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Amending Tax

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Amending Tax

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

“Phishing” is the use of fraudulent e-mail designed to steal identities as well as vital personal information such as credit card numbers, bank account PINs, and passwords. Phishing e-mails often ask you to verify this type of information.

Scammers also go “SMishing,” or phishing using text messages, by asking you to verify or confirm sensitive information. Legitimate companies never ask for your password or account number via e-mail. Protect yourself:

  • Call the company directly to determine if the email is trustworthy
  • Forward the email to the Federal Trade Commission at spam@uce.gov.
  • Do not reveal personal or financial information in emails
  • Contact the company directly. Do not use contact information provided on a web site connected to the request; instead, use contact information from account statements that you already have.
  • Don’t reply to the email, even if it threatens to disable your account.

Beware: Cash Top-Up Scams

Cash top-up cards can be a convenient way to transfer money to other accounts. They are not designed to be used directly with retailers or online merchants; rather they are used to reload money on accounts that you control, such as your debit card.
Unfortunately, scammers know the ease and convenience of using these cards. They persuade you to share your top-up card number directly with them instead of using a wire or escrow service. However, if you send the top-up number you’ll be left without the merchandise you were promised or your money. To protect yourself from these scams:

  • Guard your top-up card like it is cash.
  • Be wary of advertisements where you are asked to pay with a cash top-up card.
  • Don’t share your top-up card number with someone you don’t know, even if a merchant asks you to e-mail it to them.
  • Never use these cards to pay taxes or fees on lottery or sweepstakes winnings. It’s likely that you haven’t won anything.

Protect Your PIN

Beware of “shoulder surfers.” Be suspicious of anyone lurking around an ATM or watching over your shoulder while you use your card. Some thieves even put a device over the card slot of an ATM to read the magnetic strip and record your PIN; this is known as “skimming”. If you suspect criminal activity, walk away and use a different ATM.

The Amending Tax

Amending tax Publication 501 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Amending tax Tax questions. Amending tax Useful Items - You may want to see: What's New Who must file. Amending tax   In some cases, the amount of income you can receive before you must file a tax return has increased. Amending tax Table 1 shows the filing requirements for most taxpayers. Amending tax Exemption amount. Amending tax  The amount you can deduct for each exemption has increased. Amending tax It was $3,800 for 2012. Amending tax It is $3,900 for 2013. Amending tax Exemption phaseout. Amending tax  You lose at least part of the benefit of your exemptions if your adjusted gross income is above a certain amount. Amending tax For 2013, the phaseout begins at $150,000 for married individuals filing separate returns; $250,000 for single individuals; $275,000 for heads of household; and $300,000 for married individuals filing joint returns or qualifying widow(er)s. Amending tax See Phaseout of Exemptions , later. Amending tax Standard deduction increased. Amending tax   The standard deduction for some taxpayers who do not itemize their deductions on Schedule A of Form 1040 is higher for 2013 than it was for 2012. Amending tax The amount depends on your filing status. Amending tax You can use the 2013 Standard Deduction Tables near the end of this publication to figure your standard deduction. Amending tax Same-sex marriages. Amending tax . Amending tax  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Amending tax See Same-sex marriage under Marital Status, later. Amending tax If you meet certain requirements, you may be able to file amended returns to change your filing status for some earlier years. Amending tax For details on filing amended returns, see Joint Return After Separate Returns . Amending tax Reminders Future developments. Amending tax  Information about any future developments affecting Publication 501 (such as legislation enacted after we release it) will be posted at www. Amending tax irs. Amending tax gov/pub501. Amending tax Taxpayer identification number for aliens. Amending tax   If you are a nonresident or resident alien and you do not have and are not eligible to get a social security number (SSN), you must apply for an individual taxpayer identification number (ITIN). Amending tax Your spouse also may need an ITIN if he or she does not have and is not eligible to get an SSN. Amending tax See Form W-7, Application for IRS Individual Taxpayer Identification Number. Amending tax Also, see Social Security Numbers for Dependents , later. Amending tax Photographs of missing children. Amending tax   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Amending tax Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Amending tax You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Amending tax Introduction This publication discusses some tax rules that affect every person who may have to file a federal income tax return. Amending tax It answers some basic questions: who must file; who should file; what filing status to use; how many exemptions to claim; and the amount of the standard deduction. Amending tax Who Must File explains who must file an income tax return. Amending tax If you have little or no gross income, reading this section will help you decide if you have to file a return. Amending tax Who Should File helps you decide if you should file a return, even if you are not required to do so. Amending tax Filing Status helps you determine which filing status to use. Amending tax Filing status is important in determining whether you must file a return and whether you may claim certain deductions and credits. Amending tax It also helps determine your standard deduction and tax rate. Amending tax Exemptions, which reduce your taxable income, are discussed in Exemptions . Amending tax Exemptions for Dependents explains the difference between a qualifying child and a qualifying relative. Amending tax Other topics include the social security number requirement for dependents, the rules for multiple support agreements, and the rules for divorced or separated parents. Amending tax Phaseout of Exemptions explains how to determine whether you must reduce the dollar amount of exemptions you claim and, if so, the amount of the reduction. Amending tax Standard Deduction gives the rules and dollar amounts for the standard deduction — a benefit for taxpayers who do not itemize their deductions. Amending tax This section also discusses the standard deduction for taxpayers who are blind or age 65 or older, as well as special rules that limit the standard deduction available to dependents. Amending tax In addition, this section helps you decide whether you would be better off taking the standard deduction or itemizing your deductions. Amending tax How To Get Tax Help explains how to get tax help from the IRS. Amending tax This publication is for U. Amending tax S. Amending tax citizens and resident aliens only. Amending tax If you are a resident alien for the entire year, you must follow the same tax rules that apply to U. Amending tax S. Amending tax citizens. Amending tax The rules to determine if you are a resident or nonresident alien are discussed in chapter 1 of Publication 519, U. Amending tax S. Amending tax Tax Guide for Aliens. Amending tax Nonresident aliens. Amending tax    If you were a nonresident alien at any time during the year, the rules and tax forms that apply to you may be different from those that apply to U. Amending tax S. Amending tax citizens. Amending tax See Publication 519. Amending tax Comments and suggestions. Amending tax    We welcome your comments about this publication and your suggestions for future editions. Amending tax   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Amending tax NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amending tax Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amending tax   You can send your comments from www. Amending tax irs. Amending tax gov/formspubs. Amending tax Click on “More Information” and then on “Comment on Tax Forms and Publications. Amending tax ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Amending tax Ordering forms and publications. Amending tax    Visit www. Amending tax irs. Amending tax gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Amending tax Internal Revenue Service 1201 N. Amending tax Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Amending tax    If you have a tax question, check the information available on IRS. Amending tax gov or call 1-800-829-1040. Amending tax We cannot answer tax questions sent to either of the above addresses. Amending tax Useful Items - You may want to see: Publication 559 Survivors, Executors, and Administrators 929 Tax Rules for Children and Dependents Form (and Instructions) 1040X Amended U. Amending tax S. Amending tax Individual Income Tax Return 2848 Power of Attorney and Declaration of Representative 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent 8814 Parents' Election To Report Child's Interest and Dividends Prev  Up  Next   Home   More Online Publications