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2005 Tax Forms

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2005 Tax Forms

2005 tax forms 3. 2005 tax forms   Claiming the Special Depreciation Allowance Table of Contents Introduction What Is Qualified Property?Qualified Reuse and Recycling Property Qualified Cellulosic Biofuel Plant Property Qualified Disaster Assistance Property Certain Qualified Property Acquired After December 31, 2007 Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance How Much Can You Deduct? How Can You Elect Not To Claim an Allowance? When Must You Recapture an Allowance? Introduction You can take a special depreciation allowance to recover part of the cost of qualified property (defined next), placed in service during the tax year. 2005 tax forms The allowance applies only for the first year you place the property in service. 2005 tax forms For qualified property placed in service in 2013, you can take an additional 50% special allowance. 2005 tax forms The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service. 2005 tax forms This chapter explains what is qualified property. 2005 tax forms It also includes rules regarding how to figure an allowance, how to elect not to claim an allowance, and when you must recapture an allowance. 2005 tax forms Corporations can elect to accelerate certain minimum tax credits in lieu of claiming the special depreciation allowance for eligible qualified property. 2005 tax forms See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance , later. 2005 tax forms See chapter 6 for information about getting publications and forms. 2005 tax forms What Is Qualified Property? Your property is qualified property if it is one of the following. 2005 tax forms Qualified reuse and recycling property. 2005 tax forms Qualified cellulosic biofuel plant property. 2005 tax forms Qualified disaster assistance property. 2005 tax forms Certain qualified property acquired after December 31, 2007. 2005 tax forms The following discussions provide information about the types of qualified property listed above for which you can take the special depreciation allowance. 2005 tax forms Qualified Reuse and Recycling Property You can take a 50% special depreciation allowance for qualified reuse and recycling property. 2005 tax forms Qualified reuse and recycling property is any machinery or equipment (not including buildings or real estate), along with any appurtenance, that is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials (as defined in section 168(m)(3)(B) of the Internal Revenue Code). 2005 tax forms Qualified reuse and recycling property also includes software necessary to operate such equipment. 2005 tax forms The property must meet the following requirements. 2005 tax forms The property must be depreciated under MACRS. 2005 tax forms The property must have a useful life of at least 5 years. 2005 tax forms The original use of the property must begin with you after August 31, 2008. 2005 tax forms You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after August 31, 2008, with no binding written contract for the acquisition in effect before September 1, 2008. 2005 tax forms The property must be placed in service for use in your trade or business after August 31, 2008. 2005 tax forms Excepted Property Qualified reuse and recycling property does not include any of the following. 2005 tax forms Any rolling stock or other equipment used to transport reuse or recyclable materials. 2005 tax forms Property required to be depreciated using the Alternative Depreciation System (ADS). 2005 tax forms For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . 2005 tax forms Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. 2005 tax forms Property for which you elected not to claim any special depreciation allowance (discussed later). 2005 tax forms Property placed in service and disposed of in the same tax year. 2005 tax forms Property converted from business use to personal use in the same tax year acquired. 2005 tax forms Property converted from personal use to business use in the same or later tax year may be qualified reuse and recycling property. 2005 tax forms Qualified Cellulosic Biofuel Plant Property You can take a 50% special depreciation allowance for qualified cellulosic biofuel plant property. 2005 tax forms Cellulosic biofuel is any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. 2005 tax forms Examples include bagasse (from sugar cane), corn stalks, and switchgrass. 2005 tax forms The property must meet the following requirements. 2005 tax forms The property is used in the United States solely to produce cellulosic biofuel. 2005 tax forms The original use of the property must begin with you after December 20, 2006. 2005 tax forms You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after December 20, 2006, with no binding written contract for acquisition in effect before December 21, 2006. 2005 tax forms The property must be placed in service for use in your trade or business or for the production of income after October 3, 2008, and before January 3, 2013. 2005 tax forms Note. 2005 tax forms For property placed in service after January 2, 2013, and before January 1, 2014, you can take a 50% special depreciation allowance for qualified second generation biofuel plant property that is used solely in the United States to produce second generation biofuel (as defined in section 40(b)(6)(E)). 2005 tax forms The other requirements for qualified second generation biofuel plant property to be eligible for the special depreciation allowance are identical to the requirements discussed for Qualified Cellulosic Biofuel Plant Property above. 2005 tax forms Special Rules Sale-leaseback. 2005 tax forms   If you sold qualified cellulosic biofuel plant property you placed in service after October 3, 2008, and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. 2005 tax forms   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before December 21, 2006. 2005 tax forms Syndicated leasing transactions. 2005 tax forms   If qualified cellulosic biofuel plant property is originally placed in service by a lessor after October 3, 2008, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. 2005 tax forms   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. 2005 tax forms Excepted Property Qualified cellulosic biofuel plant property does not include any of the following. 2005 tax forms Property placed in service and disposed of in the same tax year. 2005 tax forms Property converted from business use to personal use in the same tax year it is acquired. 2005 tax forms Property converted from personal use to business use in the same or later tax year may be qualified cellulosic biomass ethanol plant property. 2005 tax forms Property required to be depreciated using the Alternative Depreciation System (ADS). 2005 tax forms For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . 2005 tax forms Property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section 103 of the Internal Revenue Code. 2005 tax forms Property for which you elected not to claim any special depreciation allowance (discussed later). 2005 tax forms Property for which a deduction was taken under section 179C for certain qualified refinery property. 2005 tax forms Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. 2005 tax forms Qualified Disaster Assistance Property You can take a 50% special depreciation allowance for qualified disaster assistance property placed in service in federally declared disaster areas in which the disaster occurred in 2009. 2005 tax forms A list of the federally declared disaster areas is available at the FEMA website at www. 2005 tax forms fema. 2005 tax forms gov. 2005 tax forms Your property is qualified disaster assistance property if it meets the following requirements. 2005 tax forms The property is nonresidential real property or residential real property placed in service before January 1, 2014, in a federally declared disaster area in which the disaster occurred in 2009. 2005 tax forms You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) on or after the applicable disaster date, with no binding written contract for the acquisition in effect before the applicable disaster date. 2005 tax forms The property must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the applicable federally declared disaster. 2005 tax forms The property must be similar in nature to, and located in the same county as, the rehabilitated or replaced property. 2005 tax forms The original use of the property within the applicable disaster area must have begun with you on or after the applicable disaster date. 2005 tax forms The property is placed in service by you on or before the date which is the last day of the fourth calendar year. 2005 tax forms Substantially all (80% or more) of the use of the property must be in the active conduct of your trade or business in a federally declared disaster area, occurring in 2009. 2005 tax forms It is not excepted property (explained later in Excepted Property ). 2005 tax forms Special Rules Sale-leaseback. 2005 tax forms   If you sold qualified disaster assistance property you placed in service after the applicable disaster date and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. 2005 tax forms   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before the applicable disaster date. 2005 tax forms Syndicated leasing transactions. 2005 tax forms   If qualified disaster assistance property is originally placed in service by a lessor after the applicable disaster date, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. 2005 tax forms   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. 2005 tax forms Excepted Property Qualified disaster assistance property does not include any of the following. 2005 tax forms Property required to be depreciated using the Alternative Depreciation System (ADS). 2005 tax forms For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . 2005 tax forms Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103 of the Internal Revenue Code. 2005 tax forms Any qualified revitalization building (defined later) placed in service before January 1, 2010, for which you have elected to claim a commercial revitalization deduction for qualified revitalization expenditures. 2005 tax forms Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. 2005 tax forms Any property for which the special allowance under section 168(k) or section 1400N(d) of the Internal Revenue Code applies. 2005 tax forms Property for which you elected not to claim any special depreciation allowance (discussed later). 2005 tax forms Property placed in service and disposed of in the same tax year. 2005 tax forms Property converted from business use to personal use in the same tax year acquired. 2005 tax forms Property converted from personal use to business use in the same or later tax year may be qualified disaster assistance property. 2005 tax forms Any gambling or animal racing property (defined later). 2005 tax forms Qualified revitalization building. 2005 tax forms   This is a commercial building and its structural components that you placed in service in a renewal community before January 1, 2010. 2005 tax forms If the building is new, the original use of the building must begin with you. 2005 tax forms If the building is not new, you must substantially rehabilitate the building and then place it in service. 2005 tax forms For more information, including definitions of substantially rehabilitated building and qualified revitalization expenditure, see section 1400I(b) of the Internal Revenue Code. 2005 tax forms Gambling or animal racing property. 2005 tax forms   Gambling or animal racing property includes the following personal and real property. 2005 tax forms Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing. 2005 tax forms Any real property determined by square footage (other than any portion that is less than 100 square feet) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing. 2005 tax forms Certain Qualified Property Acquired After December 31, 2007 You can take a 50% special depreciation deduction allowance for certain qualified property acquired after December 31, 2007. 2005 tax forms Your property is qualified property if it meets the following requirements. 2005 tax forms It is one of the following types of property. 2005 tax forms Tangible property depreciated under MACRS with a recovery period of 20 years or less. 2005 tax forms Water utility property. 2005 tax forms Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. 2005 tax forms (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 2005 tax forms ) Qualified leasehold improvement property (defined under Qualified leasehold improvement property later). 2005 tax forms You must have acquired the property after December 31, 2007, with no binding written contract for the acquisition in effect before January 1, 2008. 2005 tax forms The property must be placed in service for use in your trade or business or for the production of income before January 1, 2014 (before January 1, 2015, for certain property with a long production period and certain aircraft (defined next)). 2005 tax forms The original use of the property must begin with you after December 31, 2007. 2005 tax forms It is not excepted property (explained later in Excepted property). 2005 tax forms Qualified leasehold improvement property. 2005 tax forms    Generally, this is any improvement to an interior part of a building that is nonresidential real property, if all the following requirements are met. 2005 tax forms The improvement is made under or according to a lease by the lessee (or any sublessee) or the lessor of that part of the building. 2005 tax forms That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. 2005 tax forms The improvement is placed in service more than 3 years after the date the building was first placed in service by any person. 2005 tax forms The improvement is section 1250 property. 2005 tax forms See chapter 3 in Publication 544, Sales and Other Dispositions of Assets, for the definition of section 1250 property. 2005 tax forms   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. 2005 tax forms The enlargement of the building. 2005 tax forms Any elevator or escalator. 2005 tax forms Any structural component benefiting a common area. 2005 tax forms The internal structural framework of the building. 2005 tax forms   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. 2005 tax forms However, a lease between related persons is not treated as a lease. 2005 tax forms Related persons. 2005 tax forms   For this purpose, the following are related persons. 2005 tax forms Members of an affiliated group. 2005 tax forms An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. 2005 tax forms A corporation and an individual who directly or indirectly owns 80% or more of the value of the outstanding stock of that corporation. 2005 tax forms Two corporations that are members of the same controlled group. 2005 tax forms A trust fiduciary and a corporation if 80% or more of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. 2005 tax forms The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. 2005 tax forms The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. 2005 tax forms A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. 2005 tax forms Two S corporations, and an S corporation and a regular corporation, if the same persons own 80% or more of the value of the outstanding stock of each corporation. 2005 tax forms A corporation and a partnership if the same persons own both of the following. 2005 tax forms 80% or more of the value of the outstanding stock of the corporation. 2005 tax forms 80% or more of the capital or profits interest in the partnership. 2005 tax forms The executor and beneficiary of any estate. 2005 tax forms Long Production Period Property To be qualified property, long production period property must meet the following requirements. 2005 tax forms It must meet the requirements in (2)-(5), above. 2005 tax forms The property has a recovery period of at least 10 years or is transportation property. 2005 tax forms Transportation property is tangible personal property used in the trade or business of transporting persons or property. 2005 tax forms The property is subject to section 263A of the Internal Revenue Code. 2005 tax forms The property has an estimated production period exceeding 1 year and an estimated production cost exceeding $1,000,000. 2005 tax forms Noncommercial Aircraft To be qualified property, noncommercial aircraft must meet the following requirements. 2005 tax forms It must meet the requirements in (2)-(5), above. 2005 tax forms The aircraft must not be tangible personal property used in the trade or business of transporting persons or property (except for agricultural or firefighting purposes). 2005 tax forms The aircraft must be purchased (as discussed under Property Acquired by Purchase in chapter 2 ) by a purchaser who at the time of the contract for purchase, makes a nonrefundable deposit of the lesser of 10% of the cost or $100,000. 2005 tax forms The aircraft must have an estimated production period exceeding four months and a cost exceeding $200,000. 2005 tax forms Special Rules Sale-leaseback. 2005 tax forms   If you sold qualified property you placed in service after December 31, 2007, and leased it back within 3 months after you originally placed in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. 2005 tax forms   The property will not qualify for the special depreciation allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before January 1, 2008. 2005 tax forms Syndicated leasing transactions. 2005 tax forms   If qualified property is originally placed in service by a lessor after December 31, 2007, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. 2005 tax forms   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of the last sale if the property is sold within 3 months after the final unit is placed in service and the period between the time the first and last units are placed in service does not exceed 12 months. 2005 tax forms Excepted Property Qualified property does not include any of the following. 2005 tax forms Property placed in service and disposed of in the same tax year. 2005 tax forms Property converted from business use to personal use in the same tax year acquired. 2005 tax forms Property converted from personal use to business use in the same or later tax year may be qualified property. 2005 tax forms Property required to be depreciated under the Alternative Depreciation System (ADS). 2005 tax forms This includes listed property used 50% or less in a qualified business use. 2005 tax forms For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . 2005 tax forms Qualified restaurant property (as defined in section 168(e)(7) of the Internal Revenue Code). 2005 tax forms Qualified retail improvement property (as defined in section 168(e)(8) of the Internal Revenue Code). 2005 tax forms Property for which you elected not to claim any special depreciation allowance (discussed later). 2005 tax forms Property for which you elected to accelerate certain credits in lieu of the special depreciation allowance (discussed next). 2005 tax forms Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 2 extension property (as defined in section 168(k)(4)(I)(iv)), unless the corporation made an election not to apply the section 168(k)(4) election to round 2 extension property for its first tax year ending after December 31, 2010. 2005 tax forms For 2013, round 2 extension property generally is long production period and noncommercial aircraft if acquired after March 31, 2008, and placed in service after December 31, 2012, but before January 1, 2014. 2005 tax forms An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 3 extension property (as defined in section 168(k)(4)(J)(iv)), unless the corporation makes an election not to apply the section 168(k)(4) election to round 3 extension property. 2005 tax forms If a corporation did not make a section 168(k)(4) election for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, the corporation may elect for its first tax year ending after December 31, 2012, to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for only round 3 extension property. 2005 tax forms If you make an election to accelerate these credits in lieu of claiming the special depreciation allowance for eligible property, you must not take the 50% special depreciation allowance for the property and must depreciate the basis in the property under MACRS using the straight line method. 2005 tax forms See Which Depreciation Method Applies in chapter 4 . 2005 tax forms Once made, the election cannot be revoked without IRS consent. 2005 tax forms Additional guidance. 2005 tax forms   For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. 2005 tax forms Proc. 2005 tax forms 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www. 2005 tax forms irs. 2005 tax forms gov/pub/irs-irbs/irb08-44. 2005 tax forms pdf, Rev. 2005 tax forms Proc. 2005 tax forms 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www. 2005 tax forms irs. 2005 tax forms gov/pub/irs-irbs/irb09-06. 2005 tax forms pdf, and Rev. 2005 tax forms Proc. 2005 tax forms 2009-33 on page 150 of Internal Revenue Bulletin 2009-29, available at www. 2005 tax forms irs. 2005 tax forms gov/pub/irs-irbs/irb09-29. 2005 tax forms pdf. 2005 tax forms Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions. 2005 tax forms   Additional guidance regarding the election to accelerate the minimum tax credit in lieu of claiming the special depreciation allowance for round 2 extension property and round 3 extension property may also be available in later Internal Revenue Bulletins available at www. 2005 tax forms irs. 2005 tax forms gov/irb. 2005 tax forms How Much Can You Deduct? Figure the special depreciation allowance by multiplying the depreciable basis of qualified reuse and recycling property, qualified cellulosic biofuel plant property, qualified disaster assistance property, and certain qualified property acquired after December 31, 2007, by 50%. 2005 tax forms For qualified property other than listed property, enter the special allowance on line 14 in Part II of Form 4562. 2005 tax forms For qualified property that is listed property, enter the special allowance on line 25 in Part V of Form 4562. 2005 tax forms If you place qualified property in service in a short tax year, you can take the full amount of a special depreciation allowance. 2005 tax forms Depreciable basis. 2005 tax forms   This is the property's cost or other basis multiplied by the percentage of business/investment use, reduced by the total amount of any credits and deductions allocable to the property. 2005 tax forms   The following are examples of some credits and deductions that reduce depreciable basis. 2005 tax forms Any section 179 deduction. 2005 tax forms Any deduction for removal of barriers to the disabled and the elderly. 2005 tax forms Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. 2005 tax forms Basis adjustment to investment credit property under section 50(c) of the Internal Revenue Code. 2005 tax forms   For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. 2005 tax forms   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 . 2005 tax forms 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 . 2005 tax forms Depreciating the remaining cost. 2005 tax forms   After you figure your special depreciation allowance for your qualified property, you can use the remaining cost to figure your regular MACRS depreciation deduction (discussed in chapter 4 . 2005 tax forms Therefore, you must reduce the depreciable basis of the property by the special depreciation allowance before figuring your regular MACRS depreciation deduction. 2005 tax forms Example. 2005 tax forms On November 1, 2013, Tom Brown bought and placed in service in his business qualified property that cost $450,000. 2005 tax forms He did not elect to claim a section 179 deduction. 2005 tax forms He deducts 50% of the cost ($225,000) as a special depreciation allowance for 2013. 2005 tax forms He uses the remaining $225,000 of cost to figure his regular MACRS depreciation deduction for 2013 and later years. 2005 tax forms Like-kind exchanges and involuntary conversions. 2005 tax forms   If you acquire qualified property in a like-kind exchange or involuntary conversion, the carryover basis of the acquired property is eligible for a special depreciation allowance. 2005 tax forms After you figure your special allowance, you can use the remaining carryover basis to figure your regular MACRS depreciation deduction. 2005 tax forms In the year you claim the allowance (the year you place in service the property received in the exchange or dispose of involuntarily converted property), you must reduce the carryover basis of the property by the allowance before figuring your regular MACRS depreciation deduction. 2005 tax forms See Figuring the Deduction for Property Acquired in a Nontaxable Exchange , in chapter 4 under How Is the Depreciation Deduction Figured . 2005 tax forms The excess basis (the part of the acquired property's basis that exceeds its carryover basis) is also eligible for a special depreciation allowance. 2005 tax forms How Can You Elect Not To Claim an Allowance? You can elect, for any class of property, not to deduct any special allowances for all property in such class placed in service during the tax year. 2005 tax forms To make an election, attach a statement to your return indicating what election you are making and the class of property for which you are making the election. 2005 tax forms When to make election. 2005 tax forms   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. 2005 tax forms   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). 2005 tax forms Attach the election statement to the amended return. 2005 tax forms On the amended return, write “Filed pursuant to section 301. 2005 tax forms 9100-2. 2005 tax forms ” Revoking an election. 2005 tax forms   Once you elect not to deduct a special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. 2005 tax forms A request to revoke the election is a request for a letter ruling. 2005 tax forms If you elect not to have any special allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. 2005 tax forms When Must You Recapture an Allowance? When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. 2005 tax forms See When Do You Recapture MACRS Depreciation in chapter 4 or more information. 2005 tax forms Recapture of allowance deducted for qualified GO Zone property. 2005 tax forms   If, in any year after the year you claim the special depreciation allowance for qualified GO Zone property (including specified GO Zone extension property), the property ceases to be used in the GO Zone, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. 2005 tax forms For additional guidance, see Notice 2008-25 on page 484 of Internal Revenue Bulletin 2008-9. 2005 tax forms Qualified cellulosic biomass ethanol plant property and qualified cellulosic biofuel plant property. 2005 tax forms   If, in any year after the year you claim the special depreciation allowance for any qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, the property ceases to be qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. 2005 tax forms Recapture of allowance for qualified Recovery Assistance property. 2005 tax forms   If, in any year after the year you claim the special depreciation allowance for qualified Recovery Assistance property, the property ceases to be used in the Kansas disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. 2005 tax forms For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. 2005 tax forms Recapture of allowance for qualified disaster assistance property. 2005 tax forms   If, in any year after the year you claim the special depreciation allowance for qualified disaster assistance property, the property ceases to be used in the applicable disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. 2005 tax forms   For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. 2005 tax forms Prev  Up  Next   Home   More Online Publications
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The 2005 Tax Forms

2005 tax forms Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. 2005 tax forms For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. 2005 tax forms If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. 2005 tax forms Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. 2005 tax forms A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. 2005 tax forms Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. 2005 tax forms Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). 2005 tax forms It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. 2005 tax forms A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. 2005 tax forms Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. 2005 tax forms It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. 2005 tax forms Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. 2005 tax forms Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. 2005 tax forms Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. 2005 tax forms Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. 2005 tax forms Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. 2005 tax forms Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. 2005 tax forms Listed property placed in service before 1987. 2005 tax forms   For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. 2005 tax forms Listed property placed in service after 1986. 2005 tax forms   For information on listed property placed in service after 1986, see Publication 946. 2005 tax forms Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. 2005 tax forms You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. 2005 tax forms The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. 2005 tax forms However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. 2005 tax forms Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. 2005 tax forms Example. 2005 tax forms Sarah Bradley uses a home computer 50% of the time to manage her investments. 2005 tax forms She also uses the computer 40% of the time in her part-time consumer research business. 2005 tax forms Sarah's home computer is listed property because it is not used at a regular business establishment. 2005 tax forms Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. 2005 tax forms Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. 2005 tax forms Her combined rate of business/investment use for determining her depreciation deduction is 90%. 2005 tax forms Qualified Business Use A qualified business use is any use in your trade or business. 2005 tax forms However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. 2005 tax forms See Employees, later. 2005 tax forms 5% owner. 2005 tax forms   A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. 2005 tax forms   A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. 2005 tax forms Related person. 2005 tax forms   A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. 2005 tax forms Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. 2005 tax forms See Publication 463. 2005 tax forms Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. 2005 tax forms Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. 2005 tax forms Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. 2005 tax forms Any payment to you for the use of the automobile is treated as a rent payment for 3). 2005 tax forms Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. 2005 tax forms Use for the employer's convenience. 2005 tax forms   Whether the use of listed property is for the employer's convenience must be determined from all the facts. 2005 tax forms The use is for the employer's convenience if it is for a substantial business reason of the employer. 2005 tax forms The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. 2005 tax forms Use required as a condition of employment. 2005 tax forms   Whether the use of listed property is a condition of employment depends on all the facts and circumstances. 2005 tax forms The use of property must be required for the employee to perform duties properly. 2005 tax forms The employer need not explicitly require the employee to use the property. 2005 tax forms A mere statement by the employer that the use of the property is a condition of employment is not sufficient. 2005 tax forms Example 1. 2005 tax forms Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. 2005 tax forms She owns and uses a motorcycle to deliver packages to downtown offices. 2005 tax forms We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. 2005 tax forms The company reimburses delivery persons for their costs. 2005 tax forms Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. 2005 tax forms Example 2. 2005 tax forms Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. 2005 tax forms He must travel to these sites on a regular basis. 2005 tax forms Uplift does not furnish an automobile or explicitly require him to use his own automobile. 2005 tax forms However, it reimburses him for any costs he incurs in traveling to the various sites. 2005 tax forms The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. 2005 tax forms Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. 2005 tax forms You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. 2005 tax forms For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. 2005 tax forms For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. 2005 tax forms Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. 2005 tax forms First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. 2005 tax forms Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. 2005 tax forms It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. 2005 tax forms Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. 2005 tax forms Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. 2005 tax forms See Recapture of excess depreciation, next. 2005 tax forms Recapture of excess depreciation. 2005 tax forms   You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. 2005 tax forms Any excess depreciation must also be added to the adjusted basis of your property. 2005 tax forms Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. 2005 tax forms This means you figure your depreciation using the percentages fromTable 16 or 17. 2005 tax forms For information on investment credit recapture, see the instructions for Form 4255. 2005 tax forms Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. 2005 tax forms In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. 2005 tax forms To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. 2005 tax forms See Car Used 50% or Less for Business in Publication 917. 2005 tax forms Leased Property The limitations on cost recovery deductions apply to the rental of listed property. 2005 tax forms The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). 2005 tax forms SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. 2005 tax forms Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. 2005 tax forms A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. 2005 tax forms This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. 2005 tax forms Occasional or incidental leasing activity is insufficient. 2005 tax forms For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. 2005 tax forms An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. 2005 tax forms Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. 2005 tax forms Inclusion amount for property leased before 1987. 2005 tax forms   You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. 2005 tax forms You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. 2005 tax forms   The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. 2005 tax forms For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. 2005 tax forms You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. 2005 tax forms Special rules. 2005 tax forms   The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. 2005 tax forms The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. 2005 tax forms   If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. 2005 tax forms Maximum inclusion amount. 2005 tax forms   The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. 2005 tax forms What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. 2005 tax forms How long to keep records. 2005 tax forms   For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). 2005 tax forms Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. 2005 tax forms It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. 2005 tax forms However, your records should back up your receipts in an orderly manner. 2005 tax forms Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. 2005 tax forms Written documents of your expenditure or use are generally better evidence than oral statements alone. 2005 tax forms A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. 2005 tax forms A daily log is not required. 2005 tax forms However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. 2005 tax forms Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. 2005 tax forms An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. 2005 tax forms For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. 2005 tax forms Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. 2005 tax forms However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. 2005 tax forms A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. 2005 tax forms For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. 2005 tax forms Business Use Supported An adequate record contains enough information on each element of every business or investment use. 2005 tax forms The amount of detail required to support the use depends on the facts and circumstances. 2005 tax forms For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. 2005 tax forms Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. 2005 tax forms Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. 2005 tax forms However, repeated uses can be combined as a single item. 2005 tax forms Each expenditure is recorded as a separate item and not combined with other expenditures. 2005 tax forms If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. 2005 tax forms If these expenses are combined, you do not need to support the business purpose of each expense. 2005 tax forms Instead, you can divide the expenses based on the total business use of the listed property. 2005 tax forms Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. 2005 tax forms For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. 2005 tax forms Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. 2005 tax forms Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. 2005 tax forms Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. 2005 tax forms It must be kept elsewhere and made available as support to the district director on request. 2005 tax forms Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. 2005 tax forms If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. 2005 tax forms If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. 2005 tax forms If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. 2005 tax forms Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. 2005 tax forms Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. 2005 tax forms Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. 2005 tax forms If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. 2005 tax forms Employees. 2005 tax forms   Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. 2005 tax forms Employees claiming the standard mileage rate may be able to use Form 2106–EZ. 2005 tax forms Employer who provides vehicles to employees. 2005 tax forms   An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. 2005 tax forms   An employer who provides more than five vehicles to employees need not include any information on his or her tax return. 2005 tax forms Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. 2005 tax forms   You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. 2005 tax forms See the instructions for Form 4562. 2005 tax forms Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. 2005 tax forms In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. 2005 tax forms In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. 2005 tax forms For more information about deductions after the recovery period for automobiles, see Publication 917. 2005 tax forms Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. 2005 tax forms Table 1. 2005 tax forms 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. 2005 tax forms Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev  Up  Next   Home   More Online Publications