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Free Taxes For Students

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Free Taxes For Students

Free taxes for students Index A Assistance (see Tax help) B Base amount, Base amount. Free taxes for students C Canadian social security benefits, Canadian or German social security benefits paid to U. Free taxes for students S. Free taxes for students residents. Free taxes for students Children's benefits, Children's benefits. Free taxes for students Comments on publication, Comments and suggestions. Free taxes for students D Deductions related to benefits, Deductions Related to Your Benefits $3,000 or less, Deduction $3,000 or less. Free taxes for students $3,000. Free taxes for students 01 or more, Deduction more than $3,000. Free taxes for students Disability benefits repaid, Disability payments. Free taxes for students E Estimated tax, Tax withholding and estimated tax. Free taxes for students F Form 1040, Reporting on Form 1040. Free taxes for students Form 1040A, Reporting on Form 1040A. Free taxes for students Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form RRB-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free taxes for students , Form RRB-1099, Payments by the Railroad Retirement Board 2013 Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Form SSA-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free taxes for students , Appendix Form W-4V, Tax withholding and estimated tax. Free taxes for students Free tax services, Free help with your tax return. Free taxes for students Future developments Product page, Reminders G German social security benefits, Canadian or German social security benefits paid to U. Free taxes for students S. Free taxes for students residents. Free taxes for students H Help (see Tax help) J Joint returns, Joint return. Free taxes for students L Legal expenses, Legal expenses. Free taxes for students Lump-sum election, Lump-Sum Election Example, Example M Missing children, photographs of, Reminders N Nonresident aliens, Nonresident aliens. Free taxes for students Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Nontaxable benefits, Benefits not taxable. Free taxes for students P Permanent resident aliens, Lawful permanent residents. Free taxes for students Publications (see Tax help) R Railroad retirement benefits, Introduction Repayments Benefits received in earlier year, Repayment of benefits. Free taxes for students , Repayment of benefits received in an earlier year. Free taxes for students Disability benefits, Disability payments. Free taxes for students Gross benefits, Repayment of benefits. Free taxes for students , Repayments More Than Gross Benefits Reporting requirements, How To Report Your Benefits Lump-sum payment, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free taxes for students S Social Security benefits, Introduction Suggestions for publication, Comments and suggestions. Free taxes for students T Tax help, How To Get Tax Help Taxable benefits Determination of, Are Any of Your Benefits Taxable?, How Much Is Taxable? Maximum taxable part, Maximum taxable part. Free taxes for students Person receiving benefits determines, Who is taxed. Free taxes for students Worksheets, Worksheet A. Free taxes for students Examples, Examples, Worksheets Which to use, Which worksheet to use. Free taxes for students Total income, figuring, Figuring total income. Free taxes for students TTY/TDD information, How To Get Tax Help U U. Free taxes for students S. Free taxes for students citizens residing abroad, U. Free taxes for students S. Free taxes for students citizens residing abroad. Free taxes for students U. Free taxes for students S. Free taxes for students residents Canadian or German social security benefits paid to, Canadian or German social security benefits paid to U. Free taxes for students S. Free taxes for students residents. Free taxes for students W Withholding, Tax withholding and estimated tax. Free taxes for students Exemption from, Exemption from withholding. Free taxes for students Form W-4V, Tax withholding and estimated tax. Free taxes for students Voluntary, Tax withholding and estimated tax. Free taxes for students Worksheets Taxable benefits Blank Worksheet 1, Worksheets Filled-in Worksheet 1, Filled-in Worksheet 1. Free taxes for students Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free taxes for students Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free taxes for students Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free taxes for students Figuring Your Taxable Benefits Quick calculation, sample, Worksheet A. Free taxes for students Prev  Up     Home   More Online Publications
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Environment, Energy, and Agriculture

Find resources on recycling, weather, energy, fuel efficiency, agriculture, and more.

The Free Taxes For Students

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