What Can Students Write Off On Taxes
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What can students write off on taxes 4. What can students write off on taxes Figuring Depreciation Under MACRS Table of Contents Introduction Useful Items - You may want to see: Which Depreciation System (GDS or ADS) Applies? Which Property Class Applies Under GDS?Rent-to-own dealer. What can students write off on taxes Rent-to-own contract. What can students write off on taxes What Is the Placed in Service Date? What Is the Basis for Depreciation? Which Recovery Period Applies?Recovery Periods Under GDS Recovery Periods Under ADS Additions and Improvements Which Convention Applies? Which Depreciation Method Applies?Depreciation Methods for Farm Property Electing a Different Method How Is the Depreciation Deduction Figured?Using the MACRS Percentage Tables Figuring the Deduction Without Using the Tables Figuring the Deduction for Property Acquired in a Nontaxable Exchange Figuring the Deduction for a Short Tax Year How Do You Use General Asset Accounts?Grouping Property Figuring Depreciation for a GAA Disposing of GAA Property Terminating GAA Treatment Electing To Use a GAA When Do You Recapture MACRS Depreciation? Introduction The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986. What can students write off on taxes MACRS consists of two depreciation systems, the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). What can students write off on taxes Generally, these systems provide different methods and recovery periods to use in figuring depreciation deductions. What can students write off on taxes To be sure you can use MACRS to figure depreciation for your property, see What Method Can You Use To Depreciate Your Property in chapter 1. What can students write off on taxes This chapter explains how to determine which MACRS depreciation system applies to your property. What can students write off on taxes It also discusses other information you need to know before you can figure depreciation under MACRS. What can students write off on taxes This information includes the property's recovery class, placed in service date, and basis, as well as the applicable recovery period, convention, and depreciation method. What can students write off on taxes It explains how to use this information to figure your depreciation deduction and how to use a general asset account to depreciate a group of properties. What can students write off on taxes Finally, it explains when and how to recapture MACRS depreciation. What can students write off on taxes Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 463 Travel, Entertainment, Gift, and Car Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 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 See chapter 6 for information about getting publications and forms. What can students write off on taxes Which Depreciation System (GDS or ADS) Applies? Your use of either the General Depreciation System (GDS) or the Alternative Depreciation System (ADS) to depreciate property under MACRS determines what depreciation method and recovery period you use. What can students write off on taxes You generally must use GDS unless you are specifically required by law to use ADS or you elect to use ADS. What can students write off on taxes If you placed your property in service in 2013, complete Part III of Form 4562 to report depreciation using MACRS. What can students write off on taxes Complete section B of Part III to report depreciation using GDS, and complete section C of Part III to report depreciation using ADS. What can students write off on taxes If you placed your property in service before 2013 and are required to file Form 4562, report depreciation using either GDS or ADS on line 17 in Part III. What can students write off on taxes Required use of ADS. What can students write off on taxes You must use ADS for the following property. What can students write off on taxes Listed property used 50% or less in a qualified business use. What can students write off on taxes See chapter 5 for information on listed property. What can students write off on taxes Any tangible property used predominantly outside the United States during the year. What can students write off on taxes Any tax-exempt use property. What can students write off on taxes Any tax-exempt bond-financed property. What can students write off on taxes All property used predominantly in a farming business and placed in service in any tax year during which an election not to apply the uniform capitalization rules to certain farming costs is in effect. What can students write off on taxes Any property imported from a foreign country for which an Executive Order is in effect because the country maintains trade restrictions or engages in other discriminatory acts. What can students write off on taxes If you are required to use ADS to depreciate your property, you cannot claim any special depreciation allowance (discussed in chapter 3) for the property. What can students write off on taxes Electing ADS. What can students write off on taxes Although your property may qualify for GDS, you can elect to use ADS. What can students write off on taxes The election generally must cover all property in the same property class that you placed in service during the year. What can students write off on taxes However, the election for residential rental property and nonresidential real property can be made on a property-by-property basis. What can students write off on taxes Once you make this election, you can never revoke it. What can students write off on taxes You make the election by completing line 20 in Part III of Form 4562. What can students write off on taxes Which Property Class Applies Under GDS? The following is a list of the nine property classifications under GDS and examples of the types of property included in each class. What can students write off on taxes These property classes are also listed under column (a) in section B, Part III, of Form 4562. What can students write off on taxes For detailed information on property classes, see Appendix B, Table of Class Lives and Recovery Periods, in this publication. What can students write off on taxes 3-year property. What can students write off on taxes Tractor units for over-the-road use. What can students write off on taxes Any race horse over 2 years old when placed in service. What can students write off on taxes (All race horses placed in service after December 31, 2008, and before January 1, 2014, are deemed to be 3-year property, regardless of age. What can students write off on taxes ) Any other horse (other than a race horse) over 12 years old when placed in service. What can students write off on taxes Qualified rent-to-own property (defined later). What can students write off on taxes 5-year property. What can students write off on taxes Automobiles, taxis, buses, and trucks. What can students write off on taxes Computers and peripheral equipment. What can students write off on taxes Office machinery (such as typewriters, calculators, and copiers). What can students write off on taxes Any property used in research and experimentation. What can students write off on taxes Breeding cattle and dairy cattle. What can students write off on taxes Appliances, carpets, furniture, etc. What can students write off on taxes , used in a residential rental real estate activity. What can students write off on taxes Certain geothermal, solar, and wind energy property. What can students write off on taxes 7-year property. What can students write off on taxes Office furniture and fixtures (such as desks, files, and safes). What can students write off on taxes Agricultural machinery and equipment. What can students write off on taxes Any property that does not have a class life and has not been designated by law as being in any other class. What can students write off on taxes Certain motorsports entertainment complex property (defined later) placed in service before January 1, 2014. What can students write off on taxes Any natural gas gathering line placed in service after April 11, 2005. What can students write off on taxes See Natural gas gathering line and electric transmission property , later. What can students write off on taxes 10-year property. What can students write off on taxes Vessels, barges, tugs, and similar water transportation equipment. What can students write off on taxes Any single purpose agricultural or horticultural structure. What can students write off on taxes Any tree or vine bearing fruits or nuts. What can students write off on taxes Qualified small electric meter and qualified smart electric grid system (defined later) placed in service on or after October 3, 2008. What can students write off on taxes 15-year property. What can students write off on taxes Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges). What can students write off on taxes Any retail motor fuels outlet (defined later), such as a convenience store. What can students write off on taxes Any municipal wastewater treatment plant. What can students write off on taxes Any qualified leasehold improvement property (defined later) placed in service before January 1, 2014. What can students write off on taxes Any qualified restaurant property (defined later) placed in service before January 1, 2014. What can students write off on taxes Initial clearing and grading land improvements for gas utility property. What can students write off on taxes Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. What can students write off on taxes See Natural gas gathering line and electric transmission property , later. What can students write off on taxes Any natural gas distribution line placed in service after April 11, 2005 and before January 1, 2011. What can students write off on taxes Any qualified retail improvement property placed in service before January 1, 2014. What can students write off on taxes 20-year property. What can students write off on taxes Farm buildings (other than single purpose agricultural or horticultural structures). What can students write off on taxes Municipal sewers not classified as 25-year property. What can students write off on taxes Initial clearing and grading land improvements for electric utility transmission and distribution plants. What can students write off on taxes 25-year property. What can students write off on taxes This class is water utility property, which is either of the following. What can students write off on taxes Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property. What can students write off on taxes Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996. What can students write off on taxes Residential rental property. What can students write off on taxes This is any building or structure, such as a rental home (including a mobile home), if 80% or more of its gross rental income for the tax year is from dwelling units. What can students write off on taxes A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. What can students write off on taxes It does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. What can students write off on taxes If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy. What can students write off on taxes Nonresidential real property. What can students write off on taxes This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27. What can students write off on taxes 5 years. What can students write off on taxes Qualified rent-to-own property. What can students write off on taxes Qualified rent-to-own property is property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract. What can students write off on taxes It is tangible personal property generally used in the home for personal use. What can students write off on taxes It includes computers and peripheral equipment, televisions, videocassette recorders, stereos, camcorders, appliances, furniture, washing machines and dryers, refrigerators, and other similar consumer durable property. What can students write off on taxes Consumer durable property does not include real property, aircraft, boats, motor vehicles, or trailers. What can students write off on taxes If some of the property you rent to others under a rent-to-own agreement is of a type that may be used by the renters for either personal or business purposes, you still can treat this property as qualified property as long as it does not represent a significant portion of your leasing property. What can students write off on taxes However, if this dual-use property does represent a significant portion of your leasing property, you must prove that this property is qualified rent-to-own property. What can students write off on taxes Rent-to-own dealer. What can students write off on taxes You are a rent-to-own dealer if you meet all the following requirements. What can students write off on taxes You regularly enter into rent-to-own contracts (defined below) in the ordinary course of your business for the use of consumer property. What can students write off on taxes A substantial portion of these contracts end with the customer returning the property before making all the payments required to transfer ownership. What can students write off on taxes The property is tangible personal property of a type generally used within the home for personal use. What can students write off on taxes Rent-to-own contract. What can students write off on taxes This is any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which— Is titled “Rent-to-Own Agreement,” “Lease Agreement with Ownership Option,” or other similar language. What can students write off on taxes Provides a beginning date and a maximum period of time, not to exceed 156 weeks or 36 months from the beginning date, for which the contract can be in effect (including renewals or options to extend). What can students write off on taxes Provides for regular periodic (weekly or monthly) payments that can be either level or decreasing. What can students write off on taxes If the payments are decreasing, no payment can be less than 40% of the largest payment. What can students write off on taxes Provides for total payments that generally exceed the normal retail price of the property plus interest. What can students write off on taxes Provides for total payments that do not exceed $10,000 for each item of property. What can students write off on taxes Provides that the customer has no legal obligation to make all payments outlined in the contract and that, at the end of each weekly or monthly payment period, the customer can either continue to use the property by making the next payment or return the property in good working order with no further obligations and no entitlement to a return of any prior payments. What can students write off on taxes Provides that legal title to the property remains with the rent-to-own dealer until the customer makes either all the required payments or the early purchase payments required under the contract to acquire legal title. What can students write off on taxes Provides that the customer has no right to sell, sublease, mortgage, pawn, pledge, or otherwise dispose of the property until all contract payments have been made. What can students write off on taxes Motorsports entertainment complex. What can students write off on taxes This is a racing track facility permanently situated on land that hosts one or more racing events for automobiles, trucks, or motorcycles during the 36-month period after the first day of the month in which the facility is placed in service. What can students write off on taxes The events must be open to the public for the price of admission. What can students write off on taxes Qualified smart electric grid system. What can students write off on taxes A qualified smart electric grid system means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service after October 3, 2008, by a taxpayer who is a supplier of electrical energy or a provider of electrical energy services. What can students write off on taxes Smart grid property includes electronics and related equipment that is capable of: Sensing, collecting, and monitoring data of or from all portions of a utility's electric distribution grid, Providing real-time, two-way communications to monitor or to manage the grid, and Providing real-time analysis of an event prediction based on collected data that can be used to provide electric distribution system reliability, quality, and performance. What can students write off on taxes Retail motor fuels outlet. What can students write off on taxes Real property is a retail motor fuels outlet if it is used to a substantial extent in the retail marketing of petroleum or petroleum products (whether or not it is also used to sell food or other convenience items) and meets any one of the following three tests. What can students write off on taxes It is not larger than 1,400 square feet. What can students write off on taxes 50% or more of the gross revenues generated from the property are derived from petroleum sales. What can students write off on taxes 50% or more of the floor space in the property is devoted to petroleum marketing sales. What can students write off on taxes A retail motor fuels outlet does not include any facility related to petroleum and natural gas trunk pipelines. What can students write off on taxes Qualified leasehold improvement property. What can students write off on taxes Generally, this is any improvement to an interior part of a building (placed in service before January 1, 2014) that is nonresidential real property, provided all of the requirements discussed in chapter 3 under Qualified leasehold improvement property are met. What can students write off on taxes In addition, an improvement made by the lessor does not qualify as qualified leasehold improvement property to any subsequent owner unless it is acquired from the original lessor by reason of the lessor's death or in any of the following types of transactions. What can students write off on taxes A transaction to which section 381(a) applies, A mere change in the form of conducting the trade or business so long as the property is retained in the trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in the trade or business, A like-kind exchange, involuntary conversion, or reacquisition of real property to the extent that the basis in the property represents the carryover basis, or Certain nonrecognition transactions to the extent that your basis in the property is determined by reference to the transferor's or distributor's basis in the property. What can students write off on taxes Examples include the following. What can students write off on taxes A complete liquidation of a subsidiary. What can students write off on taxes A transfer to a corporation controlled by the transferor. What can students write off on taxes An exchange of property by a corporation solely for stock or securities in another corporation in a reorganization. What can students write off on taxes Qualified restaurant property. What can students write off on taxes Qualified restaurant property is any section 1250 property that is a building placed in service after December 31, 2008, and before January 1, 2014. What can students write off on taxes Also, more than 50% of the building's square footage must be devoted to preparation of meals and seating for on-premises consumption of prepared meals. What can students write off on taxes Qualified smart electric meter. What can students write off on taxes A qualified smart electric meter is any time-based meter and related communication equipment which is placed in service by a supplier of electric energy or a provider of electric energy services and which is capable of being used by you as part of a system that: Measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day; Provides for the exchange of information between the supplier or provider and the customer's smart electric meter in support of time-based rates or other forms of demand response; Provides data to the supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and Provides all commercial and residential customers of such supplier or provider with net metering. What can students write off on taxes Net metering means allowing a customer a credit, if any, as complies with applicable federal and state laws and regulations for providing electricity to the supplier or provider. What can students write off on taxes Natural gas gathering line and electric transmission property. What can students write off on taxes Any natural gas gathering line placed in service after April 11, 2005, is treated as 7-year property, and electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity and any natural gas distribution line placed in service after April 11, 2005, are treated as 15-year property, if the following requirements are met. What can students write off on taxes The original use of the property must have begun with you after April 11, 2005. What can students write off on taxes Original use means the first use to which the property is put, whether or not by you. What can students write off on taxes Therefore, property used by any person before April 12, 2005, is not original use. What can students write off on taxes Original use includes additional capital expenditures you incurred to recondition or rebuild your property. What can students write off on taxes However, original use does not include the cost of reconditioned or rebuilt property you acquired. What can students write off on taxes Property containing used parts will not be treated as reconditioned or rebuilt if the cost of the used parts is not more than 20% of the total cost of the property. What can students write off on taxes The property must not be placed in service under a binding contract in effect before April 12, 2005. What can students write off on taxes The property must not be self-constructed property (property you manufacture, construct, or produce for your own use), if you began the manufacture, construction, or production of the property before April 12, 2005. What can students write off on taxes Property that is manufactured, constructed, or produced for your use by another person under a written binding contract entered into by you or a related party before the manufacture, construction, or production of the property is considered to be manufactured, constructed, or produced by you. What can students write off on taxes What Is the Placed in Service Date? You begin to claim depreciation when your property is placed in service for either use in a trade or business or the production of income. What can students write off on taxes The placed in service date for your property is the date the property is ready and available for a specific use. What can students write off on taxes It is therefore not necessarily the date it is first used. What can students write off on taxes If you converted property held for personal use to use in a trade or business or for the production of income, treat the property as being placed in service on the conversion date. What can students write off on taxes See Placed in Service under When Does Depreciation Begin and End in chapter 1 for examples illustrating when property is placed in service. What can students write off on taxes What Is the Basis for Depreciation? The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. What can students write off on taxes For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1 . What can students write off on taxes Reduce that amount by any credits and deductions allocable to the property. What can students write off on taxes The following are examples of some credits and deductions that reduce basis. What can students write off on taxes Any deduction for section 179 property. What can students write off on taxes Any deduction under section 179B of the Internal Revenue Code for capital costs to comply with Environmental Protection Agency sulfur regulations. What can students write off on taxes Any deduction under section 179C of the Internal Revenue Code for certain qualified refinery property placed in service after August 8, 2005, and before January 1, 2014. What can students write off on taxes Any deduction under section 179D of the Internal Revenue Code for certain energy efficient commercial building property placed in service after December 31, 2005, and before January 1, 2014. What can students write off on taxes Any deduction under section 179E of the Internal Revenue Code for qualified advanced mine safety equipment property placed in service after December 20, 2006, and before January 1, 2014 . What can students write off on taxes Any deduction for removal of barriers to the disabled and the elderly. What can students write off on taxes Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. What can students write off on taxes Any special depreciation allowance. What can students write off on taxes Basis adjustment for investment credit property under section 50(c) of the Internal Revenue Code. What can students write off on taxes For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. What can students write off on taxes Enter the basis for depreciation under column (c) in Part III of Form 4562. What can students write off on taxes For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property in chapter 1 . What can students write off on taxes Which Recovery Period Applies? The recovery period of property is the number of years over which you recover its cost or other basis. What can students write off on taxes It is determined based on the depreciation system (GDS or ADS) used. What can students write off on taxes Recovery Periods Under GDS Under GDS, property that is not qualified Indian reservation property is depreciated over one of the following recovery periods. What can students write off on taxes Property Class Recovery Period 3-year property 3 years 1 5-year property 5 years 7-year property 7 years 10-year property 10 years 15-year property 15 years 2 20-year property 20 years 25-year property 25 years 3 Residential rental property 27. What can students write off on taxes 5 years Nonresidential real property 39 years 4 15 years for qualified rent-to-own property placed in service before August 6, 1997. What can students write off on taxes 239 years for property that is a retail motor fuels outlet placed in service before August 20, 1996 (31. What can students write off on taxes 5 years if placed in service before May 13, 1993), unless you elected to depreciate it over 15 years. What can students write off on taxes 320 years for property placed in service before June 13, 1996, or under a binding contract in effect before June 10, 1996. What can students write off on taxes 431. What can students write off on taxes 5 years for property placed in service before May 13, 1993 (or before January 1, 1994, if the purchase or construction of the property is under a binding contract in effect before May 13, 1993, or if construction began before May 13, 1993). What can students write off on taxes The GDS recovery periods for property not listed above can be found in Appendix B, Table of Class Lives and Recovery Periods. What can students write off on taxes Residential rental property and nonresidential real property are defined earlier under Which Depreciation System (GDS or ADS) Applies. What can students write off on taxes Enter the appropriate recovery period on Form 4562 under column (d) in section B of Part III, unless already shown (for 25-year property, residential rental property, and nonresidential real property). What can students write off on taxes Office in the home. What can students write off on taxes If your home is a personal-use single family residence and you begin to use part of your home as an office, depreciate that part of your home as nonresidential real property over 39 years (31. What can students write off on taxes 5 years if you began using it for business before May 13, 1993). What can students write off on taxes However, if your home is an apartment in an apartment building that you own and the building is residential rental property as defined earlier under Which Depreciation System (GDS or ADS) Applies , depreciate the part used as an office as residential rental property over 27. What can students write off on taxes 5 years. What can students write off on taxes See Publication 587 for a discussion of the tests you must meet to claim expenses, including depreciation, for the business use of your home. What can students write off on taxes Home changed to rental use. What can students write off on taxes If you begin to rent a home that was your personal home before 1987, you depreciate it as residential rental property over 27. What can students write off on taxes 5 years. What can students write off on taxes Indian Reservation Property The recovery periods for qualified property you placed in service on an Indian reservation after 1993 and before 2014 are shorter than those listed earlier. What can students write off on taxes The following table shows these shorter recovery periods. What can students write off on taxes Property Class Recovery Period 3-year property 2 years 5-year property 3 years 7-year property 4 years 10-year property 6 years 15-year property 9 years 20-year property 12 years Nonresidential real property 22 years Nonresidential real property is defined earlier under Which Property Class Applies Under GDS . What can students write off on taxes Use this chart to find the correct percentage table to use for qualified Indian reservation property. What can students write off on taxes IF your recovery period is: THEN use the following table in Appendix A: 2 years A-21 3 years A-1, A-2, A-3, A-4, or A-5 4 years A-22 6 years A-23 9 years A-14, A-15, A-16, A-17, or A-18 12 years A-14, A-15, A-16, A-17, or A-18 22 years A-24 Qualified property. What can students write off on taxes Property eligible for the shorter recovery periods are 3-, 5-, 7-, 10-, 15-, and 20-year property and nonresidential real property. What can students write off on taxes You must use this property predominantly in the active conduct of a trade or business within an Indian reservation. What can students write off on taxes The rental of real property that is located on an Indian reservation is treated as the active conduct of a trade or business within an Indian reservation. What can students write off on taxes The following property is not qualified property. What can students write off on taxes Property used or located outside an Indian reservation on a regular basis, other than qualified infrastructure property. What can students write off on taxes Property acquired directly or indirectly from a related person. What can students write off on taxes Property placed in service for purposes of conducting or housing class I, II, or III gaming activities. What can students write off on taxes These activities are defined in section 4 of the Indian Regulatory Act (25 U. What can students write off on taxes S. What can students write off on taxes C. What can students write off on taxes 2703). What can students write off on taxes Any property you must depreciate under ADS. What can students write off on taxes Determine whether property is qualified without regard to the election to use ADS and after applying the special rules for listed property not used predominantly for qualified business use (discussed in chapter 5). What can students write off on taxes Qualified infrastructure property. What can students write off on taxes Item (1) above does not apply to qualified infrastructure property located outside the reservation that is used to connect with qualified infrastructure property within the reservation. What can students write off on taxes Qualified infrastructure property is property that meets all the following rules. What can students write off on taxes It is qualified property, as defined earlier, except that it is outside the reservation. What can students write off on taxes It benefits the tribal infrastructure. What can students write off on taxes It is available to the general public. What can students write off on taxes It is placed in service in connection with the active conduct of a trade or business within a reservation. What can students write off on taxes Infrastructure property includes, but is not limited to, roads, power lines, water systems, railroad spurs, and communications facilities. What can students write off on taxes Related person. What can students write off on taxes For purposes of item (2) above, 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 for a description of related persons. What can students write off on taxes Indian reservation. What can students write off on taxes The term Indian reservation means a reservation as defined in section 3(d) of the Indian Financing Act of 1974 (25 U. What can students write off on taxes S. What can students write off on taxes C. What can students write off on taxes 1452(d)) or section 4(10) of the Indian Child Welfare Act of 1978 (25 U. What can students write off on taxes S. What can students write off on taxes C. What can students write off on taxes 1903(10)). What can students write off on taxes Section 3(d) of the Indian Financing Act of 1974 defines reservation to include former Indian reservations in Oklahoma. What can students write off on taxes For a definition of the term “former Indian reservations in Oklahoma,” see Notice 98-45 in Internal Revenue Bulletin 1998-35. What can students write off on taxes Recovery Periods Under ADS The recovery periods for most property generally are longer under ADS than they are under GDS. What can students write off on taxes The following table shows some of the ADS recovery periods. What can students write off on taxes Property Recovery Period Rent-to-own property 4 years Automobiles and light duty trucks 5 years Computers and peripheral equipment 5 years High technology telephone station equipment installed on customer premises 5 years High technology medical equipment 5 years Personal property with no class life 12 years Natural gas gathering lines 14 years Single purpose agricultural and horticultural structures 15 years Any tree or vine bearing fruit or nuts 20 years Initial clearing and grading land improvements for gas utility property 20 years Initial clearing and grading land improvements for electric utility transmission and distribution plants 25 years Electric transmission property used in the transmission at 69 or more kilovolts of electricity 30 years Natural gas distribution lines 35 years Any qualified leasehold improvement property 39 years Any qualified restaurant property 39 years Nonresidential real property 40 years Residential rental property 40 years Section 1245 real property not listed in Appendix B 40 years Railroad grading and tunnel bore 50 years The ADS recovery periods for property not listed above can be found in the tables in Appendix B. What can students write off on taxes Rent-to-own property, qualified leasehold improvement property, qualified restaurant property, residential rental property, and nonresidential real property are defined earlier under Which Property Class Applies Under GDS . What can students write off on taxes Tax-exempt use property subject to a lease. What can students write off on taxes The ADS recovery period for any property leased under a lease agreement to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership) cannot be less than 125% of the lease term. What can students write off on taxes Additions and Improvements An addition or improvement you make to depreciable property is treated as separate depreciable property. What can students write off on taxes See How Do You Treat Repairs and Improvements in chapter 1 for a definition of improvements. What can students write off on taxes Its property class and recovery period are the same as those that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. What can students write off on taxes The recovery period begins on the later of the following dates. What can students write off on taxes The date you place the addition or improvement in service. What can students write off on taxes The date you place in service the property to which you made the addition or improvement. What can students write off on taxes If the improvement you make is qualified leasehold improvement property, qualified restaurant property, or qualified retail improvement property, the GDS recovery period is 15 years (39 years under ADS). What can students write off on taxes Example. What can students write off on taxes You own a rental home that you have been renting out since 1981. What can students write off on taxes If you put an addition on the home and place the addition in service this year, you would use MACRS to figure your depreciation deduction for the addition. What can students write off on taxes Under GDS, the property class for the addition is residential rental property and its recovery period is 27. What can students write off on taxes 5 years because the home to which the addition is made would be residential rental property if you had placed it in service this year. What can students write off on taxes Which Convention Applies? Under MACRS, averaging conventions establish when the recovery period begins and ends. What can students write off on taxes The convention you use determines the number of months for which you can claim depreciation in the year you place property in service and in the year you dispose of the property. What can students write off on taxes The mid-month convention. What can students write off on taxes Use this convention for nonresidential real property, residential rental property, and any railroad grading or tunnel bore. What can students write off on taxes Under this convention, you treat all property placed in service or disposed of during a month as placed in service or disposed of at the midpoint of the month. What can students write off on taxes This means that a one-half month of depreciation is allowed for the month the property is placed in service or disposed of. What can students write off on taxes Your use of the mid-month convention is indicated by the “MM” already shown under column (e) in Part III of Form 4562. What can students write off on taxes The mid-quarter convention. What can students write off on taxes Use this convention if the mid-month convention does not apply and the total depreciable bases of MACRS property you placed in service during the last 3 months of the tax year (excluding nonresidential real property, residential rental property, any railroad grading or tunnel bore, property placed in service and disposed of in the same year, and property that is being depreciated under a method other than MACRS) are more than 40% of the total depreciable bases of all MACRS property you placed in service during the entire year. What can students write off on taxes Under this convention, you treat all property placed in service or disposed of during any quarter of the tax year as placed in service or disposed of at the midpoint of that quarter. What can students write off on taxes This means that 1½ months of depreciation is allowed for the quarter the property is placed in service or disposed of. What can students write off on taxes If you use this convention, enter “MQ” under column (e) in Part III of Form 4562. What can students write off on taxes For purposes of determining whether the mid-quarter convention applies, the depreciable basis of property you placed in service during the tax year reflects the reduction in basis for amounts expensed under section 179 and the part of the basis of property attributable to personal use. What can students write off on taxes However, it does not reflect any reduction in basis for any special depreciation allowance. What can students write off on taxes The half-year convention. What can students write off on taxes Use this convention if neither the mid-quarter convention nor the mid-month convention applies. What can students write off on taxes Under this convention, you treat all property placed in service or disposed of during a tax year as placed in service or disposed of at the midpoint of the year. What can students write off on taxes This means that a one-half year of depreciation is allowed for the year the property is placed in service or disposed of. What can students write off on taxes If you use this convention, enter “HY” under column (e) in Part III of Form 4562. What can students write off on taxes Which Depreciation Method Applies? MACRS provides three depreciation methods under GDS and one depreciation method under ADS. What can students write off on taxes The 200% declining balance method over a GDS recovery period. What can students write off on taxes The 150% declining balance method over a GDS recovery period. What can students write off on taxes The straight line method over a GDS recovery period. What can students write off on taxes The straight line method over an ADS recovery period. What can students write off on taxes For property placed in service before 1999, you could have elected the 150% declining balance method using the ADS recovery periods for certain property classes. What can students write off on taxes If you made this election, continue to use the same method and recovery period for that property. What can students write off on taxes Table 4–1 lists the types of property you can depreciate under each method. What can students write off on taxes It also gives a brief explanation of the method, including any benefits that may apply. What can students write off on taxes Depreciation Methods for Farm Property If you place personal property in service in a farming business after 1988, you generally must depreciate it under GDS using the 150% declining balance method unless you are a farmer who must depreciate the property under ADS using the straight line method or you elect to depreciate the property under GDS or ADS using the straight line method. What can students write off on taxes You can depreciate real property using the straight line method under either GDS or ADS. What can students write off on taxes Fruit or nut trees and vines. What can students write off on taxes Depreciate trees and vines bearing fruit or nuts under GDS using the straight line method over a recovery period of 10 years. What can students write off on taxes ADS required for some farmers. What can students write off on taxes If you elect not to apply the uniform capitalization rules to any plant produced in your farming business, you must use ADS. What can students write off on taxes You must use ADS for all property you place in service in any year the election is in effect. What can students write off on taxes See the regulations under section 263A of the Internal Revenue Code for information on the uniform capitalization rules that apply to farm property. What can students write off on taxes Electing a Different Method As shown in Table 4–1 , you can elect a different method for depreciation for certain types of property. What can students write off on taxes You must make the election by the due date of the return (including extensions) for the year you placed the property in service. What can students write off on taxes However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). What can students write off on taxes Attach the election to the amended return and write “Filed pursuant to section 301. What can students write off on taxes 9100-2” on the election statement. What can students write off on taxes File the amended return at the same address you filed the original return. What can students write off on taxes Once you make the election, you cannot change it. What can students write off on taxes If you elect to use a different method for one item in a property class, you must apply the same method to all property in that class placed in service during the year of the election. What can students write off on taxes However, you can make the election on a property-by-property basis for nonresidential real and residential rental property. What can students write off on taxes 150% election. What can students write off on taxes Instead of using the 200% declining balance method over the GDS recovery period for nonfarm property in the 3-, 5-, 7-, and 10-year property classes, you can elect to use the 150% declining balance method. What can students write off on taxes Make the election by entering “150 DB” under column (f) in Part III of Form 4562. What can students write off on taxes Straight line election. What can students write off on taxes Instead of using either the 200% or 150% declining balance methods over the GDS recovery period, you can elect to use the straight line method over the GDS recovery period. What can students write off on taxes Make the election by entering “S/L” under column (f) in Part III of Form 4562. What can students write off on taxes Election of ADS. What can students write off on taxes As explained earlier under Which Depreciation System (GDS or ADS) Applies , you can elect to use ADS even though your property may come under GDS. What can students write off on taxes ADS uses the straight line method of depreciation over fixed ADS recovery periods. What can students write off on taxes Most ADS recovery periods are listed in Appendix B, or see the table under Recovery Periods Under ADS , earlier. What can students write off on taxes Make the election by completing line 20 in Part III of Form 4562. What can students write off on taxes Farm property. What can students write off on taxes Instead of using the 150% declining balance method over a GDS recovery period for property you use in a farming business (other than real property), you can elect to depreciate it using either of the following methods. What can students write off on taxes The straight line method over a GDS recovery period. What can students write off on taxes The straight line method over an ADS recovery period. What can students write off on taxes Table 4-1. What can students write off on taxes Depreciation Methods Note. What can students write off on taxes The declining balance method is abbreviated as DB and the straight line method is abbreviated as SL. What can students write off on taxes Method Type of Property Benefit GDS using 200% DB • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction GDS using 150% DB • All farm property (except real property) • All 15- and 20-year property (except qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property placed in service before January 1, 2014) • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction1 GDS using SL • Nonresidential real property • Qualified leasehold improvement property placed in service before January 1, 2014 • Qualified restaurant property placed in service before January 1, 2014 • Qualified retail improvement property placed in service before January 1, 2014 • Residential rental property • Trees or vines bearing fruit or nuts • Water utility property • All 3-, 5-, 7-, 10-, 15-, and 20-year property2 • Property for which you elected section 168(k)(4) • Provides for equal yearly deductions (except for the first and last years) ADS using SL • Listed property used 50% or less for business • Property used predominantly outside the U. What can students write off on taxes S. What can students write off on taxes • Tax-exempt property • Tax-exempt bond-financed property • Farm property used when an election not to apply the uniform capitalization rules is in effect • Imported property3 • Any property for which you elect to use this method4 • Provides for equal yearly deductions (except for the first and last years) 1The MACRS percentage tables in Appendix A have the switch to the straight line method built into their rates 2See section 168(b)(5) of the Internal Revenue Code. What can students write off on taxes 3See section 168(g)(6) of the Internal Revenue Code 4See section 168(g)(7) of the Internal Revenue Code How Is the Depreciation Deduction Figured? To figure your depreciation deduction under MACRS, you first determine the depreciation system, property class, placed in service date, basis amount, recovery period, convention, and depreciation method that applies to your property. What can students write off on taxes Then, you are ready to figure your depreciation deduction. What can students write off on taxes You can figure it using a percentage table provided by the IRS, or you can figure it yourself without using the table. What can students write off on taxes Using the MACRS Percentage Tables To help you figure your deduction under MACRS, the IRS has established percentage tables that incorporate the applicable convention and depreciation method. What can students write off on taxes These percentage tables are in Appendix A near the end of this publication. What can students write off on taxes Which table to use. What can students write off on taxes Appendix A contains the MACRS Percentage Table Guide, which is designed to help you locate the correct percentage table to use for depreciating your property. What can students write off on taxes The percentage tables immediately follow the guide. What can students write off on taxes Rules Covering the Use of the Tables The following rules cover the use of the percentage tables. What can students write off on taxes You must apply the rates in the percentage tables to your property's unadjusted basis. What can students write off on taxes You cannot use the percentage tables for a short tax year. What can students write off on taxes See Figuring the Deduction for a Short Tax Year, later, for information on the short tax year rules. What can students write off on taxes Once you start using the percentage tables for any item of property, you generally must continue to use them for the entire recovery period of the property. What can students write off on taxes You must stop using the tables if you adjust the basis of the property for any reason other than— Depreciation allowed or allowable, or An addition or improvement to that property that is depreciated as a separate item of property. What can students write off on taxes Basis adjustments other than those made due to the items listed in (4) include an increase in basis for the recapture of a clean-fuel deduction or credit and a reduction in basis for a casualty loss. What can students write off on taxes Basis adjustment due to recapture of clean-fuel vehicle deduction or credit. What can students write off on taxes If you increase the basis of your property because of the recapture of part or all of a deduction for clean-fuel vehicles or the credit for clean-fuel vehicle refueling property placed in service before January 1, 2006, you cannot continue to use the percentage tables. What can students write off on taxes For the year of the adjustment and the remaining recovery period, you must figure the depreciation deduction yourself using the property's adjusted basis at the end of the year. What can students write off on taxes See Figuring the Deduction Without Using the Tables, later. What can students write off on taxes Basis adjustment due to casualty loss. What can students write off on taxes If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables. What can students write off on taxes For the year of the adjustment and the remaining recovery period, you must figure the depreciation yourself using the property's adjusted basis at the end of the year. What can students write off on taxes See Figuring the Deduction Without Using the Tables, later. What can students write off on taxes Example. What can students write off on taxes On October 26, 2012, Sandra Elm, a calendar year taxpayer, bought and placed in service in her business a new item of 7-year property. What can students write off on taxes It cost $39,000 and she elected a section 179 deduction of $24,000. What can students write off on taxes She also took a special depreciation allowance of $7,500 [50% of $15,000 ($39,000 − $24,000)]. What can students write off on taxes Her unadjusted basis after the section 179 deduction and special depreciation allowance was $7,500 ($15,000 − $7,500). What can students write off on taxes She figured her MACRS depreciation deduction using the percentage tables. What can students write off on taxes For 2012, her MACRS depreciation deduction was $268. What can students write off on taxes In July 2013, the property was vandalized and Sandra had a deductible casualty loss of $3,000. What can students write off on taxes She must adjust the property's basis for the casualty loss, so she can no longer use the percentage tables. What can students write off on taxes Her adjusted basis at the end of 2013, before figuring her 2013 depreciation, is $4,232. What can students write off on taxes She figures that amount by subtracting the 2012 MACRS depreciation of $268 and the casualty loss of $3,000 from the unadjusted basis of $7,500. What can students write off on taxes She must now figure her depreciation for 2013 without using the percentage tables. What can students write off on taxes Figuring the Unadjusted Basis of Your Property You must apply the table rates to your property's unadjusted basis each year of the recovery period. What can students write off on taxes Unadjusted basis is the same basis amount you would use to figure gain on a sale, but you figure it without reducing your original basis by any MACRS depreciation taken in earlier years. What can students write off on taxes However, you do reduce your original basis by other amounts, including the following. What can students write off on taxes Any amortization taken on the property. What can students write off on taxes Any section 179 deduction claimed. What can students write off on taxes Any special depreciation allowance taken on the property. What can students write off on taxes For business property you purchase during the year, the unadjusted basis is its cost minus these and other applicable adjustments. What can students write off on taxes If you trade property, your unadjusted basis in the property received is the cash paid plus the adjusted basis of the property traded minus these adjustments. What can students write off on taxes MACRS Worksheet You can use this worksheet to help you figure your depreciation deduction using the percentage tables. What can students write off on taxes Use a separate worksheet for each item of property. What can students write off on taxes Then, use the information from this worksheet to prepare Form 4562. What can students write off on taxes Do not use this worksheet for automobiles. What can students write off on taxes Use the Depreciation Worksheet for Passenger Automobiles in chapter 5. What can students write off on taxes MACRS Worksheet Part I 1. What can students write off on taxes MACRS system (GDS or ADS) 2. What can students write off on taxes Property class 3. What can students write off on taxes Date placed in service 4. What can students write off on taxes Recovery period 5. What can students write off on taxes Method and convention 6. What can students write off on taxes Depreciation rate (from tables) Part II 7. What can students write off on taxes Cost or other basis* $ 8. What can students write off on taxes Business/investment use % 9. What can students write off on taxes Multiply line 7 by line 8 $ 10. What can students write off on taxes Total claimed for section 179 deduction and other items $ 11. What can students write off on taxes Subtract line 10 from line 9. What can students write off on taxes This is your tentative basis for depreciation $ 12. What can students write off on taxes Multiply line 11 by . What can students write off on taxes 50 if the 50% special depreciation allowance applies. What can students write off on taxes This is your special depreciation allowance. What can students write off on taxes Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance $ 13. What can students write off on taxes Subtract line 12 from line 11. What can students write off on taxes This is your basis for depreciation 14. What can students write off on taxes Depreciation rate (from line 6) 15. What can students write off on taxes Multiply line 13 by line 14. What can students write off on taxes This is your MACRS depreciation deduction $ *If real estate, do not include cost (basis) of land. What can students write off on taxes The following example shows how to figure your MACRS depreciation deduction using the percentage tables and the MACRS worksheet. What can students write off on taxes Example. What can students write off on taxes You bought office furniture (7-year property) for $10,000 and placed it in service on August 11, 2013. What can students write off on taxes You use the furniture only for business. What can students write off on taxes This is the only property you placed in service this year. What can students write off on taxes You did not elect a section 179 deduction and the property is not qualified property for purposes of claiming a special depreciation allowance so your property's unadjusted basis is its cost, $10,000. What can students write off on taxes You use GDS and the half-year convention to figure your depreciation. What can students write off on taxes You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-1. What can students write off on taxes Multiply your property's unadjusted basis each year by the percentage for 7-year property given in Table A-1. What can students write off on taxes You figure your depreciation deduction using the MACRS worksheet as follows. What can students write off on taxes MACRS Worksheet Part I 1. What can students write off on taxes MACRS system (GDS or ADS) GDS 2. What can students write off on taxes Property class 7-year 3. What can students write off on taxes Date placed in service 8/11/13 4. What can students write off on taxes Recovery period 7-Year 5. What can students write off on taxes Method and convention 200%DB/Half-Year 6. What can students write off on taxes Depreciation rate (from tables) . What can students write off on taxes 1429 Part II 7. What can students write off on taxes Cost or other basis* $10,000 8. What can students write off on taxes Business/investment use 100 % 9. What can students write off on taxes Multiply line 7 by line 8 $10,000 10. What can students write off on taxes Total claimed for section 179 deduction and other items -0- 11. What can students write off on taxes Subtract line 10 from line 9. What can students write off on taxes This is your tentative basis for depreciation $10,000 12. What can students write off on taxes Multiply line 11 by . What can students write off on taxes 50 if the 50% special depreciation allowance applies. What can students write off on taxes This is your special depreciation allowance. What can students write off on taxes Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance -0- 13. What can students write off on taxes Subtract line 12 from line 11. What can students write off on taxes This is your basis for depreciation $10,000 14. What can students write off on taxes Depreciation rate (from line 6) . What can students write off on taxes 1429 15. What can students write off on taxes Multiply line 13 by line 14. What can students write off on taxes This is your MACRS depreciation deduction $1,429 *If real estate, do not include cost (basis) of land. What can students write off on taxes If there are no adjustments to the basis of the property other than depreciation, your depreciation deduction for each subsequent year of the recovery period will be as follows. What can students write off on taxes Year Basis Percentage Deduction 2014 $ 10,000 24. What can students write off on taxes 49% $2,449 2015 10,000 17. What can students write off on taxes 49 1,749 2016 10,000 12. What can students write off on taxes 49 1,249 2017 10,000 8. What can students write off on taxes 93 893 2018 10,000 8. What can students write off on taxes 92 892 2019 10,000 8. What can students write off on taxes 93 893 2020 10,000 4. What can students write off on taxes 46 446 Examples The following examples are provided to show you how to use the percentage tables. What can students write off on taxes In both examples, assume the following. What can students write off on taxes You use the property only for business. What can students write off on taxes You use the calendar year as your tax year. What can students write off on taxes You use GDS for all the properties. What can students write off on taxes Example 1. What can students write off on taxes You bought a building and land for $120,000 and placed it in service on March 8. What can students write off on taxes The sales contract showed that the building cost $100,000 and the land cost $20,000. What can students write off on taxes It is nonresidential real property. What can students write off on taxes The building's unadjusted basis is its original cost, $100,000. What can students write off on taxes You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-7a. What can students write off on taxes March is the third month of your tax year, so multiply the building's unadjusted basis, $100,000, by the percentages for the third month in Table A-7a. What can students write off on taxes Your depreciation deduction for each of the first 3 years is as follows: Year Basis Percentage Deduction 1st $ 100,000 2. What can students write off on taxes 033% $2,033 2nd 100,000 2. What can students write off on taxes 564 2,564 3rd 100,000 2. What can students write off on taxes 564 2,564 Example 2. What can students write off on taxes During the year, you bought a machine (7-year property) for $4,000, office furniture (7-year property) for $1,000, and a computer (5-year property) for $5,000. What can students write off on taxes You placed the machine in service in January, the furniture in September, and the computer in October. What can students write off on taxes You do not elect a section 179 deduction and none of these items is qualified property for purposes of claiming a special depreciation allowance. What can students write off on taxes You placed property in service during the last 3 months of the year, so you must first determine if you have to use the mid-quarter convention. What can students write off on taxes The total bases of all property you placed in service during the year is $10,000. What can students write off on taxes The $5,000 basis of the computer, which you placed in service during the last 3 months (the fourth quarter) of your tax year, is more than 40% of the total bases of all property ($10,000) you placed in service during the year. What can students write off on taxes Therefore, you must use the mid-quarter convention for all three items. What can students write off on taxes You refer to the MACRS Percentage Table Guide in Appendix A to determine which table you should use under the mid-quarter convention. What can students write off on taxes The machine is 7-year property placed in service in the first quarter, so you use Table A-2. What can students write off on taxes The furniture is 7-year property placed in service in the third quarter, so you use Table A-4. What can students write off on taxes Finally, because the computer is 5-year property placed in service in the fourth quarter, you use Table A-6. What can students write off on taxes Knowing what table to use for each property, you figure the depreciation for the first 2 years as follows. What can students write off on taxes Year Property Basis Percentage Deduction 1st Machine $4,000 25. What can students write off on taxes 00 $1,000 2nd Machine 4,000 21. What can students write off on taxes 43 857 1st Furniture 1,000 10. What can students write off on taxes 71 107 2nd Furniture 1,000 25. What can students write off on taxes 51 255 1st Computer 5,000 5. What can students write off on taxes 00 250 2nd Computer 5,000 38. What can students write off on taxes 00 1,900 Sale or Other Disposition Before the Recovery Period Ends If you sell or otherwise dispose of your property before the end of its recovery period, your depreciation deduction for the year of the disposition will be only part of the depreciation amount for the full year. What can students write off on taxes You have disposed of your property if you have permanently withdrawn it from use in your business or income-producing activity because of its sale, exchange, retirement, abandonment, involuntary conversion, or destruction. What can students write off on taxes After you figure the full-year depreciation amount, figure the deductible part using the convention that applies to the property. What can students write off on taxes Half-year convention used. What can students write off on taxes For property for which you used a half-year convention, the depreciation deduction for the year of the disposition is half the depreciation determined for the full year. What can students write off on taxes Mid-quarter convention used. What can students write off on taxes For property for which you used the mid-quarter convention, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter in which you disposed of the property. What can students write off on taxes Quarter Percentage First 12. What can students write off on taxes 5% Second 37. What can students write off on taxes 5 Third 62. What can students write off on taxes 5 Fourth 87. What can students write off on taxes 5 Example. What can students write off on taxes On December 2, 2010, you placed in service an item of 5-year property costing $10,000. What can students write off on taxes You did not claim a section 179 deduction and the property does not qualify for a special depreciation allowance. What can students write off on taxes Your unadjusted basis for the property was $10,000. What can students write off on taxes You used the mid-quarter convention because this was the only item of business property you placed in service in 2010 and it was placed in service during the last 3 months of your tax year. What can students write off on taxes Your property is in the 5-year property class, so you used Table A-5 to figure your depreciation deduction. What can students write off on taxes Your deductions for 2010, 2011, and 2012 were $500 (5% of $10,000), $3,800 (38% of $10,000), and $2,280 (22. What can students write off on taxes 80% of $10,000). What can students write off on taxes You disposed of the property on April 6, 2013. What can students write off on taxes To determine your depreciation deduction for 2013, first figure the deduction for the full year. What can students write off on taxes This is $1,368 (13. What can students write off on taxes 68% of $10,000). What can students write off on taxes April is in the second quarter of the year, so you multiply $1,368 by 37. What can students write off on taxes 5% to get your depreciation deduction of $513 for 2013. What can students write off on taxes Mid-month convention used. What can students write off on taxes If you dispose of residential rental or nonresidential real property, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by a fraction. What can students write off on taxes The numerator of the fraction is the number of months (including partial months) in the year that the property is considered in service. What can students write off on taxes The denominator is 12. What can students write off on taxes Example. What can students write off on taxes On July 2, 2011, you purchased and placed in service residential rental property. What can students write off on taxes The property cost $100,000, not including the cost of land. What can students write off on taxes You used Table A-6 to figure your MACRS depreciation for this property. What can students write off on taxes You sold the property on March 2, 2013. What can students write off on taxes You file your tax return based on the calendar year. What can students write off on taxes A full year of depreciation for 2013 is $3,636. What can students write off on taxes This is $100,000 multiplied by . What can students write off on taxes 03636 (the percentage for the seventh month of the third recovery year) from Table A-6 . What can students write off on taxes You then apply the mid-month convention for the 2½ months of use in 2013. What can students write off on taxes Treat the month of disposition as one-half month of use. What can students write off on taxes Multiply $3,636 by the fraction, 2. What can students write off on taxes 5 over 12, to get your 2013 depreciation deduction of $757. What can students write off on taxes 50. What can students write off on taxes Figuring the Deduction Without Using the Tables Instead of using the rates in the percentage tables to figure your depreciation deduction, you can figure it yourself. What can students write off on taxes Before making the computation each year, you must reduce your adjusted basis in the property by the depreciation claimed the previous year. What can students write off on taxes Figuring MACRS deductions without using the tables generally will result in a slightly different amount than using the tables. What can students write off on taxes Declining Balance Method When using a declining balance method, you apply the same depreciation rate each year to the adjusted basis of your property. What can students write off on taxes You must use the applicable convention for the first tax year and you must switch to the straight line method beginning in the first year for which it will give an equal or greater deduction. What can students write off on taxes The straight line method is explained later. What can students write off on taxes You figure depreciation for the year you place property in service as follows. What can students write off on taxes Multiply your adjusted basis in the property by the declining balance rate. What can students write off on taxes Apply the applicable convention. What can students write off on taxes You figure depreciation for all other years (before the year you switch to the straight line method) as follows. What can students write off on taxes Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years. What can students write off on taxes Multiply this new adjusted basis by the same declining balance rate used in earlier years. What can students write off on taxes If you dispose of property before the end of its recovery period, see Using the Applicable Convention, later, for information on how to figure depreciation for the year you dispose of it. What can students write off on taxes Figuring depreciation under the declining balance method and switching to the straight line method is illustrated in Example 1 , later, under Examples. What can students write off on taxes Declining balance rate. What can students write off on taxes You figure your declining balance rate by dividing the specified declining balance percentage (150% or 200% changed to a decimal) by the number of years in the property's recovery period. What can students write off on taxes For example, for 3-year property depreciated using the 200% declining balance method, divide 2. What can students write off on taxes 00 (200%) by 3 to get 0. What can students write off on taxes 6667, or a 66. What can students write off on taxes 67% declining balance rate. What can students write off on taxes For 15-year property depreciated using the 150% declining balance method, divide 1. What can students write off on taxes 50 (150%) by 15 to get 0. What can students write off on taxes 10, or a 10% declining balance rate. What can students write off on taxes The following table shows the declining balance rate for each property class and the first year for which the straight line method gives an equal or greater deduction. What can students write off on taxes Property Class Method Declining Balance Rate Year 3-year 200% DB 66. What can students write off on taxes 667% 3rd 5-year 200% DB 40. What can students write off on taxes 0 4th 7-year 200% DB 28. What can students write off on taxes 571 5th 10-year 200% DB 20. What can students write off on taxes 0 7th 15-year 150% DB 10. What can students write off on taxes 0 7th 20-year 150% DB 7. What can students write off on taxes 5 9th Straight Line Method When using the straight line method, you apply a different depreciation rate each year to the adjusted basis of your property. What can students write off on taxes You must use the applicable convention in the year you place the property in service and the year you dispose of the property. What can students write off on taxes You figure depreciation for the year you place property in service as follows. What can students write off on taxes Multiply your adjusted basis in the property by the straight line rate. What can students write off on taxes Apply the applicable convention. What can students write off on taxes You figure depreciation for all other years (including the year you switch from the declining balance method to the straight line method) as follows. What can students write off on taxes Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years (under any method). What can students write off on taxes Determine the depreciation rate for the year. What can students write off on taxes Multiply the adjusted basis figured in (1) by the depreciation rate figured in (2). What can students write off on taxes If you dispose of property before the end of its recovery period, see Using the Applicable Convention , later, for information on how to figure depreciation for the year you dispose of it. What can students write off on taxes Straight line rate. What can students write off on taxes You determine the straight line depreciation rate for any tax year by dividing the number 1 by the years remaining in the recovery period at the beginning of that year. What can students write off on taxes When figuring the number of years remaining, you must take into account the convention used in the year you placed the property in service. What can students write off on taxes If the number of years remaining is less than 1, the depreciation rate for that tax year is 1. What can students write off on taxes 0 (100%). What can students write off on taxes Using the Applicable Convention The applicable convention (discussed earlier under Which Convention Applies ) affects how you figure your depreciation deduction for the year you place your property in service and for the year you dispose of it. What can students write off on taxes It determines how much of the recovery period remains at the beginning of each year, so it also affects the depreciation rate for property you depreciate under the straight line method. What can students write off on taxes See Straight line rate in the previous discussion. What can students write off on taxes Use the applicable convention as explained in the following discussions. What can students write off on taxes Half-year convention. What can students write off on taxes If this convention applies, you deduct a half-year of depreciation for the first year and the last year that you depreciate the property. What can students write off on taxes You deduct a full year of depreciation for any other year during the recovery period. What can students write off on taxes Figure your depreciation deduction for the year you place the property in service by dividing the depreciation for a full year by 2. What can students write off on taxes If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. What can students write off on taxes If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final 6 months of the recovery period is the amount of your unrecovered basis in the property. What can students write off on taxes Mid-quarter convention. What can students write off on taxes If this convention applies, the depreciation you can deduct for the first year you depreciate the property depends on the quarter in which you place the property in service. What can students write off on taxes A quarter of a full 12-month tax year is a period of 3 months. What can students write off on taxes The first quarter in a year begins on the first day of the tax year. What can students write off on taxes The second quarter begins on the first day of the fourth month of the tax year. What can students write off on taxes The third quarter begins on the first day of the seventh month of the tax year. What can students write off on taxes The fourth quarter begins on the first day of the tenth month of the tax year. What can students write off on taxes A calendar year is divided into the following quarters. What can students write off on taxes Quarter Months First January, February, March Second April, May, June Third July, August, September Fourth October, November, December Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by the percentage listed below for the quarter you place the property in service. What can students write off on taxes Quarter Percentage First 87. What can students write off on taxes 5% Second 62. What can students write off on taxes 5 Third 37. What can students write off on taxes 5 Fourth 12. What can students write off on taxes 5 If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter you dispose of the property. What can students write off on taxes Quarter Percentage First 12. What can students write off on taxes 5% Second 37. What can students write off on taxes 5 Third 62. What can students write off on taxes 5 Fourth 87. What can students write off on taxes 5 If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final quarter of the recovery period is the amount of your unrecovered basis in the property. What can students write off on taxes Mid-month convention. What can students write off on taxes If this convention applies, the depreciation you can deduct for the first year that you depreciate the property depends on the month in which you place the property in service. What can students write off on taxes Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by a fraction. What can students write off on taxes The numerator of the fraction is the number of full months in the year that the property is in service plus ½ (or 0. What can students write off on taxes 5). What can students write off on taxes The denominator is 12. What can students write off on taxes If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. What can students write off on taxes If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final month of the recovery period is the amount of your unrecovered basis in the property. What can students write off on taxes Example. What can students write off on taxes You use the calendar year and place nonresidential real property in service in August. What can students write off on taxes The property is in service 4 full months (September, October, November, and December). What can students write off on taxes Your numerator is 4. What can students write off on taxes 5 (4 full months plus 0. What can students write off on taxes 5). What can students write off on taxes You multiply the depreciation for a full year by 4. What can students write off on taxes 5/12, or 0. What can students write off on taxes 375. What can students write off on taxes Examples The following examples show how to figure depreciation under MACRS without using the percentage tables. What can students write off on taxes Figures are rounded for purposes of the examples. What can students write off on taxes Assume for all the examples that you use a calendar year as your tax year. What can students write off on taxes Example 1—200% DB method and half-year convention. What can students write off on taxes In February, you placed in service depreciable property with a 5-year recovery period and a basis of $1,000. What can students write off on taxes You do not elect to take the section 179 deduction and the property does not qualify for a special depreciation allowance. What can students write off on taxes You use GDS and the 200% declining balance (DB) method to figure your depreciation. What can students write off on taxes When the straight line (SL) method results in an equal or larger deduction, you switch to the SL method. What can students write off on taxes You did not place any property in service in the last 3 months of the year, so you must use the half-year convention. What can students write off on taxes First year. What can students write off on taxes You figure the depreciation rate under the 200% DB method by dividing 2 (200%) by 5 (the number of years in the recovery period). What can students write off on taxes The result is 40%. What can students write off on taxes You multiply the adjusted basis of the property ($1,000) by the 40% DB rate. What can students write off on taxes You apply the half-year convention by dividing the result ($400) by 2. What can students write off on taxes Depreciation for the first year under the 200% DB method is $200. What can students write off on taxes You figure the depreciation rate under the straight line (SL) method by dividing 1 by 5, the number of years in the recovery period. What can students write off on taxes The result is 20%. What can students write off on taxes You multiply the adjusted basis of the property ($1,000) by the 20% SL rate. What can students write off on taxes You apply the half-year convention by dividing the result ($200) by 2. What can students write off on taxes Depreciation for the first year under the SL method is $100. What can students write off on taxes The DB method provides a larger deduction, so you deduct the $200 figured under the 200% DB method. What can students write off on taxes Second year. What can students write off on taxes You reduce the adjusted basis ($1,000) by the depreciation claimed in the first year ($200). What can students write off on taxes You multiply the result ($800) by the DB rate (40%). What can students write off on taxes Depreciation for the second year under the 200% DB method is $320. What can students write off on taxes You figure the SL depreciation rate by dividing 1 by 4. What can students write off on taxes 5, the number of years remaining in the recovery period. What can students write off on taxes (Based on the half-year convention, you used only half a year of the recovery period in the first year. What can students write off on taxes ) You multiply the reduced adjusted basis ($800) by the result (22. What can students write off on taxes 22%). What can students write off on taxes Depreciation under the SL method for the second year is $178. What can students write off on taxes The DB method provides a larger deduction, so you deduct the $320 figured under the 200% DB method. What can students write off on taxes Third year. What can students write off on taxes You reduce the adjusted basis ($800) by the depreciation claimed in the second year ($320). What can students write off on taxes You multiply the result ($480) by the DB rate (40%). What can students write off on taxes Depreciation for the third year under the 200% DB method is $192. What can students write off on taxes You figure the SL depreciation rate by dividing 1 by 3. What can students write off on taxes 5. What can students write off on taxes You multiply the reduced adjusted basis ($480) by the result (28. What can students write off on taxes 57%). What can students write off on taxes Depreciation under the SL method for the third year is $137. What can students write off on taxes The DB method provides a larger deduction, so you deduct the $192 figured under the 200% DB method. What can students write off on taxes Fourth year. What can students write off on taxes You reduce the adjusted basis ($480) by the de
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The What Can Students Write Off On Taxes
What can students write off on taxes Publication 17(SP) - Introductory Material Table of Contents Qué Hay de Nuevo Recordatorios IntroductionIconos. What can students write off on taxes Para pedir formularios y publicaciones. What can students write off on taxes Preguntas sobre los impuestos. What can students write off on taxes Todo material en esta publicación puede ser reimpreso gratuitamente. What can students write off on taxes Una referencia a El Impuesto Federal sobre los Ingresos (2013) sería apropiada. What can students write off on taxes Las explicaciones y ejemplos en esta publicación representan la interpretación del Servicio de Impuestos Internos (IRS, por sus siglas en inglés) con respecto a: Leyes tributarias promulgadas por el Congreso de los Estados Unidos, Reglamentos del Departamento del Tesoro de los Estados Unidos y Decisiones de los tribunales. What can students write off on taxes Sin embargo, la información provista no abarca cada situación y no se presenta con la intención de reemplazar la ley o cambiar su significado. What can students write off on taxes Esta publicación abarca ciertos temas sobre los cuales un tribunal puede haber dictado un fallo más favorable para los contribuyentes que la interpretación hecha por el IRS. What can students write off on taxes Hasta que estas interpretaciones divergentes sean resueltas por fallos o decretos de un tribunal superior o de alguna otra manera, esta publicación continuará presentando las interpretaciones hechas por el IRS. What can students write off on taxes Todos los contribuyentes tienen derechos importantes cuando tratan con el IRS. What can students write off on taxes Estos derechos están descritos en la sección titulada Derechos del Contribuyente , al final de esta publicación. What can students write off on taxes Qué Hay de Nuevo Esta sección resume ciertos cambios tributarios importantes que entraron en vigor en el año 2013. What can students write off on taxes La mayor parte de estos cambios se abordan en más detalle en esta publicación. What can students write off on taxes Acontecimientos futuros. What can students write off on taxes Si desea obtener la información más reciente sobre temas de ley tributaria que se explican en esta publicación, incluyendo toda información sobre legislación tributaria, acceda a www. What can students write off on taxes irs. What can students write off on taxes gov/pub17sp. What can students write off on taxes Impuesto Adicional del Medicare. What can students write off on taxes Comenzando en el año 2013, le corresponderá un Impuesto Adicional del Medicare de 0. What can students write off on taxes 9% sobre los salarios, la compensación por jubilación ferroviaria (RRTA, por sus siglas en inglés) y el ingreso sobre el trabajo por cuenta propia que están sujetos al impuesto al Medicare. What can students write off on taxes El impuesto corresponde si estos ingresos son mayores que: $125,000, si es casado que presenta una declaración por separado, $250,000, si es casado que presenta una declaración conjunta o $200,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. What can students write off on taxes Si desea más información, vea el Formulario 8959 y sus Instrucciones, disponibles en inglés. What can students write off on taxes Impuesto sobre los ingresos netos de inversión. What can students write off on taxes Comenzando en el año 2013, usted podría estar sujeto al impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). What can students write off on taxes Este impuesto es el 3. What can students write off on taxes 8% de la cantidad menor entre (a) su ingreso neto de inversión o (b) la cantidad en exceso de su ingreso bruto ajustado modificado sobre: $125,000, si es casado que presenta una declaración por separado, $250,000, si es casado que presenta una declaración conjunta o si es viudo calificado o $200,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. What can students write off on taxes Si desea más información, vea el Formulario 8960 y sus Instrucciones, disponibles en inglés. What can students write off on taxes Cambio en las tasas tributarias. What can students write off on taxes La tasa tributaria mayor es de 39. What can students write off on taxes 6%. What can students write off on taxes Si desea más información, vea la Hoja de Trabajo para el Cálculo del Impuesto del Año 2013 o las Tasas Impositivas de 2013 , las cuales se encuentran al final de esta publicación. What can students write off on taxes Tasa tributaria sobre las ganancias netas de capital y dividendos calificados. What can students write off on taxes La tasa tributaria máxima de 15% sobre las ganancias netas de capital y los dividendos calificados ha aumentado a 20% para algunos contribuyentes. What can students write off on taxes Vea el capítulo 16 . What can students write off on taxes Gastos médicos y dentales. What can students write off on taxes Usted puede deducir solamente la parte de sus gastos médicos y dentales que sea mayor que el 10% de su ingreso bruto ajustado (7. What can students write off on taxes 5% si usted o su cónyuge tiene 65 años de edad o más). What can students write off on taxes Vea el capítulo 21 . What can students write off on taxes Aumento de la cantidad de la exención personal para determinados contribuyentes. What can students write off on taxes La exención personal que le corresponde a usted ha aumentado a $3,900. What can students write off on taxes Pero, esta cantidad se reduce si su ingreso bruto ajustado es mayor que: $150,000, si es casado que presenta una declaración por separado, $250,000, si es soltero, $275,000, si es cabeza de familia o $300,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. What can students write off on taxes Vea el capítulo 3 . What can students write off on taxes Límite sobre las deducciones detalladas. What can students write off on taxes Usted puede que no tenga derecho de deducir todas sus deducciones detalladas si su ingreso bruto ajustado es mayor que: $150,000, si es casado que presenta una declaración por separado, $250,000, si es soltero, $275,000, si es cabeza de familia o $300,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. What can students write off on taxes Vea el capítulo 29 . What can students write off on taxes Matrimonio entre el mismo sexo. What can students write off on taxes Si tiene un cónyuge de su mismo sexo con quien usted se casó en un estado (o jurisdicción o país extranjero) que reconoce el matrimonio entre personas del mismo sexo, usted y su cónyuge tienen que utilizar el estado civil para efectos de la declaración de casados que presentan una declaración conjunta o casado que presenta la declaración por separado en su declaración del año 2013. What can students write off on taxes Utilice uno de estos estados civiles para efectos de la declaración aunque usted y su cónyuge en la actualidad vivan en un estado (o jurisdicción o país extranjero) en donde no se reconozca el matrimonio entre personas del mismo sexo. What can students write off on taxes Vea el capítulo 2 . What can students write off on taxes Si reúne ciertos requisitos, quizás podría presentar declaraciones enmendadas para cambiar su estado civil para efectos de la declaración para algunos años anteriores. What can students write off on taxes Si desea saber más detalles sobre declaraciones enmendadas, vea el capítulo 1 . What can students write off on taxes Cuenta flexible de ahorros para gastos médicos (FSA, por sus siglas en inglés). What can students write off on taxes Comenzando con los años del plan después de 2012, usted no puede hacer aportaciones mediante la reducción de salarios mayores de $2,500 a cuentas flexibles de ahorros para gastos médicos (FSA, por sus siglas en inglés). What can students write off on taxes Vea el capítulo 5 . What can students write off on taxes Créditos tributarios que vencen. What can students write off on taxes El crédito por vehículo eléctrico enchufable y la parte reembolsable del crédito del impuesto mínimo de años anteriores ha vencido. What can students write off on taxes Usted no puede reclamar ninguno de éstos en su declaración del año 2013. What can students write off on taxes Vea el capítulo 37 . What can students write off on taxes Esquemas de inversión de tipo Ponzi. What can students write off on taxes Hay nuevas reglas sobre cómo reclamar una deducción en el Formulario 4684, en inglés, debido a una pérdida por robo por un esquema de inversión de tipo Ponzi. What can students write off on taxes Vea el capítulo 25 . What can students write off on taxes Método simplificado para la deducción por oficina en el hogar. What can students write off on taxes Si usted puede tomar una deducción por tener una oficina en su hogar, quizás pueda utilizar un método simplificado para calcular dicha deducción. What can students write off on taxes Vea la Publicación 587, disponible en inglés. What can students write off on taxes Tarifas estándar por milla. What can students write off on taxes Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil para uso comercial ha aumentado a 56½ centavos por milla. What can students write off on taxes Vea el capítulo 26 . What can students write off on taxes Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil por razones médicas ha aumentado a 24 centavos por milla. What can students write off on taxes Vea el capítulo 21 . What can students write off on taxes Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil para determinar los gastos de mudanza ha aumentado a 24 centavos por milla. What can students write off on taxes Vea la Publicación 521, Moving Expenses (Gastos de mudanza), en inglés. What can students write off on taxes Recordatorios A continuación aparecen recordatorios importantes y otros asuntos que le podrían ayudar a presentar su declaración de impuestos del año 2013. What can students write off on taxes Muchos de estos asuntos se explican más adelante en esta publicación. What can students write off on taxes Anote su número de Seguro Social (SSN, por sus siglas en inglés) en la declaración. What can students write off on taxes Anote su número de Seguro Social (SSN, por sus siglas en inglés) en el espacio correspondiente de la declaración de impuestos. What can students write off on taxes Si presentó una declaración conjunta de impuestos en el año 2012 y presenta una declaración conjunta en el año 2013 con el mismo cónyuge, escriba los nombres y números de Seguro Social en el mismo orden en que lo hizo en el año 2012. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Proteja su documentación tributaria contra el robo de identidad. What can students write off on taxes El robo de identidad ocurre cuando otra persona usa la información personal de usted sin su autorización para cometer fraude u otros delitos. What can students write off on taxes Dicha información personal podría ser su nombre, número de Seguro Social (SSN, por sus siglas en inglés) u otra información de identificación. What can students write off on taxes Un ladrón de identidad puede usar su SSN para obtener un empleo o puede presentar una declaración de impuestos usando su SSN robado para recibir un reembolso. What can students write off on taxes Si desea más información sobre el robo de identidad e información sobre cómo reducir su riesgo al robo de identidad, vea el capítulo 1 . What can students write off on taxes Números de identificación del contribuyente. What can students write off on taxes Tiene que proveer el número de identificación del contribuyente de cada persona por la cual reclama ciertos beneficios tributarios. What can students write off on taxes Este requisito se aplica aun en el caso en que la persona haya nacido en el año 2013. What can students write off on taxes Por lo general, este número es el número de Seguro Social de la persona. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Ingreso de fuentes en el extranjero. What can students write off on taxes Si es ciudadano de los Estados Unidos con ingresos provenientes de fuentes en el extranjero (ingresos del extranjero), tiene que declarar todos estos ingresos en su declaración de impuestos, a menos que estén exentos conforme a las leyes estadounidenses. What can students write off on taxes Esto es cierto tanto si vive dentro como fuera de los Estados Unidos e independientemente de si recibe o no un Formulario W-2 ó 1099 del pagador extranjero. What can students write off on taxes Esto corresponde al ingreso del trabajo (como salarios y propinas) y también al ingreso no derivado del trabajo (como intereses, dividendos, ganancias de capital, pensiones, alquileres y regalías). What can students write off on taxes Si reside fuera de los Estados Unidos, es posible que pueda excluir la totalidad o parte de su ingreso del trabajo procedente de fuentes en el extranjero. What can students write off on taxes Para más detalles, vea la Publicación 54, Tax Guide for U. What can students write off on taxes S. What can students write off on taxes Citizens and Resident Aliens Abroad (Guía tributaria para ciudadanos y residentes estadounidenses en el extranjero), en inglés. What can students write off on taxes Activos financieros extranjeros. What can students write off on taxes Si tuvo activos financieros extranjeros en el 2013, es posible que tenga que presentar el nuevo Formulario 8938 con su declaración. What can students write off on taxes Vea www. What can students write off on taxes IRS. What can students write off on taxes gov/form8938, en inglés, para más detalles. What can students write off on taxes Prórroga automática de 6 meses para presentar la declaración de impuestos. What can students write off on taxes Puede usar el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos (o el Formulario 4868, en inglés), para obtener una prórroga automática de 6 meses para presentar su declaración de impuestos. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Incluya su número de teléfono en la declaración. What can students write off on taxes Para resolver rápidamente cualquier pregunta que necesitemos hacerle para tramitar su declaración, nos gustaría poder llamarlo. What can students write off on taxes Anote el número de teléfono donde podamos llamarlo durante el día, al lado del espacio donde firma la declaración de impuestos y donde aparece su ocupación. What can students write off on taxes Si usted presenta una declaración conjunta, puede anotar el número de teléfono suyo o el de su cónyuge. What can students write off on taxes Pago de los impuestos. What can students write off on taxes Puede pagar sus impuestos a través de la Internet, a través del teléfono o por medio de cheque o giro. What can students write off on taxes Puede efectuar una transferencia directa de su cuenta bancaria o utilizar una tarjeta de crédito o débito. What can students write off on taxes Si presenta su declaración electrónicamente (por medio de e-file), puede programar un pago electrónico. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Maneras más rápidas de presentar su declaración. What can students write off on taxes El IRS ofrece maneras rápidas y fiables de presentar la información tributaria sin tener que presentar una declaración en papel. What can students write off on taxes Puede usar el sistema electrónico e-file del IRS para presentar su declaración de impuestos. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Presentación electrónica gratuita de la declaración. What can students write off on taxes Usted quizás pueda presentar su declaración de impuestos del año 2013 por Internet sin pagar cargo alguno. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Cambio de dirección. What can students write off on taxes Si cambia de dirección, debe notificarle al IRS. What can students write off on taxes Vea el tema titulado Cambio de Dirección , en el capítulo 1. What can students write off on taxes Reembolsos de una declaración presentada fuera de plazo. What can students write off on taxes Si a usted se le debe un reembolso pero no presentó una declaración, por lo general tendrá que presentar su declaración dentro de 3 años a partir de la fecha en que la declaración venció (incluidas prórrogas) para obtener ese reembolso. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Declaraciones de impuestos frívolas. What can students write off on taxes El IRS ha publicado una lista de posturas identificadas como frívolas. What can students write off on taxes La multa por presentar una declaración de impuestos frívola es de $5,000. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Reclamación errónea de reembolso o crédito. What can students write off on taxes Quizás tenga que pagar una multa si reclama erróneamente un reembolso o crédito. What can students write off on taxes Vea el capítulo 1 . What can students write off on taxes Información sobre la Ley de Confidencialidad de Información y la Ley de Reducción de Trámites. What can students write off on taxes La IRS Restructuring and Reform Act of 1998 (Ley de Reestructuración y Reforma del Servicio de Impuestos Internos de 1998), la Privacy Act of 1974 (Ley de Confidencialidad de Información de 1974) y la Paperwork Reduction Act of 1980 (Ley de Reducción de Trámites de 1980) requieren que, cuando le solicitemos información, le informemos primero sobre cuál es nuestro derecho legal para solicitar esa información, por qué la estamos solicitando, cómo se usará la información, qué podría suceder si no la recibimos y si su respuesta es voluntaria, necesaria para obtener un beneficio u obligatoria conforme a la ley. What can students write off on taxes Una explicación completa sobre este tema puede encontrarse en las instrucciones de los formularios. What can students write off on taxes Servicio a los contribuyentes. What can students write off on taxes Puede hacer una cita para recibir ayuda en persona en el Centro de Ayuda al Contribuyente más conveniente en el día laborable que más le convenga. What can students write off on taxes Vea el tema titulado Cómo Obtener Ayuda con los Impuestos , al final de esta publicación. What can students write off on taxes Mandato para preparadores de impuestos sobre el sistema e-file. What can students write off on taxes La mayoría de los preparadores de impuestos remunerados que preparan y presentan declaraciones tienen que presentar electrónicamente por medio del sistema e-file. What can students write off on taxes Puede ser que su preparador le comunique sobre este requisito y las opciones que están a disposición suya. What can students write off on taxes Inspector General del Tesoro para la Administración Tributaria. What can students write off on taxes Si desea denunciar confidencialmente la mala conducta, ineficacia, el fraude o abuso cometido por un empleado del IRS, puede llamar al 1-800-366-4484 (1-800-877-8339 para personas sordas, con limitación auditiva o que tienen impedimentos del habla, y que usen equipo TTY/TDD). What can students write off on taxes Puede mantenerse anónimo. What can students write off on taxes Fotografías de niños desaparecidos. What can students write off on taxes El IRS se enorgullece en colaborar con el National Center for Missing and Exploited Children (Centro Nacional de Búsqueda de Niños Desaparecidos y Explotados). What can students write off on taxes Las fotografías de niños desaparecidos que han sido seleccionadas por el Centro pueden aparacer en esta publicación en páginas que de otra manera estarían en blanco. What can students write off on taxes Usted puede ayudar a que estos niños regresen a sus hogares mirando sus fotografías y llamando al número gratuito 1-800-THE-LOST (1-800-843-5678) si reconoce a un niño. What can students write off on taxes Introduction Esta publicación abarca las reglas generales para la presentación de una declaración federal de impuestos sobre el ingreso. What can students write off on taxes La publicación complementa la información contenida en las instrucciones para el formulario de impuestos. What can students write off on taxes Igualmente explica las leyes tributarias para asegurar que usted pague sólo los impuestos que adeuda y nada más. What can students write off on taxes Cómo está organizada esta publicación. What can students write off on taxes Esta publicación sigue de cerca el Formulario 1040, U. What can students write off on taxes S. What can students write off on taxes Individual Income Tax Return (Declaración de impuestos de los Estados Unidos sobre los ingresos personales), disponible en inglés. What can students write off on taxes Está dividida en seis partes que abarcan distintas secciones del Formulario 1040. What can students write off on taxes Cada parte está subdividida en capítulos que normalmente explican una línea del formulario. What can students write off on taxes No se preocupe si presenta el Formulario 1040A o el Formulario 1040EZ. What can students write off on taxes Todo lo que está incluido en una línea de cualquiera de ambos formularios se incluye también en el Formulario 1040. What can students write off on taxes La tabla de contenido que aparece al comienzo de esta publicación y el índice que aparece al final le servirán de utilidad para encontrar la información que necesite. What can students write off on taxes Qué se incluye en esta publicación. What can students write off on taxes Esta publicación comienza con las reglas para la presentación de una declaración de impuestos. What can students write off on taxes La publicación explica: Quién tiene que presentar una declaración, Qué formulario se debe utilizar para declarar los impuestos, Cuándo es la fecha de vencimiento de la declaración, Cómo presentar su declaración usando el sistema electrónico e-file y Otra información general. What can students write off on taxes Esta publicación le ayudará a identificar el estado civil para propósitos de la declaración al cual tiene derecho. What can students write off on taxes Del mismo modo, le ayudará a determinar si puede reclamar algún dependiente y si los ingresos que recibe están sujetos a impuestos. What can students write off on taxes La publicación también explica la deducción estándar, las clases de gastos que quizás pueda deducir y varios créditos que quizás pueda tomar para reducir sus impuestos. What can students write off on taxes A lo largo de la publicación, hay ejemplos que muestran cómo se aplican las leyes tributarias en situaciones típicas. What can students write off on taxes También hay organigramas y tablas en la publicación que presentan información tributaria en una manera fácil de entender. What can students write off on taxes Muchos de los temas que se tratan en esta publicación son explicados en mayor detalle en otras publicaciones del IRS. What can students write off on taxes Se hace referencia a dichas publicaciones y se indica si están disponibles en español o en inglés. What can students write off on taxes Iconos. What can students write off on taxes En la publicación se utilizan pequeños símbolos gráficos, o sea iconos, para llamar su atención a información especial. What can students write off on taxes Vea la Tabla 1 , más adelante, para una explicación de cada icono usado en esta publicación. What can students write off on taxes Qué no se incluye en esta publicación. What can students write off on taxes Algunos materiales que le podrían ser útiles no se incluyen en esta publicación pero pueden encontrarse en el folleto de instrucciones del formulario de impuestos. What can students write off on taxes Esto incluye listas que identifican lo siguiente: Dónde declarar ciertas partidas que aparecen en documentos informativos y Temas tributarios grabados (temas TeleTax). What can students write off on taxes Si opera su propio negocio o si tiene otros ingresos del trabajo por cuenta propia, tales como del cuidado de niños o la venta de artesanía, vea las siguientes publicaciones para más información: Publicación 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) (Guía tributaria para pequeños negocios (para personas que usen el Anexo C o C-EZ)), en inglés. What can students write off on taxes Publicación 535, Business Expenses (Gastos de negocios), en inglés. What can students write off on taxes Publicación 587, Business Use of Your Home (Including Use by Daycare Providers) (Uso comercial de su vivienda (incluyendo el uso por proveedores del cuidado de niños)), en inglés. What can students write off on taxes Ayuda del IRS. What can students write off on taxes Existen muchas maneras en que puede obtener ayuda del IRS. What can students write off on taxes Éstas se explican bajo el tema titulado Cómo Obtener Ayuda con los Impuestos , al final de esta publicación. What can students write off on taxes Comentarios y sugerencias. What can students write off on taxes Agradeceremos sus comentarios acerca de esta publicación, así como sus sugerencias para ediciones futuras. What can students write off on taxes Puede enviar sus comentarios a la dirección siguiente: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. What can students write off on taxes NW, IR-6526 Washington, DC 20224 Contestamos muchas cartas por teléfono. What can students write off on taxes Por lo tanto, sería útil que incluyera en la correspondencia su número de teléfono, con el código de área, en donde nos podamos comunicar con usted durante el día. What can students write off on taxes Usted nos puede enviar comentarios desde la página web www. What can students write off on taxes irs. What can students write off on taxes gov/formspubs, en inglés, seleccionando Comment on Tax Forms and Publications (Enviar comentarios sobre los formularios y publicaciones de impuestos), bajo la sección More Information (Información adicional). What can students write off on taxes Aunque no le podemos contestar individualmente, agradecemos sus comentarios y sugerencias y los tendremos en cuenta para ediciones futuras de nuestros productos tributarios. What can students write off on taxes Para pedir formularios y publicaciones. What can students write off on taxes Visite www. What can students write off on taxes irs. What can students write off on taxes gov/formspubs para descargar formularios y publicaciones, llame al 1-800-829-3676 para pedir formularios y publicaciones o escriba a la dirección indicada a continuación y recibirá una respuesta dentro de 10 días después de que nosotros recibamos su solicitud. What can students write off on taxes Internal Revenue Service 1201 N. What can students write off on taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. What can students write off on taxes Si tiene una pregunta sobre los impuestos, verifique la información disponible en IRS. What can students write off on taxes gov/espanol o llame al 1-800-829-1040. What can students write off on taxes No podemos contestar preguntas sobre impuestos enviadas a ninguna de las dos direcciones indicadas anteriormente. What can students write off on taxes Misión del IRS. What can students write off on taxes Proveerles a los contribuyentes de los Estados Unidos de América un servicio de la más alta calidad al ayudarles a entender y cumplir con sus responsabilidades tributarias y, a la vez, hacer cumplir las leyes tributarias de manera íntegra y justa para todos. What can students write off on taxes Tabla 1. What can students write off on taxes Leyenda de los Iconos Icono Explicación Partidas que podrían causarle problemas en particular o una alerta sobre legislaciones pendientes que podrían entrar en vigor después de que se imprima esta publicación. What can students write off on taxes Un sitio en Internet o una dirección de correo electrónico. What can students write off on taxes Una dirección que podría necesitar. What can students write off on taxes Documentos que debería mantener en su documentación personal. What can students write off on taxes Cálculos que necesite realizar o una hoja de trabajo que pueda tener que completar y conservar para sus archivos. What can students write off on taxes Un número de teléfono importante. What can students write off on taxes Información que podría necesitar. What can students write off on taxes Prev Up Next Home More Online Publications