product. Turbotax 1040x To request a modification, see Regulations section 52. Turbotax 1040x 4682-3(g) for the mailing address and information that must be included in the request. Turbotax 1040x Floor Stocks Tax Tax is imposed on any ODC held (other than by the manufacturer or importer of the ODC) on January 1 for sale or use in further manufacturing. Turbotax 1040x The person holding title (as determined under local law) to the ODC is liable for the tax, whether or not delivery has been made. Turbotax 1040x These chemicals are taxable without regard to the type or size of storage container in which the ODCs are held. Turbotax 1040x The tax may apply to an ODC whether it is in a 14-ounce can or a 30-pound tank. Turbotax 1040x You are liable for the floor stocks tax if you hold any of the following on January 1. Turbotax 1040x At least 400 pounds of ODCs other than halons or methyl chloroform, At least 50 pounds of halons, or At least 1,000 pounds of methyl chloroform. Turbotax 1040x If you are liable for the tax, prepare an inventory on January 1 of the taxable ODCs held on that date for sale or for use in further manufacturing. Turbotax 1040x You must pay this floor stocks tax by June 30 of each year. Turbotax 1040x Report the tax on Form 6627 and Part II of Form 720 for the second calendar quarter. Turbotax 1040x For the tax rates, see the Form 6627 instructions. Turbotax 1040x ODCs not subject to floor stocks tax. Turbotax 1040x   The floor stocks tax is not imposed on any of the following ODCs. Turbotax 1040x ODCs mixed with other ingredients that contribute to achieving the purpose for which the mixture will be used, unless the mixture contains only ODCs and one or more stabilizers. Turbotax 1040x ODCs contained in a manufactured article in which the ODCs will be used for their intended purpose without being released from the article. Turbotax 1040x ODCs that have been reclaimed or recycled. Turbotax 1040x ODCs sold in a qualifying sale for: Use as a feedstock, Export, or Use as a propellant in a metered-dose inhaler. Turbotax 1040x Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams

IR-2011-73, July 11, 2011

IRS YouTube Videos:
Tax Refund Scams :
English | Spanish  |  ASL

WASHINGTON — The Internal Revenue Service today encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates.

The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.

Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities.   Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS sponsored Volunteer Income Tax Assistance partners. In other situations, identity theft is involved.

Taxpayers should be wary of any of the following:

  • Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
  • Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
  • Unfamiliar for-profit tax services teaming up with local churches.
  • Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit. 
  • Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.

In some cases non-existent Social Security refunds or rebates have been the bait used by the con artists.  In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return which results in a fraudulent return.

Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file with little or no documentation, have been appearing in community churches around the country. Promoters are targeting church congregations, exploiting their good intentions and credibility. These schemes also often spread by word of mouth among unsuspecting and well-intentioned people telling their friends and relatives. 
Promoters of these scams often prey upon low income individuals and the elderly. 

They build false hopes and charge people good money for bad advice.  In the end, the victims discover their claims are rejected or the refund barely exceeds what they paid the promoter.  Meanwhile, their money and the promoters are long gone.

Unsuspecting individuals are most likely to get caught up in scams and the IRS is warning all taxpayers, and those that help others prepare returns, to remain vigilant. If it sounds too good to be true, it probably is.

Anyone with questions about a tax credit or program should visit www.IRS.gov, call the IRS toll-free number at 800-829-1040 or visit a local IRS Taxpayer Assistance Center.

For questions about rebates, credit and benefits from other federal agencies contact the relevant agency directly for accurate information. 

Follow the IRS on new media

Subscribe to IRS Newswire

Page Last Reviewed or Updated: 19-Mar-2014

The Turbotax 1040x

Turbotax 1040x Depreciation Table of Contents Introduction Special Depreciation AllowanceQualified Property Election Not To Claim the Allowance Rules for Returns Filed Before June 1, 2002 Passenger Automobiles New York Liberty Zone BenefitsSpecial Liberty Zone Depreciation Allowance Increased Section 179 Deduction Liberty Zone Leasehold Improvement Property If you depreciate business property that you acquired and placed in service after September 10, 2001, new law contains provisions that may affect your depreciation deduction for that property. Turbotax 1040x Publication 946, How To Depreciate Property, contains information on depreciation. Turbotax 1040x However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. Turbotax 1040x The new provisions are in the Supplement to Publication 946, which is reprinted below. Turbotax 1040x Supplement to Publication 946 How To Depreciate Property   Introduction After Publication 946 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. Turbotax 1040x The new law made several changes in the tax rules explained in the publication. Turbotax 1040x Some of the changes apply to property placed in service during 2001. Turbotax 1040x This supplemental publication describes those changes and explains what you should do if you are affected by them. Turbotax 1040x The situations and examples in Publication 946 do not reflect any of the changes made by the Job Creation and Worker Assistance Act of 2002. Turbotax 1040x The new law contains the following provisions. Turbotax 1040x 30% depreciation deductions (special depreciation allowance and special New York Liberty Zone (Liberty Zone) depreciation allowance) for the year qualified property is placed in service after September 10, 2001. Turbotax 1040x An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. Turbotax 1040x A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. Turbotax 1040x An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. Turbotax 1040x If you believe you qualify for an increased deduction under any of these new rules, you must file the revised 2001 Form 4562 (dated March 2002) for 2001 calendar or fiscal years and 2000 fiscal years ending after September 10, 2001. Turbotax 1040x If you have already filed a tax return, this supplemental publication explains how to claim these benefits and how to elect not to claim the special depreciation allowance or special Liberty Zone depreciation allowance. Turbotax 1040x See Table 2 at the end of the supplement for an overview of the rules that apply if you filed your return before June 1, 2002. Turbotax 1040x Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. Turbotax 1040x The allowance is an additional deduction of 30% of the property's depreciable basis. Turbotax 1040x To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Turbotax 1040x See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Turbotax 1040x The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Turbotax 1040x There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Turbotax 1040x In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Turbotax 1040x Example 1. Turbotax 1040x On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. Turbotax 1040x You did not elect to claim a section 179 deduction. Turbotax 1040x You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. Turbotax 1040x You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. Turbotax 1040x Example 2. Turbotax 1040x The facts are the same as in Example 1, except that you choose to deduct $24,000 of the property's cost as a section 179 deduction. Turbotax 1040x You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). Turbotax 1040x You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. Turbotax 1040x Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. Turbotax 1040x It is new property of one of the following types. Turbotax 1040x Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Turbotax 1040x See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Turbotax 1040x Water utility property. Turbotax 1040x See 25-year property on page 22 in Publication 946. Turbotax 1040x Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Turbotax 1040x (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Turbotax 1040x ) Qualified leasehold improvement property (defined later). Turbotax 1040x It meets the following tests (explained later under Tests To Be Met). Turbotax 1040x Acquisition date test. Turbotax 1040x Placed in service date test. Turbotax 1040x Original use test. Turbotax 1040x It is not excepted property (explained later under Excepted Property). Turbotax 1040x Qualified leasehold improvement property. Turbotax 1040x    Generally, this is any improvement to an interior part of a building that is nonresidential real property, provided all of the following requirements are met. Turbotax 1040x The improvement is made under or pursuant to a lease by the lessee (or any sublessee) or the lessor of that part of the building. Turbotax 1040x That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Turbotax 1040x The improvement is placed in service more than 3 years after the date the building was first placed in service. Turbotax 1040x   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Turbotax 1040x The enlargement of the building. Turbotax 1040x Any elevator or escalator. Turbotax 1040x Any structural component benefiting a common area. Turbotax 1040x The internal structural framework of the building. Turbotax 1040x   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. Turbotax 1040x However, a binding commitment between related persons is not treated as a lease. Turbotax 1040x Related persons. Turbotax 1040x   For this purpose, the following are related persons. Turbotax 1040x Members of an affiliated group. Turbotax 1040x The persons listed in items (1) through (9) under Related persons on page 8 of Publication 946 (except that “80% or more” should be substituted for “more than 10%” each place it appears). Turbotax 1040x An executor and a beneficiary of the same estate. Turbotax 1040x Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. Turbotax 1040x Acquisition date test. Turbotax 1040x    Generally, you must have acquired the property either: After September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or Pursuant to a written binding contract entered into after September 10, 2001, and before September 11, 2004. Turbotax 1040x   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001, and before September 11, 2004. Turbotax 1040x Placed in service date test. Turbotax 1040x   Generally, the property must be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. Turbotax 1040x   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Turbotax 1040x Original use test. Turbotax 1040x   The original use of the property must have begun with you after September 10, 2001. Turbotax 1040x “Original use” means the first use to which the property is put, whether or not by you. Turbotax 1040x Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. Turbotax 1040x Excepted Property The following property does not qualify for the special depreciation allowance. Turbotax 1040x Property used by any person before September 11, 2001. Turbotax 1040x Property required to be depreciated using ADS. Turbotax 1040x This includes listed property used 50% or less in a qualified business use. Turbotax 1040x Qualified New York Liberty Zone leasehold improvement property (defined next). Turbotax 1040x Qualified New York Liberty Zone leasehold improvement property. Turbotax 1040x   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. Turbotax 1040x The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). Turbotax 1040x The improvement is placed in service after September 10, 2001, and before January 1, 2007. Turbotax 1040x No written binding contract for the improvement was in effect before September 11, 2001. Turbotax 1040x Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. Turbotax 1040x If you make this election for any property, it applies to all property in the same property class placed in service during the year. Turbotax 1040x To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Turbotax 1040x When to make election. Turbotax 1040x   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Turbotax 1040x   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Turbotax 1040x Attach the election statement to the amended return. Turbotax 1040x At the top of the election statement, write “Filed pursuant to section 301. Turbotax 1040x 9100–2. Turbotax 1040x ” Revoking an election. Turbotax 1040x   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Turbotax 1040x A request to revoke the election is subject to a user fee. Turbotax 1040x Rules for Returns Filed Before June 1, 2002 The following rules apply if you placed qualified property in service after September 10, 2001, and filed your return before June 1, 2002. Turbotax 1040x The rules apply to returns for the following years. Turbotax 1040x 2000 fiscal years that end after September 10, 2001. Turbotax 1040x 2001 calendar and fiscal years. Turbotax 1040x Claiming the allowance. Turbotax 1040x   If you did not claim the allowance on your return and did not make the election not to claim the allowance, you can do either of the following to claim the allowance. Turbotax 1040x File an amended return by the due date (not including extensions) of your return for the year following the year the property was placed in service. Turbotax 1040x Write “Filed Pursuant to Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33” at the top of the amended return. Turbotax 1040x File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. Turbotax 1040x Your return must be filed by the due date (including extensions). Turbotax 1040x Write “Automatic Change Filed Under Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33” on the appropriate line of Form 3115. Turbotax 1040x You must also file a copy (with signature) of the completed Form 3115 with the IRS National Office no later than when you file the original with your return. Turbotax 1040x For more information about filing Form 3115, including the address to send it to, see Revenue Procedure 2002–9, Revenue Procedure 2002–19, and Revenue Procedure 2002–33. Turbotax 1040x Example 1. Turbotax 1040x You are an individual and you use the calendar year. Turbotax 1040x You placed qualified property in service for your business in December 2001. Turbotax 1040x You filed your 2001 income tax return before April 15, 2002. Turbotax 1040x You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. Turbotax 1040x You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33” at the top of the amended return. Turbotax 1040x You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. Turbotax 1040x Example 2. Turbotax 1040x The facts concerning your 2001 return are the same as in Example 1. Turbotax 1040x In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. Turbotax 1040x You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. Turbotax 1040x You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. Turbotax 1040x Electing not to claim the allowance. Turbotax 1040x   Generally, you have elected not to claim the special depreciation allowance for a class of property if you: Filed your return timely (including extensions) for the year you placed qualified property in service and indicated on a statement with the return that you are not claiming the allowance, or Filed your return timely and filed an amended return within 6 months of the due date of the original return (not including extensions) and indicated on a statement with the amended return that you are not claiming the allowance. Turbotax 1040x The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. Turbotax 1040x The statement can be either attached to or written on the return. Turbotax 1040x You can, for example, write “not deducting 30%” on Form 4562. Turbotax 1040x Deemed election. Turbotax 1040x   If you have not followed either of the procedures described above to elect not to claim the allowance, you may still be treated as making the election. Turbotax 1040x You will be treated as making the election if you meet both of the following conditions. Turbotax 1040x You filed your return for the year you placed the property in service and claimed depreciation, but not the special allowance, for any class of property. Turbotax 1040x You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. Turbotax 1040x See Claiming the allowance, earlier. Turbotax 1040x Passenger Automobiles The limit on your depreciation deduction (including any section 179 deduction) for any passenger automobile that is qualified property (defined earlier) placed in service after September 10, 2001, and for which you claim the special depreciation allowance is increased. Turbotax 1040x Generally, the limit is increased from $3,060 to $7,660. Turbotax 1040x However, if the automobile is a qualified electric car, the limit is increased from $9,280 to $23,080 ($22,980 if placed in service in 2002). Turbotax 1040x Table 1 shows the maximum deduction amounts for 2001. Turbotax 1040x Table 1. Turbotax 1040x Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. Turbotax 1040x 11 Placed in Service After Sept. Turbotax 1040x 10 Passenger automobile $3,060 $7,660 Electric car 9,280 23,080 1 1$22,980 if you place an electric car in service in 2002. Turbotax 1040x Election not to claim the allowance. Turbotax 1040x   The increased maximum depreciation deduction does not apply if you elected not to claim the special depreciation allowance as explained earlier under Election Not To Claim the Allowance and Rules for Returns Filed Before June 1, 2002. Turbotax 1040x New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). Turbotax 1040x They include a special depreciation allowance for the year you place the property in service, an increased section 179 deduction, and the classification of certain leasehold improvement property as 5-year property. Turbotax 1040x Area defined. Turbotax 1040x   The New York Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. Turbotax 1040x Special Liberty Zone Depreciation Allowance You can take a special depreciation allowance for qualified Liberty Zone property you place in service after September 10, 2001. Turbotax 1040x The allowance is an additional deduction of 30% of the property's depreciable basis. Turbotax 1040x To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Turbotax 1040x See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Turbotax 1040x The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Turbotax 1040x There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Turbotax 1040x In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Turbotax 1040x You cannot claim the special Liberty Zone depreciation allowance for property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Turbotax 1040x Qualified property is eligible for only one special depreciation allowance. Turbotax 1040x Example 1. Turbotax 1040x On November 1, 2001, you bought and placed in service in your business, which is in the Liberty Zone, qualified Liberty Zone property that cost $200,000. Turbotax 1040x You did not elect to claim a section 179 deduction. Turbotax 1040x You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. Turbotax 1040x You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. Turbotax 1040x Example 2. Turbotax 1040x The facts are the same as in Example 1, except that you choose to deduct $59,000 of the property's cost as a section 179 deduction. Turbotax 1040x (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). Turbotax 1040x You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). Turbotax 1040x You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. Turbotax 1040x Qualified Liberty Zone Property For a 2001 calendar or fiscal year and a 2000 fiscal year that ends after September 10, 2001, property qualifies for the special Liberty Zone depreciation allowance if it meets the following requirements. Turbotax 1040x It is one of the following types of property. Turbotax 1040x Used property depreciated under MACRS with a recovery period of 20 years or less. Turbotax 1040x See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Turbotax 1040x Used water utility property. Turbotax 1040x See 25-year property on page 22 in Publication 946. Turbotax 1040x Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Turbotax 1040x (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Turbotax 1040x ) Certain nonresidential real property and residential rental property (defined later). Turbotax 1040x It meets the following tests (explained later under Tests to be met). Turbotax 1040x Acquisition date test. Turbotax 1040x Placed in service date test. Turbotax 1040x Substantial use test. Turbotax 1040x Original use test. Turbotax 1040x It is not excepted property (explained later under Excepted property). Turbotax 1040x Nonresidential real property and residential rental property. Turbotax 1040x   This property is qualifying property only to the extent it rehabilitates real property damaged, or replaces real property destroyed or condemned, as a result of the terrorist attack of September 11, 2001. Turbotax 1040x Property is treated as replacing destroyed or condemned property if, as part of an integrated plan, such property replaces real property included in a continuous area that includes real property destroyed or condemned. Turbotax 1040x   For these purposes, real property is considered destroyed (or condemned) only if an entire building or structure was destroyed (or condemned) as a result of the terrorist attack. Turbotax 1040x Otherwise, the property is considered damaged real property. Turbotax 1040x For example, if certain structural components of a building (such as walls, floors, or plumbing fixtures) are damaged or destroyed as a result of the terrorist attack, but the building is not destroyed (or condemned), then only costs related to replacing the damaged or destroyed structural components qualify for the special Liberty Zone depreciation allowance. Turbotax 1040x Tests to be met. Turbotax 1040x   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. Turbotax 1040x Acquisition date test. Turbotax 1040x   You must have acquired the property by purchase after September 10, 2001, and there must not have been a binding written contract for the acquisition in effect before September 11, 2001. Turbotax 1040x   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. Turbotax 1040x   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001. Turbotax 1040x Placed in service date test. Turbotax 1040x   Generally, the property must be placed in service for use in your trade or business or for the production of income before January 1, 2007 (January 1, 2010, in the case of qualifying nonresidential real property and residential rental property). Turbotax 1040x   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Turbotax 1040x Substantial use test. Turbotax 1040x   Substantially all use of the property must be in the Liberty Zone and in the active conduct of your trade or business in the Liberty Zone. Turbotax 1040x Original use test. Turbotax 1040x   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. Turbotax 1040x   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. Turbotax 1040x Also, additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test if the original use of the property in the Liberty Zone began with you. Turbotax 1040x Excepted property. Turbotax 1040x   The following property does not qualify for the special Liberty Zone depreciation allowance. Turbotax 1040x Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Turbotax 1040x Property required to be depreciated using ADS. Turbotax 1040x This includes listed property used 50% or less in a qualified business use. Turbotax 1040x Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). Turbotax 1040x Example. Turbotax 1040x In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. Turbotax 1040x New office furniture with a MACRS recovery period of 7 years. Turbotax 1040x A used computer with a MACRS recovery period of 5 years. Turbotax 1040x The computer had not previously been used within the Liberty Zone. Turbotax 1040x Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. Turbotax 1040x Because the computer is used property that had not previously been used in the Liberty Zone, it qualifies for the special Liberty Zone depreciation allowance, but not the special depreciation allowance. Turbotax 1040x Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. Turbotax 1040x If you make this election for any property, it applies to all property in the same property class placed in service during the year. Turbotax 1040x To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Turbotax 1040x When to make the election. Turbotax 1040x   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Turbotax 1040x   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Turbotax 1040x Attach the election statement to the amended return. Turbotax 1040x At the top of the election statement, write “Filed pursuant to section 301. Turbotax 1040x 9100–2. Turbotax 1040x ” Revoking an election. Turbotax 1040x   Once you elect not to deduct the special Liberty Zone depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Turbotax 1040x A request to revoke the election is subject to a user fee. Turbotax 1040x Returns filed before June 1, 2002. Turbotax 1040x   The rules that apply to the special depreciation allowance discussed earlier in Rules for Returns Filed Before June 1, 2002 under Special Depreciation Allowance also apply to the special Liberty Zone depreciation allowance. Turbotax 1040x Increased Section 179 Deduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. Turbotax 1040x For tax years beginning in 2000, that limit was $20,000. Turbotax 1040x For tax years beginning in 2001 and 2002, that limit is generally $24,000. Turbotax 1040x If the cost of qualifying section 179 property placed in service in a year is over $200,000, you must reduce the dollar limit (but not below zero) by the amount of the cost over $200,000. Turbotax 1040x Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. Turbotax 1040x The increase is the smaller of the following amounts. Turbotax 1040x $35,000. Turbotax 1040x The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. Turbotax 1040x If you use the revised 2001 Form 4562 (dated March 2002) for a tax year beginning in 2000, you must reduce the section 179 dollar limit to $20,000 before adding the additional amount for qualified property. Turbotax 1040x Qualified property. Turbotax 1040x   To qualify for the increased section 179 deduction, your property must be section 179 property that is either: Qualified Liberty Zone property, or Property that would be qualified Liberty Zone property except that it is eligible for the special depreciation allowance. Turbotax 1040x Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. Turbotax 1040x Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. Turbotax 1040x For information on the requirements that must be met for property to qualify for the section 179 deduction, see What Property Qualifies? on page 14 of Publication 946. Turbotax 1040x Example 1. Turbotax 1040x In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. Turbotax 1040x Because this cost is less than $35,000, the dollar limit on the section 179 deduction is increased by $25,000 to $49,000 ($24,000 + $25,000). Turbotax 1040x Example 2. Turbotax 1040x In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. Turbotax 1040x Because $35,000 is less than the cost of the property you place in service, the dollar limit on the section 179 deduction you can claim is increased by $35,000 to $59,000 ($24,000 + $35,000). Turbotax 1040x Reduced Dollar Limit Generally, you must reduce the dollar limit for a year by the cost of qualifying section 179 property placed in service in the year that is more than $200,000. Turbotax 1040x However, if the cost of your Liberty Zone property exceeds $200,000, you take into account only 50% (instead of 100%) of the cost of qualified property placed in service in a year. Turbotax 1040x Example. Turbotax 1040x In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. Turbotax 1040x Your increased dollar limit is $59,000 ($35,000 + $24,000). Turbotax 1040x Because 50% of the cost of the property you place in service ($230,000) is $30,000 more than $200,000, you must reduce your $59,000 dollar limit to $29,000 ($59,000 - $30,000). Turbotax 1040x Recapture Rules Rules similar to those explained on page 20 of Publication 946 under When Must You Recapture the Deduction? apply with respect to any qualified property you stop using in the Liberty Zone. Turbotax 1040x Returns Filed Before June 1, 2002 If you filed a return before June 1, 2002, and did not deduct the increased section 179 amount for qualified property placed in service after September 10, 2001, you can deduct the increased amount by filing an amended return by the due date (not including extensions) of the return for the year after the year the property was placed in service. Turbotax 1040x This rule applies to returns for the following years. Turbotax 1040x 2000 fiscal years that end after September 10, 2001. Turbotax 1040x 2001 calendar and fiscal years. Turbotax 1040x On the amended return, write “Filed Pursuant to Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33. Turbotax 1040x ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. Turbotax 1040x This means that it is depreciated over a recovery period of 5 years. Turbotax 1040x For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. Turbotax 1040x The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. Turbotax 1040x Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. Turbotax 1040x Returns Filed Before June 1, 2002 If you filed either of the following returns before June 1, 2002, and did not depreciate qualified Liberty Zone leasehold improvement property placed in service during the tax year as 5-year property using the straight line method, you should file an amended return before you file your return for the year after the year the property was placed in service. Turbotax 1040x Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). Turbotax 1040x Your 2001 calendar or fiscal year return. Turbotax 1040x On the amended return, write “Filed Pursuant to Rev. Turbotax 1040x Proc. Turbotax 1040x 2002–33. Turbotax 1040x ” Table 2. Turbotax 1040x Rules for Returns Filed Before June 1, 2002 Note:This chart highlights the rules for returns affected by the Job Creation and Worker Assistance Act of 2002 that were filed before June 1, 2002, without accounting for any of the new benefits under the law. Turbotax 1040x See the text for definitions and examples. Turbotax 1040x Do not rely on this chart alone. Turbotax 1040x IF you want to. Turbotax 1040x . Turbotax 1040x . Turbotax 1040x THEN you. Turbotax 1040x . Turbotax 1040x . Turbotax 1040x BY. Turbotax 1040x . Turbotax 1040x . Turbotax 1040x claim the special depreciation allowance or special Liberty Zone depreciation allowance • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service, or • must file Form 3115, Application for Change in Accounting Method, with your return for the year after the year the property was placed in service • the due date (including extensions) of your return for the year after the year the property was placed in service, and • must file a copy of your completed Form 3115 with the IRS National Office • the date you file the original Form 3115 with your return for the year after the year the property was placed in service. Turbotax 1040x elect not to claim the special depreciation allowance or the special Liberty Zone depreciation allowance 1 • must have filed your return timely for the year the property was placed in service, and   • must file an amended return stating you are not claiming the allowance • the date that is 6 months after the due date of the original return (not including extensions). Turbotax 1040x deduct the increased section 179 amount • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service. Turbotax 1040x use a 5-year recovery period for depreciating qualified Liberty Zone leasehold improvement property • should file an amended return • the date you file your return for the year after the year the property was placed in service. Turbotax 1040x 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. Turbotax 1040x Prev  Up  Next   Home   More Online Publications