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Free 1040ez Tax Filing

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Free 1040ez Tax Filing

Free 1040ez tax filing 7. Free 1040ez tax filing   How To Get Tax Help Table of Contents Outside the U. Free 1040ez tax filing S. Free 1040ez tax filing Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free 1040ez tax filing Free help with your tax return. Free 1040ez tax filing   You can get free help preparing your return nationwide from IRS-certified volunteers. Free 1040ez tax filing The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free 1040ez tax filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free 1040ez tax filing Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free 1040ez tax filing In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free 1040ez tax filing To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free 1040ez tax filing gov, download the IRS2Go app, or call 1-800-906-9887. Free 1040ez tax filing   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free 1040ez tax filing To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free 1040ez tax filing aarp. Free 1040ez tax filing org/money/taxaide or call 1-888-227-7669. Free 1040ez tax filing For more information on these programs, go to IRS. Free 1040ez tax filing gov and enter “VITA” in the search box. Free 1040ez tax filing Internet. Free 1040ez tax filing    IRS. Free 1040ez tax filing gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free 1040ez tax filing Download the free IRS2Go app from the iTunes app store or from Google Play. Free 1040ez tax filing Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free 1040ez tax filing Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free 1040ez tax filing gov or download the IRS2Go app and select the Refund Status option. Free 1040ez tax filing The IRS issues more than 9 out of 10 refunds in less than 21 days. Free 1040ez tax filing Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free 1040ez tax filing You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free 1040ez tax filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free 1040ez tax filing Use the Interactive Tax Assistant (ITA) to research your tax questions. Free 1040ez tax filing No need to wait on the phone or stand in line. Free 1040ez tax filing The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free 1040ez tax filing When you reach the response screen, you can print the entire interview and the final response for your records. Free 1040ez tax filing New subject areas are added on a regular basis. Free 1040ez tax filing  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free 1040ez tax filing gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free 1040ez tax filing You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free 1040ez tax filing The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free 1040ez tax filing When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free 1040ez tax filing Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free 1040ez tax filing You can also ask the IRS to mail a return or an account transcript to you. Free 1040ez tax filing Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free 1040ez tax filing gov or by calling 1-800-908-9946. Free 1040ez tax filing Tax return and tax account transcripts are generally available for the current year and the past three years. Free 1040ez tax filing Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free 1040ez tax filing Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free 1040ez tax filing If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free 1040ez tax filing Check the status of your amended return using Where's My Amended Return? Go to IRS. Free 1040ez tax filing gov and enter Where's My Amended Return? in the search box. Free 1040ez tax filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free 1040ez tax filing It can take up to 3 weeks from the date you mailed it to show up in our system. Free 1040ez tax filing Make a payment using one of several safe and convenient electronic payment options available on IRS. Free 1040ez tax filing gov. Free 1040ez tax filing Select the Payment tab on the front page of IRS. Free 1040ez tax filing gov for more information. Free 1040ez tax filing Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free 1040ez tax filing Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free 1040ez tax filing gov. Free 1040ez tax filing Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free 1040ez tax filing Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free 1040ez tax filing gov. Free 1040ez tax filing Request an Electronic Filing PIN by going to IRS. Free 1040ez tax filing gov and entering Electronic Filing PIN in the search box. Free 1040ez tax filing Download forms, instructions and publications, including accessible versions for people with disabilities. Free 1040ez tax filing Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free 1040ez tax filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free 1040ez tax filing An employee can answer questions about your tax account or help you set up a payment plan. Free 1040ez tax filing Before you visit, check the Office Locator on IRS. Free 1040ez tax filing gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free 1040ez tax filing If you have a special need, such as a disability, you can request an appointment. Free 1040ez tax filing Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free 1040ez tax filing Apply for an Employer Identification Number (EIN). Free 1040ez tax filing Go to IRS. Free 1040ez tax filing gov and enter Apply for an EIN in the search box. Free 1040ez tax filing Read the Internal Revenue Code, regulations, or other official guidance. Free 1040ez tax filing Read Internal Revenue Bulletins. Free 1040ez tax filing Sign up to receive local and national tax news and more by email. Free 1040ez tax filing Just click on “subscriptions” above the search box on IRS. Free 1040ez tax filing gov and choose from a variety of options. Free 1040ez tax filing Phone. Free 1040ez tax filing    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free 1040ez tax filing Download the free IRS2Go app from the iTunes app store or from Google Play. Free 1040ez tax filing Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free 1040ez tax filing gov, or download the IRS2Go app. Free 1040ez tax filing Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free 1040ez tax filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free 1040ez tax filing Most VITA and TCE sites offer free electronic filing. Free 1040ez tax filing Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Free 1040ez tax filing Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Free 1040ez tax filing Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Free 1040ez tax filing If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Free 1040ez tax filing The IRS issues more than 9 out of 10 refunds in less than 21 days. Free 1040ez tax filing Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free 1040ez tax filing Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Free 1040ez tax filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free 1040ez tax filing Note, the above information is for our automated hotline. Free 1040ez tax filing Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Free 1040ez tax filing Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Free 1040ez tax filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free 1040ez tax filing It can take up to 3 weeks from the date you mailed it to show up in our system. Free 1040ez tax filing Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Free 1040ez tax filing You should receive your order within 10 business days. Free 1040ez tax filing Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Free 1040ez tax filing If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Free 1040ez tax filing Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Free 1040ez tax filing The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Free 1040ez tax filing These individuals can also contact the IRS through relay services such as the Federal Relay Service. Free 1040ez tax filing    Outside the U. Free 1040ez tax filing S. Free 1040ez tax filing If you are outside the United States, taxpayer assistance is available by calling the following U. Free 1040ez tax filing S Embassies or consulates. Free 1040ez tax filing    Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3823 London, England (44) (20) 7894-0477 Paris, France (33) (1) 4312-2555   If you cannot contact one of these offices, taxpayer assistance is also available at (267) 941-1000 (not a toll free call). Free 1040ez tax filing   If you are in a U. Free 1040ez tax filing S. Free 1040ez tax filing territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Free 1040ez tax filing S. Free 1040ez tax filing Virgin Islands) and have a tax question, you can call 1-800-829-1040. Free 1040ez tax filing Walk-in. Free 1040ez tax filing   You can find a selection of forms, publications and services — in-person. Free 1040ez tax filing Products. Free 1040ez tax filing You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free 1040ez tax filing Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free 1040ez tax filing Services. Free 1040ez tax filing You can walk in to your local TAC for face-to-face tax help. Free 1040ez tax filing An employee can answer questions about your tax account or help you set up a payment plan. Free 1040ez tax filing Before visiting, use the Office Locator tool on IRS. Free 1040ez tax filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Free 1040ez tax filing    Outside the U. Free 1040ez tax filing S. Free 1040ez tax filing If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Free 1040ez tax filing S. Free 1040ez tax filing Embassies and consulates. Free 1040ez tax filing   Walk-in taxpayer assistance is available at the following U. Free 1040ez tax filing S. Free 1040ez tax filing Embassies or consulates. Free 1040ez tax filing    Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3811 London, England (44) (20) 7894-0477 Paris, France (33) (1) 4312-2555   Please contact the office for times when assistance will be available. Free 1040ez tax filing Mail. Free 1040ez tax filing   You can send your order for forms, instructions, and publications to the address below. Free 1040ez tax filing You should receive a response within 10 business days after your request is received. Free 1040ez tax filing Internal Revenue Service 1201 N. Free 1040ez tax filing Mitsubishi Motorway Bloomington, IL 61705-6613      Outside the U. Free 1040ez tax filing S. Free 1040ez tax filing If you are outside the United States, you can get tax assistance by writing to the address below. Free 1040ez tax filing  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Free 1040ez tax filing   The Taxpayer Advocate Service Is Here to Help You. Free 1040ez tax filing The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free 1040ez tax filing Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Free 1040ez tax filing   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Free 1040ez tax filing We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Free 1040ez tax filing You face (or your business is facing) an immediate threat of adverse action. Free 1040ez tax filing You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Free 1040ez tax filing   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Free 1040ez tax filing Here's why we can help: TAS is an independent organization within the IRS. Free 1040ez tax filing Our advocates know how to work with the IRS. Free 1040ez tax filing Our services are free and tailored to meet your needs. Free 1040ez tax filing We have offices in every state, the District of Columbia, and Puerto Rico. Free 1040ez tax filing   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Free 1040ez tax filing  How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Free 1040ez tax filing If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Free 1040ez tax filing Outside the U. Free 1040ez tax filing S. Free 1040ez tax filing   If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Free 1040ez tax filing You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Guaynabo, P. Free 1040ez tax filing R. Free 1040ez tax filing 00968-8000 Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Free 1040ez tax filing Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Free 1040ez tax filing Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Free 1040ez tax filing Prev  Up  Next   Home   More Online Publications
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The Free 1040ez Tax Filing

Free 1040ez tax filing 5. Free 1040ez tax filing   Additional Rules for Listed Property Table of Contents Introduction Useful Items - You may want to see: What Is Listed Property?Passenger Automobiles Other Property Used for Transportation Computers and Related Peripheral Equipment Can Employees Claim a Deduction? What Is the Business-Use Requirement?How To Allocate Use Qualified Business Use Recapture of Excess Depreciation Lessee's Inclusion Amount Do the Passenger Automobile Limits Apply?Maximum Depreciation Deduction Deductions After the Recovery Period Deductions For Passenger Automobiles Acquired in a Trade-in What Records Must Be Kept?Adequate Records How Is Listed Property Information Reported? Introduction This chapter discusses the deduction limits and other special rules that apply to certain listed property. Free 1040ez tax filing Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers. Free 1040ez tax filing Deductions for listed property (other than certain leased property) are subject to the following special rules and limits. Free 1040ez tax filing Deduction for employees. Free 1040ez tax filing If your use of the property is not for your employer's convenience or is not required as a condition of your employment, you cannot deduct depreciation or rent expenses for your use of the property as an employee. Free 1040ez tax filing Business-use requirement. Free 1040ez tax filing If the property is not used predominantly (more than 50%) for qualified business use, you cannot claim the section 179 deduction or a special depreciation allowance. Free 1040ez tax filing In addition, you must figure any depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS) using the straight line method over the ADS recovery period. Free 1040ez tax filing You may also have to recapture (include in income) any excess depreciation claimed in previous years. Free 1040ez tax filing A similar inclusion amount applies to certain leased property. Free 1040ez tax filing Passenger automobile limits and rules. Free 1040ez tax filing Annual limits apply to depreciation deductions (including section 179 deductions and any special depreciation allowance) for certain passenger automobiles. Free 1040ez tax filing You can continue to deduct depreciation for the unrecovered basis resulting from these limits after the end of the recovery period. Free 1040ez tax filing This chapter defines listed property and explains the special rules and depreciation deduction limits that apply, including the special inclusion amount rule for leased property. Free 1040ez tax filing It also discusses the recordkeeping rules for listed property and explains how to report information about the property on your tax return. Free 1040ez tax filing Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 4797 Sales of Business Property See chapter 6 for information about getting publications and forms. Free 1040ez tax filing What Is Listed Property? Listed property is any of the following. Free 1040ez tax filing Passenger automobiles (as defined later). Free 1040ez tax filing Any other property used for transportation, unless it is an excepted vehicle. Free 1040ez tax filing Property generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video-recording equipment). Free 1040ez tax filing Computers and related peripheral equipment, unless used only at a regular business establishment and owned or leased by the person operating the establishment. Free 1040ez tax filing A regular business establishment includes a portion of a dwelling unit that is used both regularly and exclusively for business as discussed in Publication 587. Free 1040ez tax filing Improvements to listed property. Free 1040ez tax filing   An improvement made to listed property that must be capitalized is treated as a new item of depreciable property. Free 1040ez tax filing The recovery period and method of depreciation that apply to the listed property as a whole also apply to the improvement. Free 1040ez tax filing For example, if you must depreciate the listed property using the straight line method, you also must depreciate the improvement using the straight line method. Free 1040ez tax filing Passenger Automobiles 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 (6,000 pounds or less of gross vehicle weight for trucks and vans). Free 1040ez tax filing It includes any part, component, or other item physically attached to the automobile at the time of purchase or usually included in the purchase price of an automobile. Free 1040ez tax filing The following vehicles are not considered passenger automobiles for these purposes. Free 1040ez tax filing An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business. Free 1040ez tax filing A vehicle used directly in the trade or business of transporting persons or property for pay or hire. Free 1040ez tax filing A truck or van that is a qualified nonpersonal use vehicle. Free 1040ez tax filing Qualified nonpersonal use vehicles. Free 1040ez tax filing   Qualified nonpersonal use vehicles are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Free 1040ez tax filing They include the trucks and vans listed as excepted vehicles under Other Property Used for Transportation , next. Free 1040ez tax filing They also include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Free 1040ez tax filing For a detailed discussion of passenger automobiles, including leased passenger automobiles, see  Publication 463. Free 1040ez tax filing Other Property Used for Transportation Although vehicles used to transport persons or property for pay or hire and vehicles rated at more than the 6,000-pound threshold are not passenger automobiles, they are still “other property used for transportation” and are subject to the special rules for listed property. Free 1040ez tax filing Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles used to transport persons or goods. Free 1040ez tax filing Excepted vehicles. Free 1040ez tax filing   Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ). Free 1040ez tax filing Clearly marked police and fire vehicles. Free 1040ez tax filing Unmarked vehicles used by law enforcement officers if the use is officially authorized. Free 1040ez tax filing Ambulances used as such and hearses used as such. Free 1040ez tax filing Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo. Free 1040ez tax filing Bucket trucks (cherry pickers), cement mixers, dump trucks (including garbage trucks), flatbed trucks, and refrigerated trucks. Free 1040ez tax filing Combines, cranes and derricks, and forklifts. Free 1040ez tax filing Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat. Free 1040ez tax filing Qualified moving vans. Free 1040ez tax filing Qualified specialized utility repair trucks. Free 1040ez tax filing School buses used in transporting students and employees of schools. Free 1040ez tax filing Other buses with a capacity of at least 20 passengers that are used as passenger buses. Free 1040ez tax filing Tractors and other special purpose farm vehicles. Free 1040ez tax filing Clearly marked police and fire vehicle. Free 1040ez tax filing   A clearly marked police or fire vehicle is a vehicle that meets all the following requirements. Free 1040ez tax filing It is owned or leased by a governmental unit or an agency or instrumentality of a governmental unit. Free 1040ez tax filing It is required to be used for commuting by a police officer or fire fighter who, when not on a regular shift, is on call at all times. Free 1040ez tax filing It is prohibited from being used for personal use (other than commuting) outside the limit of the police officer's arrest powers or the fire fighter's obligation to respond to an emergency. Free 1040ez tax filing It is clearly marked with painted insignia or words that make it readily apparent that it is a police or fire vehicle. Free 1040ez tax filing A marking on a license plate is not a clear marking for these purposes. Free 1040ez tax filing Qualified moving van. Free 1040ez tax filing   A qualified moving van is any truck or van used by a professional moving company for moving household or business goods if the following requirements are met. Free 1040ez tax filing No personal use of the van is allowed other than for travel to and from a move site or for minor personal use, such as a stop for lunch on the way from one move site to another. Free 1040ez tax filing Personal use for travel to and from a move site happens no more than five times a month on average. Free 1040ez tax filing Personal use is limited to situations in which it is more convenient to the employer, because of the location of the employee's residence in relation to the location of the move site, for the van not to be returned to the employer's business location. Free 1040ez tax filing Qualified specialized utility repair truck. Free 1040ez tax filing   A truck is a qualified specialized utility repair truck if it is not a van or pickup truck and all the following apply. Free 1040ez tax filing The truck was specifically designed for and is used to carry heavy tools, testing equipment, or parts. Free 1040ez tax filing Shelves, racks, or other permanent interior construction has been installed to carry and store the tools, equipment, or parts and would make it unlikely that the truck would be used, other than minimally, for personal purposes. Free 1040ez tax filing The employer requires the employee to drive the truck home in order to be able to respond in emergency situations for purposes of restoring or maintaining electricity, gas, telephone, water, sewer, or steam utility services. Free 1040ez tax filing Computers and Related Peripheral Equipment A computer is a programmable, electronically activated device capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention. Free 1040ez tax filing It consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. Free 1040ez tax filing Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. Free 1040ez tax filing The following are neither computers nor related peripheral equipment. Free 1040ez tax filing Any equipment that is an integral part of other property that is not a computer. Free 1040ez tax filing Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment. Free 1040ez tax filing Equipment of a kind used primarily for the user's amusement or entertainment, such as video games. Free 1040ez tax filing Can Employees Claim a Deduction? If you are an employee, you can claim a depreciation deduction for the use of your listed property (whether owned or rented) in performing services as an employee only if your use is a business use. Free 1040ez tax filing The use of your property in performing services as an employee is a business use only if both the following requirements are met. Free 1040ez tax filing The use is for your employer's convenience. Free 1040ez tax filing The use is required as a condition of your employment. Free 1040ez tax filing If these requirements are not met, you cannot deduct depreciation (including the section 179 deduction) or rent expenses for your use of the property as an employee. Free 1040ez tax filing Employer's convenience. Free 1040ez tax filing   Whether the use of listed property is for your employer's convenience must be determined from all the facts. Free 1040ez tax filing The use is for your employer's convenience if it is for a substantial business reason of the employer. Free 1040ez tax filing The use of listed property during your regular working hours to carry on your employer's business generally is for the employer's convenience. Free 1040ez tax filing Condition of employment. Free 1040ez tax filing   Whether the use of listed property is a condition of your employment depends on all the facts and circumstances. Free 1040ez tax filing The use of property must be required for you to perform your duties properly. Free 1040ez tax filing Your employer does not have to require explicitly that you use the property. Free 1040ez tax filing However, a mere statement by the employer that the use of the property is a condition of your employment is not sufficient. Free 1040ez tax filing Example 1. Free 1040ez tax filing Virginia Sycamore is employed as a courier with We Deliver, which provides local courier services. Free 1040ez tax filing She owns and uses a motorcycle to deliver packages to downtown offices. Free 1040ez tax filing We Deliver explicitly requires all delivery persons to own a car or motorcycle for use in their employment. Free 1040ez tax filing Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. Free 1040ez tax filing Example 2. Free 1040ez tax filing Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. Free 1040ez tax filing He must travel to these sites on a regular basis. Free 1040ez tax filing Uplift does not furnish an automobile or explicitly require him to use his own automobile. Free 1040ez tax filing However, it pays him for any costs he incurs in traveling to the various sites. Free 1040ez tax filing The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. Free 1040ez tax filing Example 3. Free 1040ez tax filing Assume the same facts as in Example 2 except that Uplift furnishes a car to Bill, who chooses to use his own car and receive payment for using it. Free 1040ez tax filing The use of his own car is neither for the convenience of Uplift nor required as a condition of employment. Free 1040ez tax filing Example 4. Free 1040ez tax filing Marilyn Lee is a pilot for Y Company, a small charter airline. Free 1040ez tax filing Y requires pilots to obtain 80 hours of flight time annually in addition to flight time spent with the airline. Free 1040ez tax filing Pilots usually can obtain these hours by flying with the Air Force Reserve or by flying part-time with another airline. Free 1040ez tax filing Marilyn owns her own airplane. Free 1040ez tax filing The use of her airplane to obtain the required flight hours is neither for the convenience of the employer nor required as a condition of employment. Free 1040ez tax filing Example 5. Free 1040ez tax filing David Rule is employed as an engineer with Zip, an engineering contracting firm. Free 1040ez tax filing He occasionally takes work home at night rather than work late in the office. Free 1040ez tax filing He owns and uses a home computer which is virtually identical to the office model. Free 1040ez tax filing His use of the computer is neither for the convenience of his employer nor required as a condition of employment. Free 1040ez tax filing What Is the Business-Use Requirement? You can claim the section 179 deduction and a special depreciation allowance for listed property and depreciate listed property using GDS and a declining balance method if the property meets the business-use requirement. Free 1040ez tax filing To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. Free 1040ez tax filing If this requirement is not met, the following rules apply. Free 1040ez tax filing Property not used predominantly for qualified business use during the year it is placed in service does not qualify for the section 179 deduction. Free 1040ez tax filing Property not used predominantly for qualified business use during the year it is placed in service does not qualify for a special depreciation allowance. Free 1040ez tax filing Any depreciation deduction under MACRS for property not used predominantly for qualified business use during any year must be figured using the straight line method over the ADS recovery period. Free 1040ez tax filing This rule applies each year of the recovery period. Free 1040ez tax filing Excess depreciation on property previously used predominantly for qualified business use must be recaptured (included in income) in the first year in which it is no longer used predominantly for qualified business use. Free 1040ez tax filing A lessee must add an inclusion amount to income in the first year in which the leased property is not used predominantly for qualified business use. Free 1040ez tax filing Being required to use the straight line method for an item of listed property not used predominantly for qualified business use is not the same as electing the straight line method. Free 1040ez tax filing 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. Free 1040ez tax filing Exception for leased property. Free 1040ez tax filing   The business-use requirement generally does not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. Free 1040ez tax filing   You are considered regularly engaged in the business of leasing listed property only if you enter into contracts for the leasing of listed property with some frequency over a continuous period of time. Free 1040ez tax filing This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of your business in its entirety. Free 1040ez tax filing Occasional or incidental leasing activity is insufficient. Free 1040ez tax filing For example, if you lease only one passenger automobile during a tax year, you are not regularly engaged in the business of leasing automobiles. Free 1040ez tax filing 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. Free 1040ez tax filing How To Allocate Use To determine whether the business-use requirement is met, you must allocate the use of any item of listed property used for more than one purpose during the year among its various uses. Free 1040ez tax filing For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. Free 1040ez tax filing You determine the percentage of qualified business use by dividing the number of miles you drove the vehicle for business purposes during the year by the total number of miles you drove the vehicle for all purposes (including business miles) during the year. Free 1040ez tax filing For other listed property, allocate the property's use on the basis of the most appropriate unit of time the property is actually used (rather than merely being available for use). Free 1040ez tax filing For example, you can determine the percentage of business use of a computer by dividing the number of hours you used the computer for business purposes during the year by the total number of hours you used the computer for all purposes (including business use) during the year. Free 1040ez tax filing Entertainment use. Free 1040ez tax filing   Treat the use of listed property for entertainment, recreation, or amusement purposes as a business use only to the extent you can deduct expenses (other than interest and property tax expenses) due to its use as an ordinary and necessary business expense. Free 1040ez tax filing Commuting use. Free 1040ez tax filing   The use of an automobile for commuting is not business use, regardless of whether work is performed during the trip. Free 1040ez tax filing For example, a business telephone call made on a car telephone while commuting to work does not change the character of the trip from commuting to business. Free 1040ez tax filing This is also true for a business meeting held in a car while commuting to work. Free 1040ez tax filing Similarly, a business call made on an otherwise personal trip does not change the character of a trip from personal to business. Free 1040ez tax filing The fact that an automobile is used to display material that advertises the owner's or user's trade or business does not convert an otherwise personal use into business use. Free 1040ez tax filing Use of your automobile by another person. Free 1040ez tax filing   If someone else uses your automobile, do not treat that use as business use unless one of the following conditions applies. Free 1040ez tax filing That use is directly connected with your business. Free 1040ez tax filing You properly report the value of the use as income to the other person and withhold tax on the income where required. Free 1040ez tax filing You are paid a fair market rent. Free 1040ez tax filing Treat any payment to you for the use of the automobile as a rent payment for purposes of item (3). Free 1040ez tax filing Employee deductions. Free 1040ez tax filing   If you are an employee, do not treat your use of listed property as business use unless it is for your employer's convenience and is required as a condition of your employment. Free 1040ez tax filing See Can Employees Claim a Deduction , earlier. Free 1040ez tax filing Qualified Business Use Qualified business use of listed property is any use of the property in your trade or business. Free 1040ez tax filing However, it does not include the following uses. Free 1040ez tax filing The leasing of property to any 5% owner or related person (to the extent the property is used by a 5% owner or person related to the owner or lessee of the property). Free 1040ez tax filing The use of property as pay for the services of a 5% owner or related person. Free 1040ez tax filing The use of property as pay for services of any person (other than a 5% owner or related person), unless the value of the use is included in that person's gross income and income tax is withheld on that amount where required. Free 1040ez tax filing Property does not stop being used predominantly for qualified business use because of a transfer at death. Free 1040ez tax filing Exception for leasing or compensatory use of aircraft. Free 1040ez tax filing   Treat the leasing of any aircraft by a 5% owner or related person, or the compensatory use of any aircraft, as a qualified business use if at least 25% of the total use of the aircraft during the year is for a qualified business use. Free 1040ez tax filing 5% owner. Free 1040ez tax filing   For a business entity that is not a corporation, a 5% owner is any person who owns more than 5% of the capital or profits interest in the business. Free 1040ez tax filing   For a corporation, a 5% owner is any person who owns, or is considered to own, either of the following. Free 1040ez tax filing More than 5% of the outstanding stock of the corporation. Free 1040ez tax filing Stock possessing more than 5% of the total combined voting power of all stock in the corporation. Free 1040ez tax filing Related persons. Free 1040ez tax filing   For a description of related persons, see Related persons in the discussion on property owned or used in 1986 under What Method Can You Use To Depreciate Your Property in chapter 1 . Free 1040ez tax filing For this purpose, however, treat as related persons only the relationships listed in items (1) through (10) of that discussion and substitute “50%” for “10%” each place it appears. Free 1040ez tax filing Examples. Free 1040ez tax filing   The following examples illustrate whether the use of business property is qualified business use. Free 1040ez tax filing Example 1. Free 1040ez tax filing John Maple is the sole proprietor of a plumbing contracting business. Free 1040ez tax filing John employs his brother, Richard, in the business. Free 1040ez tax filing As part of Richard's pay, he is allowed to use one of the company automobiles for personal use. Free 1040ez tax filing The company includes the value of the personal use of the automobile in Richard's gross income and properly withholds tax on it. Free 1040ez tax filing The use of the automobile is pay for the performance of services by a related person, so it is not a qualified business use. Free 1040ez tax filing Example 2. Free 1040ez tax filing John, in Example 1, allows unrelated employees to use company automobiles for personal purposes. Free 1040ez tax filing He does not include the value of the personal use of the company automobiles as part of their compensation and he does not withhold tax on the value of the use of the automobiles. Free 1040ez tax filing This use of company automobiles by employees is not a qualified business use. Free 1040ez tax filing Example 3. Free 1040ez tax filing James Company Inc. Free 1040ez tax filing owns several automobiles that its employees use for business purposes. Free 1040ez tax filing The employees also are allowed to take the automobiles home at night. Free 1040ez tax filing The fair market value of each employee's use of an automobile for any personal purpose, such as commuting to and from work, is reported as income to the employee and James Company withholds tax on it. Free 1040ez tax filing This use of company automobiles by employees, even for personal purposes, is a qualified business use for the company. Free 1040ez tax filing Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. Free 1040ez tax filing However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. Free 1040ez tax filing Example 1. Free 1040ez tax filing Sarah Bradley uses a home computer 50% of the time to manage her investments. Free 1040ez tax filing She also uses the computer 40% of the time in her part-time consumer research business. Free 1040ez tax filing Sarah's home computer is listed property because it is not used at a regular business establishment. Free 1040ez tax filing She does not use the computer predominantly for qualified business use. Free 1040ez tax filing Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. Free 1040ez tax filing She must depreciate it using the straight line method over the ADS recovery period. Free 1040ez tax filing Her combined business/investment use for determining her depreciation deduction is 90%. Free 1040ez tax filing Example 2. Free 1040ez tax filing If Sarah uses her computer 30% of the time to manage her investments and 60% of the time in her consumer research business, it is used predominantly for qualified business use. Free 1040ez tax filing She can elect a section 179 deduction and, if she does not deduct all the computer's cost, she can claim a special depreciation allowance and depreciate the computer using the 200% declining balance method over the GDS recovery period. Free 1040ez tax filing Her combined business/investment use for determining her depreciation deduction is 90%. Free 1040ez tax filing Recapture of Excess Depreciation If you used listed property more than 50% in a qualified business use in the year you placed it in service, you must recapture (include in income) excess depreciation in the first year you use it 50% or less. Free 1040ez tax filing You also increase the adjusted basis of your property by the same amount. Free 1040ez tax filing Excess depreciation is: The depreciation allowable for the property (including any section 179 deduction and special depreciation allowance claimed) for years before the first year you do not use the property predominantly for qualified business use, minus The depreciation that would have been allowable for those years if you had not used the property predominantly for qualified business use in the year you placed it in service. Free 1040ez tax filing To determine the amount in (2) above, you must refigure the depreciation using the straight line method and the ADS recovery period. Free 1040ez tax filing Example. Free 1040ez tax filing In June 2009, Ellen Rye purchased and placed in service a pickup truck that cost $18,000. Free 1040ez tax filing She used it only for qualified business use for 2009 through 2012. Free 1040ez tax filing Ellen claimed a section 179 deduction of $10,000 based on the purchase of the truck. Free 1040ez tax filing She began depreciating it using the 200% DB method over a 5-year GDS recovery period. Free 1040ez tax filing The pickup truck's gross vehicle weight was over 6,000 pounds, so it was not subject to the passenger automobile limits discussed later under Do the Passenger Automobile Limits Apply. Free 1040ez tax filing During 2013, she used the truck 50% for business and 50% for personal purposes. Free 1040ez tax filing She includes $4,018 excess depreciation in her gross income for 2013. Free 1040ez tax filing The excess depreciation is determined as follows. Free 1040ez tax filing Total section 179 deduction ($10,000) and depreciation claimed ($6,618) for 2009 through 2012. Free 1040ez tax filing (Depreciation is from Table A-1. Free 1040ez tax filing ) $16,618 Minus: Depreciation allowable (Table A-8):     2009 – 10% of $18,000 $1,800   2010 – 20% of $18,000 3,600   2011 – 20% of $18,000 3,600   2012 – 20% of $18,000 3,600 12,600 Excess depreciation $4,018 If Ellen's use of the truck does not change to 50% for business and 50% for personal purposes until 2015, there will be no excess depreciation. Free 1040ez tax filing The total depreciation allowable using Table A-8 through 2015 will be $18,000, which equals the total of the section 179 deduction and depreciation she will have claimed. Free 1040ez tax filing Where to figure and report recapture. Free 1040ez tax filing   Use Form 4797, Part IV, to figure the recapture amount. Free 1040ez tax filing Report the recapture amount as other income on the same form or schedule on which you took the depreciation deduction. Free 1040ez tax filing For example, report the recapture amount as other income on Schedule C (Form 1040) if you took the depreciation deduction on Schedule C. Free 1040ez tax filing If you took the depreciation deduction on Form 2106, report the recapture amount as other income on Form 1040, line 21. Free 1040ez tax filing Lessee's Inclusion Amount If you use leased listed property other than a passenger automobile for business/investment use, you must include an amount in your income in the first year your qualified business-use percentage is 50% or less. Free 1040ez tax filing Your qualified business-use percentage is the part of the property's total use that is qualified business use (defined earlier). Free 1040ez tax filing For the inclusion amount rules for a leased passenger automobile, see Leasing a Car in chapter 4 of Publication 463. Free 1040ez tax filing The inclusion amount is the sum of Amount A and Amount B, described next. Free 1040ez tax filing However, see the special rules for the inclusion amount, later, if your lease begins in the last 9 months of your tax year or is for less than one year. Free 1040ez tax filing Amount A. Free 1040ez tax filing   Amount A is: The fair market value of the property, multiplied by The business/investment use for the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A-19 in Appendix A . Free 1040ez tax filing   The fair market value of the property is the value on the first day of the lease term. Free 1040ez tax filing If the capitalized cost of an item of listed property is specified in the lease agreement, you must treat that amount as the fair market value. Free 1040ez tax filing Amount B. Free 1040ez tax filing   Amount B is: The fair market value of the property, multiplied by The average of the business/investment use for all tax years the property was leased that precede the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A–20 in Appendix A . Free 1040ez tax filing Maximum inclusion amount. Free 1040ez tax filing   The inclusion amount cannot be more than the sum of the deductible amounts of rent for the tax year in which the lessee must include the amount in gross income. Free 1040ez tax filing Inclusion amount worksheet. Free 1040ez tax filing   The following worksheet is provided to help you figure the inclusion amount for leased listed property. Free 1040ez tax filing Inclusion Amount Worksheet for Leased Listed Property 1. Free 1040ez tax filing Fair market value   2. Free 1040ez tax filing Business/investment use for first year business use is 50% or less   3. Free 1040ez tax filing Multiply line 1 by line 2. Free 1040ez tax filing   4. Free 1040ez tax filing Rate (%) from Table A-19   5. Free 1040ez tax filing Multiply line 3 by line 4. Free 1040ez tax filing This is Amount A. Free 1040ez tax filing   6. Free 1040ez tax filing Fair market value   7. Free 1040ez tax filing Average business/investment use for years property leased before the first year business use is 50% or less . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing . Free 1040ez tax filing   8. Free 1040ez tax filing Multiply line 6 by line 7   9. Free 1040ez tax filing Rate (%) from Table A-20   10. Free 1040ez tax filing Multiply line 8 by line 9. Free 1040ez tax filing This is Amount B. Free 1040ez tax filing   11. Free 1040ez tax filing Add line 5 and line 10. Free 1040ez tax filing This is your inclusion amount. Free 1040ez tax filing Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. Free 1040ez tax filing )         Example. Free 1040ez tax filing On February 1, 2011, Larry House, a calendar year taxpayer, leased and placed in service a computer with a fair market value of $3,000. Free 1040ez tax filing The lease is for a period of 5 years. Free 1040ez tax filing Larry does not use the computer at a regular business establishment, so it is listed property. Free 1040ez tax filing His business use of the property (all of which is qualified business use) is 80% in 2011, 60% in 2012, and 40% in 2013. Free 1040ez tax filing He must add an inclusion amount to gross income for 2013, the first tax year his qualified business-use percentage is 50% or less. Free 1040ez tax filing The computer has a 5-year recovery period under both GDS and ADS. Free 1040ez tax filing 2013 is the third tax year of the lease, so the applicable percentage from Table A-19 is −19. Free 1040ez tax filing 8%. Free 1040ez tax filing The applicable percentage from Table A-20 is 22. Free 1040ez tax filing 0%. Free 1040ez tax filing Larry's deductible rent for the computer for 2013 is $800. Free 1040ez tax filing Larry uses the Inclusion amount worksheet. Free 1040ez tax filing to figure the amount he must include in income for 2013. Free 1040ez tax filing His inclusion amount is $224, which is the sum of −$238 (Amount A) and $462 (Amount B). Free 1040ez tax filing Inclusion Amount Worksheet for Leased Listed Property 1. Free 1040ez tax filing Fair market value $3,000   2. Free 1040ez tax filing Business/investment use for first year business use is 50% or less 40 % 3. Free 1040ez tax filing Multiply line 1 by line 2. Free 1040ez tax filing 1,200   4. Free 1040ez tax filing Rate (%) from Table A-19 −19. Free 1040ez tax filing 8 % 5. Free 1040ez tax filing Multiply line 3 by line 4. Free 1040ez tax filing This is Amount A. Free 1040ez tax filing −238   6. Free 1040ez tax filing Fair market value 3,000   7. Free 1040ez tax filing Average business/investment use for years property leased before the first year business use is 50% or less 70 % 8. Free 1040ez tax filing Multiply line 6 by line 7 2,100   9. Free 1040ez tax filing Rate (%) from Table A-20 22. Free 1040ez tax filing 0 % 10. Free 1040ez tax filing Multiply line 8 by line 9. Free 1040ez tax filing This is Amount B. Free 1040ez tax filing 462   11. Free 1040ez tax filing Add line 5 and line 10. Free 1040ez tax filing This is your inclusion amount. Free 1040ez tax filing Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. Free 1040ez tax filing ) $224           Lease beginning in the last 9 months of your tax year. Free 1040ez tax filing    The inclusion amount is subject to a special rule if all the following apply. Free 1040ez tax filing The lease term begins within 9 months before the close of your tax year. Free 1040ez tax filing You do not use the property predominantly (more than 50%) for qualified business use during that part of the tax year. Free 1040ez tax filing The lease term continues into your next tax year. Free 1040ez tax filing Under this special rule, add the inclusion amount to income in the next tax year. Free 1040ez tax filing Figure the inclusion amount by taking into account the average of the business/investment use for both tax years (line 2 of the Inclusion Amount Worksheet for Leased Listed Property) and the applicable percentage for the tax year the lease term begins. Free 1040ez tax filing Skip lines 6 through 9 of the worksheet and enter zero on line 10. Free 1040ez tax filing Example 1. Free 1040ez tax filing On August 1, 2012, Julie Rule, a calendar year taxpayer, leased and placed in service an item of listed property. Free 1040ez tax filing The property is 5-year property with a fair market value of $10,000. Free 1040ez tax filing Her property has a recovery period of 5 years under ADS. Free 1040ez tax filing The lease is for 5 years. Free 1040ez tax filing Her business use of the property was 50% in 2012 and 90% in 2013. Free 1040ez tax filing She paid rent of $3,600 for 2012, of which $3,240 is deductible. Free 1040ez tax filing She must include $147 in income in 2013. Free 1040ez tax filing The $147 is the sum of Amount A and Amount B. Free 1040ez tax filing Amount A is $147 ($10,000 × 70% × 2. Free 1040ez tax filing 1%), the product of the fair market value, the average business use for 2012 and 2013, and the applicable percentage for year one from Table A-19 . Free 1040ez tax filing Amount B is zero. Free 1040ez tax filing Lease for less than one year. Free 1040ez tax filing   A special rule for the inclusion amount applies if the lease term is less than one year and you do not use the property predominantly (more than 50%) for qualified business use. Free 1040ez tax filing The amount included in income is the inclusion amount (figured as described in the preceding discussions) multiplied by a fraction. Free 1040ez tax filing The numerator of the fraction is the number of days in the lease term and the denominator is 365 (or 366 for leap years). Free 1040ez tax filing   The lease term for listed property other than residential rental or nonresidential real property includes options to renew. Free 1040ez tax filing If you have 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, treat them as one lease. Free 1040ez tax filing Example 2. Free 1040ez tax filing On October 1, 2012, John Joyce, a calendar year taxpayer, leased and placed in service an item of listed property that is 3-year property. Free 1040ez tax filing This property had a fair market value of $15,000 and a recovery period of 5 years under ADS. Free 1040ez tax filing The lease term was 6 months (ending on March 31, 2013), during which he used the property 45% in business. Free 1040ez tax filing He must include $71 in income in 2013. Free 1040ez tax filing The $71 is the sum of Amount A and Amount B. Free 1040ez tax filing Amount A is $71 ($15,000 × 45% × 2. Free 1040ez tax filing 1% × 183/365), the product of the fair market value, the average business use for both years, and the applicable percentage for year one from Table A-19 , prorated for the length of the lease. Free 1040ez tax filing Amount B is zero. Free 1040ez tax filing Where to report inclusion amount. Free 1040ez tax filing   Report the inclusion amount figured as described in the preceding discussions as other income on the same form or schedule on which you took the deduction for your rental costs. Free 1040ez tax filing For example, report the inclusion amount as other income on Schedule C (Form 1040) if you took the deduction on Schedule C. Free 1040ez tax filing If you took the deduction for rental costs on Form 2106, report the inclusion amount as other income on Form 1040, line 21. Free 1040ez tax filing Do the Passenger Automobile Limits Apply? The depreciation deduction, including the section 179 deduction and special depreciation allowance, you can claim for a passenger automobile (defined earlier) each year is limited. Free 1040ez tax filing This section describes the maximum depreciation deduction amounts for 2013 and explains how to deduct, after the recovery period, the unrecovered basis of your property that results from applying the passenger automobile limit. Free 1040ez tax filing Exception for leased cars. Free 1040ez tax filing   The passenger automobile limits generally do not apply to passenger automobiles leased or held for leasing by anyone regularly engaged in the business of leasing passenger automobiles. Free 1040ez tax filing For information on when you are considered regularly engaged in the business of leasing listed property, including passenger automobiles, see Exception for leased property , earlier, under What Is the Business-Use Requirement . Free 1040ez tax filing Maximum Depreciation Deduction The passenger automobile limits are the maximum depreciation amounts you can deduct for a passenger automobile. Free 1040ez tax filing They are based on the date you placed the automobile in service. Free 1040ez tax filing Passenger Automobiles The maximum deduction amounts for most passenger automobiles are shown in the following table. Free 1040ez tax filing Maximum Depreciation Deduction for Passenger Automobiles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,1601 $5,100 $3,050 $1,875 2012 11,1601 5,100 3,050 1,875 2011 11,0602 4,900 2,950 1,775 2010 11,0602  4,900 2,950 1,775 2009 10,9603 4,800 2,850 1,775 2008 10,9603  4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6104 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7105 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6606 4,900 2,950 1,775 1If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Free 1040ez tax filing 2If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,060. Free 1040ez tax filing 3If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $2,960. Free 1040ez tax filing 4If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $2,960. Free 1040ez tax filing 5If you acquired the vehicle before 5/06/03, the maximum deduction is $7,660. Free 1040ez tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. Free 1040ez tax filing 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. Free 1040ez tax filing If your business/investment use of the automobile is less than 100%, you must reduce the maximum deduction amount by multiplying the maximum amount by the percentage of business/investment use determined on an annual basis during the tax year. Free 1040ez tax filing If you have a short tax year, you must reduce the maximum deduction amount by multiplying the maximum amount by a fraction. Free 1040ez tax filing The numerator of the fraction is the number of months and partial months in the short tax year and the denominator is 12. Free 1040ez tax filing Example. Free 1040ez tax filing On April 15, 2013, Virginia Hart bought and placed in service a new car for $14,500. Free 1040ez tax filing She used the car only in her business. Free 1040ez tax filing She files her tax return based on the calendar year. Free 1040ez tax filing She does not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Free 1040ez tax filing Under MACRS, a car is 5-year property. Free 1040ez tax filing Since she placed her car in service on April 15 and used it only for business, she uses the percentages in Table A-1 to figure her MACRS depreciation on the car. Free 1040ez tax filing Virginia multiplies the $14,500 unadjusted basis of her car by 0. Free 1040ez tax filing 20 to get her MACRS depreciation of $2,900 for 2013. Free 1040ez tax filing This $2,900 is below the maximum depreciation deduction of $3,160 for passenger automobiles placed in service in 2013. Free 1040ez tax filing She can deduct the full $2,900. Free 1040ez tax filing Electric Vehicles The maximum depreciation deductions for passenger automobiles that are produced to run primarily on electricity are higher than those for other automobiles. Free 1040ez tax filing The maximum deduction amounts for electric vehicles placed in service after August 5, 1997, and before January 1, 2007, are shown in the following table. Free 1040ez tax filing Owners of electric vehicles placed in service after December 31, 2006, should use the table of maximum deduction amounts later for electric vehicles classified as passenger automobiles or use the table of maximum deduction amounts for trucks and vans later, for electric vehicles classified as trucks and vans. Free 1040ez tax filing Maximum Depreciation Deduction For Electric Vehicles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2006 $8,980 $14,400 $8,650 $5,225 2005 8,880 14,200 8,450 5,125 2004 31,8301 14,300 8,550 5,125 5/06/2003– 12/31/2003 32,0302 14,600 8,750 5,225 1/01/2003– 5/05/2003 22,8803 14,600 8,750 5,225 1If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $8,880. Free 1040ez tax filing 2If you acquired the vehicle before 5/06/03, the maximum deduction is $22,880. Free 1040ez tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. Free 1040ez tax filing 3 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. Free 1040ez tax filing Trucks and Vans The maximum depreciation deductions for trucks and vans placed in service after 2002 are higher than those for other passenger automobiles. Free 1040ez tax filing The maximum deduction amounts for trucks and vans are shown in the following table. Free 1040ez tax filing Maximum Depreciation Deduction For Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 11,3601 5,300 3,150 1,875 2011 11,2602 5,200 3,150 1,875 2010 11,1603 5,100 3,050 1,875 2009 11,0604 4,900 2,950 1,775 2008 11,1605 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2006 3,260 5,200 3,150 1,875 2005 3,260 5,200 3,150 1,875 2004 10,9106 5,300 3,150 1,875 5/06/2003– 12/31/2003 11,0107 5,400 3,250 1,975 1/01/2003– 5/05/2003 7,9608 5,400 3,250 1,975 1 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,360. Free 1040ez tax filing 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,260. Free 1040ez tax filing 3 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Free 1040ez tax filing 4 If you elect not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,060. Free 1040ez tax filing 5If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,160. Free 1040ez tax filing 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, or the maximum deduction is $3,260. Free 1040ez tax filing 7 If you acquired the vehicle before 5/06/03, the maximum deduction is $7,960. Free 1040ez tax filing If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. Free 1040ez tax filing 8 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. Free 1040ez tax filing Depreciation Worksheet for Passenger Automobiles You can use the following worksheet to figure your depreciation deduction using the percentage tables. Free 1040ez tax filing Then use the information from this worksheet to prepare Form 4562. Free 1040ez tax filing Depreciation Worksheet for Passenger Automobiles   Part I   1. Free 1040ez tax filing MACRS system (GDS or ADS)     2. Free 1040ez tax filing Property class     3. Free 1040ez tax filing Date placed in service     4. Free 1040ez tax filing Recovery period     5. Free 1040ez tax filing Method and convention     6. Free 1040ez tax filing Depreciation rate (from tables)     7. Free 1040ez tax filing Maximum depreciation deduction for this year from the appropriate table       8. Free 1040ez tax filing Business/investment-use percentage       9. Free 1040ez tax filing Multiply line 7 by line 8. Free 1040ez tax filing This is your adjusted maximum depreciation deduction       10. Free 1040ez tax filing Section 179 deduction claimed this year (not more than line 9). Free 1040ez tax filing Enter -0- if this is not the year you placed the car in service. Free 1040ez tax filing         Note. Free 1040ez tax filing  1) If line 10 is equal to line 9, stop here. Free 1040ez tax filing Your combined section 179 and depreciation deduction (including your special depreciation allowance) is limited to the amount on line 9. Free 1040ez tax filing  2) If line 10 is less than line 9, complete Part II. Free 1040ez tax filing   Part II   11. Free 1040ez tax filing Subtract line 10 from line 9. Free 1040ez tax filing This is the limit on the amount you can deduct for depreciation (including any special depreciation allowance )       12. Free 1040ez tax filing Cost or other basis (reduced by any alternative motor vehicle credit 1or credit for electric vehicles 2)       13. Free 1040ez tax filing Multiply line 12 by line 8. Free 1040ez tax filing This is your business/investment cost       14. Free 1040ez tax filing Section 179 deduction claimed in the year you placed the car in service       15. Free 1040ez tax filing Subtract line 14 from line 13. Free 1040ez tax filing This is your tentative basis for depreciation       16. Free 1040ez tax filing Multiply line 15 by . Free 1040ez tax filing 50 if the 50% special depreciation allowance applies. Free 1040ez tax filing This is your special depreciation allowance. Free 1040ez tax filing Enter -0- if this is not the year you placed the car in service, the car is not qualified property, or you elected not to claim a special depreciation allowance       Note 1) If line 16 is equal to line 11, stop here. Free 1040ez tax filing Your depreciation deduction (including your special depreciation allowance) is limited to the amount on line 11. Free 1040ez tax filing  2) If line 16 is less than line 11, complete Part III. Free 1040ez tax filing   Part III   17. Free 1040ez tax filing Subtract line 16 from 11. Free 1040ez tax filing This is the limit on the amount you can deduct for MACRS depreciation       18. Free 1040ez tax filing Subtract line 16 from line 15. Free 1040ez tax filing This is your basis for depreciation. Free 1040ez tax filing       19. Free 1040ez tax filing Multiply line 18 by line 6. Free 1040ez tax filing This is your tentative MACRS depreciation deduction. Free 1040ez tax filing       20. Free 1040ez tax filing Enter the lesser of line 17 or line 19. Free 1040ez tax filing This is your MACRS depreciation deduction. Free 1040ez tax filing     1 When figuring the amount to enter on line 12, do not reduce your cost or other basis by any section 179 deduction you claimed for your car. Free 1040ez tax filing 2 Reduce the basis by the lesser of $4,000 or 10% of the cost of the vehicle even if the credit is less than that amount. Free 1040ez tax filing             Deductions After the Recovery Period If the depreciation deductions for your automobile are reduced under the passenger automobile limits, you will have unrecovered basis in your automobile at the end of the recovery period. Free 1040ez tax filing If you continue to use the automobile for business, you can deduct that unrecovered basis after the recovery period ends. Free 1040ez tax filing You can claim a depreciation deduction in each succeeding tax year until you recover your full basis in the car. Free 1040ez tax filing The maximum amount you can deduct each year is determined by the date you placed the car in service and your business/investment-use percentage. Free 1040ez tax filing See Maximum Depreciation Deduction , earlier. Free 1040ez tax filing Unrecovered basis is the cost or other basis of the passenger automobile reduced by any clean-fuel vehicle deduction, electric vehicle credit, depreciation, and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use and the passenger automobile limits had not applied. Free 1040ez tax filing You cannot claim a depreciation deduction for listed property other than passenger automobiles after the recovery period ends. Free 1040ez tax filing There is no unrecovered basis at the end of the recovery period because you are considered to have used this property 100% for business and investment purposes during all of the recovery period. Free 1040ez tax filing Example. Free 1040ez tax filing In May 2007, you bought and placed in service a car costing $31,500. Free 1040ez tax filing The car was 5-year property under GDS (MACRS). Free 1040ez tax filing You did not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Free 1040ez tax filing You used the car exclusively for business during the recovery period (2007 through 2012). Free 1040ez tax filing You figured your depreciation as shown below. Free 1040ez tax filing Year Percentage Amount Limit   Allowed 2007 20. Free 1040ez tax filing 0% $6,300 $2,960   $2,960 2008 32. Free 1040ez tax filing 0 10,080 4,800   4,800 2009 19. Free 1040ez tax filing 2 6,048 2,850   2,850 2010 11. Free 1040ez tax filing 52 3,629 1,675   1,675 2011 11. Free 1040ez tax filing 52 3,629 1,675   1,675 2012 5. Free 1040ez tax filing 76 1,814 1,675   1,675 Total   $15,635 At the end of 2012, you had an unrecovered basis of $15,865 ($31,500 − $15,635). Free 1040ez tax filing If in 2013 and later years you continue to use the car 100% for business, you can deduct each year the lesser of $1,675 or your remaining unrecovered basis. Free 1040ez tax filing If your business use of the car had been less than 100% during any year, your depreciation deduction would have been less than the maximum amount allowable for that year. Free 1040ez tax filing However, in figuring your unrecovered basis in the car, you would still reduce your basis by the maximum amount allowable as if the business use had been 100%. Free 1040ez tax filing For example, if you had used your car 60% for business instead of 100%, your allowable depreciation deductions would have been $9,519 ($15,865 × 60%), but you still would have to reduce your basis by $15,865 to determine your unrecovered basis. Free 1040ez tax filing Deductions For Passenger Automobiles Acquired in a Trade-in If you acquire a passenger automobile in a trade-in, depreciate the carryover basis separately as if the trade-in did not occur. Free 1040ez tax filing Depreciate the part of the new automobile's basis that exceeds its carryover basis (excess basis) as if it were newly placed in service property. Free 1040ez tax filing This excess basis is the additional cash paid for the new automobile in the trade-in. Free 1040ez tax filing The depreciation figured for the two components of the basis (carryover basis and excess basis) is subject to a single passenger automobile limit. Free 1040ez tax filing Special rules apply in determining the passenger automobile limits. Free 1040ez tax filing These rules and examples are discussed in section 1. Free 1040ez tax filing 168(i)-6(d)(3) of the regulations. Free 1040ez tax filing Instead of figuring depreciation for the carryover basis and the excess basis separately, you can elect to treat the old automobile as disposed of and both of the basis components for the new automobile as if placed in service at the time of the trade-in. Free 1040ez tax filing For more information, including how to make this election, see Election out under Property Acquired in a Like-kind Exchange or Involuntary Conversion in chapter 4 and sections 1. Free 1040ez tax filing 168(i)-6(i) and 1. Free 1040ez tax filing 168(i)-6(j) of the regulations. Free 1040ez tax filing What Records Must Be Kept? You cannot take any depreciation or section 179 deduction for the use of listed property unless you can prove your business/investment use with adequate records or with sufficient evidence to support your own statements. Free 1040ez tax filing For listed property, you must keep records for as long as any recapture can still occur. Free 1040ez tax filing Recapture can occur in any tax year of the recovery period. Free 1040ez tax filing 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. Free 1040ez tax filing You do not have to record information in an account book, diary, or similar record if the information is already shown on the receipt. Free 1040ez tax filing However, your records should back up your receipts in an orderly manner. Free 1040ez tax filing Elements of expenditure or use. Free 1040ez tax filing   Your records or other documentary evidence must support all the following. Free 1040ez tax filing 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. Free 1040ez tax filing 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. Free 1040ez tax filing The date of the expenditure or use. Free 1040ez tax filing The business or investment purpose for the expenditure or use. Free 1040ez tax filing   Written documents of your expenditure or use are generally better evidence than oral statements alone. Free 1040ez tax filing You do not have to keep a daily log. Free 1040ez tax filing 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 of the expenditure or use and backed up by other documents is preferable to a statement you prepare later. Free 1040ez tax filing Timeliness. Free 1040ez tax filing   You must record the elements of an expenditure or use at the time you have full knowledge of the elements. Free 1040ez tax filing 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 generally is considered a timely record if, in the regular course of business: The statement is given by an employee to the employer, or The statement is given by an independent contractor to the client or customer. Free 1040ez tax filing   For example, a log maintained on a weekly basis, that accounts for use during the week, will be considered a record made at or near the time of use. Free 1040ez tax filing Business purpose supported. Free 1040ez tax filing   Generally, an adequate record of business purpose must be in the form of a written statement. Free 1040ez tax filing However, the amount of detail necessary to establish a business purpose depends on the facts and circumstances of each case. Free 1040ez tax filing A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. Free 1040ez tax filing 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. Free 1040ez tax filing Business use supported. Free 1040ez tax filing   An adequate record contains enough information on each element of every business or investment use. Free 1040ez tax filing The amount of detail required to support the use depends on the facts and circumstances. Free 1040ez tax filing For example, a taxpayer who uses a truck for both business and personal purposes and whose only business use of the 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. Free 1040ez tax filing   Although you generally must prepare an adequate written record, you can prepare a record of the business use of listed property in a computer memory device that uses a logging program. Free 1040ez tax filing Separate or combined expenditures or uses. Free 1040ez tax filing   Each use by you normally is considered a separate use. Free 1040ez tax filing However, you can combine repeated uses as a single item. Free 1040ez tax filing   Record each expenditure as a separate item. Free 1040ez tax filing Do not combine it with other expenditures. Free 1040ez tax filing If you choose, however, you can combine amounts you spent for the use of listed property during a tax year, such as for gasoline or automobile repairs. Free 1040ez tax filing If you combine these expenses, you do not need to support the business purpose of each expense. Free 1040ez tax filing Instead, you can divide the expenses based on the total business use of the listed property. Free 1040ez tax filing   You can account for uses that can be considered part of a single use, such as a round trip or uninterrupted business use, by a single record. Free 1040ez tax filing For example, you can account for the use of a truck to make deliveries at several locations that begin and end at the business premises and can include a stop at the business in between deliveries by a single record of miles driven. Free 1040ez tax filing You can account for the use of a passenger automobile by a salesperson for a business trip away from home over a period of time by a single record of miles traveled. Free 1040ez tax filing Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. Free 1040ez tax filing Confidential information. Free 1040ez tax filing   If any of the information on the elements of an expenditure or use is confidential, you do not need to include it in the account book or similar record if you record it at or near the time of the expenditure or use. Free 1040ez tax filing You must keep it elsewhere and make it available as support to the IRS director for your area on request. Free 1040ez tax filing Substantial compliance. Free 1040ez tax filing   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 satisfaction of the IRS director for your area, you can establish this element by any evidence the IRS director for your area deems adequate. Free 1040ez tax filing   If you fail to establish to the satisfaction of the IRS director for your area that you have substantially complied with the adequate records requirement for an element of an expenditure or use, you must establish the element as follows. Free 1040ez tax filing By your own oral or written statement containing detailed information as to the element. Free 1040ez tax filing By other evidence sufficient to establish the element. Free 1040ez tax filing   If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct evidence, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. Free 1040ez tax filing If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. Free 1040ez tax filing Sampling. Free 1040ez tax filing   You can maintain an adequate record for part of a tax year and use that record to support your business and investment use of listed property for the entire tax year if it can be shown by other evidence that the periods for which you maintain an adequate record are representative of the use throughout the year. Free 1040ez tax filing Example 1. Free 1040ez tax filing Denise Williams, a sole proprietor and calendar year taxpayer, operates an interior decorating business out of her home. Free 1040ez tax filing She uses her automobile for local business visits to the homes or offices of clients, for meetings with suppliers and subcontractors, and to pick up and deliver items to clients. Free 1040ez tax filing There is no other business use of the automobile, but she and family members also use it for personal purposes. Free 1040ez tax filing She maintains adequate records for the first 3 months of the year showing that 75% of the automobile use was for business. Free 1040ez tax filing Subcontractor invoices and paid bills show that her business continued at approximately the same rate for the rest of the year. Free 1040ez tax filing If there is no change in circumstances, such as the purchase of a second car for exclusive use in her business, the determination that her combined business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. Free 1040ez tax filing Example 2. Free 1040ez tax filing Assume the same facts as in Example 1, except that Denise maintains adequate records during the first week of every month showing that 75% of her use of the automobile is for business. Free 1040ez tax filing Her business invoices show that her business continued at the same rate during the later weeks of each month so that her weekly records are representative of the automobile's business use throughout the month. Free 1040ez tax filing The determination that her business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. Free 1040ez tax filing Example 3. Free 1040ez tax filing Bill Baker, a sole proprietor and calendar year taxpayer, is a salesman in a large metropolitan area for a company that manufactures household products. Free 1040ez tax filing For the first 3 weeks of each month, he occasionally uses his own automobile for business travel within the metropolitan area. Free 1040ez tax filing During these weeks, his business use of the automobile does not follow a consistent pattern. Free 1040ez tax filing During the fourth week of each month, he delivers all business orders taken during the previous month. Free 1040ez tax filing The business use of his automobile, as supported by adequate records, is 70% of its total use during that fourth week. Free 1040ez tax filing The determination based on the record maintained during the fourth week of the month that his business/investment use of the automobile for the tax year is 70% does not rest on sufficient supporting evidence because his use during that week is not representative of use during other periods. Free 1040ez tax filing Loss of records. Free 1040ez tax filing   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. Free 1040ez tax filing How Is Listed Property Information Reported? You must provide the information about your listed property requested in Part V of Form 4562, Section A, if you claim either of the following deductions. Free 1040ez tax filing Any deduction for a vehicle. Free 1040ez tax filing A depreciation deduction for any other listed property. Free 1040ez tax filing If you claim any deduction for a vehicle, you also must provide the information requested in Section B. Free 1040ez tax filing If you provide the vehicle for your employee's use, the employee must give you this information. Free 1040ez tax filing If you provide any vehicle for use by an employee, you must first answer the questions in Section C to see if you meet an exception to completing Section B for that vehicle. Free 1040ez tax filing Vehicles used by your employees. Free 1040ez tax filing   You do not have to complete Section B, Part V, for vehicles used by your employees who are not more-than-5% owners or related persons if you meet at least one of the following requirements. Free 1040ez tax filing You maintain a written policy statement that prohibits one of the following uses of the vehicles. Free 1040ez tax filing All personal use including commuting. Free 1040ez tax filing Personal use, other than commuting, by employees who are not officers, directors, or 1%-or-more owners. Free 1040ez tax filing You treat all use of the vehicles by your employees as personal use. Free 1040ez tax filing You provide more than five vehicles for use by your employees, and you keep in your records the information on their use given to you by the employees. Free 1040ez tax filing For demonstrator automobiles provided to full-time salespersons, you maintain a written policy statement that limits the total mileage outside the salesperson's normal working hours and prohibits use of the automobile by anyone else, for vacation trips, or to store personal possessions. Free 1040ez tax filing Exceptions. Free 1040ez tax filing   If you file Form 2106, 2106-EZ, or Schedule C-EZ (Form 1040), and you are not required to file Form 4562, report information about listed property on that form and not on Form 4562. Free 1040ez tax filing Also, if you file Schedule C (Form 1040) and are claiming the standard mileage rate or actual vehicle expenses (except depreciation) and you are not required to file Form 4562 for any other reason, report vehicle information in Part IV of Schedule C and not on Form 4562. Free 1040ez tax filing Prev  Up  Next   Home   More Online Publications