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Amended 1040

Free Online State And Federal Tax FilingFree Tax Filing StateForm 1040Free H & R Block FilingIrs Form 1040vAmend 2011 Tax ReturnAmended Federal Tax Return 2011Free Tax Preparation SitesTaxact SignE-file State Return For FreeTax Forms 1040 Ez1040ez Tax Form 2010Www Taxact Com 2011Filing 2011 Taxes OnlineTax Planning Us 2006 TaxesE File State Income TaxInternal Revenue Service Form 1040ezTaxact2010Turbotax Deluxe Federal E File State 2011 For Pc DownloadTaxes H&r BlockIrs File 2011 TaxesFile 1040ez By PhoneIrs Form1040xState 1040 Ez Form1040nr InstructionsTurbotax 2008 E FileEfile 2012 TaxesWww.irs.gov1040xH And R Block For MilitaryFree Irs And State Tax FilingTax Exemptions For StudentsWww Irs Gov EitcDo Active Duty Military Pay State TaxesLate Tax PenaltyFree Amended Tax Return1040ez Tax Table 2010Hr Block Tax Software1040 OnlineTax Act 2011 Free DownloadI Need To File My State Taxes Only

Amended 1040

Amended 1040 Index A Assistance (see Tax help) F Free tax services, Free help with your tax return. Amended 1040 H Help (see Tax help) P Publications (see Tax help) T Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Authorized IRS e-file Providers for Individuals

Locate the closest Authorized IRS e-file Providers in your area where you can electronically file your tax return. Simply enter the first 3, 4, or all 5 numbers of your Zip Code in the box below and click the Submit button!

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e-file Provider Questions and Answers

 

 


Q. What is an "Authorized IRS e-file Provider"?

A. Tax professionals who are accepted into the electronic filing program are called "Authorized IRS e-file Providers." They are the Electronic Return Originator (ERO) who transmits tax return information to the IRS.

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Q. How does IRS e-file work?

A. You or your tax professional, prepare your tax return. In many cases, the tax professional is also the Electronic Return Originator (ERO) who is authorized to file your return electronically to the IRS. Ask your tax professional to file your return through IRS e-file.

You sign your electronic tax return by either using a Self-Select PIN for e-file for a completely paperless return, or by signing Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.See " If the return is electronic, how do I sign it?" for more information.

After you sign the return using a Self-Select PIN or Form 8453,the ERO transmits the return to the IRS or to a third-party transmitter who then forwards the entire electronic record to the IRS for processing. Once received at the IRS, the return is automatically checked by computers for errors and missing information. If it cannot be processed, it is sent back to the originating transmitter (usually the ERO) to clarify any necessary information. After correction, the transmitter retransmits the return to the IRS. Within 48 hours of electronically sending your return to IRS, the IRS sends an acknowledgment to the transmitter stating the return is accepted for processing. This is your proof of filing and assurance that the IRS has your return information. The Authorized IRS e-file Provider then sends Form 8453 to the IRS.

If due a refund, you can expect to receive it in approximately three weeks from the acknowledgment date - even faster with Direct Deposit (half the time as when filed on paper). If you owe tax, see "What if I owe Money?" for payment options available this year.

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Q. How will I know that the IRS really has my return?

A. The IRS lets your tax professional know that it has received your return information within 48 hours after electronically sending your return to IRS. If the IRS detects any errors, it sends an error message to the transmitter to correct and retransmit the return to the IRS. Only IRS e-file options offer this advantage.

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Q. If the return is electronic, how do I sign it?

A. The most convenient way for you to sign your electronic return is to use an electronic signature Personal Identification Number (PIN) -- and it's completely paperless!More information on signing your return electronically can be found at Choosing Your Own PIN, or your Tax Preparer can answer any questions you have about electronic signatures. If you do not choose to use one of the electronic signature methods, Self-Select PIN or Practitioner PIN, you must complete and sign the signature document, Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.

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Q. How accurate is IRS e-file?

A. IRS e-file returns are virtually error-proof with an error rate of less than one percent. IRS e-file greatly reduces the chance that you will get an error letter from the IRS.

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Q. What if I owe money?

A. Your tax professional can file your return electronically any time during the filing season; however, sending the payment for a balance due by April 15 is still your responsibility. You may file electronically as soon as you are ready and will receive a confirmation from the IRS within 48 hours of receipt of your return.

Electronic payment options are convenient, safe and secure methods for paying taxes. You can authorize an electronic funds withdrawal, or use a credit card. Payments can be made 24 hours a day, 7 days a week. All balance due payments, regardless of method of payment, must be authorized or sent to the IRS by April 15 to avoid late payment penalties or interest charges.

Electronic payment options provide an alternative to paying taxes by check or money order and saves you time and we acknowledge receipt of your tax return. If paying by check or money order, you must use Form 1040-V.

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Q. Can I e-file my state return with my Federal return at the same time?

A. Yes. Federal/State e-file, an extension of IRS e-file, is offered in 37 states and the District of Columbia. However, not all Authorized IRS e-file Providers provide this service. Your Authorized IRS e-file Provider can tell you if they participate in the Federal/State e-file program.

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Q. Is there a fee for IRS e-file?

A. The IRS does not charge a fee for electronic filing. Some Authorized IRS e-file Providers (EROs) charge a fee for providing this service to their clients while others may offer it free of charge. However, this fee cannot be based on any figure from the tax return. Fees vary depending upon the tax professional you choose and the specific services you request.

With IRS e-file you can prepare your own return and pay a professional only to transmit it electronically, or you can pay to have your return both prepared and transmitted. Whichever you choose, shop around for a tax professional who offers the services you need at an acceptable cost to you.

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Q. Who offers IRS e-file services?

A. Many tax professionals offer IRS e-file to their clients. To find a tax professional to file your return electronically, use the Authorized IRS e-file Provider Locator at the top of this page, or look in your local telephone directory under "Tax Return Preparation" for an "Authorized IRS e-file Provider" that meets your needs. Also, look for the "Authorized IRS e-file Provider" sign or decal in storefront windows.

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Page Last Reviewed or Updated: 22-Apr-2013

The Amended 1040

Amended 1040 3. Amended 1040   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. Amended 1040 The allowance applies only for the first year you place the property in service. Amended 1040 For qualified property placed in service in 2013, you can take an additional 50% special allowance. Amended 1040 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. Amended 1040 This chapter explains what is qualified property. Amended 1040 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. Amended 1040 Corporations can elect to accelerate certain minimum tax credits in lieu of claiming the special depreciation allowance for eligible qualified property. Amended 1040 See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance , later. Amended 1040 See chapter 6 for information about getting publications and forms. Amended 1040 What Is Qualified Property? Your property is qualified property if it is one of the following. Amended 1040 Qualified reuse and recycling property. Amended 1040 Qualified cellulosic biofuel plant property. Amended 1040 Qualified disaster assistance property. Amended 1040 Certain qualified property acquired after December 31, 2007. Amended 1040 The following discussions provide information about the types of qualified property listed above for which you can take the special depreciation allowance. Amended 1040 Qualified Reuse and Recycling Property You can take a 50% special depreciation allowance for qualified reuse and recycling property. Amended 1040 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). Amended 1040 Qualified reuse and recycling property also includes software necessary to operate such equipment. Amended 1040 The property must meet the following requirements. Amended 1040 The property must be depreciated under MACRS. Amended 1040 The property must have a useful life of at least 5 years. Amended 1040 The original use of the property must begin with you after August 31, 2008. Amended 1040 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. Amended 1040 The property must be placed in service for use in your trade or business after August 31, 2008. Amended 1040 Excepted Property Qualified reuse and recycling property does not include any of the following. Amended 1040 Any rolling stock or other equipment used to transport reuse or recyclable materials. Amended 1040 Property required to be depreciated using the Alternative Depreciation System (ADS). Amended 1040 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 . Amended 1040 Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Amended 1040 Property for which you elected not to claim any special depreciation allowance (discussed later). Amended 1040 Property placed in service and disposed of in the same tax year. Amended 1040 Property converted from business use to personal use in the same tax year acquired. Amended 1040 Property converted from personal use to business use in the same or later tax year may be qualified reuse and recycling property. Amended 1040 Qualified Cellulosic Biofuel Plant Property You can take a 50% special depreciation allowance for qualified cellulosic biofuel plant property. Amended 1040 Cellulosic biofuel is any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. Amended 1040 Examples include bagasse (from sugar cane), corn stalks, and switchgrass. Amended 1040 The property must meet the following requirements. Amended 1040 The property is used in the United States solely to produce cellulosic biofuel. Amended 1040 The original use of the property must begin with you after December 20, 2006. Amended 1040 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. Amended 1040 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. Amended 1040 Note. Amended 1040 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)). Amended 1040 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. Amended 1040 Special Rules Sale-leaseback. Amended 1040   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. Amended 1040   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. Amended 1040 Syndicated leasing transactions. Amended 1040   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. Amended 1040   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. Amended 1040 Excepted Property Qualified cellulosic biofuel plant property does not include any of the following. Amended 1040 Property placed in service and disposed of in the same tax year. Amended 1040 Property converted from business use to personal use in the same tax year it is acquired. Amended 1040 Property converted from personal use to business use in the same or later tax year may be qualified cellulosic biomass ethanol plant property. Amended 1040 Property required to be depreciated using the Alternative Depreciation System (ADS). Amended 1040 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 . Amended 1040 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. Amended 1040 Property for which you elected not to claim any special depreciation allowance (discussed later). Amended 1040 Property for which a deduction was taken under section 179C for certain qualified refinery property. Amended 1040 Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Amended 1040 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. Amended 1040 A list of the federally declared disaster areas is available at the FEMA website at www. Amended 1040 fema. Amended 1040 gov. Amended 1040 Your property is qualified disaster assistance property if it meets the following requirements. Amended 1040 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. Amended 1040 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. Amended 1040 The property must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the applicable federally declared disaster. Amended 1040 The property must be similar in nature to, and located in the same county as, the rehabilitated or replaced property. Amended 1040 The original use of the property within the applicable disaster area must have begun with you on or after the applicable disaster date. Amended 1040 The property is placed in service by you on or before the date which is the last day of the fourth calendar year. Amended 1040 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. Amended 1040 It is not excepted property (explained later in Excepted Property ). Amended 1040 Special Rules Sale-leaseback. Amended 1040   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. Amended 1040   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. Amended 1040 Syndicated leasing transactions. Amended 1040   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. Amended 1040   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. Amended 1040 Excepted Property Qualified disaster assistance property does not include any of the following. Amended 1040 Property required to be depreciated using the Alternative Depreciation System (ADS). Amended 1040 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 . Amended 1040 Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103 of the Internal Revenue Code. Amended 1040 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. Amended 1040 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. Amended 1040 Any property for which the special allowance under section 168(k) or section 1400N(d) of the Internal Revenue Code applies. Amended 1040 Property for which you elected not to claim any special depreciation allowance (discussed later). Amended 1040 Property placed in service and disposed of in the same tax year. Amended 1040 Property converted from business use to personal use in the same tax year acquired. Amended 1040 Property converted from personal use to business use in the same or later tax year may be qualified disaster assistance property. Amended 1040 Any gambling or animal racing property (defined later). Amended 1040 Qualified revitalization building. Amended 1040   This is a commercial building and its structural components that you placed in service in a renewal community before January 1, 2010. Amended 1040 If the building is new, the original use of the building must begin with you. Amended 1040 If the building is not new, you must substantially rehabilitate the building and then place it in service. Amended 1040 For more information, including definitions of substantially rehabilitated building and qualified revitalization expenditure, see section 1400I(b) of the Internal Revenue Code. Amended 1040 Gambling or animal racing property. Amended 1040   Gambling or animal racing property includes the following personal and real property. Amended 1040 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. Amended 1040 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. Amended 1040 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. Amended 1040 Your property is qualified property if it meets the following requirements. Amended 1040 It is one of the following types of property. Amended 1040 Tangible property depreciated under MACRS with a recovery period of 20 years or less. Amended 1040 Water utility property. Amended 1040 Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Amended 1040 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Amended 1040 ) Qualified leasehold improvement property (defined under Qualified leasehold improvement property later). Amended 1040 You must have acquired the property after December 31, 2007, with no binding written contract for the acquisition in effect before January 1, 2008. Amended 1040 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)). Amended 1040 The original use of the property must begin with you after December 31, 2007. Amended 1040 It is not excepted property (explained later in Excepted property). Amended 1040 Qualified leasehold improvement property. Amended 1040    Generally, this is any improvement to an interior part of a building that is nonresidential real property, if all the following requirements are met. Amended 1040 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. Amended 1040 That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Amended 1040 The improvement is placed in service more than 3 years after the date the building was first placed in service by any person. Amended 1040 The improvement is section 1250 property. Amended 1040 See chapter 3 in Publication 544, Sales and Other Dispositions of Assets, for the definition of section 1250 property. Amended 1040   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Amended 1040 The enlargement of the building. Amended 1040 Any elevator or escalator. Amended 1040 Any structural component benefiting a common area. Amended 1040 The internal structural framework of the building. Amended 1040   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. Amended 1040 However, a lease between related persons is not treated as a lease. Amended 1040 Related persons. Amended 1040   For this purpose, the following are related persons. Amended 1040 Members of an affiliated group. Amended 1040 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. Amended 1040 A corporation and an individual who directly or indirectly owns 80% or more of the value of the outstanding stock of that corporation. Amended 1040 Two corporations that are members of the same controlled group. Amended 1040 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. Amended 1040 The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Amended 1040 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. Amended 1040 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. Amended 1040 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. Amended 1040 A corporation and a partnership if the same persons own both of the following. Amended 1040 80% or more of the value of the outstanding stock of the corporation. Amended 1040 80% or more of the capital or profits interest in the partnership. Amended 1040 The executor and beneficiary of any estate. Amended 1040 Long Production Period Property To be qualified property, long production period property must meet the following requirements. Amended 1040 It must meet the requirements in (2)-(5), above. Amended 1040 The property has a recovery period of at least 10 years or is transportation property. Amended 1040 Transportation property is tangible personal property used in the trade or business of transporting persons or property. Amended 1040 The property is subject to section 263A of the Internal Revenue Code. Amended 1040 The property has an estimated production period exceeding 1 year and an estimated production cost exceeding $1,000,000. Amended 1040 Noncommercial Aircraft To be qualified property, noncommercial aircraft must meet the following requirements. Amended 1040 It must meet the requirements in (2)-(5), above. Amended 1040 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). Amended 1040 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. Amended 1040 The aircraft must have an estimated production period exceeding four months and a cost exceeding $200,000. Amended 1040 Special Rules Sale-leaseback. Amended 1040   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. Amended 1040   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. Amended 1040 Syndicated leasing transactions. Amended 1040   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. Amended 1040   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. Amended 1040 Excepted Property Qualified property does not include any of the following. Amended 1040 Property placed in service and disposed of in the same tax year. Amended 1040 Property converted from business use to personal use in the same tax year acquired. Amended 1040 Property converted from personal use to business use in the same or later tax year may be qualified property. Amended 1040 Property required to be depreciated under the Alternative Depreciation System (ADS). Amended 1040 This includes listed property used 50% or less in a qualified business use. Amended 1040 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 . Amended 1040 Qualified restaurant property (as defined in section 168(e)(7) of the Internal Revenue Code). Amended 1040 Qualified retail improvement property (as defined in section 168(e)(8) of the Internal Revenue Code). Amended 1040 Property for which you elected not to claim any special depreciation allowance (discussed later). Amended 1040 Property for which you elected to accelerate certain credits in lieu of the special depreciation allowance (discussed next). Amended 1040 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. Amended 1040 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. Amended 1040 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. Amended 1040 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. Amended 1040 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. Amended 1040 See Which Depreciation Method Applies in chapter 4 . Amended 1040 Once made, the election cannot be revoked without IRS consent. Amended 1040 Additional guidance. Amended 1040   For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. Amended 1040 Proc. Amended 1040 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www. Amended 1040 irs. Amended 1040 gov/pub/irs-irbs/irb08-44. Amended 1040 pdf, Rev. Amended 1040 Proc. Amended 1040 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www. Amended 1040 irs. Amended 1040 gov/pub/irs-irbs/irb09-06. Amended 1040 pdf, and Rev. Amended 1040 Proc. Amended 1040 2009-33 on page 150 of Internal Revenue Bulletin 2009-29, available at www. Amended 1040 irs. Amended 1040 gov/pub/irs-irbs/irb09-29. Amended 1040 pdf. Amended 1040 Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions. Amended 1040   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. Amended 1040 irs. Amended 1040 gov/irb. Amended 1040 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%. Amended 1040 For qualified property other than listed property, enter the special allowance on line 14 in Part II of Form 4562. Amended 1040 For qualified property that is listed property, enter the special allowance on line 25 in Part V of Form 4562. Amended 1040 If you place qualified property in service in a short tax year, you can take the full amount of a special depreciation allowance. Amended 1040 Depreciable basis. Amended 1040   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. Amended 1040   The following are examples of some credits and deductions that reduce depreciable basis. Amended 1040 Any section 179 deduction. Amended 1040 Any deduction for removal of barriers to the disabled and the elderly. Amended 1040 Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. Amended 1040 Basis adjustment to investment credit property under section 50(c) of the Internal Revenue Code. Amended 1040   For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. Amended 1040   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 . Amended 1040 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 . Amended 1040 Depreciating the remaining cost. Amended 1040   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 . Amended 1040 Therefore, you must reduce the depreciable basis of the property by the special depreciation allowance before figuring your regular MACRS depreciation deduction. Amended 1040 Example. Amended 1040 On November 1, 2013, Tom Brown bought and placed in service in his business qualified property that cost $450,000. Amended 1040 He did not elect to claim a section 179 deduction. Amended 1040 He deducts 50% of the cost ($225,000) as a special depreciation allowance for 2013. Amended 1040 He uses the remaining $225,000 of cost to figure his regular MACRS depreciation deduction for 2013 and later years. Amended 1040 Like-kind exchanges and involuntary conversions. Amended 1040   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. Amended 1040 After you figure your special allowance, you can use the remaining carryover basis to figure your regular MACRS depreciation deduction. Amended 1040 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. Amended 1040 See Figuring the Deduction for Property Acquired in a Nontaxable Exchange , in chapter 4 under How Is the Depreciation Deduction Figured . Amended 1040 The excess basis (the part of the acquired property's basis that exceeds its carryover basis) is also eligible for a special depreciation allowance. Amended 1040 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. Amended 1040 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. Amended 1040 When to make election. Amended 1040   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. Amended 1040   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). Amended 1040 Attach the election statement to the amended return. Amended 1040 On the amended return, write “Filed pursuant to section 301. Amended 1040 9100-2. Amended 1040 ” Revoking an election. Amended 1040   Once you elect not to deduct a special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Amended 1040 A request to revoke the election is a request for a letter ruling. Amended 1040 If you elect not to have any special allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. Amended 1040 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. Amended 1040 See When Do You Recapture MACRS Depreciation in chapter 4 or more information. Amended 1040 Recapture of allowance deducted for qualified GO Zone property. Amended 1040   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. Amended 1040 For additional guidance, see Notice 2008-25 on page 484 of Internal Revenue Bulletin 2008-9. Amended 1040 Qualified cellulosic biomass ethanol plant property and qualified cellulosic biofuel plant property. Amended 1040   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. Amended 1040 Recapture of allowance for qualified Recovery Assistance property. Amended 1040   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. Amended 1040 For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Amended 1040 Recapture of allowance for qualified disaster assistance property. Amended 1040   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. Amended 1040   For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Amended 1040 Prev  Up  Next   Home   More Online Publications