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Irs 1040ez Online

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Irs 1040ez Online

Irs 1040ez online 4. Irs 1040ez online   Transportation Table of Contents Parking fees. Irs 1040ez online Advertising display on car. Irs 1040ez online Car pools. Irs 1040ez online Hauling tools or instruments. Irs 1040ez online Union members' trips from a union hall. Irs 1040ez online Car ExpensesStandard Mileage Rate Actual Car Expenses Leasing a Car Disposition of a Car This chapter discusses expenses you can deduct for business transportation when you are not traveling away from home as defined in chapter 1. Irs 1040ez online These expenses include the cost of transportation by air, rail, bus, taxi, etc. Irs 1040ez online , and the cost of driving and maintaining your car. Irs 1040ez online Transportation expenses include the ordinary and necessary costs of all of the following. Irs 1040ez online Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Irs 1040ez online Tax home is defined in chapter 1. Irs 1040ez online Visiting clients or customers. Irs 1040ez online Going to a business meeting away from your regular workplace. Irs 1040ez online Getting from your home to a temporary workplace when you have one or more regular places of work. Irs 1040ez online These temporary workplaces can be either within the area of your tax home or outside that area. Irs 1040ez online Transportation expenses do not include expenses you have while traveling away from home overnight. Irs 1040ez online Those expenses are travel expenses discussed in chapter 1 . Irs 1040ez online However, if you use your car while traveling away from home overnight, use the rules in this chapter to figure your car expense deduction. Irs 1040ez online See Car Expenses , later. Irs 1040ez online Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Irs 1040ez online However, there may be exceptions to this general rule. Irs 1040ez online You can deduct daily transportation expenses incurred going between your residence and a temporary work station outside the metropolitan area where you live. Irs 1040ez online Also, daily transportation expenses can be deducted if: (1) you have one or more regular work locations away from your residence or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance. Irs 1040ez online Illustration of transportation expenses. Irs 1040ez online    Figure B , earlier, illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. Irs 1040ez online You may want to refer to it when deciding whether you can deduct your transportation expenses. Irs 1040ez online Temporary work location. Irs 1040ez online   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Irs 1040ez online   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Irs 1040ez online   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Irs 1040ez online   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Irs 1040ez online It will not be treated as temporary after the date you determine it will last more than 1 year. Irs 1040ez online   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Irs 1040ez online You may have deductible travel expenses as discussed in chapter 1 . Irs 1040ez online No regular place of work. Irs 1040ez online   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Irs 1040ez online   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Irs 1040ez online   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Irs 1040ez online These are nondeductible commuting expenses. Irs 1040ez online Two places of work. Irs 1040ez online   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Irs 1040ez online However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Irs 1040ez online   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Irs 1040ez online You cannot deduct them. Irs 1040ez online Armed Forces reservists. Irs 1040ez online   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Irs 1040ez online You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work . Irs 1040ez online   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Irs 1040ez online In this case, your transportation generally is a nondeductible commuting expense. Irs 1040ez online However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Irs 1040ez online   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Irs 1040ez online   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Irs 1040ez online These expenses are discussed in chapter 1 . Irs 1040ez online   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. Irs 1040ez online For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules, in chapter 6. Irs 1040ez online Commuting expenses. Irs 1040ez online   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Irs 1040ez online These costs are personal commuting expenses. Irs 1040ez online You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Irs 1040ez online You cannot deduct commuting expenses even if you work during the commuting trip. Irs 1040ez online Example. Irs 1040ez online You sometimes use your cell phone to make business calls while commuting to and from work. Irs 1040ez online Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Irs 1040ez online These activities do not change the trip from personal to business. Irs 1040ez online You cannot deduct your commuting expenses. Irs 1040ez online Parking fees. Irs 1040ez online    Fees you pay to park your car at your place of business are nondeductible commuting expenses. Irs 1040ez online You can, however, deduct business-related parking fees when visiting a customer or client. Irs 1040ez online Advertising display on car. Irs 1040ez online   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Irs 1040ez online If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Irs 1040ez online Car pools. Irs 1040ez online   You cannot deduct the cost of using your car in a nonprofit car pool. Irs 1040ez online Do not include payments you receive from the passengers in your income. Irs 1040ez online These payments are considered reimbursements of your expenses. Irs 1040ez online However, if you operate a car pool for a profit, you must include payments from passengers in your income. Irs 1040ez online You can then deduct your car expenses (using the rules in this publication). Irs 1040ez online Hauling tools or instruments. Irs 1040ez online   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Irs 1040ez online However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Irs 1040ez online Union members' trips from a union hall. Irs 1040ez online   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Irs 1040ez online Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Irs 1040ez online Office in the home. Irs 1040ez online   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Irs 1040ez online (See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. Irs 1040ez online ) Examples of deductible transportation. Irs 1040ez online   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Irs 1040ez online Example 1. Irs 1040ez online You regularly work in an office in the city where you live. Irs 1040ez online Your employer sends you to a 1-week training session at a different office in the same city. Irs 1040ez online You travel directly from your home to the training location and return each day. Irs 1040ez online You can deduct the cost of your daily round-trip transportation between your home and the training location. Irs 1040ez online Example 2. Irs 1040ez online Your principal place of business is in your home. Irs 1040ez online You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Irs 1040ez online Example 3. Irs 1040ez online You have no regular office, and you do not have an office in your home. Irs 1040ez online In this case, the location of your first business contact inside the metropolitan area is considered your office. Irs 1040ez online Transportation expenses between your home and this first contact are nondeductible commuting expenses. Irs 1040ez online Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Irs 1040ez online While you cannot deduct the costs of these trips, you can deduct the costs of going from one client or customer to another. Irs 1040ez online Car Expenses If you use your car for business purposes, you ordinarily can deduct car expenses. Irs 1040ez online You generally can use one of the two following methods to figure your deductible expenses. Irs 1040ez online Standard mileage rate. Irs 1040ez online Actual car expenses. Irs 1040ez online If you use actual expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Irs 1040ez online See Leasing a Car , later. Irs 1040ez online In this publication, “car” includes a van, pickup, or panel truck. Irs 1040ez online For the definition of “car” for depreciation purposes, see Car defined under Actual Car Expenses, later. Irs 1040ez online Rural mail carriers. Irs 1040ez online   If you are a rural mail carrier, you may be able to treat the qualified reimbursement you received as your allowable expense. Irs 1040ez online Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the reimbursement in your income. Irs 1040ez online   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Irs 1040ez online You must complete Form 2106 and attach it to your Form 1040, U. Irs 1040ez online S. Irs 1040ez online Individual Income Tax Return. Irs 1040ez online   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Irs 1040ez online It is given as an equipment maintenance allowance (EMA) to employees of the U. Irs 1040ez online S. Irs 1040ez online Postal Service. Irs 1040ez online It is at the rate contained in the 1991 collective bargaining agreement. Irs 1040ez online Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Irs 1040ez online See your employer for information on your reimbursement. Irs 1040ez online    If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Irs 1040ez online Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Irs 1040ez online For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Irs 1040ez online If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. Irs 1040ez online You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. Irs 1040ez online See Choosing the standard mileage rate and Standard mileage rate not allowed, later. Irs 1040ez online You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Irs 1040ez online See chapter 6 for more information on reimbursements . Irs 1040ez online Choosing the standard mileage rate. Irs 1040ez online   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Irs 1040ez online Then, in later years, you can choose to use either the standard mileage rate or actual expenses. Irs 1040ez online   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Irs 1040ez online For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997. Irs 1040ez online   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Irs 1040ez online You cannot revoke the choice. Irs 1040ez online However, in later years, you can switch from the standard mileage rate to the actual expenses method. Irs 1040ez online If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Irs 1040ez online Example. Irs 1040ez online Larry is an employee who occasionally uses his own car for business purposes. Irs 1040ez online He purchased the car in 2011, but he did not claim any unreimbursed employee expenses on his 2011 tax return. Irs 1040ez online Because Larry did not use the standard mileage rate the first year the car was available for business use, he cannot use the standard mileage rate in 2013 to claim unreimbursed employee business expenses. Irs 1040ez online   For more information about depreciation included in the standard mileage rate, see Exception under Methods of depreciation, later. Irs 1040ez online Standard mileage rate not allowed. Irs 1040ez online   You cannot use the standard mileage rate if you: Use five or more cars at the same time (such as in fleet operations), Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction), Claimed a section 179 deduction (discussed later) on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses after 1997 for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Irs 1040ez online (See Rural mail carriers , earlier. Irs 1040ez online ) Note. Irs 1040ez online You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above. Irs 1040ez online Five or more cars. Irs 1040ez online   If you own or lease five or more cars that are used for business at the same time, you cannot use the standard mileage rate for the business use of any car. Irs 1040ez online However, you may be able to deduct your actual expenses for operating each of the cars in your business. Irs 1040ez online See Actual Car Expenses , later, for information on how to figure your deduction. Irs 1040ez online   You are not using five or more cars for business at the same time if you alternate using (use at different times) the cars for business. Irs 1040ez online   The following examples illustrate the rules for when you can and cannot use the standard mileage rate for five or more cars. Irs 1040ez online Example 1. Irs 1040ez online Marcia, a salesperson, owns three cars and two vans that she alternates using for calling on her customers. Irs 1040ez online She can use the standard mileage rate for the business mileage of the three cars and the two vans because she does not use them at the same time. Irs 1040ez online Example 2. Irs 1040ez online Tony and his employees use his four pickup trucks in his landscaping business. Irs 1040ez online During the year, he traded in two of his old trucks for two newer ones. Irs 1040ez online Tony can use the standard mileage rate for the business mileage of all six of the trucks he owned during the year. Irs 1040ez online Example 3. Irs 1040ez online Chris owns a repair shop and an insurance business. Irs 1040ez online He and his employees use his two pickup trucks and van for the repair shop. Irs 1040ez online Chris alternates using his two cars for the insurance business. Irs 1040ez online No one else uses the cars for business purposes. Irs 1040ez online Chris can use the standard mileage rate for the business use of the pickup trucks, van, and the cars because he never has more than four vehicles used for business at the same time. Irs 1040ez online Example 4. Irs 1040ez online Maureen owns a car and four vans that are used in her housecleaning business. Irs 1040ez online Her employees use the vans, and she uses the car to travel to various customers. Irs 1040ez online Maureen cannot use the standard mileage rate for the car or the vans. Irs 1040ez online This is because all five vehicles are used in Maureen's business at the same time. Irs 1040ez online She must use actual expenses for all vehicles. Irs 1040ez online Interest. Irs 1040ez online   If you are an employee, you cannot deduct any interest paid on a car loan. Irs 1040ez online This applies even if you use the car 100% for business as an employee. Irs 1040ez online   However, if you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car. Irs 1040ez online For example, if you use your car 60% for business, you can deduct 60% of the interest on Schedule C (Form 1040). Irs 1040ez online You cannot deduct the part of the interest expense that represents your personal use of the car. Irs 1040ez online    If you use a home equity loan to purchase your car, you may be able to deduct the interest. Irs 1040ez online See Publication 936, Home Mortgage Interest Deduction, for more information. Irs 1040ez online Personal property taxes. Irs 1040ez online   If you itemize your deductions on Schedule A (Form 1040), you can deduct on line 7 state and local personal property taxes on motor vehicles. Irs 1040ez online You can take this deduction even if you use the standard mileage rate or if you do not use the car for business. Irs 1040ez online   If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). Irs 1040ez online If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040). Irs 1040ez online Parking fees and tolls. Irs 1040ez online   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Irs 1040ez online (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Irs 1040ez online ) Sale, trade-in, or other disposition. Irs 1040ez online   If you sell, trade in, or otherwise dispose of your car, you may have a gain or loss on the transaction or an adjustment to the basis of your new car. Irs 1040ez online See Disposition of a Car , later. Irs 1040ez online Actual Car Expenses If you do not use the standard mileage rate, you may be able to deduct your actual car expenses. Irs 1040ez online If you qualify to use both methods, you may want to figure your deduction both ways to see which gives you a larger deduction. Irs 1040ez online Actual car expenses include: Depreciation Licenses Lease  payments Registration  fees Gas Insurance Repairs Oil Garage rent Tires Tolls Parking fees   If you have fully depreciated a car that you still use in your business, you can continue to claim your other actual car expenses. Irs 1040ez online Continue to keep records, as explained later in chapter 5 . Irs 1040ez online Business and personal use. Irs 1040ez online   If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. Irs 1040ez online You can divide your expense based on the miles driven for each purpose. Irs 1040ez online Example. Irs 1040ez online You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. Irs 1040ez online You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense. Irs 1040ez online Employer-provided vehicle. Irs 1040ez online   If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses. Irs 1040ez online You cannot use the standard mileage rate. Irs 1040ez online See Vehicle Provided by Your Employer in chapter 6. Irs 1040ez online Interest on car loans. Irs 1040ez online   If you are an employee, you cannot deduct any interest paid on a car loan. Irs 1040ez online This interest is treated as personal interest and is not deductible. Irs 1040ez online If you are self-employed and use your car in that business, see Interest , earlier, under Standard Mileage Rate. Irs 1040ez online Taxes paid on your car. Irs 1040ez online   If you are an employee, you can deduct personal property taxes paid on your car if you itemize deductions. Irs 1040ez online Enter the amount paid on line 7 of Schedule A (Form 1040). Irs 1040ez online Sales taxes. Irs 1040ez online   Generally, sales taxes on your car are part of your car's basis and are recovered through depreciation, discussed later. Irs 1040ez online Fines and collateral. Irs 1040ez online   You cannot deduct fines you pay or collateral you forfeit for traffic violations. Irs 1040ez online Casualty and theft losses. Irs 1040ez online   If your car is damaged, destroyed, or stolen, you may be able to deduct part of the loss not covered by insurance. Irs 1040ez online See Publication 547, Casualties, Disasters, and Thefts, for information on deducting a loss on your car. Irs 1040ez online Depreciation and section 179 deductions. Irs 1040ez online   Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Irs 1040ez online Because the benefits last longer than 1 year, you generally cannot deduct a capital expense. Irs 1040ez online However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Irs 1040ez online Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. Irs 1040ez online The section 179 deduction , special depreciation allowance , and depreciation deductions are discussed later. Irs 1040ez online   Generally, there are limits on these deductions. Irs 1040ez online Special rules apply if you use your car 50% or less in your work or business. Irs 1040ez online   You can claim a section 179 deduction and use a depreciation method other than straight line only if you do not use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service. Irs 1040ez online   If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you cannot use the standard mileage rate on that car in any future year. Irs 1040ez online Car defined. Irs 1040ez online   For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Irs 1040ez online Its unloaded gross vehicle weight must not be more than 6,000 pounds. Irs 1040ez online A car includes any part, component, or other item physically attached to it or usually included in the purchase price. Irs 1040ez online   A car does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a business, A vehicle used directly in the business of transporting persons or property for pay or hire, or A truck or van that is a qualified nonpersonal use vehicle. Irs 1040ez online Qualified nonpersonal use vehicles. Irs 1040ez online   These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Irs 1040ez online They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Irs 1040ez online Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles. Irs 1040ez online More information. Irs 1040ez online   See Depreciation Deduction , later, for more information on how to depreciate your vehicle. Irs 1040ez online Section 179 Deduction The section 179 deduction allows you to treat a portion or all of the cost of a car as a current expense. Irs 1040ez online If you choose to deduct all or part of the cost as a current expense, you must reduce your depreciable basis in the car by the amount of the section 179 deduction. Irs 1040ez online There is a limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars, trucks, and vans that may reduce or eliminate any benefit from claiming the section 179 deduction. Irs 1040ez online See Depreciation Limits, later. Irs 1040ez online You can claim the section 179 deduction only in the year you place the car in service. Irs 1040ez online For this purpose, a car is placed in service when it is ready and available for a specifically assigned use, whether in a trade or business, a tax-exempt activity, a personal activity, or for the production of income. Irs 1040ez online Even if you are not using the property, it is in service when it is ready and available for its specifically assigned use. Irs 1040ez online A car first used for personal purposes cannot qualify for the deduction in a later year when its use changes to business. Irs 1040ez online Example. Irs 1040ez online In 2012, you bought a new car and used it for personal purposes. Irs 1040ez online In 2013, you began to use it for business. Irs 1040ez online Changing its use to business use does not qualify the cost of your car for a section 179 deduction in 2013. Irs 1040ez online However, you can claim a depreciation deduction for the business use of the car starting in 2013. Irs 1040ez online See Depreciation Deduction , later. Irs 1040ez online More than 50% business use requirement. Irs 1040ez online   You must use the property more than 50% for business to claim any section 179 deduction. Irs 1040ez online If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. Irs 1040ez online The result is the cost of the property that can qualify for the section 179 deduction. Irs 1040ez online Example. Irs 1040ez online Peter purchased a car in April 2013 for $24,500 and used it 60% for business. Irs 1040ez online Based on his business usage, the total cost of Peter's car that qualifies for the section 179 deduction is $14,700 ($24,500 cost × 60% business use). Irs 1040ez online But see Limit on total section 179, special depreciation allowance, and depreciation deduction , discussed later. Irs 1040ez online Limits. Irs 1040ez online   There are limits on: The amount of the section 179 deduction, The section 179 deduction for sport utility and certain other vehicles, and The total amount of the section 179 deduction, special depreciation allowance, and depreciation deduction (discussed later ) you can claim for a qualified property. Irs 1040ez online Limit on the amount of the section 179 deduction. Irs 1040ez online   For 2013, the total amount you can choose to deduct under section 179 generally cannot be more than $500,000. Irs 1040ez online   If the cost of your section 179 property placed in service in 2013 is over $2,000,000, you must reduce the $500,000 dollar limit (but not below zero) by the amount of cost over $2,000,000. Irs 1040ez online If the cost of your section 179 property placed in service during 2013 is $2,500,000 or more, you cannot take a section 179 deduction. Irs 1040ez online   The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year. Irs 1040ez online   If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service. Irs 1040ez online   If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit. Irs 1040ez online You must allocate the dollar limit (after any reduction) between you. Irs 1040ez online   For more information on the above section 179 deduction limits, see Publication 946. Irs 1040ez online Limit for sport utility and certain other vehicles. Irs 1040ez online   For sport utility and certain other vehicles placed in service in 2013, the portion of the vehicle's cost taken into account in figuring your section 179 deduction is limited to $25,000. Irs 1040ez online This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is not subject to any of the passenger automobile limits explained under Depreciation Limits , later, and that is rated at no more than 14,000 pounds gross vehicle weight. Irs 1040ez online However, the $25,000 limit does not apply to any vehicle: Designed to have a seating capacity of more than nine persons behind the driver's seat, Equipped with a cargo area of at least 6 feet in interior length that is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, or That has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield. Irs 1040ez online    Limit on total section 179, special depreciation allowance, and depreciation deduction. Irs 1040ez online   Generally, the total amount of section 179, special depreciation allowance, and depreciation deduction you can claim for a car that is qualified property and that you placed in service in 2013 is $11,160. Irs 1040ez online The limit is reduced if your business use of the car is less than 100%. Irs 1040ez online See Depreciation Limits , later, for more information. Irs 1040ez online Example. Irs 1040ez online In the earlier example under More than 50% business use requirement, Peter had a car with a cost (for purposes of the section 179 deduction) of $14,700. Irs 1040ez online However, based on Peter's business usage of his car, the total of his section 179, special depreciation allowance, and depreciation deductions is limited to $6,696 ($11,160 limit x 60% business use). Irs 1040ez online Cost of car. Irs 1040ez online   For purposes of the section 179 deduction, the cost of the car does not include any amount figured by reference to any other property held by you at any time. Irs 1040ez online For example, if you buy (for cash and a trade-in) a new car to use in your business, your cost for purposes of the section 179 deduction does not include your adjusted basis in the car you trade in for the new car. Irs 1040ez online Your cost includes only the cash you paid. Irs 1040ez online Basis of car for depreciation. Irs 1040ez online   The amount of the section 179 deduction reduces your basis in your car. Irs 1040ez online If you choose the section 179 deduction, you must subtract the amount of the deduction from the cost of your car. Irs 1040ez online The resulting amount is the basis in your car you use to figure your depreciation deduction. Irs 1040ez online When to choose. Irs 1040ez online   If you want to take the section 179 deduction, you must make the choice in the tax year you place the car in service for business or work. Irs 1040ez online How to choose. Irs 1040ez online    Employees use Form 2106 to make this choice and report the section 179 deduction. Irs 1040ez online All others use Form 4562. Irs 1040ez online   File the appropriate form with either of the following. Irs 1040ez online Your original tax return filed for the year the property was placed in service (whether or not you file it timely). Irs 1040ez online An amended return filed within the time prescribed by law. Irs 1040ez online An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. Irs 1040ez online The amended return must also include any resulting adjustments to taxable income. Irs 1040ez online    You must keep records that show the specific identification of each piece of qualifying section 179 property. Irs 1040ez online These records must show how you acquired the property, the person you acquired it from, and when you placed it in service. Irs 1040ez online Revoking an election. Irs 1040ez online   An election (or any specification made in the election) to take a section 179 deduction for 2013 can only be revoked with the Commissioner's approval. Irs 1040ez online Recapture of section 179 deduction. Irs 1040ez online   To be eligible to claim the section 179 deduction, you must use your car more than 50% for business or work in the year you acquired it. Irs 1040ez online If your business use of the car is 50% or less in a later tax year during the recovery period, you have to recapture (include in income) in that later year any excess depreciation. Irs 1040ez online Any section 179 deduction claimed on the car is included in calculating the excess depreciation. Irs 1040ez online For information on this calculation, see Excess depreciation , later in this chapter under Car Used 50% or Less for Business. Irs 1040ez online Dispositions. Irs 1040ez online   If you dispose of a car on which you had claimed the section 179 deduction, the amount of that deduction is treated as a depreciation deduction for recapture purposes. Irs 1040ez online You treat any gain on the disposition of the property as ordinary income up to the amount of the section 179 deduction and any allowable depreciation (unless you establish the amount actually allowed). Irs 1040ez online For information on the disposition of a car, see Disposition of a Car , later. Irs 1040ez online Special Depreciation Allowance You may be able to claim the special depreciation allowance for your car, truck, or van, if it is qualified property and was placed in service in 2013. Irs 1040ez online The allowance is an additional depreciation deduction of 50% of the car's depreciable basis (after any section 179 deduction, but before figuring your regular depreciation deduction under MACRS). Irs 1040ez online The special depreciation allowance applies only for the first year the car is placed in service. Irs 1040ez online To qualify for the allowance more than 50% of the use of the car must be in a qualified business use (as defined under Depreciation Deduction, later). Irs 1040ez online Combined depreciation. Irs 1040ez online   Your combined section 179 deduction, special depreciation allowance, and regular MACRS depreciation deduction is limited to the maximum allowable depreciation deduction for cars of $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Irs 1040ez online For trucks and vans, the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Irs 1040ez online See Depreciation Limits , later in this chapter. Irs 1040ez online Qualified car. Irs 1040ez online   To be a qualified car (including trucks and vans), the car must meet all of the following tests. Irs 1040ez online You purchased the car new on or after January 1, 2008, but only if no binding written contract to acquire the car existed before January 1, 2008, You placed the car in service in your trade or business before January 1, 2014, You used the car more than 50% in a qualified business use. Irs 1040ez online Election not to claim the special depreciation allowance. Irs 1040ez online   You can elect not to claim the special depreciation allowance for your car, truck, or van, that is qualified property. Irs 1040ez online If you make this election, it applies to all 5-year property placed in service during the year. Irs 1040ez online   To make the election, attach a statement to your timely filed return (including extensions) indicating the class of property (5-year for cars) for which you are making the election and that you are electing not to claim the special depreciation allowance for qualified property acquired on or after January 1, 2008. Irs 1040ez online    Unless you elect not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. Irs 1040ez online Depreciation Deduction If you use actual car expenses to figure your deduction for a car you own and use in your business, you can claim a depreciation deduction. Irs 1040ez online This means you can deduct a certain amount each year as a recovery of your cost or other basis in your car. Irs 1040ez online You generally need to know the following things about the car you intend to depreciate. Irs 1040ez online Your basis in the car. Irs 1040ez online The date you place the car in service. Irs 1040ez online The method of depreciation and recovery period you will use. Irs 1040ez online Basis. Irs 1040ez online   Your basis in a car for figuring depreciation is generally its cost. Irs 1040ez online This includes any amount you borrow or pay in cash, other property, or services. Irs 1040ez online   Generally, you figure depreciation on your car, truck, or van using your unadjusted basis (see Unadjusted basis , later). Irs 1040ez online However, in some situations you will use your adjusted basis (your basis reduced by depreciation allowed or allowable in earlier years). Irs 1040ez online For one of these situations see Exception under Methods of depreciation, later. Irs 1040ez online   If you change the use of a car from personal to business, your basis for depreciation is the lesser of the fair market value or your adjusted basis in the car on the date of conversion. Irs 1040ez online Additional rules concerning basis are discussed later in this chapter under Unadjusted basis . Irs 1040ez online Placed in service. Irs 1040ez online   You generally place a car in service when it is available for use in your work or business, in an income-producing activity, or in a personal activity. Irs 1040ez online Depreciation begins when the car is placed in service for use in your work or business or for the production of income. Irs 1040ez online   For purposes of computing depreciation, if you first start using the car only for personal use and later convert it to business use, you place the car in service on the date of conversion. Irs 1040ez online Car placed in service and disposed of in the same year. Irs 1040ez online   If you place a car in service and dispose of it in the same tax year, you cannot claim any depreciation deduction for that car. Irs 1040ez online Methods of depreciation. Irs 1040ez online   Generally, you figure depreciation on cars using the Modified Accelerated Cost Recovery System (MACRS). Irs 1040ez online MACRS is discussed later in this chapter. Irs 1040ez online Exception. Irs 1040ez online   If you used the standard mileage rate in the first year of business use and change to the actual expenses method in a later year, you cannot depreciate your car under the MACRS rules. Irs 1040ez online You must use straight line depreciation over the estimated remaining useful life of the car. Irs 1040ez online   To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate. Irs 1040ez online The rate per mile varies depending on the year(s) you used the standard mileage rate. Irs 1040ez online For the rate(s) to use, see Depreciation adjustment when you used the standard mileage rate under Disposition of a Car, later. Irs 1040ez online   This reduction of basis is in addition to those basis adjustments described later under Unadjusted basis . Irs 1040ez online You must use your adjusted basis in your car to figure your depreciation deduction. Irs 1040ez online For additional information on the straight line method of depreciation, see Publication 946. Irs 1040ez online More-than-50%-use test. Irs 1040ez online   Generally, you must use your car more than 50% for qualified business use (defined next) during the year to use MACRS. Irs 1040ez online You must meet this more-than-50%-use test each year of the recovery period (6 years under MACRS) for your car. Irs 1040ez online   If your business use is 50% or less, you must use the straight line method to depreciate your car. Irs 1040ez online This is explained later under Car Used 50% or Less for Business . Irs 1040ez online Qualified business use. Irs 1040ez online   A qualified business use is any use in your trade or business. Irs 1040ez online It does not include use for the production of income (investment use). Irs 1040ez online However, you do combine your business and investment use to compute your depreciation deduction for the tax year. Irs 1040ez online Use of your car by another person. Irs 1040ez online   Do not treat any use of your car by another person as use in your trade or business unless that use meets one of the following conditions. Irs 1040ez online It is directly connected with your business. Irs 1040ez online It is properly reported by you as income to the other person (and, if you have to, you withhold tax on the income). Irs 1040ez online It results in a payment of fair market rent. Irs 1040ez online This includes any payment to you for the use of your car. Irs 1040ez online Business use changes. Irs 1040ez online   If you used your car more than 50% in qualified business use in the year you placed it in service, but 50% or less in a later year (including the year of disposition), you have to change to the straight line method of depreciation. Irs 1040ez online See Qualified business use 50% or less in a later year under Car Used 50% or Less for Business, later. Irs 1040ez online    Property does not cease to be used more than 50% in qualified business use by reason of a transfer at death. Irs 1040ez online Use for more than one purpose. Irs 1040ez online   If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. Irs 1040ez online You do this on the basis of mileage. Irs 1040ez online Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose. Irs 1040ez online Change from personal to business use. Irs 1040ez online   If you change the use of a car from 100% personal use to business use during the tax year, you may not have mileage records for the time before the change to business use. Irs 1040ez online In this case, you figure the percentage of business use for the year as follows. Irs 1040ez online Determine the percentage of business use for the period following the change. Irs 1040ez online Do this by dividing business miles by total miles driven during that period. Irs 1040ez online Multiply the percentage in (1) by a fraction. Irs 1040ez online The numerator (top number) is the number of months the car is used for business and the denominator (bottom number) is 12. Irs 1040ez online Example. Irs 1040ez online You use a car only for personal purposes during the first 6 months of the year. Irs 1040ez online During the last 6 months of the year, you drive the car a total of 15,000 miles of which 12,000 miles are for business. Irs 1040ez online This gives you a business use percentage of 80% (12,000 ÷ 15,000) for that period. Irs 1040ez online Your business use for the year is 40% (80% × 6/12). Irs 1040ez online Limits. Irs 1040ez online   The amount you can claim for section 179, special depreciation allowance, and depreciation deductions may be limited. Irs 1040ez online The maximum amount you can claim depends on the year in which you placed your car in service. Irs 1040ez online You have to reduce the maximum amount if you did not use the car exclusively for business. Irs 1040ez online See Depreciation Limits , later. Irs 1040ez online Unadjusted basis. Irs 1040ez online   You use your unadjusted basis (often referred to as your basis or your basis for depreciation) to figure your depreciation using the MACRS depreciation chart, explained later under Modified Accelerated Cost Recovery System (MACRS) . Irs 1040ez online Your unadjusted basis for figuring depreciation is your original basis increased or decreased by certain amounts. Irs 1040ez online   To figure your unadjusted basis, begin with your car's original basis, which generally is its cost. Irs 1040ez online Cost includes sales taxes (see Sales taxes , earlier), destination charges, and dealer preparation. Irs 1040ez online Increase your basis by any substantial improvements you make to your car, such as adding air conditioning or a new engine. Irs 1040ez online Decrease your basis by any section 179 deduction, special depreciation allowance, gas guzzler tax, clean-fuel vehicle deduction (for vehicles placed in service before Jan. Irs 1040ez online 1, 2006), and alternative motor vehicle credit. Irs 1040ez online   See Form 8910 for information on the alternative motor vehicle credit. Irs 1040ez online If your business use later falls to 50% or less, you may have to recapture (include in your income) any excess depreciation. Irs 1040ez online See Car Used 50% or Less for Business, later, for more information. Irs 1040ez online If you acquired the car by gift or inheritance, see Publication 551, Basis of Assets, for information on your basis in the car. Irs 1040ez online Improvements. Irs 1040ez online   A major improvement to a car is treated as a new item of 5-year recovery property. Irs 1040ez online It is treated as placed in service in the year the improvement is made. Irs 1040ez online It does not matter how old the car is when the improvement is added. Irs 1040ez online Follow the same steps for depreciating the improvement as you would for depreciating the original cost of the car. Irs 1040ez online However, you must treat the improvement and the car as a whole when applying the limits on the depreciation deductions. Irs 1040ez online Your car's depreciation deduction for the year (plus any section 179 deduction, special depreciation allowance, and depreciation on any improvements) cannot be more than the depreciation limit that applies for that year. Irs 1040ez online See Depreciation Limits , later. Irs 1040ez online Car trade-in. Irs 1040ez online   If you traded one car (the “old car”) for another car (the “new car”) in 2013, there are two ways you can treat the transaction. Irs 1040ez online You can elect to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Irs 1040ez online If you make this election, you treat the old car as disposed of at the time of the trade-in. Irs 1040ez online The depreciable basis of the new car is the adjusted basis of the old car (figured as if 100% of the car's use had been for business purposes) plus any additional amount you paid for the new car. Irs 1040ez online You then figure your depreciation deduction for the new car beginning with the date you placed it in service. Irs 1040ez online You make this election by completing Form 2106, Part II, Section D. Irs 1040ez online This method is explained later, beginning at Effect of trade-in on basis . Irs 1040ez online If you do not make the election described in (1), you must figure depreciation separately for the remaining basis of the old car and for any additional amount you paid for the new car. Irs 1040ez online You must apply two depreciation limits (see Depreciation Limits , later). Irs 1040ez online The limit that applies to the remaining basis of the old car generally is the amount that would have been allowed had you not traded in the old car. Irs 1040ez online The limit that applies to the additional amount you paid for the new car generally is the limit that applies for the tax year, reduced by the depreciation allowance for the remaining basis of the old car. Irs 1040ez online You must use Form 4562 to compute your depreciation deduction. Irs 1040ez online You cannot use Form 2106, Part II, Section D. Irs 1040ez online This method is explained in Publication 946. Irs 1040ez online   If you elect to use the method described in (1), you must do so on a timely filed tax return (including extensions). Irs 1040ez online Otherwise, you must use the method described in (2). Irs 1040ez online Effect of trade-in on basis. Irs 1040ez online   The discussion that follows applies to trade-ins of cars in 2013, where the election was made to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Irs 1040ez online For information on how to figure depreciation for cars involved in a like-kind exchange (trade-in) in 2013, for which the election was not made, see Publication 946 and Regulations section 1. Irs 1040ez online 168(i)-6(d)(3). Irs 1040ez online Traded car used only for business. Irs 1040ez online   If you trade in a car you used only in your business for another car that will be used only in your business, your original basis in the new car is your adjusted basis in the old car, plus any additional amount you pay for the new car. Irs 1040ez online Example. Irs 1040ez online Paul trades in a car that has an adjusted basis of $5,000 for a new car. Irs 1040ez online In addition, he pays cash of $20,000 for the new car. Irs 1040ez online His original basis of the new car is $25,000 (his $5,000 adjusted basis in the old car plus the $20,000 cash paid). Irs 1040ez online Paul's unadjusted basis is $25,000 unless he claims the section 179 deduction, special depreciation allowance, or has other increases or decreases to his original basis, discussed under Unadjusted basis , earlier. Irs 1040ez online Traded car used partly in business. Irs 1040ez online   If you trade in a car you used partly in your business for a new car you will use in your business, you must make a “trade-in” adjustment for the personal use of the old car. Irs 1040ez online This adjustment has the effect of reducing your basis in your old car, but not below zero, for purposes of figuring your depreciation deduction for the new car. Irs 1040ez online (This adjustment is not used, however, when you determine the gain or loss on the later disposition of the new car. Irs 1040ez online See Publication 544, Sales and Other Dispositions of Assets, for information on how to report the disposition of your car. Irs 1040ez online )   To figure the unadjusted basis of your new car for depreciation, first add to your adjusted basis in the old car any additional amount you pay for the new car. Irs 1040ez online Then subtract from that total the excess, if any, of: The total of the amounts that would have been allowable as depreciation during the tax years before the trade if 100% of the use of the car had been business and investment use, over The total of the amounts actually allowed as depreciation during those years. Irs 1040ez online For information about figuring depreciation, see Modified Accelerated Cost Recovery System (MACRS) , which follows Example 2, later. Irs 1040ez online Modified Accelerated Cost Recovery System (MACRS). Irs 1040ez online   The Modified Accelerated Cost Recovery System (MACRS) is the name given to the tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Irs 1040ez online   The maximum amount you can deduct is limited, depending on the year you placed your car in service. Irs 1040ez online See Depreciation Limits , later. Irs 1040ez online Recovery period. Irs 1040ez online   Under MACRS, cars are classified as 5-year property. Irs 1040ez online You actually depreciate the cost of a car, truck, or van over a period of 6 calendar years. Irs 1040ez online This is because your car is generally treated as placed in service in the middle of the year, and you claim depreciation for one-half of both the first year and the sixth year. Irs 1040ez online Depreciation deduction for certain Indian reservation property. Irs 1040ez online   Shorter recovery periods are provided under MACRS for qualified Indian reservation property placed in service on Indian reservations after 1993 and before 2014. Irs 1040ez online The recovery that applies for a business-use car is 3 years instead of 5 years. Irs 1040ez online However, the depreciation limits, discussed later, will still apply. Irs 1040ez online   For more information on the qualifications for this shorter recovery period and the percentages to use in figuring the depreciation deduction, see chapter 4 of Publication 946. Irs 1040ez online Depreciation methods. Irs 1040ez online   You can use one of the following methods to depreciate your car. Irs 1040ez online The 200% declining balance method (200% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Irs 1040ez online The 150% declining balance method (150% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Irs 1040ez online The straight line method (SL) over a 5-year recovery period. Irs 1040ez online    If you use Table 4-1 (discussed later under MACRS depreciation chart) to determine your depreciation rate for 2013, you do not need to determine in what year using the straight line method provides an equal or greater deduction. Irs 1040ez online This is because the chart has the switch to the straight line method built into its rates. Irs 1040ez online   Before choosing a method, you may wish to consider the following facts. Irs 1040ez online Using the straight line method provides equal yearly deductions throughout the recovery period. Irs 1040ez online Using the declining balance methods provides greater deductions during the earlier recovery years with the deductions generally getting smaller each year. Irs 1040ez online MACRS depreciation chart. Irs 1040ez online   A 2013 MACRS Depreciation Chart and instructions are included in this chapter as Table 4-1 . Irs 1040ez online Using this table will make it easy for you to figure the 2013 depreciation deduction for your car. Irs 1040ez online A similar chart appears in the Instructions for Form 2106. Irs 1040ez online    You may have to use the tables in Publication 946 instead of using this MACRS Depreciation Chart. Irs 1040ez online   You must use the Depreciation Tables in Publication 946 rather than the 2013 MACRS Depreciation Chart in this publication if any one of the following four conditions applies to you. Irs 1040ez online You file your return on a fiscal year basis. Irs 1040ez online You file your return for a short tax year (less than 12 months). Irs 1040ez online During the year, all of the following conditions apply. Irs 1040ez online You placed some property in service from January through September. Irs 1040ez online You placed some property in service from October through December. Irs 1040ez online Your basis in the property you placed in service from October through December (excluding nonresidential real property, residential rental property, and property placed in service and disposed of in the same year) was more than 40% of your total bases in all property you placed in service during the year. Irs 1040ez online   You placed qualified property in service on an Indian reservation. Irs 1040ez online Depreciation in future years. Irs 1040ez online   If you use the percentages from the chart, you generally must continue to use them for the entire recovery period of your car. Irs 1040ez online However, you cannot continue to use the chart if your basis in your car is adjusted because of a casualty. Irs 1040ez online In that case, for the year of the adjustment and the remaining recovery period, figure the depreciation without the chart using your adjusted basis in the car at the end of the year of the adjustment and over the remaining recovery period. Irs 1040ez online See Figuring the Deduction Without Using the Tables in chapter 4 of Publication 946. Irs 1040ez online    In future years, do not use the chart in this edition of the publication. Irs 1040ez online Instead, use the chart in the publication or the form instructions for those future years. Irs 1040ez online Disposition of car during recovery period. Irs 1040ez online   If you dispose of the car before the end of the recovery period, you are generally allowed a half year of depreciation in the year of disposition unless you purchased the car during the last quarter of a year. Irs 1040ez online See Depreciation deduction for the year of disposition under Disposition of a Car, later, for information on how to figure the depreciation allowed in the year of disposition. Irs 1040ez online How to use the 2013 chart. Irs 1040ez online   To figure your depreciation deduction for 2013, find the percentage in the column of Table 4-1 based on the date that you first placed the car in service and the depreciation method that you are using. Irs 1040ez online Multiply the unadjusted basis of your car (defined earlier) by that percentage to determine the amount of your depreciation deduction. Irs 1040ez online If you prefer to figure your depreciation deduction without the help of the chart, see Publication 946. Irs 1040ez online    Your deduction cannot be more than the maximum depreciation limit for cars. Irs 1040ez online See Depreciation Limits, later. Irs 1040ez online Example. Irs 1040ez online Phil bought a used truck in February 2012 to use exclusively in his landscape business. Irs 1040ez online He paid $9,200 for the truck with no trade-in. Irs 1040ez online Phil did not claim any section 179 deduction, the truck did not qualify for the special depreciation allowance, and he chose to use the 200% DB method to get the largest depreciation deduction in the early years. Irs 1040ez online Phil used the MACRS depreciation chart in 2012 to find his percentage. Irs 1040ez online The unadjusted basis of his truck equals its cost because Phil used it exclusively for business. Irs 1040ez online He multiplied the unadjusted basis of his truck, $9,200, by the percentage that applied, 20%, to figure his 2012 depreciation deduction of $1,840. Irs 1040ez online In 2013, Phil used the truck for personal purposes when he repaired his father's cabin. Irs 1040ez online His records show that the business use of his truck was 90% in 2013. Irs 1040ez online Phil used Table 4-1 to find his percentage. Irs 1040ez online Reading down the first column for the date placed in service and across to the 200% DB column, he locates his percentage, 32%. Irs 1040ez online He multiplies the unadjusted basis of his truck, $8,280 ($9,200 cost × 90% business use), by 32% to figure his 2013 depreciation deduction of $2,650. Irs 1040ez online Depreciation Limits There are limits on the amount you can deduct for depreciation of your car, truck, or van. Irs 1040ez online The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits. Irs 1040ez online The maximum amount you can deduct each year depends on the year you place the car in service. Irs 1040ez online These limits are shown in the following tables. Irs 1040ez online   Maximum Depreciation Deduction for Cars Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2012–2013 $11,1601 $5,100 $3,050 $1,875 2010–2011 11,0602 4,900 2,950 1,775 2008–2009 10,9603 4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6103 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7104 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6605 4,900 2,950 1,775 2001–2002 7,6605 4,900 2,950 1,775 2000 3,060 4,900 2,950 1,775 1$3,160 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Irs 1040ez online 2$3,060 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Irs 1040ez online 3$2,960 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Irs 1040ez online 4$7,660 if you acquired the car before 5/6/2003. Irs 1040ez online $3,060 if the car is not qualified property or if you elect not to claim any special depreciation allowance. Irs 1040ez online 5$3,060 if you acquired the car before 9/11/2001, the car is not qualified property, or you elect not to claim the special depreciation allowance. Irs 1040ez online Trucks and vans. Irs 1040ez online   For 2013, the maximum depreciation deductions for trucks and vans are generally higher than those for cars. Irs 1040ez online A truck or van is a passenger automobile that is classified by the manufacturer as a truck or van and rated at 6,000 pounds gross vehicle weight or less. Irs 1040ez online For trucks and vans placed in service before 2003, use the Maximum Depreciation Deduction for Cars table. Irs 1040ez online Maximum Depreciation Deduction for Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 $11,3601 $5,300 $3,150 $1,875 2011 11,2601 5,200 3,150 1,875 2010 11,1601 5,100 3,050 1,875 2009 11,0601 4,900 2,950 1,775 2008 11,1601 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2005–2006 3,260 5,200 3,150 1,875 2004 10,9101 5,300 3,150 1,875 2003 11,0101,2 5,400 3,250 1,975 1If the special depreciation allowance does not apply or you make the election not to claim the special depreciation allowance, the first-year limit is $3,360 for 2012 and 2013, $3,260 for 2011, $3,160 for 2010, $3,060 for 2009, $3,160 for 2008, $3,260 for 2004, and $3,360 for 2003. Irs 1040ez online 2If the truck or van was acquired before 5/06/2003, the truck or van is qualified property, and you claim the special depreciation allowance for the truck or van, the maximum deduction is $7,960. Irs 1040ez online Car used less than full year. Irs 1040ez online   The depreciation limits are not reduced if you use a car for less than a full year. Irs 1040ez online This means that you do not reduce the limit when you either place a car in service or dispose of a car during the year. Irs 1040ez online However, the depreciation limits are reduced if you do not use the car exclusively for business and investment purposes. Irs 1040ez online See Reduction for personal use , next. Irs 1040ez online Reduction for personal use. Irs 1040ez online   The depreciation limits are reduced based on your percentage of personal use. Irs 1040ez online If you use a car less than 100% in your business or work, you must determine the depreciation deduction limit by multiplying the limit amount by the percentage of business and investment use during the tax year. Irs 1040ez online Section 179 deduction. Irs 1040ez online   The section 179 deduction is treated as a depreciation deduction. Irs 1040ez online If you place a car that is not a truck or van in service in 2013, use it only for business, and choose the section 179 deduction, the special depreciation allowance, and the depreciation deduction for that car for 2013 is limited to $11,160. Irs 1040ez online Example. Irs 1040ez online On September 4, 2013, Jack bought a used car for $10,000 and placed it in service. Irs 1040ez online He used it 80% for his business, and he chooses to take a section 179 deduction for the car. Irs 1040ez online The car is not qualified property for purposes of the special depreciation allowance. Irs 1040ez online Before applying the limit, Jack figures his maximum section 179 deduction to be $8,000. Irs 1040ez online This is the cost of his qualifying property (up to the maximum $500,000 amount) multiplied by his business use ($10,000 × 80%). Irs 1040ez online Jack then figures that his section 179 deduction for 2013 is limited to $2,528 (80% of $3,160). Irs 1040ez online He then figures his unadjusted basis of $5,472 (($10,000 × 80%) − $2,528) for determining his depreciation deduction. Irs 1040ez online Jack has reached his maximum depreciation deduction for 2013. Irs 1040ez online For 2014, Jack will use his unadjusted basis of $5,472 to figure his depreciation deduction. Irs 1040ez online Deductions in years after the recovery period. Irs 1040ez online   If the depreciation deductions for your car are reduced under the passenger automobile limits (discussed earlier), you will have unrecovered basis in your car at the end of the recovery period. Irs 1040ez online If you continue to use your car for business, you can deduct that unrecovered basis (subject to depreciation limits) after the recovery period ends. Irs 1040ez online Unrecovered basis. Irs 1040ez online   This is your cost or other basis in the car reduced by any clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), alternative motor vehicle credit, electric vehicle credit, gas guzzler tax, and depreciation (including any special depreciation allowance , discussed earlier, unless you elect not to claim it) and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use. Irs 1040ez online The recovery period. Irs 1040ez online   For 5-year property, your recovery period is 6 calendar years. Irs 1040ez online A part year's depreciation is allowed in the first calendar year, a full year's depreciation is allowed in each of the next 4 calendar years, and a part year's depreciation is allowed in the 6th calendar year. Irs 1040ez online   Under MACRS, your recovery period is the same whether you use declining balance or straight line depreciation. Irs 1040ez online You determine your unrecovered basis in the 7th year after you placed the car in service. Irs 1040ez online How to treat unrecovered basis. Irs 1040ez online   If you continue to use your car for business after the recovery period, you can claim a depreciation deduction in each succeeding tax year until you recover your basis in the car. Irs 1040ez online The maximum amount you can deduct each year is determined by the date you placed the car in service and your business-use percentage. Irs 1040ez online For example, no deduction is allowed for a year you use your car 100% for personal purposes. Irs 1040ez online Example. Irs 1040ez online In April 2007, Bob bought and placed in service a car he used exclusively in his business. Irs 1040ez online The car cost $31,500. Irs 1040ez online Bob did not claim a section 179 deduction or the special depreciation allowance for the car. Irs 1040ez online He continued to use the car 100% in his business throughout the recovery period (2007 through 2012). Irs 1040ez online For those years, Bob used the MACRS Depreciation Chart (200% declining balance method) and the Maximum Depreciation Deduction for Cars table, earlier, for the applicable tax year to compute his depreciation deductions during the recovery period. Irs 1040ez online Bob's depreciation deductions were subject to the depreciation limits so he will have unrecovered basis at the end of the recovery period as shown in the following table. Irs 1040ez online      MACRS     Deprec. Irs 1040ez online Year % Amount Limit Allowed 2007 20. Irs 1040ez online 00 $6,300 $3,060 $ 3,060 2008 32. Irs 1040ez online 00 10,080 4,900 4,900 2009 19. Irs 1040ez online 20 6,048 2,850 2,850 2010 11. Irs 1040ez online 52 3,629 1,775 1,775 2011 11. Irs 1040ez online 52 3,629 1,775 1,775 2012 5. Irs 1040ez online 76 1,814 1,775 1,775 Total $31,500   16,135 For the correct limit, see Maximum Depreciation Deduction for Cars under “Depreciation Limits,” earlier, for the maximum amount of depreciation allowed each year. Irs 1040ez online   At the end of 2012, Bob had an unrecovered basis in the car of $15,365 ($31,500 – $16,135). Irs 1040ez online If Bob continued to use the car 100% for business in 2013 and later years, he can claim a depreciation deduction equal to the lesser of $1,775 or his remaining unrecovered basis. Irs 1040ez online   If Bob's business use of the car was less than 100% during any year, his depreciation deduction would be less than the maximum amount allowable for that year. Irs 1040ez online However, in determining his unrecovered basis in the car, he would still reduce his original basis by the maximum amount allowable as if the business use had been 100%. Irs 1040ez online For example, if Bob had used his car 60% for business instead of 100%, his allowable depreciation deductions would have been $9,681 ($16,135 × 60%), but he still would have to reduce his basis by $16,135 to determine his unrecovered basis. Irs 1040ez online Table 4-1. Irs 1040ez online 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Irs 1040ez online ) If you claim actual expenses for your car, use the chart below to find the depreciation method and percentage to use for your 2013 return for cars placed in service in 2013. Irs 1040ez online   First, using the left column, find the date you first placed the car in service in 2013. Irs 1040ez online Then select the depreciation method and percentage from column (a), (b), or (c) following the rules explained in this chapter. Irs 1040ez online For cars placed in service before 2013, you must use the same method you used on last year's return unless a decline in your business use requires you to change to the straight line method. Irs 1040ez online Refer back to the MACRS Depreciation Chart for the year you placed the car in service. Irs 1040ez online (See Car Used 50% or Less for Business . Irs 1040ez online )  Multiply the unadjusted basis of your car by your business use percentage. Irs 1040ez online Multiply the result by the percentage you found in the chart to find the amount of your depreciation deduction for 2013. Irs 1040ez online (Also see Depreciation Limits . Irs 1040ez online )   If you placed your car in service after September of any year and you placed other business property in service during the same year, you may have to use the Jan. Irs 1040ez online 1—Sept. Irs 1040ez online 30 percentage instead of the Oct. Irs 1040ez online 1—Dec. Irs 1040ez online 31 percentage for your car. Irs 1040ez online               To find out if this applies to you, determine: 1) the basis of all business property you placed in service after September of that year and 2) the basis of all business property you placed in service during that entire year. Irs 1040ez online If the basis of the property placed in service after September is not more than 40% of the basis of all property (certain property is excluded) placed in service for the entire year, use the percentage for Jan. Irs 1040ez online 1—Sept. Irs 1040ez online 30 for figuring depreciation for your car. Irs 1040ez online See Which Convention Applies? in chapter 4 of Publication 946 for more details. Irs 1040ez online               Example. Irs 1040ez online You buy machinery (basis of $32,000) in May 2013 and a new van (basis of $20,000) in October 2013, both used 100% in your business. Irs 1040ez online You
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Irs 1040ez online Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. Irs 1040ez online SIMPLE plans. Irs 1040ez online Qualified plans. Irs 1040ez online Ordering forms and publications. Irs 1040ez online Tax questions. Irs 1040ez online Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. Irs 1040ez online irs. Irs 1040ez online gov/pub560. Irs 1040ez online What's New Compensation limit increased for 2013 and 2014. Irs 1040ez online  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. Irs 1040ez online This limit increases to $260,000 for 2014. Irs 1040ez online Elective deferral limit for 2013 and 2014. Irs 1040ez online  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. Irs 1040ez online These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. Irs 1040ez online Defined contribution limit increased for 2013 and 2014. Irs 1040ez online  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. Irs 1040ez online This limit increases to $52,000 for 2014. Irs 1040ez online SIMPLE plan salary reduction contribution limit for 2013 and 2014. Irs 1040ez online  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. Irs 1040ez online Catch-up contribution limit remains unchanged for 2013 and 2014. Irs 1040ez online  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Irs 1040ez online The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. Irs 1040ez online The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. Irs 1040ez online The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. Irs 1040ez online The catch-up contribution limit. Irs 1040ez online The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Irs 1040ez online See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. Irs 1040ez online All section references are to the Internal Revenue Code, unless otherwise stated. Irs 1040ez online Reminders In-plan Roth rollovers. Irs 1040ez online  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. Irs 1040ez online An in-plan Roth rollover is not treated as a distribution for most purposes. Irs 1040ez online Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. Irs 1040ez online For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Irs 1040ez online R. Irs 1040ez online B. Irs 1040ez online 872, available at  www. Irs 1040ez online irs. Irs 1040ez online gov/irb/2010-51_IRB/ar11. Irs 1040ez online html. Irs 1040ez online In-plan Roth rollovers expanded. Irs 1040ez online  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. Irs 1040ez online Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. Irs 1040ez online For more information, see Notice 2013-74, 2013-52 I. Irs 1040ez online R. Irs 1040ez online B. Irs 1040ez online 819, available at www. Irs 1040ez online irs. Irs 1040ez online gov/irb/2013-52_IRB/ar11. Irs 1040ez online html. Irs 1040ez online Credit for startup costs. Irs 1040ez online  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. Irs 1040ez online The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Irs 1040ez online You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. Irs 1040ez online You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. Irs 1040ez online At least one participant must be a non-highly compensated employee. Irs 1040ez online The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. Irs 1040ez online You. Irs 1040ez online A member of a controlled group that includes you. Irs 1040ez online A predecessor of (1) or (2). Irs 1040ez online The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. Irs 1040ez online However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. Irs 1040ez online You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. Irs 1040ez online To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. Irs 1040ez online Retirement savings contributions credit. Irs 1040ez online  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. Irs 1040ez online The maximum contribution eligible for the credit is $2,000. Irs 1040ez online To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. Irs 1040ez online For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). Irs 1040ez online Photographs of missing children. Irs 1040ez online  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs 1040ez online Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs 1040ez online You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs 1040ez online Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. Irs 1040ez online In this publication, “you” refers to the employer. Irs 1040ez online See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. Irs 1040ez online This publication covers the following types of retirement plans. Irs 1040ez online SEP (simplified employee pension) plans. Irs 1040ez online SIMPLE (savings incentive match plan for employees) plans. Irs 1040ez online Qualified plans (also called H. Irs 1040ez online R. Irs 1040ez online 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. Irs 1040ez online SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. Irs 1040ez online You can deduct contributions you make to the plan for your employees. Irs 1040ez online If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. Irs 1040ez online You can also deduct trustees' fees if contributions to the plan do not cover them. Irs 1040ez online Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Irs 1040ez online Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. Irs 1040ez online These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. Irs 1040ez online What this publication covers. Irs 1040ez online   This publication contains the information you need to understand the following topics. Irs 1040ez online What type of plan to set up. Irs 1040ez online How to set up a plan. Irs 1040ez online How much you can contribute to a plan. Irs 1040ez online How much of your contribution is deductible. Irs 1040ez online How to treat certain distributions. Irs 1040ez online How to report information about the plan to the IRS and your employees. Irs 1040ez online Basic features of SEP, SIMPLE, and qualified plans. Irs 1040ez online The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. Irs 1040ez online SEP plans. Irs 1040ez online   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. Irs 1040ez online Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. Irs 1040ez online SIMPLE plans. Irs 1040ez online   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. Irs 1040ez online Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. Irs 1040ez online In addition, you will contribute matching or nonelective contributions. Irs 1040ez online The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. Irs 1040ez online Qualified plans. Irs 1040ez online   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. Irs 1040ez online However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. Irs 1040ez online Table 1. Irs 1040ez online Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). Irs 1040ez online Smaller of $51,000 or 25%1 of participant's compensation. Irs 1040ez online 2 25%1 of all participants' compensation. Irs 1040ez online 2 Any time up to the due date of employer's return (including extensions). Irs 1040ez online SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. Irs 1040ez online 4  Matching or nonelective contributions: Due date of employer's return (including extensions). Irs 1040ez online Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. Irs 1040ez online   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. Irs 1040ez online 2 Same as maximum contribution. Irs 1040ez online Any time between 1/1 and 10/1 of the calendar year. Irs 1040ez online   For a new employer coming into existence after 10/1, as soon as administratively feasible. Irs 1040ez online Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). Irs 1040ez online 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). Irs 1040ez online  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. Irs 1040ez online   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. Irs 1040ez online 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. Irs 1040ez online 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. Irs 1040ez online   By the end of the tax year. Irs 1040ez online Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. Irs 1040ez online See Minimum Funding Requirement in chapter 4. Irs 1040ez online Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Irs 1040ez online Based on actuarial assumptions and computations. Irs 1040ez online By the end of the tax year. Irs 1040ez online 1Net earnings from self-employment must take the contribution into account. Irs 1040ez online See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . Irs 1040ez online  2Compensation is generally limited to $255,000 in 2013. Irs 1040ez online  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. Irs 1040ez online  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. Irs 1040ez online What this publication does not cover. Irs 1040ez online   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. Irs 1040ez online You may also need professional help and guidance. Irs 1040ez online   Also, this publication does not cover all the rules that may be of interest to employees. Irs 1040ez online For example, it does not cover the following topics. Irs 1040ez online The comprehensive IRA rules an employee needs to know. Irs 1040ez online These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). Irs 1040ez online The comprehensive rules that apply to distributions from retirement plans. Irs 1040ez online These rules are covered in Publication 575, Pension and Annuity Income. Irs 1040ez online The comprehensive rules that apply to section 403(b) plans. Irs 1040ez online These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Irs 1040ez online Comments and suggestions. Irs 1040ez online   We welcome your comments about this publication and your suggestions for future editions. Irs 1040ez online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs 1040ez online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs 1040ez online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 1040ez online   You can send your comments from www. Irs 1040ez online irs. Irs 1040ez online gov/formspubs. Irs 1040ez online Click on “More Information” and then on “Give us feedback. Irs 1040ez online ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs 1040ez online Ordering forms and publications. Irs 1040ez online   Visit www. Irs 1040ez online irs. Irs 1040ez online gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs 1040ez online Internal Revenue Service 1201 N. Irs 1040ez online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs 1040ez online   If you have a tax question, check the information available on IRS. Irs 1040ez online gov or call 1-800-829-1040. Irs 1040ez online We cannot answer tax questions sent to either of the above addresses. Irs 1040ez online Note. Irs 1040ez online Forms filed electronically with the Department of Labor are not available on the IRS website. Irs 1040ez online Instead, see www. Irs 1040ez online efast. Irs 1040ez online dol. Irs 1040ez online gov. Irs 1040ez online Prev  Up  Next   Home   More Online Publications