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I Need To File Taxes For 2011

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I Need To File Taxes For 2011

I need to file taxes for 2011 12. I need to file taxes for 2011   How To Get Tax Help Table of Contents 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. I need to file taxes for 2011 Free help with your tax return. I need to file taxes for 2011   You can get free help preparing your return nationwide from IRS-certified volunteers. I need to file taxes for 2011 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. I need to file taxes for 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. I need to file taxes for 2011 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. I need to file taxes for 2011 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. I need to file taxes for 2011 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. I need to file taxes for 2011 gov, download the IRS2Go app, or call 1-800-906-9887. I need to file taxes for 2011   As part of the TCE program, AARP offers the Tax-Aide counseling program. I need to file taxes for 2011 To find the nearest AARP Tax-Aide site, visit AARP's website at www. I need to file taxes for 2011 aarp. I need to file taxes for 2011 org/money/taxaide or call 1-888-227-7669. I need to file taxes for 2011 For more information on these programs, go to IRS. I need to file taxes for 2011 gov and enter “VITA” in the search box. I need to file taxes for 2011 Internet. I need to file taxes for 2011    IRS. I need to file taxes for 2011 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. I need to file taxes for 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. I need to file taxes for 2011 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. I need to file taxes for 2011 Check the status of your 2013 refund with the Where's My Refund? application on IRS. I need to file taxes for 2011 gov or download the IRS2Go app and select the Refund Status option. I need to file taxes for 2011 The IRS issues more than 9 out of 10 refunds in less than 21 days. I need to file taxes for 2011 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. I need to file taxes for 2011 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. I need to file taxes for 2011 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. I need to file taxes for 2011 Use the Interactive Tax Assistant (ITA) to research your tax questions. I need to file taxes for 2011 No need to wait on the phone or stand in line. I need to file taxes for 2011 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. I need to file taxes for 2011 When you reach the response screen, you can print the entire interview and the final response for your records. I need to file taxes for 2011 New subject areas are added on a regular basis. I need to file taxes for 2011  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. I need to file taxes for 2011 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. I need to file taxes for 2011 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. I need to file taxes for 2011 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. I need to file taxes for 2011 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. I need to file taxes for 2011 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. I need to file taxes for 2011 You can also ask the IRS to mail a return or an account transcript to you. I need to file taxes for 2011 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. I need to file taxes for 2011 gov or by calling 1-800-908-9946. I need to file taxes for 2011 Tax return and tax account transcripts are generally available for the current year and the past three years. I need to file taxes for 2011 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. I need to file taxes for 2011 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. I need to file taxes for 2011 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. I need to file taxes for 2011 Check the status of your amended return using Where's My Amended Return? Go to IRS. I need to file taxes for 2011 gov and enter Where's My Amended Return? in the search box. I need to file taxes for 2011 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. I need to file taxes for 2011 It can take up to 3 weeks from the date you mailed it to show up in our system. I need to file taxes for 2011 Make a payment using one of several safe and convenient electronic payment options available on IRS. I need to file taxes for 2011 gov. I need to file taxes for 2011 Select the Payment tab on the front page of IRS. I need to file taxes for 2011 gov for more information. I need to file taxes for 2011 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. I need to file taxes for 2011 Figure your income tax withholding with the IRS Withholding Calculator on IRS. I need to file taxes for 2011 gov. I need to file taxes for 2011 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. I need to file taxes for 2011 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. I need to file taxes for 2011 gov. I need to file taxes for 2011 Request an Electronic Filing PIN by going to IRS. I need to file taxes for 2011 gov and entering Electronic Filing PIN in the search box. I need to file taxes for 2011 Download forms, instructions and publications, including accessible versions for people with disabilities. I need to file taxes for 2011 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. I need to file taxes for 2011 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. I need to file taxes for 2011 An employee can answer questions about your tax account or help you set up a payment plan. I need to file taxes for 2011 Before you visit, check the Office Locator on IRS. I need to file taxes for 2011 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. I need to file taxes for 2011 If you have a special need, such as a disability, you can request an appointment. I need to file taxes for 2011 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. I need to file taxes for 2011 Apply for an Employer Identification Number (EIN). I need to file taxes for 2011 Go to IRS. I need to file taxes for 2011 gov and enter Apply for an EIN in the search box. I need to file taxes for 2011 Read the Internal Revenue Code, regulations, or other official guidance. I need to file taxes for 2011 Read Internal Revenue Bulletins. I need to file taxes for 2011 Sign up to receive local and national tax news and more by email. I need to file taxes for 2011 Just click on “subscriptions” above the search box on IRS. I need to file taxes for 2011 gov and choose from a variety of options. I need to file taxes for 2011 Phone. I need to file taxes for 2011    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. I need to file taxes for 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. I need to file taxes for 2011 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. I need to file taxes for 2011 gov, or download the IRS2Go app. I need to file taxes for 2011 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. I need to file taxes for 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. I need to file taxes for 2011 Most VITA and TCE sites offer free electronic filing. I need to file taxes for 2011 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. I need to file taxes for 2011 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. I need to file taxes for 2011 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. I need to file taxes for 2011 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. I need to file taxes for 2011 The IRS issues more than 9 out of 10 refunds in less than 21 days. I need to file taxes for 2011 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. I need to file taxes for 2011 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. I need to file taxes for 2011 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. I need to file taxes for 2011 Note, the above information is for our automated hotline. I need to file taxes for 2011 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. I need to file taxes for 2011 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. I need to file taxes for 2011 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. I need to file taxes for 2011 It can take up to 3 weeks from the date you mailed it to show up in our system. I need to file taxes for 2011 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). I need to file taxes for 2011 You should receive your order within 10 business days. I need to file taxes for 2011 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. I need to file taxes for 2011 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. I need to file taxes for 2011 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. I need to file taxes for 2011 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. I need to file taxes for 2011 These individuals can also contact the IRS through relay services such as the Federal Relay Service. I need to file taxes for 2011 Walk-in. I need to file taxes for 2011   You can find a selection of forms, publications and services — in-person. I need to file taxes for 2011 Products. I need to file taxes for 2011 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. I need to file taxes for 2011 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. I need to file taxes for 2011 Services. I need to file taxes for 2011 You can walk in to your local TAC for face-to-face tax help. I need to file taxes for 2011 An employee can answer questions about your tax account or help you set up a payment plan. I need to file taxes for 2011 Before visiting, use the Office Locator tool on IRS. I need to file taxes for 2011 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. I need to file taxes for 2011 Mail. I need to file taxes for 2011   You can send your order for forms, instructions, and publications to the address below. I need to file taxes for 2011 You should receive a response within 10 business days after your request is received. I need to file taxes for 2011 Internal Revenue Service 1201 N. I need to file taxes for 2011 Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. I need to file taxes for 2011 The Taxpayer Advocate Service (TAS) is your voice at the IRS. I need to file taxes for 2011 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. I need to file taxes for 2011   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. I need to file taxes for 2011 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. I need to file taxes for 2011 You face (or your business is facing) an immediate threat of adverse action. I need to file taxes for 2011 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. I need to file taxes for 2011   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. I need to file taxes for 2011 Here's why we can help: TAS is an independent organization within the IRS. I need to file taxes for 2011 Our advocates know how to work with the IRS. I need to file taxes for 2011 Our services are free and tailored to meet your needs. I need to file taxes for 2011 We have offices in every state, the District of Columbia, and Puerto Rico. I need to file taxes for 2011   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 www. I need to file taxes for 2011 irs. I need to file taxes for 2011 gov/Advocate, or call us toll-free at 1-877-777-4778. I need to file taxes for 2011   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. I need to file taxes for 2011 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. I need to file taxes for 2011 Low Income Taxpayer Clinics. I need to file taxes for 2011   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. I need to file taxes for 2011 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. I need to file taxes for 2011 Visit www. I need to file taxes for 2011 irs. I need to file taxes for 2011 gov/Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. I need to file taxes for 2011 Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Alabama

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 

City  Address  Days/Hours of Service  Telephone* 
Birmingham  801 Tom Martin Dr.
Birmingham, AL 35211 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(205) 912-5333 
Dothan  202 W. Adams St.
Dothan, AL 36303 

Monday-Friday - 8:30 a.m.-4:30 p.m. 
(Closed for lunch 12:00 noon - 1:00 p.m.)
 

Services Provided

(334) 702-3470 
Florence  204 S. Walnut St.
Florence, AL 35630 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.) 


Services Provided

(256) 764-6731 
Huntsville  5123 Research Dr. N.W.
Huntsville, AL 35805

Monday-Friday - 8:30 a.m.-4:30 p.m.
 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(256) 539-0642 
Mobile  1110 Montlimar Dr.
Mobile, AL 36609 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(251) 341-5946 
Montgomery  1285 Carmichael Way.
Montgomery, AL 36106 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(334) 264-2453 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.
 

The Taxpayer Advocate Service: Call (205) 912-5631 in Birmingham, or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
801 Tom Martin, Room 150, Stop 30
Birmingham, AL 35211

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

 

Page Last Reviewed or Updated: 28-Mar-2014

The I Need To File Taxes For 2011

I need to file taxes for 2011 4. I need to file taxes for 2011   Figuring Depreciation Under MACRS Table of Contents Introduction Useful Items - You may want to see: Which Depreciation System (GDS or ADS) Applies? Which Property Class Applies Under GDS?Rent-to-own dealer. I need to file taxes for 2011 Rent-to-own contract. I need to file taxes for 2011 What Is the Placed in Service Date? What Is the Basis for Depreciation? Which Recovery Period Applies?Recovery Periods Under GDS Recovery Periods Under ADS Additions and Improvements Which Convention Applies? Which Depreciation Method Applies?Depreciation Methods for Farm Property Electing a Different Method How Is the Depreciation Deduction Figured?Using the MACRS Percentage Tables Figuring the Deduction Without Using the Tables Figuring the Deduction for Property Acquired in a Nontaxable Exchange Figuring the Deduction for a Short Tax Year How Do You Use General Asset Accounts?Grouping Property Figuring Depreciation for a GAA Disposing of GAA Property Terminating GAA Treatment Electing To Use a GAA When Do You Recapture MACRS Depreciation? Introduction The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986. I need to file taxes for 2011 MACRS consists of two depreciation systems, the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). I need to file taxes for 2011 Generally, these systems provide different methods and recovery periods to use in figuring depreciation deductions. I need to file taxes for 2011 To be sure you can use MACRS to figure depreciation for your property, see What Method Can You Use To Depreciate Your Property in chapter 1. I need to file taxes for 2011 This chapter explains how to determine which MACRS depreciation system applies to your property. I need to file taxes for 2011 It also discusses other information you need to know before you can figure depreciation under MACRS. I need to file taxes for 2011 This information includes the property's recovery class, placed in service date, and basis, as well as the applicable recovery period, convention, and depreciation method. I need to file taxes for 2011 It explains how to use this information to figure your depreciation deduction and how to use a general asset account to depreciate a group of properties. I need to file taxes for 2011 Finally, it explains when and how to recapture MACRS depreciation. I need to file taxes for 2011 Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 463 Travel, Entertainment, Gift, and Car  Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 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 See chapter 6 for information about getting publications and forms. I need to file taxes for 2011 Which Depreciation System (GDS or ADS) Applies? Your use of either the General Depreciation System (GDS) or the Alternative Depreciation System (ADS) to depreciate property under MACRS determines what depreciation method and recovery period you use. I need to file taxes for 2011 You generally must use GDS unless you are specifically required by law to use ADS or you elect to use ADS. I need to file taxes for 2011 If you placed your property in service in 2013, complete Part III of Form 4562 to report depreciation using MACRS. I need to file taxes for 2011 Complete section B of Part III to report depreciation using GDS, and complete section C of Part III to report depreciation using ADS. I need to file taxes for 2011 If you placed your property in service before 2013 and are required to file Form 4562, report depreciation using either GDS or ADS on line 17 in Part III. I need to file taxes for 2011 Required use of ADS. I need to file taxes for 2011   You must use ADS for the following property. I need to file taxes for 2011 Listed property used 50% or less in a qualified business use. I need to file taxes for 2011 See chapter 5 for information on listed property. I need to file taxes for 2011 Any tangible property used predominantly outside the United States during the year. I need to file taxes for 2011 Any tax-exempt use property. I need to file taxes for 2011 Any tax-exempt bond-financed property. I need to file taxes for 2011 All property used predominantly in a farming business and placed in service in any tax year during which an election not to apply the uniform capitalization rules to certain farming costs is in effect. I need to file taxes for 2011 Any property imported from a foreign country for which an Executive Order is in effect because the country maintains trade restrictions or engages in other discriminatory acts. I need to file taxes for 2011 If you are required to use ADS to depreciate your property, you cannot claim any special depreciation allowance (discussed in chapter 3) for the property. I need to file taxes for 2011 Electing ADS. I need to file taxes for 2011   Although your property may qualify for GDS, you can elect to use ADS. I need to file taxes for 2011 The election generally must cover all property in the same property class that you placed in service during the year. I need to file taxes for 2011 However, the election for residential rental property and nonresidential real property can be made on a property-by-property basis. I need to file taxes for 2011 Once you make this election, you can never revoke it. I need to file taxes for 2011   You make the election by completing line 20 in Part III of Form 4562. I need to file taxes for 2011 Which Property Class Applies Under GDS? The following is a list of the nine property classifications under GDS and examples of the types of property included in each class. I need to file taxes for 2011 These property classes are also listed under column (a) in section B, Part III, of Form 4562. I need to file taxes for 2011 For detailed information on property classes, see Appendix B, Table of Class Lives and Recovery Periods, in this publication. I need to file taxes for 2011 3-year property. I need to file taxes for 2011 Tractor units for over-the-road use. I need to file taxes for 2011 Any race horse over 2 years old when placed in service. I need to file taxes for 2011 (All race horses placed in service after December 31, 2008, and before January 1, 2014, are deemed to be 3-year property, regardless of age. I need to file taxes for 2011 ) Any other horse (other than a race horse) over 12 years old when placed in service. I need to file taxes for 2011 Qualified rent-to-own property (defined later). I need to file taxes for 2011 5-year property. I need to file taxes for 2011 Automobiles, taxis, buses, and trucks. I need to file taxes for 2011 Computers and peripheral equipment. I need to file taxes for 2011 Office machinery (such as typewriters, calculators, and copiers). I need to file taxes for 2011 Any property used in research and experimentation. I need to file taxes for 2011 Breeding cattle and dairy cattle. I need to file taxes for 2011 Appliances, carpets, furniture, etc. I need to file taxes for 2011 , used in a residential rental real estate activity. I need to file taxes for 2011 Certain geothermal, solar, and wind energy property. I need to file taxes for 2011 7-year property. I need to file taxes for 2011 Office furniture and fixtures (such as desks, files, and safes). I need to file taxes for 2011 Agricultural machinery and equipment. I need to file taxes for 2011 Any property that does not have a class life and has not been designated by law as being in any other class. I need to file taxes for 2011 Certain motorsports entertainment complex property (defined later) placed in service before January 1, 2014. I need to file taxes for 2011 Any natural gas gathering line placed in service after April 11, 2005. I need to file taxes for 2011 See Natural gas gathering line and electric transmission property , later. I need to file taxes for 2011 10-year property. I need to file taxes for 2011 Vessels, barges, tugs, and similar water transportation equipment. I need to file taxes for 2011 Any single purpose agricultural or horticultural structure. I need to file taxes for 2011 Any tree or vine bearing fruits or nuts. I need to file taxes for 2011 Qualified small electric meter and qualified smart electric grid system (defined later) placed in service on or after October 3, 2008. I need to file taxes for 2011 15-year property. I need to file taxes for 2011 Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges). I need to file taxes for 2011 Any retail motor fuels outlet (defined later), such as a convenience store. I need to file taxes for 2011 Any municipal wastewater treatment plant. I need to file taxes for 2011 Any qualified leasehold improvement property (defined later) placed in service before January 1, 2014. I need to file taxes for 2011 Any qualified restaurant property (defined later) placed in service before January 1, 2014. I need to file taxes for 2011 Initial clearing and grading land improvements for gas utility property. I need to file taxes for 2011 Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. I need to file taxes for 2011 See Natural gas gathering line and electric transmission property , later. I need to file taxes for 2011 Any natural gas distribution line placed in service after April 11, 2005 and before January 1, 2011. I need to file taxes for 2011 Any qualified retail improvement property placed in service before January 1, 2014. I need to file taxes for 2011 20-year property. I need to file taxes for 2011 Farm buildings (other than single purpose agricultural or horticultural structures). I need to file taxes for 2011 Municipal sewers not classified as 25-year property. I need to file taxes for 2011 Initial clearing and grading land improvements for electric utility transmission and distribution plants. I need to file taxes for 2011 25-year property. I need to file taxes for 2011 This class is water utility property, which is either of the following. I need to file taxes for 2011 Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property. I need to file taxes for 2011 Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996. I need to file taxes for 2011 Residential rental property. I need to file taxes for 2011 This is any building or structure, such as a rental home (including a mobile home), if 80% or more of its gross rental income for the tax year is from dwelling units. I need to file taxes for 2011 A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. I need to file taxes for 2011 It does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. I need to file taxes for 2011 If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy. I need to file taxes for 2011 Nonresidential real property. I need to file taxes for 2011 This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27. I need to file taxes for 2011 5 years. I need to file taxes for 2011 Qualified rent-to-own property. I need to file taxes for 2011   Qualified rent-to-own property is property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract. I need to file taxes for 2011 It is tangible personal property generally used in the home for personal use. I need to file taxes for 2011 It includes computers and peripheral equipment, televisions, videocassette recorders, stereos, camcorders, appliances, furniture, washing machines and dryers, refrigerators, and other similar consumer durable property. I need to file taxes for 2011 Consumer durable property does not include real property, aircraft, boats, motor vehicles, or trailers. I need to file taxes for 2011   If some of the property you rent to others under a rent-to-own agreement is of a type that may be used by the renters for either personal or business purposes, you still can treat this property as qualified property as long as it does not represent a significant portion of your leasing property. I need to file taxes for 2011 However, if this dual-use property does represent a significant portion of your leasing property, you must prove that this property is qualified rent-to-own property. I need to file taxes for 2011 Rent-to-own dealer. I need to file taxes for 2011   You are a rent-to-own dealer if you meet all the following requirements. I need to file taxes for 2011 You regularly enter into rent-to-own contracts (defined below) in the ordinary course of your business for the use of consumer property. I need to file taxes for 2011 A substantial portion of these contracts end with the customer returning the property before making all the payments required to transfer ownership. I need to file taxes for 2011 The property is tangible personal property of a type generally used within the home for personal use. I need to file taxes for 2011 Rent-to-own contract. I need to file taxes for 2011   This is any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which— Is titled “Rent-to-Own Agreement,” “Lease Agreement with Ownership Option,” or other similar language. I need to file taxes for 2011 Provides a beginning date and a maximum period of time, not to exceed 156 weeks or 36 months from the beginning date, for which the contract can be in effect (including renewals or options to extend). I need to file taxes for 2011 Provides for regular periodic (weekly or monthly) payments that can be either level or decreasing. I need to file taxes for 2011 If the payments are decreasing, no payment can be less than 40% of the largest payment. I need to file taxes for 2011 Provides for total payments that generally exceed the normal retail price of the property plus interest. I need to file taxes for 2011 Provides for total payments that do not exceed $10,000 for each item of property. I need to file taxes for 2011 Provides that the customer has no legal obligation to make all payments outlined in the contract and that, at the end of each weekly or monthly payment period, the customer can either continue to use the property by making the next payment or return the property in good working order with no further obligations and no entitlement to a return of any prior payments. I need to file taxes for 2011 Provides that legal title to the property remains with the rent-to-own dealer until the customer makes either all the required payments or the early purchase payments required under the contract to acquire legal title. I need to file taxes for 2011 Provides that the customer has no right to sell, sublease, mortgage, pawn, pledge, or otherwise dispose of the property until all contract payments have been made. I need to file taxes for 2011 Motorsports entertainment complex. I need to file taxes for 2011   This is a racing track facility permanently situated on land that hosts one or more racing events for automobiles, trucks, or motorcycles during the 36-month period after the first day of the month in which the facility is placed in service. I need to file taxes for 2011 The events must be open to the public for the price of admission. I need to file taxes for 2011 Qualified smart electric grid system. I need to file taxes for 2011   A qualified smart electric grid system means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service after October 3, 2008, by a taxpayer who is a supplier of electrical energy or a provider of electrical energy services. I need to file taxes for 2011 Smart grid property includes electronics and related equipment that is capable of: Sensing, collecting, and monitoring data of or from all portions of a utility's electric distribution grid, Providing real-time, two-way communications to monitor or to manage the grid, and Providing real-time analysis of an event prediction based on collected data that can be used to provide electric distribution system reliability, quality, and performance. I need to file taxes for 2011 Retail motor fuels outlet. I need to file taxes for 2011   Real property is a retail motor fuels outlet if it is used to a substantial extent in the retail marketing of petroleum or petroleum products (whether or not it is also used to sell food or other convenience items) and meets any one of the following three tests. I need to file taxes for 2011 It is not larger than 1,400 square feet. I need to file taxes for 2011 50% or more of the gross revenues generated from the property are derived from petroleum sales. I need to file taxes for 2011 50% or more of the floor space in the property is devoted to petroleum marketing sales. I need to file taxes for 2011 A retail motor fuels outlet does not include any facility related to petroleum and natural gas trunk pipelines. I need to file taxes for 2011 Qualified leasehold improvement property. I need to file taxes for 2011    Generally, this is any improvement to an interior part of a building (placed in service before January 1, 2014) that is nonresidential real property, provided all of the requirements discussed in chapter 3 under Qualified leasehold improvement property are met. I need to file taxes for 2011   In addition, an improvement made by the lessor does not qualify as qualified leasehold improvement property to any subsequent owner unless it is acquired from the original lessor by reason of the lessor's death or in any of the following types of transactions. I need to file taxes for 2011 A transaction to which section 381(a) applies, A mere change in the form of conducting the trade or business so long as the property is retained in the trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in the trade or business, A like-kind exchange, involuntary conversion, or reacquisition of real property to the extent that the basis in the property represents the carryover basis, or Certain nonrecognition transactions to the extent that your basis in the property is determined by reference to the transferor's or distributor's basis in the property. I need to file taxes for 2011 Examples include the following. I need to file taxes for 2011 A complete liquidation of a subsidiary. I need to file taxes for 2011 A transfer to a corporation controlled by the transferor. I need to file taxes for 2011 An exchange of property by a corporation solely for stock or securities in another corporation in a reorganization. I need to file taxes for 2011 Qualified restaurant property. I need to file taxes for 2011   Qualified restaurant property is any section 1250 property that is a building placed in service after December 31, 2008, and before January 1, 2014. I need to file taxes for 2011 Also, more than 50% of the building's square footage must be devoted to preparation of meals and seating for on-premises consumption of prepared meals. I need to file taxes for 2011 Qualified smart electric meter. I need to file taxes for 2011   A qualified smart electric meter is any time-based meter and related communication equipment which is placed in service by a supplier of electric energy or a provider of electric energy services and which is capable of being used by you as part of a system that: Measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day; Provides for the exchange of information between the supplier or provider and the customer's smart electric meter in support of time-based rates or other forms of demand response; Provides data to the supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and Provides all commercial and residential customers of such supplier or provider with net metering. I need to file taxes for 2011 Net metering means allowing a customer a credit, if any, as complies with applicable federal and state laws and regulations for providing electricity to the supplier or provider. I need to file taxes for 2011 Natural gas gathering line and electric transmission property. I need to file taxes for 2011   Any natural gas gathering line placed in service after April 11, 2005, is treated as 7-year property, and electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity and any natural gas distribution line placed in service after April 11, 2005, are treated as 15-year property, if the following requirements are met. I need to file taxes for 2011 The original use of the property must have begun with you after April 11, 2005. I need to file taxes for 2011 Original use means the first use to which the property is put, whether or not by you. I need to file taxes for 2011 Therefore, property used by any person before April 12, 2005, is not original use. I need to file taxes for 2011 Original use includes additional capital expenditures you incurred to recondition or rebuild your property. I need to file taxes for 2011 However, original use does not include the cost of reconditioned or rebuilt property you acquired. I need to file taxes for 2011 Property containing used parts will not be treated as reconditioned or rebuilt if the cost of the used parts is not more than 20% of the total cost of the property. I need to file taxes for 2011 The property must not be placed in service under a binding contract in effect before April 12, 2005. I need to file taxes for 2011 The property must not be self-constructed property (property you manufacture, construct, or produce for your own use), if you began the manufacture, construction, or production of the property before April 12, 2005. I need to file taxes for 2011 Property that is manufactured, constructed, or produced for your use by another person under a written binding contract entered into by you or a related party before the manufacture, construction, or production of the property is considered to be manufactured, constructed, or produced by you. I need to file taxes for 2011 What Is the Placed in Service Date? You begin to claim depreciation when your property is placed in service for either use in a trade or business or the production of income. I need to file taxes for 2011 The placed in service date for your property is the date the property is ready and available for a specific use. I need to file taxes for 2011 It is therefore not necessarily the date it is first used. I need to file taxes for 2011 If you converted property held for personal use to use in a trade or business or for the production of income, treat the property as being placed in service on the conversion date. I need to file taxes for 2011 See Placed in Service under When Does Depreciation Begin and End in chapter 1 for examples illustrating when property is placed in service. I need to file taxes for 2011 What Is the Basis for Depreciation? The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. I need to file taxes for 2011 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 . I need to file taxes for 2011 Reduce that amount by any credits and deductions allocable to the property. I need to file taxes for 2011 The following are examples of some credits and deductions that reduce basis. I need to file taxes for 2011 Any deduction for section 179 property. I need to file taxes for 2011 Any deduction under section 179B of the Internal Revenue Code for capital costs to comply with Environmental Protection Agency sulfur regulations. I need to file taxes for 2011 Any deduction under section 179C of the Internal Revenue Code for certain qualified refinery property placed in service after August 8, 2005, and before January 1, 2014. I need to file taxes for 2011 Any deduction under section 179D of the Internal Revenue Code for certain energy efficient commercial building property placed in service after December 31, 2005, and before January 1, 2014. I need to file taxes for 2011 Any deduction under section 179E of the Internal Revenue Code for qualified advanced mine safety equipment property placed in service after December 20, 2006, and before January 1, 2014 . I need to file taxes for 2011 Any deduction for removal of barriers to the disabled and the elderly. I need to file taxes for 2011 Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. I need to file taxes for 2011 Any special depreciation allowance. I need to file taxes for 2011 Basis adjustment for investment credit property under section 50(c) of the Internal Revenue Code. I need to file taxes for 2011 For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. I need to file taxes for 2011 Enter the basis for depreciation under column (c) in Part III of Form 4562. I need to file taxes for 2011 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 . I need to file taxes for 2011 Which Recovery Period Applies? The recovery period of property is the number of years over which you recover its cost or other basis. I need to file taxes for 2011 It is determined based on the depreciation system (GDS or ADS) used. I need to file taxes for 2011 Recovery Periods Under GDS Under GDS, property that is not qualified Indian reservation property is depreciated over one of the following recovery periods. I need to file taxes for 2011 Property Class Recovery Period 3-year property   3 years 1   5-year property   5 years     7-year property   7 years     10-year property   10 years     15-year property   15 years 2   20-year property   20 years     25-year property   25 years 3   Residential rental property   27. I need to file taxes for 2011 5 years     Nonresidential real property   39 years 4   15 years for qualified rent-to-own property placed in service before August 6, 1997. I need to file taxes for 2011 239 years for property that is a retail motor fuels outlet placed in service before August 20, 1996 (31. I need to file taxes for 2011 5 years if placed in service before May 13, 1993), unless you elected to depreciate it over 15 years. I need to file taxes for 2011 320 years for property placed in service before June 13, 1996, or under a binding contract in effect before June 10, 1996. I need to file taxes for 2011 431. I need to file taxes for 2011 5 years for property placed in service before May 13, 1993 (or before January 1, 1994, if the purchase or construction of the property is under a binding contract in effect before May 13, 1993, or if construction began before May 13, 1993). I need to file taxes for 2011 The GDS recovery periods for property not listed above can be found in Appendix B, Table of Class Lives and Recovery Periods. I need to file taxes for 2011 Residential rental property and nonresidential real property are defined earlier under Which Depreciation System (GDS or ADS) Applies. I need to file taxes for 2011 Enter the appropriate recovery period on Form 4562 under column (d) in section B of Part III, unless already shown (for 25-year property, residential rental property, and nonresidential real property). I need to file taxes for 2011 Office in the home. I need to file taxes for 2011   If your home is a personal-use single family residence and you begin to use part of your home as an office, depreciate that part of your home as nonresidential real property over 39 years (31. I need to file taxes for 2011 5 years if you began using it for business before May 13, 1993). I need to file taxes for 2011 However, if your home is an apartment in an apartment building that you own and the building is residential rental property as defined earlier under Which Depreciation System (GDS or ADS) Applies , depreciate the part used as an office as residential rental property over 27. I need to file taxes for 2011 5 years. I need to file taxes for 2011 See Publication 587 for a discussion of the tests you must meet to claim expenses, including depreciation, for the business use of your home. I need to file taxes for 2011 Home changed to rental use. I need to file taxes for 2011   If you begin to rent a home that was your personal home before 1987, you depreciate it as residential rental property over 27. I need to file taxes for 2011 5 years. I need to file taxes for 2011 Indian Reservation Property The recovery periods for qualified property you placed in service on an Indian reservation after 1993 and before 2014 are shorter than those listed earlier. I need to file taxes for 2011 The following table shows these shorter recovery periods. I need to file taxes for 2011 Property Class Recovery  Period 3-year property 2 years 5-year property 3 years 7-year property 4 years 10-year property 6 years 15-year property 9 years 20-year property 12 years Nonresidential real property 22 years Nonresidential real property is defined earlier under Which Property Class Applies Under GDS . I need to file taxes for 2011 Use this chart to find the correct percentage table to use for qualified Indian reservation property. I need to file taxes for 2011 IF your recovery period is: THEN use the following table in Appendix A: 2 years A-21 3 years A-1, A-2, A-3, A-4, or A-5 4 years A-22 6 years A-23 9 years A-14, A-15, A-16, A-17, or A-18 12 years A-14, A-15, A-16, A-17, or A-18 22 years A-24 Qualified property. I need to file taxes for 2011   Property eligible for the shorter recovery periods are 3-, 5-, 7-, 10-, 15-, and 20-year property and nonresidential real property. I need to file taxes for 2011 You must use this property predominantly in the active conduct of a trade or business within an Indian reservation. I need to file taxes for 2011 The rental of real property that is located on an Indian reservation is treated as the active conduct of a trade or business within an Indian reservation. I need to file taxes for 2011   The following property is not qualified property. I need to file taxes for 2011 Property used or located outside an Indian reservation on a regular basis, other than qualified infrastructure property. I need to file taxes for 2011 Property acquired directly or indirectly from a related person. I need to file taxes for 2011 Property placed in service for purposes of conducting or housing class I, II, or III gaming activities. I need to file taxes for 2011 These activities are defined in section 4 of the Indian Regulatory Act (25 U. I need to file taxes for 2011 S. I need to file taxes for 2011 C. I need to file taxes for 2011 2703). I need to file taxes for 2011 Any property you must depreciate under ADS. I need to file taxes for 2011 Determine whether property is qualified without regard to the election to use ADS and after applying the special rules for listed property not used predominantly for qualified business use (discussed in chapter 5). I need to file taxes for 2011 Qualified infrastructure property. I need to file taxes for 2011   Item (1) above does not apply to qualified infrastructure property located outside the reservation that is used to connect with qualified infrastructure property within the reservation. I need to file taxes for 2011 Qualified infrastructure property is property that meets all the following rules. I need to file taxes for 2011 It is qualified property, as defined earlier, except that it is outside the reservation. I need to file taxes for 2011 It benefits the tribal infrastructure. I need to file taxes for 2011 It is available to the general public. I need to file taxes for 2011 It is placed in service in connection with the active conduct of a trade or business within a reservation. I need to file taxes for 2011 Infrastructure property includes, but is not limited to, roads, power lines, water systems, railroad spurs, and communications facilities. I need to file taxes for 2011 Related person. I need to file taxes for 2011   For purposes of item (2) above, 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 for a description of related persons. I need to file taxes for 2011 Indian reservation. I need to file taxes for 2011   The term Indian reservation means a reservation as defined in section 3(d) of the Indian Financing Act of 1974 (25 U. I need to file taxes for 2011 S. I need to file taxes for 2011 C. I need to file taxes for 2011 1452(d)) or section 4(10) of the Indian Child Welfare Act of 1978 (25 U. I need to file taxes for 2011 S. I need to file taxes for 2011 C. I need to file taxes for 2011 1903(10)). I need to file taxes for 2011 Section 3(d) of the Indian Financing Act of 1974 defines reservation to include former Indian reservations in Oklahoma. I need to file taxes for 2011 For a definition of the term “former Indian reservations in Oklahoma,” see Notice 98-45 in Internal Revenue Bulletin 1998-35. I need to file taxes for 2011 Recovery Periods Under ADS The recovery periods for most property generally are longer under ADS than they are under GDS. I need to file taxes for 2011 The following table shows some of the ADS recovery periods. I need to file taxes for 2011 Property Recovery  Period Rent-to-own property 4 years Automobiles and light duty trucks 5 years Computers and peripheral equipment 5 years High technology telephone station equipment installed on customer premises 5 years High technology medical equipment 5 years Personal property with no class life 12 years Natural gas gathering lines 14 years Single purpose agricultural and horticultural structures 15 years Any tree or vine bearing fruit or nuts 20 years Initial clearing and grading land  improvements for gas utility property 20 years Initial clearing and grading land  improvements for electric utility  transmission and distribution plants 25 years Electric transmission property used in the transmission at 69 or more kilovolts of electricity 30 years Natural gas distribution lines 35 years Any qualified leasehold improvement property 39 years Any qualified restaurant property 39 years Nonresidential real property 40 years Residential rental property 40 years Section 1245 real property not listed in Appendix B 40 years Railroad grading and tunnel bore 50 years The ADS recovery periods for property not listed above can be found in the tables in Appendix B. I need to file taxes for 2011 Rent-to-own property, qualified leasehold improvement property, qualified restaurant property, residential rental property, and nonresidential real property are defined earlier under Which Property Class Applies Under GDS . I need to file taxes for 2011 Tax-exempt use property subject to a lease. I need to file taxes for 2011   The ADS recovery period for any property leased under a lease agreement to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership) cannot be less than 125% of the lease term. I need to file taxes for 2011 Additions and Improvements An addition or improvement you make to depreciable property is treated as separate depreciable property. I need to file taxes for 2011 See How Do You Treat Repairs and Improvements in chapter 1 for a definition of improvements. I need to file taxes for 2011 Its property class and recovery period are the same as those that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. I need to file taxes for 2011 The recovery period begins on the later of the following dates. I need to file taxes for 2011 The date you place the addition or improvement in service. I need to file taxes for 2011 The date you place in service the property to which you made the addition or improvement. I need to file taxes for 2011 If the improvement you make is qualified leasehold improvement property, qualified restaurant property, or qualified retail improvement property, the GDS recovery period is 15 years (39 years under ADS). I need to file taxes for 2011 Example. I need to file taxes for 2011 You own a rental home that you have been renting out since 1981. I need to file taxes for 2011 If you put an addition on the home and place the addition in service this year, you would use MACRS to figure your depreciation deduction for the addition. I need to file taxes for 2011 Under GDS, the property class for the addition is residential rental property and its recovery period is 27. I need to file taxes for 2011 5 years because the home to which the addition is made would be residential rental property if you had placed it in service this year. I need to file taxes for 2011 Which Convention Applies? Under MACRS, averaging conventions establish when the recovery period begins and ends. I need to file taxes for 2011 The convention you use determines the number of months for which you can claim depreciation in the year you place property in service and in the year you dispose of the property. I need to file taxes for 2011 The mid-month convention. I need to file taxes for 2011   Use this convention for nonresidential real property, residential rental property, and any railroad grading or tunnel bore. I need to file taxes for 2011   Under this convention, you treat all property placed in service or disposed of during a month as placed in service or disposed of at the midpoint of the month. I need to file taxes for 2011 This means that a one-half month of depreciation is allowed for the month the property is placed in service or disposed of. I need to file taxes for 2011   Your use of the mid-month convention is indicated by the “MM” already shown under column (e) in Part III of Form 4562. I need to file taxes for 2011 The mid-quarter convention. I need to file taxes for 2011   Use this convention if the mid-month convention does not apply and the total depreciable bases of MACRS property you placed in service during the last 3 months of the tax year (excluding nonresidential real property, residential rental property, any railroad grading or tunnel bore, property placed in service and disposed of in the same year, and property that is being depreciated under a method other than MACRS) are more than 40% of the total depreciable bases of all MACRS property you placed in service during the entire year. I need to file taxes for 2011   Under this convention, you treat all property placed in service or disposed of during any quarter of the tax year as placed in service or disposed of at the midpoint of that quarter. I need to file taxes for 2011 This means that 1½ months of depreciation is allowed for the quarter the property is placed in service or disposed of. I need to file taxes for 2011   If you use this convention, enter “MQ” under column (e) in Part III of Form 4562. I need to file taxes for 2011    For purposes of determining whether the mid-quarter convention applies, the depreciable basis of property you placed in service during the tax year reflects the reduction in basis for amounts expensed under section 179 and the part of the basis of property attributable to personal use. I need to file taxes for 2011 However, it does not reflect any reduction in basis for any special depreciation allowance. I need to file taxes for 2011 The half-year convention. I need to file taxes for 2011   Use this convention if neither the mid-quarter convention nor the mid-month convention applies. I need to file taxes for 2011   Under this convention, you treat all property placed in service or disposed of during a tax year as placed in service or disposed of at the midpoint of the year. I need to file taxes for 2011 This means that a one-half year of depreciation is allowed for the year the property is placed in service or disposed of. I need to file taxes for 2011   If you use this convention, enter “HY” under column (e) in Part III of Form 4562. I need to file taxes for 2011 Which Depreciation Method Applies? MACRS provides three depreciation methods under GDS and one depreciation method under ADS. I need to file taxes for 2011 The 200% declining balance method over a GDS recovery period. I need to file taxes for 2011 The 150% declining balance method over a GDS recovery period. I need to file taxes for 2011 The straight line method over a GDS recovery period. I need to file taxes for 2011 The straight line method over an ADS recovery period. I need to file taxes for 2011 For property placed in service before 1999, you could have elected the 150% declining balance method using the ADS recovery periods for certain property classes. I need to file taxes for 2011 If you made this election, continue to use the same method and recovery period for that property. I need to file taxes for 2011 Table 4–1 lists the types of property you can depreciate under each method. I need to file taxes for 2011 It also gives a brief explanation of the method, including any benefits that may apply. I need to file taxes for 2011 Depreciation Methods for Farm Property If you place personal property in service in a farming business after 1988, you generally must depreciate it under GDS using the 150% declining balance method unless you are a farmer who must depreciate the property under ADS using the straight line method or you elect to depreciate the property under GDS or ADS using the straight line method. I need to file taxes for 2011 You can depreciate real property using the straight line method under either GDS or ADS. I need to file taxes for 2011 Fruit or nut trees and vines. I need to file taxes for 2011   Depreciate trees and vines bearing fruit or nuts under GDS using the straight line method over a recovery period of 10 years. I need to file taxes for 2011 ADS required for some farmers. I need to file taxes for 2011   If you elect not to apply the uniform capitalization rules to any plant produced in your farming business, you must use ADS. I need to file taxes for 2011 You must use ADS for all property you place in service in any year the election is in effect. I need to file taxes for 2011 See the regulations under section 263A of the Internal Revenue Code for information on the uniform capitalization rules that apply to farm property. I need to file taxes for 2011 Electing a Different Method As shown in Table 4–1 , you can elect a different method for depreciation for certain types of property. I need to file taxes for 2011 You must make the election by the due date of the return (including extensions) for the year you placed the property in service. I need to file taxes for 2011 However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). I need to file taxes for 2011 Attach the election to the amended return and write “Filed pursuant to section 301. I need to file taxes for 2011 9100-2” on the election statement. I need to file taxes for 2011 File the amended return at the same address you filed the original return. I need to file taxes for 2011 Once you make the election, you cannot change it. I need to file taxes for 2011 If you elect to use a different method for one item in a property class, you must apply the same method to all property in that class placed in service during the year of the election. I need to file taxes for 2011 However, you can make the election on a property-by-property basis for nonresidential real and residential rental property. I need to file taxes for 2011 150% election. I need to file taxes for 2011   Instead of using the 200% declining balance method over the GDS recovery period for nonfarm property in the 3-, 5-, 7-, and 10-year property classes, you can elect to use the 150% declining balance method. I need to file taxes for 2011 Make the election by entering “150 DB” under column (f) in Part III of Form 4562. I need to file taxes for 2011 Straight line election. I need to file taxes for 2011   Instead of using either the 200% or 150% declining balance methods over the GDS recovery period, you can elect to use the straight line method over the GDS recovery period. I need to file taxes for 2011 Make the election by entering  “S/L” under column (f) in Part III of Form 4562. I need to file taxes for 2011 Election of ADS. I need to file taxes for 2011   As explained earlier under Which Depreciation System (GDS or ADS) Applies , you can elect to use ADS even though your property may come under GDS. I need to file taxes for 2011 ADS uses the straight line method of depreciation over fixed ADS recovery periods. I need to file taxes for 2011 Most ADS recovery periods are listed in Appendix B, or see the table under Recovery Periods Under ADS , earlier. I need to file taxes for 2011   Make the election by completing line 20 in Part III of Form 4562. I need to file taxes for 2011 Farm property. I need to file taxes for 2011   Instead of using the 150% declining balance method over a GDS recovery period for property you use in a farming business (other than real property), you can elect to depreciate it using either of the following methods. I need to file taxes for 2011 The straight line method over a GDS recovery period. I need to file taxes for 2011 The straight line method over an ADS recovery period. I need to file taxes for 2011 Table 4-1. I need to file taxes for 2011 Depreciation Methods Note. I need to file taxes for 2011 The declining balance method is abbreviated as DB and the straight line method is abbreviated as SL. I need to file taxes for 2011 Method Type of Property Benefit GDS using 200% DB • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction GDS using 150% DB • All farm property (except real property) • All 15- and 20-year property (except qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property placed in service before January 1, 2014) • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction1 GDS using SL • Nonresidential real property • Qualified leasehold improvement property placed in service before January 1, 2014 • Qualified restaurant property placed in service before January 1, 2014 • Qualified retail improvement property placed in service before January 1, 2014 • Residential rental property • Trees or vines bearing fruit or nuts • Water utility property • All 3-, 5-, 7-, 10-, 15-, and 20-year property2 • Property for which you elected section 168(k)(4) • Provides for equal yearly deductions (except for the first and last years) ADS using SL • Listed property used 50% or less for business • Property used predominantly outside the U. I need to file taxes for 2011 S. I need to file taxes for 2011  • Tax-exempt property • Tax-exempt bond-financed property • Farm property used when an election not to apply the uniform capitalization rules is in effect • Imported property3 • Any property for which you elect to use this method4 • Provides for equal yearly deductions (except for the first and last years) 1The MACRS percentage tables in Appendix A have the switch to the straight line method built into their rates 2See section 168(b)(5) of the Internal Revenue Code. I need to file taxes for 2011 3See section 168(g)(6) of the Internal Revenue Code 4See section 168(g)(7) of the Internal Revenue Code How Is the Depreciation Deduction Figured? To figure your depreciation deduction under MACRS, you first determine the depreciation system, property class, placed in service date, basis amount, recovery period, convention, and depreciation method that applies to your property. I need to file taxes for 2011 Then, you are ready to figure your depreciation deduction. I need to file taxes for 2011 You can figure it using a percentage table provided by the IRS, or you can figure it yourself without using the table. I need to file taxes for 2011 Using the MACRS Percentage Tables To help you figure your deduction under MACRS, the IRS has established percentage tables that incorporate the applicable convention and depreciation method. I need to file taxes for 2011 These percentage tables are in Appendix A near the end of this publication. I need to file taxes for 2011 Which table to use. I need to file taxes for 2011    Appendix A contains the MACRS Percentage Table Guide, which is designed to help you locate the correct percentage table to use for depreciating your property. I need to file taxes for 2011 The percentage tables immediately follow the guide. I need to file taxes for 2011 Rules Covering the Use of the Tables The following rules cover the use of the percentage tables. I need to file taxes for 2011 You must apply the rates in the percentage tables to your property's unadjusted basis. I need to file taxes for 2011 You cannot use the percentage tables for a short tax year. I need to file taxes for 2011 See Figuring the Deduction for a Short Tax Year, later, for information on the short tax year rules. I need to file taxes for 2011 Once you start using the percentage tables for any item of property, you generally must continue to use them for the entire recovery period of the property. I need to file taxes for 2011 You must stop using the tables if you adjust the basis of the property for any reason other than— Depreciation allowed or allowable, or An addition or improvement to that property that is depreciated as a separate item of property. I need to file taxes for 2011 Basis adjustments other than those made due to the items listed in (4) include an increase in basis for the recapture of a clean-fuel deduction or credit and a reduction in basis for a casualty loss. I need to file taxes for 2011 Basis adjustment due to recapture of clean-fuel vehicle deduction or credit. I need to file taxes for 2011   If you increase the basis of your property because of the recapture of part or all of a deduction for clean-fuel vehicles or the credit for clean-fuel vehicle refueling property placed in service before January 1, 2006, you cannot continue to use the percentage tables. I need to file taxes for 2011 For the year of the adjustment and the remaining recovery period, you must figure the depreciation deduction yourself using the property's adjusted basis at the end of the year. I need to file taxes for 2011 See Figuring the Deduction Without Using the Tables, later. I need to file taxes for 2011 Basis adjustment due to casualty loss. I need to file taxes for 2011   If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables. I need to file taxes for 2011 For the year of the adjustment and the remaining recovery period, you must figure the depreciation yourself using the property's adjusted basis at the end of the year. I need to file taxes for 2011 See Figuring the Deduction Without Using the Tables, later. I need to file taxes for 2011 Example. I need to file taxes for 2011 On October 26, 2012, Sandra Elm, a calendar year taxpayer, bought and placed in service in her business a new item of 7-year property. I need to file taxes for 2011 It cost $39,000 and she elected a section 179 deduction of $24,000. I need to file taxes for 2011 She also took a special depreciation allowance of $7,500 [50% of $15,000 ($39,000 − $24,000)]. I need to file taxes for 2011 Her unadjusted basis after the section 179 deduction and special depreciation allowance was $7,500 ($15,000 − $7,500). I need to file taxes for 2011 She figured her MACRS depreciation deduction using the percentage tables. I need to file taxes for 2011 For 2012, her MACRS depreciation deduction was $268. I need to file taxes for 2011 In July 2013, the property was vandalized and Sandra had a deductible casualty loss of $3,000. I need to file taxes for 2011 She must adjust the property's basis for the casualty loss, so she can no longer use the percentage tables. I need to file taxes for 2011 Her adjusted basis at the end of 2013, before figuring her 2013 depreciation, is $4,232. I need to file taxes for 2011 She figures that amount by subtracting the 2012 MACRS depreciation of $268 and the casualty loss of $3,000 from the unadjusted basis of $7,500. I need to file taxes for 2011 She must now figure her depreciation for 2013 without using the percentage tables. I need to file taxes for 2011 Figuring the Unadjusted Basis of Your Property You must apply the table rates to your property's unadjusted basis each year of the recovery period. I need to file taxes for 2011 Unadjusted basis is the same basis amount you would use to figure gain on a sale, but you figure it without reducing your original basis by any MACRS depreciation taken in earlier years. I need to file taxes for 2011 However, you do reduce your original basis by other amounts, including the following. I need to file taxes for 2011 Any amortization taken on the property. I need to file taxes for 2011 Any section 179 deduction claimed. I need to file taxes for 2011 Any special depreciation allowance taken on the property. I need to file taxes for 2011 For business property you purchase during the year, the unadjusted basis is its cost minus these and other applicable adjustments. I need to file taxes for 2011 If you trade property, your unadjusted basis in the property received is the cash paid plus the adjusted basis of the property traded minus these adjustments. I need to file taxes for 2011 MACRS Worksheet You can use this worksheet to help you figure your depreciation deduction using the percentage tables. I need to file taxes for 2011 Use a separate worksheet for each item of property. I need to file taxes for 2011 Then, use the information from this worksheet to prepare Form 4562. I need to file taxes for 2011 Do not use this worksheet for automobiles. I need to file taxes for 2011 Use the Depreciation Worksheet for Passenger Automobiles in chapter 5. I need to file taxes for 2011 MACRS Worksheet Part I   1. I need to file taxes for 2011 MACRS system (GDS or ADS)   2. I need to file taxes for 2011 Property class   3. I need to file taxes for 2011 Date placed in service   4. I need to file taxes for 2011 Recovery period   5. I need to file taxes for 2011 Method and convention   6. I need to file taxes for 2011 Depreciation rate (from tables)   Part II   7. I need to file taxes for 2011 Cost or other basis* $     8. I need to file taxes for 2011 Business/investment use   %   9. I need to file taxes for 2011 Multiply line 7 by line 8   $ 10. I need to file taxes for 2011 Total claimed for section 179 deduction and other items   $ 11. I need to file taxes for 2011 Subtract line 10 from line 9. I need to file taxes for 2011 This is your tentative basis for depreciation   $ 12. I need to file taxes for 2011 Multiply line 11 by . I need to file taxes for 2011 50 if the 50% special depreciation allowance applies. I need to file taxes for 2011 This is your special depreciation allowance. I need to file taxes for 2011 Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance   $ 13. I need to file taxes for 2011 Subtract line 12 from line 11. I need to file taxes for 2011 This is your basis for depreciation     14. I need to file taxes for 2011 Depreciation rate (from line 6)     15. I need to file taxes for 2011 Multiply line 13 by line 14. I need to file taxes for 2011 This is your MACRS depreciation deduction   $ *If real estate, do not include cost (basis) of land. I need to file taxes for 2011 The following example shows how to figure your MACRS depreciation deduction using the percentage tables and the MACRS worksheet. I need to file taxes for 2011 Example. I need to file taxes for 2011 You bought office furniture (7-year property) for $10,000 and placed it in service on August 11, 2013. I need to file taxes for 2011 You use the furniture only for business. I need to file taxes for 2011 This is the only property you placed in service this year. I need to file taxes for 2011 You did not elect a section 179 deduction and the property is not qualified property for purposes of claiming a special depreciation allowance so your property's unadjusted basis is its cost, $10,000. I need to file taxes for 2011 You use GDS and the half-year convention to figure your depreciation. I need to file taxes for 2011 You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-1. I need to file taxes for 2011 Multiply your property's unadjusted basis each year by the percentage for 7-year property given in Table A-1. I need to file taxes for 2011 You figure your depreciation deduction using the MACRS worksheet as follows. I need to file taxes for 2011 MACRS Worksheet Part I 1. I need to file taxes for 2011 MACRS system (GDS or ADS) GDS 2. I need to file taxes for 2011 Property class 7-year 3. I need to file taxes for 2011 Date placed in service 8/11/13 4. I need to file taxes for 2011 Recovery period 7-Year 5. I need to file taxes for 2011 Method and convention 200%DB/Half-Year 6. I need to file taxes for 2011 Depreciation rate (from tables) . I need to file taxes for 2011 1429 Part II 7. I need to file taxes for 2011 Cost or other basis* $10,000     8. I need to file taxes for 2011 Business/investment use 100 %   9. I need to file taxes for 2011 Multiply line 7 by line 8   $10,000 10. I need to file taxes for 2011 Total claimed for section 179 deduction and other items   -0- 11. I need to file taxes for 2011 Subtract line 10 from line 9. I need to file taxes for 2011 This is your tentative basis for depreciation   $10,000 12. I need to file taxes for 2011 Multiply line 11 by . I need to file taxes for 2011 50 if the 50% special depreciation allowance applies. I need to file taxes for 2011 This is your special depreciation allowance. I need to file taxes for 2011 Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance   -0- 13. I need to file taxes for 2011 Subtract line 12 from line 11. I need to file taxes for 2011 This is your basis for depreciation   $10,000 14. I need to file taxes for 2011 Depreciation rate (from line 6)   . I need to file taxes for 2011 1429 15. I need to file taxes for 2011 Multiply line 13 by line 14. I need to file taxes for 2011 This is your MACRS depreciation deduction   $1,429 *If real estate, do not include cost (basis) of land. I need to file taxes for 2011 If there are no adjustments to the basis of the property other than depreciation, your depreciation deduction for each subsequent year of the recovery period will be as follows. I need to file taxes for 2011 Year   Basis Percentage Deduction 2014 $ 10,000 24. I need to file taxes for 2011 49%   $2,449   2015   10,000 17. I need to file taxes for 2011 49   1,749   2016   10,000 12. I need to file taxes for 2011 49   1,249   2017   10,000 8. I need to file taxes for 2011 93   893   2018   10,000 8. I need to file taxes for 2011 92   892   2019   10,000 8. I need to file taxes for 2011 93   893   2020   10,000 4. I need to file taxes for 2011 46   446   Examples The following examples are provided to show you how to use the percentage tables. I need to file taxes for 2011 In both examples, assume the following. I need to file taxes for 2011 You use the property only for business. I need to file taxes for 2011 You use the calendar year as your tax year. I need to file taxes for 2011 You use GDS for all the properties. I need to file taxes for 2011 Example 1. I need to file taxes for 2011 You bought a building and land for $120,000 and placed it in service on March 8. I need to file taxes for 2011 The sales contract showed that the building cost $100,000 and the land cost $20,000. I need to file taxes for 2011 It is nonresidential real property. I need to file taxes for 2011 The building's unadjusted basis is its original cost, $100,000. I need to file taxes for 2011 You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-7a. I need to file taxes for 2011 March is the third month of your tax year, so multiply the building's unadjusted basis, $100,000, by the percentages for the third month in Table A-7a. I need to file taxes for 2011 Your depreciation deduction for each of the first 3 years is as follows: Year   Basis Percentage Deduction 1st $ 100,000 2. I need to file taxes for 2011 033%   $2,033   2nd   100,000 2. I need to file taxes for 2011 564   2,564   3rd   100,000 2. I need to file taxes for 2011 564   2,564   Example 2. I need to file taxes for 2011 During the year, you bought a machine (7-year property) for $4,000, office furniture (7-year property) for $1,000, and a computer (5-year property) for $5,000. I need to file taxes for 2011 You placed the machine in service in January, the furniture in September, and the computer in October. I need to file taxes for 2011 You do not elect a section 179 deduction and none of these items is qualified property for purposes of claiming a special depreciation allowance. I need to file taxes for 2011 You placed property in service during the last 3 months of the year, so you must first determine if you have to use the mid-quarter convention. I need to file taxes for 2011 The total bases of all property you placed in service during the year is $10,000. I need to file taxes for 2011 The $5,000 basis of the computer, which you placed in service during the last 3 months (the fourth quarter) of your tax year, is more than 40% of the total bases of all property ($10,000) you placed in service during the year. I need to file taxes for 2011 Therefore, you must use the mid-quarter convention for all three items. I need to file taxes for 2011 You refer to the MACRS Percentage Table Guide in Appendix A to determine which table you should use under the mid-quarter convention. I need to file taxes for 2011 The machine is 7-year property placed in service in the first quarter, so you use Table A-2. I need to file taxes for 2011 The furniture is 7-year property placed in service in the third quarter, so you use Table A-4. I need to file taxes for 2011 Finally, because the computer is 5-year property placed in service in the fourth quarter, you use Table A-6. I need to file taxes for 2011 Knowing what table to use for each property, you figure the depreciation for the first 2 years as follows. I need to file taxes for 2011 Year Property Basis Percentage Deduction 1st Machine $4,000 25. I need to file taxes for 2011 00 $1,000   2nd Machine 4,000 21. I need to file taxes for 2011 43 857   1st Furniture 1,000 10. I need to file taxes for 2011 71 107   2nd Furniture 1,000 25. I need to file taxes for 2011 51 255   1st Computer 5,000 5. I need to file taxes for 2011 00 250   2nd Computer 5,000 38. I need to file taxes for 2011 00 1,900   Sale or Other Disposition Before the Recovery Period Ends If you sell or otherwise dispose of your property before the end of its recovery period, your depreciation deduction for the year of the disposition will be only part of the depreciation amount for the full year. I need to file taxes for 2011 You have disposed of your property if you have permanently withdrawn it from use in your business or income-producing activity because of its sale, exchange, retirement, abandonment, involuntary conversion, or destruction. I need to file taxes for 2011 After you figure the full-year depreciation amount, figure the deductible part using the convention that applies to the property. I need to file taxes for 2011 Half-year convention used. I need to file taxes for 2011   For property for which you used a half-year convention, the depreciation deduction for the year of the disposition is half the depreciation determined for the full year. I need to file taxes for 2011 Mid-quarter convention used. I need to file taxes for 2011   For property for which you used the mid-quarter convention, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter in which you disposed of the property. I need to file taxes for 2011 Quarter Percentage First 12. I need to file taxes for 2011 5% Second 37. I need to file taxes for 2011 5 Third 62. I need to file taxes for 2011 5 Fourth 87. I need to file taxes for 2011 5 Example. I need to file taxes for 2011 On December 2, 2010, you placed in service an item of 5-year property costing $10,000. I need to file taxes for 2011 You did not claim a section 179 deduction and the property does not qualify for a special depreciation allowance. I need to file taxes for 2011 Your unadjusted basis for the property was $10,000. I need to file taxes for 2011 You used the mid-quarter convention because this was the only item of business property you placed in service in 2010 and it was placed in service during the last 3 months of your tax year. I need to file taxes for 2011 Your property is in the 5-year property class, so you used Table A-5 to figure your depreciation deduction. I need to file taxes for 2011 Your deductions for 2010, 2011, and 2012 were $500 (5% of $10,000), $3,800 (38% of $10,000), and $2,280 (22. I need to file taxes for 2011 80% of $10,000). I need to file taxes for 2011 You disposed of the property on April 6, 2013. I need to file taxes for 2011 To determine your depreciation deduction for 2013, first figure the deduction for the full year. I need to file taxes for 2011 This is $1,368 (13. I need to file taxes for 2011 68% of $10,000). I need to file taxes for 2011 April is in the second quarter of the year, so you multiply $1,368 by 37. I need to file taxes for 2011 5% to get your depreciation deduction of $513 for 2013. I need to file taxes for 2011 Mid-month convention used. I need to file taxes for 2011   If you dispose of residential rental or nonresidential real property, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by a fraction. I need to file taxes for 2011 The numerator of the fraction is the number of months (including partial months) in the year that the property is considered in service. I need to file taxes for 2011 The denominator is 12. I need to file taxes for 2011 Example. I need to file taxes for 2011 On July 2, 2011, you purchased and placed in service residential rental property. I need to file taxes for 2011 The property cost $100,000, not including the cost of land. I need to file taxes for 2011 You used Table A-6 to figure your MACRS depreciation for this property. I need to file taxes for 2011 You sold the property on March 2, 2013. I need to file taxes for 2011 You file your tax return based on the calendar year. I need to file taxes for 2011 A full year of depreciation for 2013 is $3,636. I need to file taxes for 2011 This is $100,000 multiplied by . I need to file taxes for 2011 03636 (the percentage for the seventh month of the third recovery year) from Table A-6 . I need to file taxes for 2011 You then apply the mid-month convention for the 2½ months of use in 2013. I need to file taxes for 2011 Treat the month of disposition as one-half month of use. I need to file taxes for 2011 Multiply $3,636 by the fraction, 2. I need to file taxes for 2011 5 over 12, to get your 2013 depreciation deduction of $757. I need to file taxes for 2011 50. I need to file taxes for 2011 Figuring the Deduction Without Using the Tables Instead of using the rates in the percentage tables to figure your depreciation deduction, you can figure it yourself. I need to file taxes for 2011 Before making the computation each year, you must reduce your adjusted basis in the property by the depreciation claimed the previous year. I need to file taxes for 2011 Figuring MACRS deductions without using the tables generally will result in a slightly different amount than using the tables. I need to file taxes for 2011 Declining Balance Method When using a declining balance method, you apply the same depreciation rate each year to the adjusted basis of your property. I need to file taxes for 2011 You must use the applicable convention for the first tax year and you must switch to the straight line method beginning in the first year for which it will give an equal or greater deduction. I need to file taxes for 2011 The straight line method is explained later. I need to file taxes for 2011 You figure depreciation for the year you place property in service as follows. I need to file taxes for 2011 Multiply your adjusted basis in the property by the declining balance rate. I need to file taxes for 2011 Apply the applicable convention. I need to file taxes for 2011 You figure depreciation for all other years (before the year you switch to the straight line method) as follows. I need to file taxes for 2011 Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years. I need to file taxes for 2011 Multiply this new adjusted basis by the same declining balance rate used in earlier years. I need to file taxes for 2011 If you dispose of property before the end of its recovery period, see Using the Applicable Convention, later, for information on how to figure depreciation for the year you dispose of it. I need to file taxes for 2011 Figuring depreciation under the declining balance method and switching to the straight line method is illustrated in Example 1 , later, under Examples. I need to file taxes for 2011 Declining balance rate. I need to file taxes for 2011   You figure your declining balance rate by dividing the specified declining balance percentage (150% or 200% changed to a decimal) by the number of years in the property's recovery period. I need to file taxes for 2011 For example, for 3-year property depreciated using the 200% declining balance method, divide 2. I need to file taxes for 2011 00 (200%) by 3 to get 0. I need to file taxes for 2011 6667, or a 66. I need to file taxes for 2011 67% declining balance rate. I need to file taxes for 2011 For 15-year property depreciated using the 150% declining balance method, divide 1. I need to file taxes for 2011 50 (150%) by 15 to get 0. I need to file taxes for 2011 10, or a 10% declining balance rate. I need to file taxes for 2011   The following table shows the declining balance rate for each property class and the first year for which the straight line method gives an equal or greater deduction. I need to file taxes for 2011 Property Class Method Declining Balance Rate Year 3-year 200% DB 66. I need to file taxes for 2011 667% 3rd 5-year 200% DB 40. I need to file taxes for 2011 0 4th 7-year 200% DB 28. I need to file taxes for 2011 571 5th 10-year 200% DB 20. I need to file taxes for 2011 0 7th 15-year 150% DB 10. I need to file taxes for 2011 0 7th 20-year 150% DB 7. I need to file taxes for 2011 5 9th Straight Line Method When using the straight line method, you apply a different depreciation rate each year to the adjusted basis of your property. I need to file taxes for 2011 You must use the applicable convention in the year you place the property in service and the year you dispose of the property. I need to file taxes for 2011 You figure depreciation for the year you place property in service as follows. I need to file taxes for 2011 Multiply your adjusted basis in the property by the straight line rate. I need to file taxes for 2011 Apply the applicable convention. I need to file taxes for 2011 You figure depreciation for all other years (including the year you switch from the declining balance method to the straight line method) as follows. I need to file taxes for 2011 Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years (under any method). I need to file taxes for 2011 Determine the depreciation rate for the year. I need to file taxes for 2011 Multiply the adjusted basis figured in (1) by the depreciation rate figured in (2). I need to file taxes for 2011 If you dispose of property before the end of its recovery period, see Using the Applicable Convention , later, for information on how to figure depreciation for the year you dispose of it. I need to file taxes for 2011 Straight line rate. I need to file taxes for 2011   You determine the straight line depreciation rate for any tax year by dividing the number 1 by the years remaining in the recovery period at the beginning of that year. I need to file taxes for 2011 When figuring the number of years remaining, you must take into account the convention used in the year you placed the property in service. I need to file taxes for 2011 If the number of years remaining is less than 1, the depreciation rate for that tax year is 1. I need to file taxes for 2011 0 (100%). I need to file taxes for 2011 Using the Applicable Convention The applicable convention (discussed earlier under Which Convention Applies ) affects how you figure your depreciation deduction for the year you place your property in service and for the year you dispose of it. I need to file taxes for 2011 It determines how much of the recovery period remains at the beginning of each year, so it also affects the depreciation rate for property you depreciate under the straight line method. I need to file taxes for 2011 See Straight line rate in the previous discussion. I need to file taxes for 2011 Use the applicable convention as explained in the following discussions. I need to file taxes for 2011 Half-year convention. I need to file taxes for 2011   If this convention applies, you deduct a half-year of depreciation for the first year and the last year that you depreciate the property. I need to file taxes for 2011 You deduct a full year of depreciation for any other year during the recovery period. I need to file taxes for 2011   Figure your depreciation deduction for the year you place the property in service by dividing the depreciation for a full year by 2. I need to file taxes for 2011 If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. I need to file taxes for 2011 If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final 6 months of the recovery period is the amount of your unrecovered basis in the property. I need to file taxes for 2011 Mid-quarter convention. I need to file taxes for 2011   If this convention applies, the depreciation you can deduct for the first year you depreciate the property depends on the quarter in which you place the property in service. I need to file taxes for 2011   A quarter of a full 12-month tax year is a period of 3 months. I need to file taxes for 2011 The first quarter in a year begins on the first day of the tax year. I need to file taxes for 2011 The second quarter begins on the first day of the fourth month of the tax year. I need to file taxes for 2011 The third quarter begins on the first day of the seventh month of the tax year. I need to file taxes for 2011 The fourth quarter begins on the first day of the tenth month of the tax year. I need to file taxes for 2011 A calendar year is divided into the following quarters. I need to file taxes for 2011 Quarter Months First January, February, March Second April, May, June Third July, August, September Fourth October, November, December   Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by the percentage listed below for the quarter you place the property in service. I need to file taxes for 2011 Quarter Percentage First 87. I need to file taxes for 2011 5% Second 62. I need to file taxes for 2011 5 Third 37. I need to file taxes for 2011 5 Fourth 12. I need to file taxes for 2011 5   If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter you dispose of the property. I need to file taxes for 2011 Quarter Percentage First 12. I need to file taxes for 2011 5% Second 37. I need to file taxes for 2011 5 Third 62. I need to file taxes for 2011 5 Fourth 87. I need to file taxes for 2011 5   If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final quarter of the recovery period is the amount of your unrecovered basis in the property. I need to file taxes for 2011 Mid-month convention. I need to file taxes for 2011   If this convention applies, the depreciation you can deduct for the first year that you depreciate the property depends on the month in which you place the property in service. I need to file taxes for 2011 Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by a fraction. I need to file taxes for 2011 The numerator of the fraction is the number of full months in the year that the property is in service plus ½ (or 0. I need to file taxes for 2011 5). I need to file taxes for 2011 The denominator is 12. I need to file taxes for 2011   If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. I need to file taxes for 2011 If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final month of the recovery period is the amount of your unrecovered basis in the property. I need to file taxes for 2011 Example. I need to file taxes for 2011 You use the calendar year and place nonresidential real property in service in August. I need to file taxes for 2011 The property is in service 4 full months (September, October, November, and December). I need to file taxes for 2011 Your numerator is 4. I need to file taxes for 2011 5 (4 full months plus 0. I need to file taxes for 2011 5). I need to file taxes for 2011 You multiply the depreciation for a full year by 4. I need to file taxes for 2011 5/12, or 0. I need to file taxes for 2011 375. I need to file taxes for 2011 Examples The following examples show how to figure depreciation under MACRS without using the percentage tables. I need to file taxes for 2011 Figures are rounded for purposes of the examples. I need to file taxes for 2011 Assume for all the examples that you use a calendar year as your tax year. I need to file taxes for 2011 Example 1—200% DB method and half-year convention. I need to file taxes for 2011 In February, you placed in service depreciable property with a 5-year recovery period and a basis of $1,000. I need to file taxes for 2011 You do not elect to take the section 179 deduction and the property does not qualify for a special depreciation allowance. I need to file taxes for 2011 You use GDS and the 200% declining balance (DB) method to figure your depreciation. I need to file taxes for 2011 When the straight line (SL) method results in an equal or larger deduction, you switch to the SL method. I need to file taxes for 2011 You did not place any property in service in the last 3 months of the year, so you must use the half-year convention. I need to file taxes for 2011 First year. I need to file taxes for 2011 You figure the depreciation rate under the 200% DB method by dividing 2 (200%) by 5 (the number of years in the recovery period). I need to file taxes for 2011 The result is 40%. I need to file taxes for 2011 You multiply the adjusted basis of the property ($1,000) by the 40% DB rate. I need to file taxes for 2011 You apply the half-year convention by dividing the result ($400) by 2. I need to file taxes for 2011 Depreciation for the first year under the 200% DB method is $200. I need to file taxes for 2011 You figure the depreciation rate under the straight line (SL) method by dividing 1 by 5, the number of years in the recovery period. I need to file taxes for 2011 The result is 20%. I need to file taxes for 2011 You multiply the adjusted basis of the property ($1,000) by the 20% SL rate. I need to file taxes for 2011 You apply the half-year convention by dividing the result ($200) by 2. I need to file taxes for 2011 Depreciation for the first year under the SL method is $100. I need to file taxes for 2011 The DB method provides a larger deduction, so you deduct the $200 figured under the 200% DB method. I need to file taxes for 2011 Second year. I need to file taxes for 2011 You reduce the adjusted basis ($1,000) by the depreciation claimed in the first year ($200). I need to file taxes for 2011 You multiply the result ($800) by the DB rate (40%). I need to file taxes for 2011 Depreciation for the second year under the 200% DB method is $320. I need to file taxes for 2011 You figure the SL depreciation rate by dividing 1 by 4. I need to file taxes for 2011 5, the number of years remaining in the recovery period. I need to file taxes for 2011 (Based on the half-year convention, you used only half a year of the recovery period in the first year. I need to file taxes for 2011 ) You multiply the reduced adjusted basis ($800) by the result (22. I need to file taxes for 2011 22%). I need to file taxes for 2011 Depreciation under the SL method for the second year is $178. I need to file taxes for 2011 The DB method provides a larger deduction, so you deduct the $320 figured under the 200% DB method. I need to file taxes for 2011 Third year. I need to file taxes for 2011 You reduce the adjusted basis ($800) by the depreciation claimed in the second year ($320). I need to file taxes for 2011 You multiply the result ($480) by the DB rate (40%). I need to file taxes for 2011 Depreciation for the third year under the 200% DB method is $192. I need to file taxes for 2011 You figure the SL depreciation rate by dividing 1 by 3. I need to file taxes for 2011 5. I need to file taxes for 2011 You multiply the reduced adjusted basis ($480) by the result (28. I need to file taxes for 2011 57%). I need to file taxes for 2011 Depreciation under the SL method for the third year is $137. I need to file taxes for 2011 The DB method provides a larger deduction, so you deduct the $192 figured under the 200% DB method. I need to file taxes for 2011 Fourth year. I need to file taxes for 2011 You reduce the adjusted basis ($480) by the de