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Irs E File Extension

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Irs E File Extension

Irs e file extension 27. Irs e file extension   Beneficios Tributarios para Estudios Relacionados con el Trabajo Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la DeducciónEstudios Requeridos por el Empleador o por Ley Estudios para Mantener o Mejorar Destrezas Estudios para Satisfacer los Requisitos Mínimos Estudios que lo Capacitan para un Nuevo Oficio o Negocio Qué Gastos se Pueden Deducir Reembolso no reclamado. Irs e file extension Gastos de Transporte Gastos de Viaje No se Permiten Beneficios Dobles Reembolsos Cómo Deducir Gastos de NegociosPersonas que Trabajan por Cuenta Propia Empleados Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Gastos de Trabajo Relacionados con un Impedimento Documentación Qué Hay de Nuevo Tarifa estándar por milla. Irs e file extension  Por lo general, si reclama una deducción de negocios por estudios relacionados con el trabajo y maneja su automóvil a la escuela y de vuelta a casa, la cantidad que puede deducir por las millas recorridas desde el 1 de enero de 2013 al 31 de diciembre de 2013 es 56½ centavos por milla. Irs e file extension Vea Gastos de Transporte bajo Qué Gastos se Pueden Deducir, para más información. Irs e file extension Introduction Este capítulo explica los gastos de estudios relacionados con el trabajo que tal vez pueda deducir como gastos de negocios. Irs e file extension Para reclamar tal deducción, tiene que: Detallar las deducciones en el Anexo A (Formulario 1040) si es empleado; Presentar el Anexo C (Formulario 1040), Anexo C-EZ (Formulario 1040) o el Anexo F (Formulario 1040) si trabaja por cuenta propia y Tener gastos de estudios calificados explicados bajo Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción . Irs e file extension Si es empleado y puede detallar las deducciones, tal vez pueda reclamar una deducción por los gastos pagados por estudios que se relacionen con el trabajo. Irs e file extension Su deducción será la cantidad total de sus gastos de estudios relacionados con el trabajo que reúnen los requisitos más otros gastos relacionados con el trabajo y ciertos gastos misceláneos (con la excepción de los gastos del trabajo relacionados con el impedimento de personas discapacitadas) que sea mayor que el 2% de sus ingresos brutos ajustados (AGI, por sus siglas en inglés). Irs e file extension Vea el capítulo 28. Irs e file extension Si trabaja por cuenta propia, deduciría los gastos de estudios relacionados con el trabajo que reúnen los requisitos directamente de sus ingresos del trabajo por cuenta propia. Irs e file extension Los gastos de estudios relacionados con el trabajo también podrían darle derecho a otros beneficios tributarios, tales como el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje (vea el capítulo 35). Irs e file extension Es posible que tenga derecho a estos beneficios incluso si no cumple los requisitos indicados anteriormente. Irs e file extension Asimismo, debe tomar en consideración que es posible que sus gastos de estudios relacionados con el trabajo le podrían dar derecho a reclamar más de un beneficio tributario. Irs e file extension Por lo general, puede reclamar cualquier cantidad de beneficios siempre que utilice diferentes gastos para calcular cada uno de ellos. Irs e file extension Cuando calcule sus impuestos, tal vez desee comparar estos beneficios tributarios para elegir el (los) método(s) mediante el (los) cual(es) obtenga el menor impuesto por pagar. Irs e file extension Useful Items - You may want to see: Publicación 463 Travel, Entertainment, Gift, and Car Expenses (Gastos de viaje, entretenimiento, regalos y automóvil), en inglés 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 2106 Employee Business Expenses (Gastos de negocios del empleado), en inglés 2106-EZ Unreimbursed Employee Business Expenses (Gastos de negocios del empleado no reembolsados), en inglés Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción Puede deducir como gastos de negocio los costos de estudios relacionados con el trabajo si éstos reúnen los requisitos de la deducción. Irs e file extension Éstos son estudios que cumplen al menos uno de los dos siguientes requisitos: Su empleador o la ley requiere dichos estudios para mantener su sueldo, situación o trabajo actual. Irs e file extension Los estudios requeridos tienen que servir para un propósito comercial legítimo (bona fide) de su empleador. Irs e file extension Los estudios mantienen o mejoran las destrezas necesarias en su trabajo actual. Irs e file extension No obstante, aun si sus estudios cumplen uno o ambos de los requisitos anteriores, no se considera que dichos estudios estén relacionados con el trabajo ni que reúnen los requisitos de la deducción si: Se requieren para satisfacer los requisitos mínimos de educación de su oficio o negocio actual o Forman parte de un programa de estudios que lo capacitará para un nuevo oficio o negocio. Irs e file extension Puede deducir los costos de los estudios relacionados con el trabajo que reúnen los requisitos de la deducción como gasto de negocios incluso si, al completar dichos estudios, tiene la posibilidad de obtener un título universitario. Irs e file extension Utilice la Figura 27-A, más adelante, para verificar rápidamente si sus estudios reúnen los requisitos. Irs e file extension Estudios Requeridos por el Empleador o por Ley Una vez que haya cumplido los requisitos mínimos de educación para su trabajo, es posible que su empleador o la ley le exija seguir sus estudios. Irs e file extension Se considera que dichos estudios adicionales son estudios relacionados con el trabajo que reúnen los requisitos si se cumplen los tres siguientes requisitos: Se requieren para que mantenga su sueldo, situación o trabajo actual; El requisito sirve un propósito legítimo (bona fide) comercial de su empleador y Los estudios no forman parte de un programa que lo capacitará para un nuevo oficio o negocio. Irs e file extension Si completa más estudios de los requeridos por su empleador o la ley, estos estudios adicionales sólo pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción si mantienen o mejoran las destrezas requeridas en su trabajo actual. Irs e file extension Vea Estudios para Mantener o Mejorar Destrezas , más adelante. Irs e file extension Ejemplo. Irs e file extension Usted es un maestro que ha cumplido los requisitos mínimos para enseñar. Irs e file extension Su empleador le exige que tome un curso universitario adicional cada año para poder seguir con su puesto actual de maestro. Irs e file extension Si los cursos no lo capacitarán para un nuevo oficio o negocio, entonces serán estudios relacionados con el trabajo que reúnen los requisitos, incluso si en el futuro recibe una maestría y un aumento de sueldo debido a estos estudios adicionales. Irs e file extension Estudios para Mantener o Mejorar Destrezas Si su empleador o la ley no requiere estudios, éstos pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción sólo si mantienen o mejoran las destrezas necesarias en su trabajo actual. Irs e file extension Éstos pueden incluir cursos de actualización, cursos sobre avances profesionales y cursos académicos o vocacionales. Irs e file extension Ejemplo. Irs e file extension Usted repara televisores, radios y sistemas estereofónicos para la tienda XYZ. Irs e file extension Para mantenerse al corriente de los últimos avances en su profesión, toma cursos especiales de servicios de radio y sistemas estereofónicos. Irs e file extension Estos cursos mantienen y mejoran las destrezas requeridas en su trabajo. Irs e file extension Mantenimiento de destrezas versus capacitación para un empleo nuevo. Irs e file extension   Los estudios para mantener o mejorar destrezas que se requieren en su trabajo actual no son estudios que reúnen los requisitos de la deducción si también lo capacitarán para un nuevo oficio o negocio. Irs e file extension Estudios durante ausencia temporal. Irs e file extension   Si deja de trabajar durante un año o menos para cursar estudios con el fin de mantener o mejorar las destrezas necesarias en su trabajo actual y luego regresa a su trabajo y desempeña las mismas labores generales, su ausencia se considera temporal. Irs e file extension Los estudios cursados durante una ausencia temporal son estudios relacionados con el trabajo que cumplen los requisitos de la deducción si mantienen o mejoran las destrezas necesarias en su trabajo actual. Irs e file extension Ejemplo. Irs e file extension Deja su trabajo de investigación en biología para convertirse en estudiante de posgrado de biología a tiempo completo durante un año. Irs e file extension Si regresa a trabajar en investigación en biología después de concluir los cursos, los estudios se relacionan con su trabajo actual incluso si no regresa a trabajar para el mismo empleador. Irs e file extension Estudios durante ausencia indefinida. Irs e file extension   Si deja de trabajar durante más de un año, su ausencia del trabajo se considera indefinida. Irs e file extension Se considera que los estudios cursados durante una ausencia indefinida, aun si mantienen o mejoran las destrezas necesarias en el trabajo del cual se ausenta, lo capacitan para un nuevo oficio o negocio. Irs e file extension Por lo tanto, no son estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irs e file extension Estudios para Satisfacer los Requisitos Mínimos Los estudios necesarios para cumplir los requisitos mínimos de educación para su oficio o negocio actual no son estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irs e file extension Los requisitos mínimos de educación se determinan a través de: Leyes y reglamentos; Normas de su profesión, oficio o negocio y Su empleador. Irs e file extension Una vez que haya cumplido los requisitos mínimos de educación vigentes cuando se le contrató, no tiene que cumplir nuevos requisitos mínimos de educación. Irs e file extension Esto significa que si los requisitos mínimos cambian después de que haya sido contratado, los estudios necesarios para satisfacer los nuevos requisitos pueden ser estudios que reúnen los requisitos de la deducción. Irs e file extension No ha cumplido los requisitos mínimos de educación de su oficio o negocio sólo porque ya está realizando el trabajo. Irs e file extension Ejemplo 1. Irs e file extension Es estudiante de ingeniería a tiempo completo. Irs e file extension Aunque no ha recibido su título o certificación, trabaja a tiempo parcial como ingeniero en una empresa que lo contratará como ingeniero a tiempo completo después de que finalice sus estudios universitarios. Irs e file extension Aunque sus cursos universitarios de ingeniería mejoran sus destrezas en su trabajo actual, también se requieren para cumplir los requisitos laborales mínimos para contratar a un ingeniero a tiempo completo. Irs e file extension Estos estudios no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Ejemplo 2. Irs e file extension Es contador y ha cumplido con los requisitos mínimos de educación de su empleador. Irs e file extension Posteriormente, éste cambia los requisitos mínimos de educación y requiere que tome cursos universitarios para mantener su trabajo. Irs e file extension Estos cursos adicionales pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción porque ya ha cumplido los requisitos mínimos vigentes al momento de su contratación. Irs e file extension Requisitos para los Docentes Por lo general, los estados o distritos escolares establecen los requisitos mínimos de educación para los docentes. Irs e file extension El requisito es el título universitario o la cantidad mínima de horas de estudio universitario que suele exigirse para la contratación de una persona para dicho cargo. Irs e file extension Si no existen requisitos, habrá cumplido los requisitos mínimos de educación cuando pase a ser miembro del cuerpo docente. Irs e file extension La determinación de si usted es miembro del cuerpo docente de una institución educativa tiene que ser hecha en base de las prácticas particulares de dicha institución. Irs e file extension Por lo general, se le considerará miembro del cuerpo docente si se da una o más de las siguientes condiciones: Es profesor titular o catedrático. Irs e file extension Sus años de servicio se acreditan para obtener el cargo académico o cátedra. Irs e file extension Tiene un voto en las decisiones del cuerpo docente. Irs e file extension Su institución académica hace aportaciones en nombre suyo a un plan de jubilación que no sea el Seguro Social o un programa similar. Irs e file extension Ejemplo 1. Irs e file extension La ley en el estado donde vive exige que los maestros novatos de escuela secundaria tengan un título universitario, incluidos 10 cursos de educación profesional. Irs e file extension Asimismo, para mantener su trabajo, un maestro tiene que realizar un quinto año de capacitación dentro de un plazo de 10 años a partir de la fecha de contratación. Irs e file extension Si la escuela empleadora certifica ante el Departamento de Educación estatal que no puede encontrar maestros calificados, la escuela puede contratar a personas con sólo 3 años de estudios universitarios. Irs e file extension No obstante, para mantener su trabajo, estos maestros tienen que obtener un título universitario y completar los cursos de educación profesional requeridos dentro de un plazo de 3 años. Irs e file extension De acuerdo con lo anterior, el título universitario, incluya o no los 10 cursos de educación profesional, se considera el requisito mínimo de educación para calificar como maestro en el estado donde vive. Irs e file extension Si posee toda la educación requerida, a excepción del quinto año, ha cumplido los requisitos mínimos de educación. Irs e file extension El quinto año de capacitación se considera estudios relacionados con el trabajo que reúnen los requisitos de la deducción a menos que forme parte de un programa de estudios que lo capacitará para un nuevo oficio o negocio. Irs e file extension Figura 27–A. Irs e file extension ¿Reúnen los Requisitos sus Estudios Relacionados con el Trabajo? Please click here for the text description of the image. Irs e file extension Figura 27−A. Irs e file extension ¿Reúnen los requisitos sus estudios relacionados con el trabajo? Ejemplo 2. Irs e file extension Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que tiene título universitario y sólo seis cursos de educación profesional. Irs e file extension Los cuatro cursos adicionales pueden ser estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Aunque no tiene todos los cursos requeridos, ya ha cumplido los requisitos mínimos de educación. Irs e file extension Ejemplo 3. Irs e file extension Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que lo han contratado con sólo 3 años de estudios universitarios. Irs e file extension Los cursos que tome para lograr un título (incluso en el campo de enseñanza) no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Éstos se requieren para cumplir los requisitos mínimos de educación para trabajar como maestro. Irs e file extension Ejemplo 4. Irs e file extension Tiene un título universitario y trabaja como instructor temporal en una universidad. Irs e file extension Al mismo tiempo, toma cursos de posgrado para obtener un título superior. Irs e file extension Las reglas de la universidad estipulan que puede pasar a ser miembro del cuerpo docente sólo si obtiene un posgrado. Irs e file extension Además, puede mantener su trabajo como instructor sólo si demuestra un avance satisfactorio para obtener este título. Irs e file extension No ha cumplido los requisitos mínimos de educación para ser miembro del cuerpo docente. Irs e file extension Los cursos de posgrado no son estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Licencia en un nuevo estado. Irs e file extension   Una vez que haya cumplido los requisitos mínimos de educación para maestros de su estado, se considera que ha cumplido los requisitos mínimos de educación en todos los estados. Irs e file extension Esto se aplica incluso si tiene que cursar estudios adicionales para recibir la licencia en otro estado. Irs e file extension Los estudios adicionales que necesite son estudios relacionados con el trabajo que reúnen los requisitos para la deducción. Irs e file extension Ya ha cumplido los requisitos mínimos de educación para enseñar. Irs e file extension Enseñar en otro estado no constituye un nuevo oficio o negocio. Irs e file extension Ejemplo. Irs e file extension Posee una licencia permanente para enseñar en el Estado A y ha trabajado como maestro en ese estado durante varios años. Irs e file extension Se muda al Estado B y lo contratan inmediatamente como maestro. Irs e file extension Sin embargo, tiene que realizar ciertos cursos prescritos para obtener una licencia permanente para enseñar en el Estado B. Irs e file extension Estos cursos adicionales son estudios relacionados con el trabajo que reúnen los requisitos de la deducción debido a que el puesto de maestro en el Estado B implica el mismo tipo de trabajo general para el cual reunía los requisitos en el Estado A. Irs e file extension Estudios que lo Capacitan para un Nuevo Oficio o Negocio Los estudios que forman parte de un programa de estudios a fin de capacitarlo para un nuevo oficio o negocio no están relacionados con el trabajo y no reúnen los requisitos de la deducción. Irs e file extension Esto es aplicable incluso si no tiene intención de ingresar en ese oficio o negocio. Irs e file extension Si es empleado, un cambio de deberes que implique el mismo tipo de trabajo general no es un nuevo oficio o negocio. Irs e file extension Ejemplo 1. Irs e file extension Es contador. Irs e file extension Su empleador le exige que saque un título en derecho corriendo con sus propios gastos. Irs e file extension Se inscribe en una escuela de derecho con la intención de cursar el plan de estudios típico para lograr un título en derecho. Irs e file extension Aun si su intención no es ser abogado, los estudios no reúnen los requisitos de la deducción debido a que el título en derecho lo capacitará para un nuevo oficio o negocio. Irs e file extension Ejemplo 2. Irs e file extension Es médico de medicina general. Irs e file extension Toma un curso de dos semanas para revisar los avances en diversos campos especializados de la medicina. Irs e file extension El curso no lo capacita para una nueva profesión. Irs e file extension Se considera que está relacionado con el trabajo y reúne los requisitos de la deducción porque mantiene o mejora las destrezas requeridas en su profesión actual. Irs e file extension Ejemplo 3. Irs e file extension Durante su trabajo en la práctica privada de psiquiatría, ingresa a un programa para estudiar y capacitarse en un instituto de psicoanálisis acreditado. Irs e file extension El programa lo capacitará para practicar el psicoanálisis. Irs e file extension La formación en psicoanálisis no lo capacitará para una nueva profesión. Irs e file extension Está relacionada con el trabajo y reúne los requisitos de la deducción porque mantiene o mejora las destrezas necesarias en su profesión actual. Irs e file extension Curso de preparación para el examen de reválida de derecho o para el examen para contadores públicos autorizados Los cursos de preparación para el examen de reválida para ejercer la abogacía o el examen para contadores públicos autorizados (CPA, por sus siglas en inglés) no son estudios relacionados con el trabajo que cumplan los requisitos. Irs e file extension Forman parte de un programa de estudios que puede capacitarlo para una nueva profesión. Irs e file extension Deberes Magisteriales y Afines Todos los deberes magisteriales y deberes afines se consideran relativamente el mismo tipo de trabajo. Irs e file extension Un cambio de deberes de cualquiera de las siguientes maneras no se considera un cambio a una nueva ocupación: Maestro de escuela primaria a maestro de escuela secundaria. Irs e file extension Maestro de una asignatura, como biología, a maestro de otra asignatura, como arte. Irs e file extension Maestro a consejero académico. Irs e file extension Maestro a administrador escolar. Irs e file extension Qué Gastos se Pueden Deducir Si sus estudios satisfacen los requisitos descritos anteriormente en Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción , por lo general, puede deducir sus gastos de estudios como gastos de negocios. Irs e file extension Si no trabaja por cuenta propia, puede deducir gastos de negocios sólo si detalla sus deducciones. Irs e file extension No puede deducir gastos relacionados con ingresos exentos ni excluidos de impuestos. Irs e file extension Gastos deducibles. Irs e file extension   Se pueden deducir los siguientes gastos de estudios: Matrícula, libros, útiles escolares, cuotas de laboratorio y artículos similares. Irs e file extension Ciertos costos de transporte y viajes. Irs e file extension Otros gastos de estudios, como costos de investigación y de procesamiento de palabras (mecanografía) al escribir un ensayo o tésis como parte de un programa de estudios. Irs e file extension Gastos no deducibles. Irs e file extension   No puede deducir sus gastos personales o de capital. Irs e file extension Por ejemplo, no puede deducir el valor en dólares de un período de vacaciones o permiso anual (vacaciones remuneradas) que toma para asistir a clases. Irs e file extension Esta cantidad es un gasto personal. Irs e file extension Reembolso no reclamado. Irs e file extension   Aun si no reclama reembolsos a los que tiene derecho a recibir de su empleador, no puede deducir los gastos correspondientes a ese reembolso no reclamado. Irs e file extension Ejemplo. Irs e file extension Su empleador acuerda pagar sus gastos de estudios si usted presenta un vale que muestre sus gastos. Irs e file extension Usted no presenta un vale y no se los reembolsan. Irs e file extension Como no presentó un vale, no puede deducir los gastos en su declaración de impuestos. Irs e file extension Gastos de Transporte Si sus estudios reúnen los requisitos, puede deducir los costos de transporte locales en los que tiene que incurrir para viajar directamente del trabajo a la escuela. Irs e file extension Si tiene un trabajo habitual y asiste a la escuela de forma temporal, también puede deducir los costos de regreso de la escuela a su domicilio. Irs e file extension Asistencia temporal. Irs e file extension   Asiste a la escuela de manera temporal si alguna de las siguientes situaciones corresponde a su caso: Se espera de manera realista que su asistencia a la escuela dure 1 año o menos y en realidad dura 1 año o menos. Irs e file extension Al principio, se espera de manera realista que su asistencia a la escuela dure 1 año o menos, pero posteriormente es factible que dure más de 1 año. Irs e file extension Su asistencia es temporal hasta la fecha en la que determine que durará más de 1 año. Irs e file extension Nota: Si se encuentra en la situación (1) o (2), su asistencia no es temporal si los hechos y las circunstancias indican lo contrario. Irs e file extension Asistencia no temporal. Irs e file extension   No asiste a la escuela de manera temporal si alguna de las siguientes situaciones le corresponde: Se espera de manera realista que su asistencia a la escuela dure más de 1 año. Irs e file extension No importa cuánto tiempo de hecho asista. Irs e file extension Al principio, se espera de manera realista que su asistencia a la escuela dure 1 año o menos, pero posteriormente se espera que dure más de 1 año. Irs e file extension Su asistencia no es temporal después de la fecha en la que se determine que durará más de 1 año. Irs e file extension Gastos de Transporte Deducibles Si trabaja de manera habitual y se dirige directamente de su domicilio a la escuela de manera temporal, puede deducir los costos del viaje de ida y regreso entre su domicilio y la escuela. Irs e file extension Esto es aplicable sin importar la ubicación de dicho lugar, la distancia recorrida o si asiste a cursos en dicho lugar en días no laborables. Irs e file extension Los gastos de transporte incluyen los costos reales de autobús, metro, taxi u otras tarifas, así como los costos del uso de su automóvil. Irs e file extension Los gastos de transporte no incluyen cantidades gastadas por viaje, comidas o alojamiento cuando pasa la noche fuera de su casa. Irs e file extension Ejemplo 1. Irs e file extension Trabaja habitualmente en una ciudad cercana y viaja directamente del trabajo a su domicilio. Irs e file extension Asimismo, asiste a la escuela cada noche entre semana durante 3 meses para tomar un curso que mejore sus destrezas laborales. Irs e file extension Dado que asiste a una escuela de forma temporal, puede deducir sus gastos diarios de transporte de ida y regreso entre su domicilio y la escuela. Irs e file extension Esto es aplicable independientemente de la distancia recorrida. Irs e file extension Ejemplo 2. Irs e file extension Suponga que se dan los mismos hechos que en el Ejemplo 1, salvo que algunas noches se dirige directamente del trabajo a la escuela y luego a su domicilio. Irs e file extension Puede deducir sus gastos de transporte desde su lugar de trabajo habitual a la escuela y luego al domicilio. Irs e file extension Ejemplo 3. Irs e file extension Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que asiste a la escuela durante 9 meses todos los sábados, los cuales no son días laborables. Irs e file extension Dado que asiste a la escuela de manera temporal, puede deducir sus gastos de transporte de ida y regreso entre su casa y la escuela. Irs e file extension Ejemplo 4. Irs e file extension Suponga que se dan los mismos hechos que en el Ejemplo 1, excepto que asiste a clases dos veces a la semana durante 15 meses. Irs e file extension Dado que su asistencia a la escuela no se considera temporal, no puede deducir sus gastos de transporte entre su casa y la escuela. Irs e file extension Si se dirige a la escuela directamente desde el trabajo, puede deducir los gastos de transporte de ida desde el trabajo a la escuela. Irs e file extension Si del trabajo se dirige a su casa y luego a la escuela y regresa a su casa, sus gastos de transporte no pueden ser mayores que los gastos en los que hubiese incurrido de haber viajado directamente del trabajo a la escuela. Irs e file extension Uso de su automóvil. Irs e file extension   Si usa su automóvil (propio o arrendado) para viajar a la escuela, puede deducir sus gastos reales o utilizar la tarifa estándar de millaje para calcular la cantidad que puede deducir. Irs e file extension La tarifa estándar por millas recorridas desde el 1 de enero de 2013 hasta el 31 de diciembre de 2013 es 56½ centavos por milla. Irs e file extension Independientemente de los métodos que escoja, también puede deducir cargos de estacionamiento y peajes. Irs e file extension Vea el capítulo 26 para obtener información acerca de la deducción de sus gastos reales por el uso de un automóvil. Irs e file extension Gastos de Viaje Puede deducir gastos de viajes, comidas (vea Límite del 50% del costo de comidas , más adelante) y alojamiento si viaja de un día a otro principalmente para realizar estudios con derecho a deducción relacionados con el trabajo. Irs e file extension Los gastos de viaje para estudios relacionados con el trabajo que reúnen los requisitos de la deducción reciben el mismo trato tributario que los gastos de viaje para otros propósitos de negocios del empleado. Irs e file extension Para más información, vea el capítulo 26. Irs e file extension No puede deducir gastos de actividades personales, como turismo, visitas o entretenimiento. Irs e file extension Viajes principalmente con fines personales. Irs e file extension   Si su viaje fuera de casa es principalmente con fines personales, no puede deducir todos sus gastos de viaje, comidas o alojamiento. Irs e file extension Sólo puede deducir sus gastos de alojamiento y el 50% de sus gastos de comidas durante el período en el que asista a actividades de educación que reúnen los requisitos. Irs e file extension   El determinar si el propósito del viaje es principalmente personal o para estudios depende de los hechos y las circunstancias. Irs e file extension Un factor importante es la comparación del tiempo dedicado a actividades personales con el tiempo dedicado a actividades de educación. Irs e file extension Si dedica más tiempo a actividades personales, el viaje se considera principalmente para estudios sólo si puede demostrar una razón importante y no personal de por qué viajó a un lugar específico. Irs e file extension Ejemplo 1. Irs e file extension Juan trabaja en Newark, Nueva Jersey. Irs e file extension Viajó a Chicago para tomar un curso de una semana, a solicitud de su empleador, que puede deducir de sus impuestos. Irs e file extension Su razón principal para viajar a Chicago fue el curso. Irs e file extension Durante su estadía, realizó un viaje de turismo, salió a divertirse con algunos amigos y realizó un viaje adicional por el día a Pleasantville. Irs e file extension Dado que el viaje era principalmente de negocios, Juan puede deducir su boleto aéreo de ida y vuelta a Chicago. Irs e file extension No puede deducir los gastos de transporte de su viaje a Pleasantville. Irs e file extension Sólo puede deducir las comidas (conforme al límite del 50%) y alojamiento relacionados con sus actividades educativas. Irs e file extension Ejemplo 2. Irs e file extension Susana trabaja en Boston. Irs e file extension Asistió a una universidad en Michigan a fin de tomar un curso para su trabajo. Irs e file extension El curso está relacionado con el trabajo y reúne los requisitos de la deducción. Irs e file extension Tomó un curso, que corresponde a un cuarto de la carga de estudios a tiempo completo. Irs e file extension El resto del tiempo lo dedicó a actividades personales. Irs e file extension Sus razones para tomar el curso en Michigan fueron personales. Irs e file extension El viaje de Susana es principalmente personal, ya que tres cuartos de su tiempo se consideran tiempo personal. Irs e file extension No puede deducir el costo de su boleto de tren de ida y regreso a Michigan. Irs e file extension Puede deducir un cuarto del costo de las comidas (conforme al límite del 50%) y del alojamiento del período en que asistió a la universidad. Irs e file extension Ejemplo 3. Irs e file extension David trabaja en Nashville y recientemente viajó a California para asistir a un seminario de 2 semanas. Irs e file extension El seminario está relacionado con el trabajo y reúne los requisitos de la deducción. Irs e file extension Durante su estadía, dedicó 8 semanas adicionales a actividades personales. Irs e file extension Los hechos, incluida la estadía adicional de 8 semanas, demuestran que su finalidad principal era tomarse unas vacaciones. Irs e file extension David no puede deducir su boleto de avión de ida y vuelta ni sus comidas y alojamiento durante las 8 semanas. Irs e file extension Sólo puede deducir sus gastos por comida (sujeto al límite del 50%) y alojamiento durante las 2 semanas que asistió al seminario. Irs e file extension Cruceros y congresos. Irs e file extension   Algunos cruceros y congresos ofrecen seminarios o cursos como parte de su itinerario. Irs e file extension Aun si los seminarios o cursos están relacionados con el trabajo, su deducción por viaje puede verse limitada. Irs e file extension Esto es aplicable a: Viajes en buque transatlántico, crucero u otra forma de transporte marítimo de lujo y Congresos fuera del área de Norteamérica. Irs e file extension   Si desea consultar más acerca de los límites de deducciones de gastos de viaje que sean aplicables a cruceros y congresos, vea Luxury Water Travel (Viajes en buques de lujo) y Conventions (Congresos) en el capítulo 1 de la Publicación 463, en inglés. Irs e file extension Límite del 50% del costo de comidas. Irs e file extension   Sólo puede deducir el 50% del costo de sus comidas cuando viaja fuera de casa para realizar estudios relacionados con el trabajo que reúnan los requisitos de la deducción. Irs e file extension No se le pueden haber reembolsado los gastos por las comidas. Irs e file extension   Los empleados tienen que usar el Formulario 2106 o el Formulario 2106-EZ para aplicar el límite del 50%. Irs e file extension Viajes con Fines Educativos No puede deducir el costo de sus viajes con fines educativos, incluso si están directamente relacionados con los deberes de su trabajo o negocio. Irs e file extension Ejemplo. Irs e file extension Usted es maestro de francés. Irs e file extension Durante una ausencia sabática otorgada para viajar, recorrió Francia para mejorar sus conocimientos del francés. Irs e file extension Elige su itinerario y la mayoría de sus actividades con el fin de mejorar sus destrezas lingüísticas en francés. Irs e file extension No puede deducir sus gastos de viaje como gastos de estudios. Irs e file extension Esto es aplicable aunque haya dedicado la mayor parte del tiempo a aprender francés visitando escuelas y familias francesas, asistiendo a películas u obras de teatro y participando en actividades similares. Irs e file extension No se Permiten Beneficios Dobles No se le permite hacer lo siguiente: Deducir los gastos de estudios relacionados con el trabajo como gastos de negocios si deduce estos gastos conforme con cualquier otra disposición de la ley, por ejemplo, la deducción de matrículas y cuotas (vea el capítulo 35). Irs e file extension Deducir los gastos de estudios relacionados con el trabajo pagados con fondos de ayuda para los estudios provistos por el empleador, subvención o beca libre de impuestos. Irs e file extension Vea Ajustes a Gastos de Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción , a continuación. Irs e file extension Ajustes a Gastos de Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la Deducción Si paga gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción con determinados fondos exentos de impuestos, no puede reclamar una deducción por estas cantidades. Irs e file extension Tiene que reducir la cantidad de los gastos que reúnen los requisitos por la cantidad de tales gastos que le pueden corresponder a la asistencia para estudios exenta de impuestos. Irs e file extension Para más información, vea el capítulo 12 de la Publicación 970, en inglés. Irs e file extension La asistencia para estudios exenta de impuestos incluye: La parte exenta de impuestos de becas de estudios y becas de investigación (vea el capítulo 1 de la Publicación 970, en inglés); La parte exenta de impuestos de las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés); La parte exenta de impuestos de la asistencia para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970, en inglés); Asistencia para estudios destinada a veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no gravable (libre de impuestos) (que no sean regalos o herencias) que reciba como asistencia para los estudios. Irs e file extension Cantidades que no reducen los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension   No reduzca los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción las cantidades pagadas con fondos que el estudiante reciba como: Un pago por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Irs e file extension   Tampoco reduzca la cantidad de los gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción por la cantidad de una beca de estudios o beca de investigación declarada como ingreso en la declaración de impuestos del estudiante ni becas que, según lo establecido, no se puedan aplicar a gastos de estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Reembolsos El trato tributario que dé a los reembolsos depende del acuerdo que tenga con su empleador. Irs e file extension Existen dos tipos básicos de acuerdos de reembolso: planes con rendición de cuentas y planes sin rendición de cuentas. Irs e file extension Puede determinar el tipo de plan mediante el cual se le reembolsa según la manera en que se declara el reembolso en su Formulario W-2. Irs e file extension Para información sobre cómo tratar los reembolsos bajo planes con rendición de cuentas y planes sin rendición de cuentas, vea Reembolsos en el capítulo 26. Irs e file extension Cómo Deducir Gastos de Negocios Las personas que trabajan por cuenta propia y los empleados declaran los gastos de negocios de manera diferente. Irs e file extension La siguiente información explica qué formularios tiene que usar para deducir como gasto de negocios el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción. Irs e file extension Personas que Trabajan por Cuenta Propia Si trabaja por cuenta propia, declare el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción en el formulario correspondiente que se utilizó para declarar su ingreso de negocio y gastos (generalmente en el Anexo C, C-EZ o F). Irs e file extension Si sus gastos de estudios incluyen gastos de automóvil o camión, viajes o comidas, declare estos gastos de la misma forma en la que declara los demás gastos de negocios para esas partidas. Irs e file extension Vea las instrucciones del formulario que presente para obtener información acerca de cómo completarlo. Irs e file extension Empleados Si es empleado, puede deducir el costo de estudios relacionados con el trabajo que reúnen los requisitos de la deducción sólo si: No recibió (y no tuvo derecho a recibir) reembolsos de su empleador; Se le reembolsó conforme a un plan sin rendición de cuentas (la cantidad se incluye en el recuadro 1 del Formulario W-2) o Recibió un reembolso conforme a un plan con rendición de cuentas, pero la cantidad recibida fue menor que sus gastos por los cuales usted reclamó un reembolso. Irs e file extension Si le corresponde el punto (1) o (2), puede deducir la totalidad del costo que reúne los requisitos de la deducción. Irs e file extension Si le corresponde el punto (3), puede deducir sólo los costos mayores que su reembolso que reúnen los requisitos de la deducción. Irs e file extension Para deducir como gasto de negocios el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción, incluya la cantidad con su deducción para todos los demás gastos de negocios del empleado en la línea 21 del Anexo A (Formulario 1040). Irs e file extension (Más adelante se explican las reglas especiales para gastos de ciertos artistas del espectáculo y funcionarios a los que se les pagan honorarios y para gastos de trabajo relacionados con un impedimento). Irs e file extension Esta deducción (con la excepción de los gastos del trabajo relacionados con el impedimento de personas discapacitadas) está sujeta al límite de ingreso bruto ajustado del 2% aplicable a la mayoría de las deducciones detalladas misceláneas. Irs e file extension Vea el capítulo 28. Irs e file extension Formulario 2106 o 2106-EZ. Irs e file extension   Para calcular su deducción con respecto a los gastos de negocios del empleado, incluidos los estudios relacionados con el trabajo que reúnen los requisitos de la deducción, por lo general tiene que completar el Formulario 2106 o el Formulario 2106-EZ. Irs e file extension No se requiere el formulario. Irs e file extension   No complete el Formulario 2106 ni el Formulario 2106-EZ si: Las cantidades incluidas en el recuadro 1 de su Formulario W-2 no se consideran reembolsos y No declara gastos de viaje, transporte, comidas o entretenimiento. Irs e file extension   Si cumple los dos requisitos anteriores, anote los gastos directamente en la línea 21 del Anexo A (Formulario 1040). Irs e file extension (Más adelante se explican las reglas especiales para gastos de ciertos artistas del espectáculo y funcionarios a los que se les pagan honorarios y para gastos de trabajo relacionados con un impedimento). Irs e file extension Uso del Formulario 2106-EZ. Irs e file extension   Este formulario es más corto y fácil de usar que el Formulario 2106. Irs e file extension Por lo general, puede usar este formulario si: Todos los reembolsos, si los hubiera, se incluyeron en el recuadro 1 de su Formulario W-2 y Utiliza la tarifa estándar por millas si declara gastos de vehículo. Irs e file extension   Si no cumple estos dos requisitos, utilice el Formulario 2106. Irs e file extension Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Si es artista del espectáculo que reúne los requisitos o funcionario del gobierno estatal (o local) que recibe su pago total o en parte de honorarios, puede deducir el costo de sus estudios relacionado con el trabajo que reúne los requisitos de la deducción como ajuste al ingreso bruto en lugar de una deducción detallada. Irs e file extension Incluya el costo de sus estudios relacionados con el trabajo que reúnen los requisitos de la deducción junto con todos los demás gastos de negocios del empleado y anote el total en la línea 24 del Formulario 1040. Irs e file extension No tiene que detallar sus deducciones en el Anexo A (Formulario 1040) y, por lo tanto, la deducción no está sujeta al límite de ingreso bruto ajustado del 2%. Irs e file extension Tiene que completar el Formulario 2106 o 2106-EZ para calcular su deducción, incluso si cumple los requisitos descritos anteriormente bajo No se requiere el formulario . Irs e file extension Para más información acerca de los artistas del espectáculo que reúnen los requisitos, vea el capítulo 6 de la Publicación 463, en inglés. Irs e file extension Gastos de Trabajo Relacionados con un Impedimento Si está incapacitado y tiene gastos de trabajo relacionados con un impedimento que sean necesarios para permitirle realizar estudios relacionados con el trabajo, que reúnen los requisitos de la deducción, puede deducir estos gastos en la línea 28 del Anexo A (Formulario 1040). Irs e file extension No están sujetos al límite del 2% del ingreso bruto ajustado. Irs e file extension Para deducir estos gastos, tiene que completar el Formulario 2106 o 2106-EZ, aun si cumple los requisitos descritos anteriormente en No se requiere el formulario . Irs e file extension Para más información acerca de gastos de trabajo relacionados con un impedimento, vea el capítulo 6 de la Publicación 463, en inglés. Irs e file extension Documentación Tiene que mantener documentación como comprobante de las deducciones reclamadas en su declaración de impuestos. Irs e file extension Por lo general, debe mantener su documentación durante 3 años desde la fecha de presentación de la declaración y de haber reclamado la deducción. Irs e file extension Para obtener información específica acerca de cómo mantener documentación de los gastos de negocios, vea Mantenimiento de Documentación en el capítulo 26. Irs e file extension Prev  Up  Next   Home   More Online Publications
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The Irs E File Extension

Irs e file extension 7. Irs e file extension   Depreciation, Depletion, and Amortization Table of Contents What's New for 2013 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Overview of DepreciationWhat Property Can Be Depreciated? What Property Cannot Be Depreciated? When Does Depreciation Begin and End? Can You Use MACRS To Depreciate Your Property? What Is the Basis of Your Depreciable Property? How Do You Treat Repairs and Improvements? Do You Have To File Form 4562? How Do You Correct Depreciation Deductions? Section 179 Expense DeductionWhat Property Qualifies? What Property Does Not Qualify? How Much Can You Deduct? How Do You Elect the Deduction? When Must You Recapture the Deduction? Claiming the Special Depreciation AllowanceWhat is Qualified Property? How Can You Elect Not To Claim the Allowance? When Must You Recapture an Allowance Figuring Depreciation Under MACRSWhich Depreciation System (GDS or ADS) Applies? Which Property Class Applies Under GDS? What Is the Placed-in-Service Date? What Is the Basis for Depreciation? Which Recovery Period Applies? Which Convention Applies? Which Depreciation Method Applies? How Is the Depreciation Deduction Figured? How Do You Use General Asset Accounts? When Do You Recapture MACRS Depreciation? Additional Rules for Listed PropertyWhat Is Listed Property? What Is the Business-Use Requirement? Do the Passenger Automobile Limits Apply? Depletion Who Can Claim Depletion? Figuring Depletion AmortizationBusiness Start-Up Costs Reforestation Costs Section 197 Intangibles What's New for 2013 Increased section 179 expense deduction dollar limits. Irs e file extension  The maximum amount you can elect to deduct for most section 179 property you placed in service in 2013 is $500,000. Irs e file extension This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Irs e file extension See Dollar Limits under Section 179 Expense Deduction , later. Irs e file extension Extension of special depreciation allowance for certain qualified property acquired after December 31, 2007. Irs e file extension . Irs e file extension  You may be able to take a 50% special depreciation allowance for certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. Irs e file extension See Claiming the Special Depreciation Allowance , later. Irs e file extension Expiration of the 3- year recovery period for certain race horses. Irs e file extension  The 3-year recovery period for race horses two years old or younger will expire for such horses placed in service after December 31, 2013. Irs e file extension Introduction If you buy or make improvements to farm property such as machinery, equipment, livestock, or a structure with a useful life of more than a year, you generally cannot deduct its entire cost in one year. Irs e file extension Instead, you must spread the cost over the time you use the property and deduct part of it each year. Irs e file extension For most types of property, this is called depreciation. Irs e file extension This chapter gives information on depreciation methods that generally apply to property placed in service after 1986. Irs e file extension For information on depreciating pre-1987 property, see Publication 534, Depreciating Property Placed in Service Before 1987. Irs e file extension Topics - This chapter discusses: Overview of depreciation Section 179 expense deduction Special depreciation allowance Modified Accelerated Cost Recovery System (MACRS) Listed property Basic information on cost depletion (including timber depletion) and percentage depletion Amortization of the costs of going into business, reforestation costs, the costs of pollution control facilities, and the costs of section 197 intangibles Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property Form (and Instructions) T (Timber), Forest Activities Schedule 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Irs e file extension It is important to keep good records for property you depreciate. Irs e file extension Do not file these records with your return. Irs e file extension Instead, you should keep them as part of the permanent records of the depreciated property. Irs e file extension They will help you verify the accuracy of the depreciation of assets placed in service in the current and previous tax years. Irs e file extension For general information on recordkeeping, see Publication 583, Starting a Business and Keeping Records. Irs e file extension For specific information on keeping records for section 179 property and listed property, see Publication 946, How To Depreciate Property. Irs e file extension Overview of Depreciation This overview discusses basic information on the following. Irs e file extension What property can be depreciated. Irs e file extension What property cannot be depreciated. Irs e file extension When depreciation begins and ends. Irs e file extension Whether MACRS can be used to figure depreciation. Irs e file extension What is the basis of your depreciable property. Irs e file extension How to treat repairs and improvements. Irs e file extension When you must file Form 4562. Irs e file extension How you can correct depreciation claimed incorrectly. Irs e file extension What Property Can Be Depreciated? You can depreciate most types of tangible property (except land), such as buildings, machinery, equipment, vehicles, certain livestock, and furniture. Irs e file extension You can also depreciate certain intangible property, such as copyrights, patents, and computer software. Irs e file extension To be depreciable, the property must meet all the following requirements. Irs e file extension It must be property you own. Irs e file extension It must be used in your business or income-producing activity. Irs e file extension It must have a determinable useful life. Irs e file extension It must have a useful life that extends substantially beyond the year you place it in service. Irs e file extension Property You Own To claim depreciation, you usually must be the owner of the property. Irs e file extension You are considered as owning property even if it is subject to a debt. Irs e file extension Leased property. Irs e file extension   You can depreciate leased property only if you retain the incidents of ownership in the property. Irs e file extension This means you bear the burden of exhaustion of the capital investment in the property. Irs e file extension Therefore, if you lease property from someone to use in your trade or business or for the production of income, you generally cannot depreciate its cost because you do not retain the incidents of ownership. Irs e file extension You can, however, depreciate any capital improvements you make to the leased property. Irs e file extension See Additions and Improvements under Which Recovery Period Applies in chapter 4 of Publication 946. Irs e file extension   If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. Irs e file extension However, you cannot depreciate the cost of the property if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased. Irs e file extension Life tenant. Irs e file extension   Generally, if you hold business or investment property as a life tenant, you can depreciate it as if you were the absolute owner of the property. Irs e file extension See Certain term interests in property , later, for an exception. Irs e file extension Property Used in Your Business or Income-Producing Activity To claim depreciation on property, you must use it in your business or income-producing activity. Irs e file extension If you use property to produce income (investment use), the income must be taxable. Irs e file extension You cannot depreciate property that you use solely for personal activities. Irs e file extension However, if you use property for business or investment purposes and for personal purposes, you can deduct depreciation based only on the percentage of business or investment use. Irs e file extension Example 1. Irs e file extension   If you use your car for farm business, you can deduct depreciation based on its percentage of use in farming. Irs e file extension If you also use it for investment purposes, you can depreciate it based on its percentage of investment use. Irs e file extension Example 2. Irs e file extension   If you use part of your home for business, you may be able to deduct depreciation on that part based on its business use. Irs e file extension For more information, see Business Use of Your Home in chapter 4. Irs e file extension Inventory. Irs e file extension   You can never depreciate inventory because it is not held for use in your business. Irs e file extension Inventory is any property you hold primarily for sale to customers in the ordinary course of your business. Irs e file extension Livestock. Irs e file extension   Livestock purchased for draft, breeding, or dairy purposes can be depreciated only if they are not kept in an inventory account. Irs e file extension Livestock you raise usually has no depreciable basis because the costs of raising them are deducted and not added to their basis. Irs e file extension However, see Immature livestock under When Does Depreciation Begin and End , later, for a special rule. Irs e file extension Property Having a Determinable Useful Life To be depreciable, your property must have a determinable useful life. Irs e file extension This means it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Irs e file extension Irrigation systems and water wells. Irs e file extension   Irrigation systems and wells used in a trade or business can be depreciated if their useful life can be determined. Irs e file extension You can depreciate irrigation systems and wells composed of masonry, concrete, tile, metal, or wood. Irs e file extension In addition, you can depreciate costs for moving dirt to construct irrigation systems and water wells composed of these materials. Irs e file extension However, land preparation costs for center pivot irrigation systems are not depreciable. Irs e file extension Dams, ponds, and terraces. Irs e file extension   In general, you cannot depreciate earthen dams, ponds, and terraces unless the structures have a determinable useful life. Irs e file extension What Property Cannot Be Depreciated? Certain property cannot be depreciated, even if the requirements explained earlier are met. Irs e file extension This includes the following. Irs e file extension Land. Irs e file extension You can never depreciate the cost of land because land does not wear out, become obsolete, or get used up. Irs e file extension The cost of land generally includes the cost of clearing, grading, planting, and landscaping. Irs e file extension Although you cannot depreciate land, you can depreciate certain costs incurred in preparing land for business use. Irs e file extension See chapter 1 of Publication 946. Irs e file extension Property placed in service and disposed of in the same year. Irs e file extension Determining when property is placed in service is explained later. Irs e file extension Equipment used to build capital improvements. Irs e file extension You must add otherwise allowable depreciation on the equipment during the period of construction to the basis of your improvements. Irs e file extension Intangible property such as section 197 intangibles. Irs e file extension This property does not have a determinable useful life and generally cannot be depreciated. Irs e file extension However, see Amortization , later. Irs e file extension Special rules apply to computer software (discussed below). Irs e file extension Certain term interests (discussed below). Irs e file extension Computer software. Irs e file extension   Computer software is generally not a section 197 intangible even if acquired in connection with the acquisition of a business, if it meets all of the following tests. Irs e file extension It is readily available for purchase by the general public. Irs e file extension It is subject to a nonexclusive license. Irs e file extension It has not been substantially modified. Irs e file extension   If the software meets the tests above, it can be depreciated and may qualify for the section 179 expense deduction and the special depreciation allowance (if applicable), discussed later. Irs e file extension Certain term interests in property. Irs e file extension   You cannot depreciate a term interest in property created or acquired after July 27, 1989, for any period during which the remainder interest is held, directly or indirectly, by a person related to you. Irs e file extension This rule does not apply to the holder of a term interest in property acquired by gift, bequest, or inheritance. Irs e file extension For more information, see chapter 1 of Publication 946. Irs e file extension When Does Depreciation Begin and End? You begin to depreciate your property when you place it in service for use in your trade or business or for the production of income. Irs e file extension You stop depreciating property either when you have fully recovered your cost or other basis or when you retire it from service, whichever happens first. Irs e file extension Placed in Service Property is placed in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. Irs e file extension Even if you are not using the property, it is in service when it is ready and available for its specific use. Irs e file extension Example. Irs e file extension You bought a planter for use in your farm business. Irs e file extension The planter was delivered in December 2012 after harvest was over. Irs e file extension You begin to depreciate the planter for 2012 because it was ready and available for its specific use in 2012, even though it will not be used until the spring of 2013. Irs e file extension If your planter comes unassembled in December 2012 and is put together in February 2013, it is not placed in service until 2013. Irs e file extension You begin to depreciate it in 2013. Irs e file extension If your planter was delivered and assembled in February 2013 but not used until April 2013, it is placed in service in February 2013, because this is when the planter was ready for its specified use. Irs e file extension You begin to depreciate it in 2013. Irs e file extension Fruit or nut trees and vines. Irs e file extension   If you acquire an orchard, grove, or vineyard before the trees or vines have reached the income-producing stage, and they have a preproductive period of more than 2 years, you must capitalize the preproductive-period costs under the uniform capitalization rules (unless you elect not to use these rules). Irs e file extension See chapter 6 for information about the uniform capitalization rules. Irs e file extension Your depreciation begins when the trees and vines reach the income-producing stage (that is, when they bear fruit, nuts, or grapes in quantities sufficient to commercially warrant harvesting). Irs e file extension Immature livestock. Irs e file extension   Depreciation for livestock begins when the livestock reaches the age of maturity. Irs e file extension If you bought immature livestock for drafting purposes, depreciation begins when they can be worked. Irs e file extension If you bought immature livestock for dairy purposes, depreciation begins when they can be milked. Irs e file extension If you bought immature livestock for breeding purposes, depreciation begins when they can be bred. Irs e file extension Your basis for depreciation is your initial cost for the immature livestock. Irs e file extension Idle Property Continue to claim a deduction for depreciation on property used in your business or for the production of income even if it is temporarily idle. Irs e file extension For example, if you stop using a machine because there is a temporary lack of a market for a product made with that machine, continue to deduct depreciation on the machine. Irs e file extension Cost or Other Basis Fully Recovered You stop depreciating property when you have fully recovered your cost or other basis. Irs e file extension This happens when your section 179 and allowed or allowable depreciation deductions equal your cost or investment in the property. Irs e file extension Retired From Service You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. Irs e file extension You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events. Irs e file extension You sell or exchange the property. Irs e file extension You convert the property to personal use. Irs e file extension You abandon the property. Irs e file extension You transfer the property to a supplies or scrap account. Irs e file extension The property is destroyed. Irs e file extension For information on abandonment of property, see chapter 8. Irs e file extension For information on destroyed property, see chapter 11 and Publication 547, Casualties, Disasters, and Thefts. Irs e file extension Can You Use MACRS To Depreciate Your Property? You must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate most business and investment property placed in service after 1986. Irs e file extension MACRS is explained later under Figuring Depreciation Under MACRS . Irs e file extension You cannot use MACRS to depreciate the following property. Irs e file extension Property you placed in service before 1987. Irs e file extension Use the methods discussed in Publication 534. Irs e file extension Certain property owned or used in 1986. Irs e file extension See chapter 1 of Publication 946. Irs e file extension Intangible property. Irs e file extension Films, video tapes, and recordings. Irs e file extension Certain corporate or partnership property acquired in a nontaxable transfer. Irs e file extension Property you elected to exclude from MACRS. Irs e file extension For more information, see chapter 1 of Publication 946. Irs e file extension What Is the Basis of Your Depreciable Property? To figure your depreciation deduction, you must determine the basis of your property. Irs e file extension To determine basis, you need to know the cost or other basis of your property. Irs e file extension Cost or other basis. Irs e file extension   The basis of property you buy is usually its cost plus amounts you paid for items such as sales tax, freight charges, and installation and testing fees. Irs e file extension The cost includes the amount you pay in cash, debt obligations, other property, or services. Irs e file extension   There are times when you cannot use cost as basis. Irs e file extension In these situations, the fair market value (FMV) or the adjusted basis of the property may be used. Irs e file extension Adjusted basis. Irs e file extension   To find your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service. Irs e file extension Basis adjustment for depreciation allowed or allowable. Irs e file extension   After you place your property in service, you must reduce the basis of the property by the depreciation allowed or allowable, whichever is greater. Irs e file extension Depreciation allowed is depreciation you actually deducted (from which you received a tax benefit). Irs e file extension Depreciation allowable is depreciation you are entitled to deduct. Irs e file extension   If you do not claim depreciation you are entitled to deduct, you must still reduce the basis of the property by the full amount of depreciation allowable. Irs e file extension   If you deduct more depreciation than you should, you must reduce your basis by any amount deducted from which you received a tax benefit (the depreciation allowed). Irs e file extension   For more information, see chapter 6. Irs e file extension How Do You Treat Repairs and Improvements? You generally deduct the cost of repairing business property in the same way as any other business expense. Irs e file extension However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it. Irs e file extension Treat improvements as separate depreciable property. Irs e file extension See chapter 1 of Publication 946 for more information. Irs e file extension Example. Irs e file extension You repair a small section on a corner of the roof of a barn that you rent to others. Irs e file extension You deduct the cost of the repair as a business expense. Irs e file extension However, if you replace the entire roof, the new roof is considered to be an improvement because it increases the value and lengthens the life for the property. Irs e file extension You depreciate the cost of the new roof. Irs e file extension Improvements to rented property. Irs e file extension   You can depreciate permanent improvements you make to business property you rent from someone else. Irs e file extension Do You Have To File Form 4562? Use Form 4562 to claim your deduction for depreciation and amortization. Irs e file extension You must complete and attach Form 4562 to your tax return if you are claiming any of the following. Irs e file extension A section 179 expense deduction for the current year or a section 179 carryover from a prior year. Irs e file extension Depreciation for property placed in service during the current year. Irs e file extension Depreciation on any vehicle or other listed property, regardless of when it was placed in service. Irs e file extension Amortization of costs that began in the current year. Irs e file extension For more information, see the Instructions for Form 4562. Irs e file extension How Do You Correct Depreciation Deductions? If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. Irs e file extension You can file an amended return to correct the amount of depreciation claimed for any property in any of the following situations. Irs e file extension You claimed the incorrect amount because of a mathematical error made in any year. Irs e file extension You claimed the incorrect amount because of a posting error made in any year, for example, omitting an asset from the depreciation schedule. Irs e file extension You have not adopted a method of accounting for the property placed in service by you in tax years ending after December 29, 2003. Irs e file extension You claimed the incorrect amount on property placed in service by you in tax years ending before December 30, 2003. Irs e file extension Note. Irs e file extension You have adopted a method of accounting if you used the same incorrect method of depreciation for two or more consecutively filed returns. Irs e file extension If you are not allowed to make the correction on an amended return, you may be able to change your accounting method to claim the correct amount of depreciation. Irs e file extension See the Instructions for Form 3115. Irs e file extension Section 179 Expense Deduction You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. Irs e file extension This is the section 179 expense deduction. Irs e file extension You can elect the section 179 expense deduction instead of recovering the cost by taking depreciation deductions. Irs e file extension This part of the chapter explains the rules for the section 179 expense deduction. Irs e file extension It explains what property qualifies for the deduction, what property does not qualify for the deduction, the limits that may apply, how to elect the deduction, and when you may have to recapture the deduction. Irs e file extension For more information, see chapter 2 of Publication 946. Irs e file extension What Property Qualifies? To qualify for the section 179 expense deduction, your property must meet all the following requirements. Irs e file extension It must be eligible property. Irs e file extension It must be acquired for business use. Irs e file extension It must have been acquired by purchase. Irs e file extension Eligible Property To qualify for the section 179 expense deduction, your property must be one of the following types of depreciable property. Irs e file extension Tangible personal property. Irs e file extension Qualified real property. Irs e file extension (Special rules apply to qualified real property that you elect to treat as qualified section 179 real property. Irs e file extension For more information, see chapter 2 of Publication 946 and section 179(f) of the Internal Revenue Code. Irs e file extension ) Other tangible property (except buildings and their structural components) used as: An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services; A research facility used in connection with any of the activities in (a) above; or A facility used in connection with any of the activities in (a) for the bulk storage of fungible commodities. Irs e file extension Single purpose agricultural (livestock) or horticultural structures. Irs e file extension Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum. Irs e file extension Off-the-shelf computer software that is readily available for purchase by the general public, is subject to a nonexclusive lease, and has not been substantially modified. Irs e file extension Tangible personal property. Irs e file extension   Tangible personal property is any tangible property that is not real property. Irs e file extension It includes the following property. Irs e file extension Machinery and equipment. Irs e file extension Property contained in or attached to a building (other than structural components), such as milk tanks, automatic feeders, barn cleaners, and office equipment. Irs e file extension Gasoline storage tanks and pumps at retail service stations. Irs e file extension Livestock, including horses, cattle, hogs, sheep, goats, and mink and other fur-bearing animals. Irs e file extension Facility used for the bulk storage of fungible commodities. Irs e file extension   A facility used for the bulk storage of fungible commodities is qualifying property for purposes of the section 179 expense deduction if it is used in connection with any of the activities listed earlier in item (3)(a). Irs e file extension Bulk storage means the storage of a commodity in a large mass before it is used. Irs e file extension Grain bins. Irs e file extension   A grain bin is an example of a storage facility that is qualifying section 179 property. Irs e file extension It is a facility used in connection with the production of grain or livestock for the bulk storage of fungible commodities. Irs e file extension Single purpose agricultural or horticultural structures. Irs e file extension   A single purpose agricultural (livestock) or horticultural structure is qualifying property for purposes of the section 179 expense deduction. Irs e file extension Agricultural structure. Irs e file extension   A single purpose agricultural (livestock) structure is any building or enclosure specifically designed, constructed, and used for both the following reasons. Irs e file extension To house, raise, and feed a particular type of livestock and its produce. Irs e file extension To house the equipment, including any replacements, needed to house, raise, or feed the livestock. Irs e file extension For this purpose, livestock includes poultry. Irs e file extension   Single purpose structures are qualifying property if used, for example, to breed chickens or hogs, produce milk from dairy cattle, or produce feeder cattle or pigs, broiler chickens, or eggs. Irs e file extension The facility must include, as an integral part of the structure or enclosure, equipment necessary to house, raise, and feed the livestock. Irs e file extension Horticultural structure. Irs e file extension   A single purpose horticultural structure is either of the following. Irs e file extension A greenhouse specifically designed, constructed, and used for the commercial production of plants. Irs e file extension A structure specifically designed, constructed, and used for the commercial production of mushrooms. Irs e file extension Use of structure. Irs e file extension   A structure must be used only for the purpose that qualified it. Irs e file extension For example, a hog barn will not be qualifying property if you use it to house poultry. Irs e file extension Similarly, using part of your greenhouse to sell plants will make the greenhouse nonqualifying property. Irs e file extension   If a structure includes work space, the work space can be used only for the following activities. Irs e file extension Stocking, caring for, or collecting livestock or plants or their produce. Irs e file extension Maintaining the enclosure or structure. Irs e file extension Maintaining or replacing the equipment or stock enclosed or housed in the structure. Irs e file extension Property Acquired by Purchase To qualify for the section 179 expense deduction, your property must have been acquired by purchase. Irs e file extension For example, property acquired by gift or inheritance does not qualify. Irs e file extension Property acquired from a related person (that is, your spouse, ancestors, or lineal descendants) is not considered acquired by purchase. Irs e file extension Example. Irs e file extension Ken is a farmer. Irs e file extension He purchased two tractors, one from his brother and one from his father. Irs e file extension He placed both tractors in service in the same year he bought them. Irs e file extension The tractor purchased from his father does not qualify for the section 179 expense deduction because he is a related person (as defined above). Irs e file extension The tractor purchased from his brother does qualify for the deduction because Ken is not a related person (as defined above). Irs e file extension What Property Does Not Qualify? Land and improvements. Irs e file extension   Land and land improvements, do not qualify as section 179 property. Irs e file extension Land improvements include nonagricultural fences, swimming pools, paved parking areas, wharves, docks, bridges, and fences. Irs e file extension However, agricultural fences do qualify as section 179 property. Irs e file extension Similarly, field drainage tile also qualifies as section 179 property. Irs e file extension Excepted property. Irs e file extension   Even if the requirements explained in the preceding discussions are met, farmers cannot elect the section 179 expense deduction for the following property. Irs e file extension Certain property you lease to others (if you are a noncorporate lessor). Irs e file extension Certain property used predominantly to furnish lodging or in connection with the furnishing of lodging. Irs e file extension Property used by a tax-exempt organization (other than a tax-exempt farmers' cooperative) unless the property is used mainly in a taxable unrelated trade or business. Irs e file extension Property used by governmental units or foreign persons or entities (except property used under a lease with a term of less than 6 months). Irs e file extension How Much Can You Deduct? Your section 179 expense deduction is generally the cost of the qualifying property. Irs e file extension However, the total amount you can elect to deduct under section 179 is subject to a dollar limit and a business income limit. Irs e file extension These limits apply to each taxpayer, not to each business. Irs e file extension However, see Married individuals under Dollar Limits , later. Irs e file extension See also the special rules for applying the limits for partnerships and S corporations under Partnerships and S Corporations , later. Irs e file extension If you deduct only part of the cost of qualifying property as a section 179 expense deduction, you can generally depreciate the cost you do not deduct. Irs e file extension Use Part I of Form 4562 to figure your section 179 expense deduction. Irs e file extension Partial business use. Irs e file extension   When you use property for business and nonbusiness purposes, you can elect the section 179 expense deduction only if you use it more than 50% for business in the year you place it in service. Irs e file extension If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. Irs e file extension Use the resulting business cost to figure your section 179 expense deduction. Irs e file extension Trade-in of other property. Irs e file extension   If you buy qualifying property with cash and a trade-in, its cost for purposes of the section 179 expense deduction includes only the cash you paid. Irs e file extension For example, if you buy (for cash and a trade-in) a new tractor for use in your business, your cost for the section 179 expense deduction is the cash you paid. Irs e file extension It does not include the adjusted basis of the old tractor you trade for the new tractor. Irs e file extension Example. Irs e file extension J-Bar Farms traded two cultivators having a total adjusted basis of $6,800 for a new cultivator costing $13,200. Irs e file extension They received an $8,000 trade-in allowance for the old cultivators and paid $5,200 cash for the new cultivator. Irs e file extension J-Bar also traded a used pickup truck with an adjusted basis of $8,000 for a new pickup truck costing $35,000. Irs e file extension They received a $5,000 trade-in allowance and paid $30,000 cash for the new pickup truck. Irs e file extension Only the cash paid by J-Bar qualifies for the section 179 expense deduction. Irs e file extension J-Bar's business costs that qualify for a section 179 expense deduction are $35,200 ($5,200 + $30,000). Irs e file extension Dollar Limits The total amount you can elect to deduct under section 179 for most property placed in service in 2013 is $500,000. Irs e file extension If you acquire and place in service more than one item of qualifying property during the year, you can allocate the section 179 expense deduction among the items in any way, as long as the total deduction is not more than $500,000. Irs e file extension Qualified real property that you elect to treat as section 179 property is limited to $250,000 of the maximum section 179 deduction of $500,000 for 2013. Irs e file extension You do not have to claim the full $500,000. Irs e file extension For specific information on the section 179 dollar limits, see chapter 2 of Publication 946. Irs e file extension Reduced dollar limit for cost exceeding $2 million. Irs e file extension   If the cost of your qualifying section 179 property placed in service in 2013 is over $2 million, you must reduce the dollar limit (but not below zero) by the amount of cost over $2 million. Irs e file extension 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 expense deduction and you cannot carry over the cost that is more than $2,500,000. Irs e file extension Example. Irs e file extension This year, James Smith placed in service machinery costing $2,050,000. Irs e file extension Because this cost is $50,000 more than $2 million, he must reduce his dollar limit to $450,000 ($500,000 − $50,000). Irs e file extension Limits for sport utility vehicles. Irs e file extension   The total amount you can elect to deduct for certain sport utility vehicles and certain other vehicles placed in service in 2013 is $25,000. Irs e file extension This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, and highways that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. Irs e file extension   For more information, see chapter 2 of Publication 946. Irs e file extension Limits for passenger automobiles. Irs e file extension   For a passenger automobile that is placed in service in 2013, the total section 179 and depreciation deduction is limited. Irs e file extension See Do the Passenger Automobile Limits Apply , later. Irs e file extension Married individuals. Irs e file extension   If you are married, how you figure your section 179 expense deduction depends on whether you file jointly or separately. Irs e file extension If you 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 e file extension If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit, including the reduction for costs over $2 million. Irs e file extension You must allocate the dollar limit (after any reduction) equally between you, unless you both elect a different allocation. Irs e file extension If the percentages elected by each of you do not total 100%, 50% will be allocated to each of you. Irs e file extension Joint return after separate returns. Irs e file extension   If you and your spouse elect to amend your separate returns by filing a joint return after the due date for filing your return, the dollar limit on the joint return is the lesser of the following amounts. Irs e file extension The dollar limit (after reduction for any cost of section 179 property over $2 million). Irs e file extension The total cost of section 179 property you and your spouse elected to expense on your separate returns. Irs e file extension Business Income Limit The total cost you can deduct each year after you apply the dollar limit is limited to the taxable income from the active conduct of any trade or business during the year. Irs e file extension Generally, you are considered to actively conduct a trade or business if you meaningfully participate in the management or operations of the trade or business. Irs e file extension Any cost not deductible in one year under section 179 because of this limit can be carried to the next year. Irs e file extension See Carryover of disallowed deduction , later. Irs e file extension Taxable income. Irs e file extension   In general, figure taxable income for this purpose by totaling the net income and losses from all trades and businesses you actively conducted during the year. Irs e file extension In addition to net income or loss from a sole proprietorship, partnership, or S corporation, net income or loss derived from a trade or business also includes the following items. Irs e file extension Section 1231 gains (or losses) as discussed in chapter 9. Irs e file extension Interest from working capital of your trade or business. Irs e file extension Wages, salaries, tips, or other pay earned by you (or your spouse if you file a joint return) as an employee of any employer. Irs e file extension   In addition, figure taxable income without regard to any of the following. Irs e file extension The section 179 expense deduction. Irs e file extension The self-employment tax deduction. Irs e file extension Any net operating loss carryback or carryforward. Irs e file extension Any unreimbursed employee business expenses. Irs e file extension Two different taxable income limits. Irs e file extension   In addition to the business income limit for your section 179 expense deduction, you may have a taxable income limit for some other deduction (for example, charitable contributions). Irs e file extension You may have to figure the limit for this other deduction taking into account the section 179 expense deduction. Irs e file extension If so, complete the following steps. Irs e file extension Step Action 1 Figure taxable income without the section 179 expense deduction or the other deduction. Irs e file extension 2 Figure a hypothetical section 179 expense deduction using the taxable income figured in Step 1. Irs e file extension 3 Subtract the hypothetical section 179 expense deduction figured in Step 2 from the taxable income figured in Step 1. Irs e file extension 4 Figure a hypothetical amount for the other deduction using the amount figured in Step 3 as taxable income. Irs e file extension 5 Subtract the hypothetical other deduction figured in Step 4 from the taxable income figured in  Step 1. Irs e file extension 6 Figure your actual section 179 expense deduction using the taxable income figured in Step 5. Irs e file extension 7 Subtract your actual section 179 expense deduction figured in Step 6 from the taxable income figured in Step 1. Irs e file extension 8 Figure your actual other deduction using the taxable income figured in Step 7. Irs e file extension Example. Irs e file extension On February 1, 2013, the XYZ farm corporation purchased and placed in service qualifying section 179 property that cost $500,000. Irs e file extension It elects to expense the entire $500,000 cost under section 179. Irs e file extension In June, the corporation gave a charitable contribution of $10,000. Irs e file extension A corporation's limit on charitable contributions is figured after subtracting any section 179 expense deduction. Irs e file extension The business income limit for the section 179 expense deduction is figured after subtracting any allowable charitable contributions. Irs e file extension XYZ's taxable income figured without the section 179 expense deduction or the deduction for charitable contributions is $520,000. Irs e file extension XYZ figures its section 179 expense deduction and its deduction for charitable contributions as follows. Irs e file extension Step 1. Irs e file extension Taxable income figured without either deduction is $520,000. Irs e file extension Step 2. Irs e file extension Using $520,000 as taxable income, XYZ's hypothetical section 179 expense deduction is $500,000. Irs e file extension Step 3. Irs e file extension $20,000 ($520,000 − $500,000). Irs e file extension Step 4. Irs e file extension Using $20,000 (from Step 3) as taxable income, XYZ's hypothetical charitable contribution (limited to 10% of taxable income) is $2,000. Irs e file extension Step 5. Irs e file extension $518,000 ($520,000 − $2,000). Irs e file extension Step 6. Irs e file extension Using $518,000 (from Step 5) as taxable income, XYZ figures the actual section 179 expense deduction. Irs e file extension Because the taxable income is at least $500,000, XYZ can take a $500,000 section 179 expense deduction. Irs e file extension Step 7. Irs e file extension $20,000 ($520,000 − $500,000). Irs e file extension Step 8. Irs e file extension Using $20,000 (from Step 7) as taxable income, XYZ's actual charitable contribution (limited to 10% of taxable income) is $2,000. Irs e file extension Carryover of disallowed deduction. Irs e file extension   You can carry over for an unlimited number of years the cost of any section 179 property you elected to expense but were unable to because of the business income limit. Irs e file extension   The amount you carry over is used in determining your section 179 expense deduction in the next year. Irs e file extension However, it is subject to the limits in that year. Irs e file extension If you place more than one property in service in a year, you can select the properties for which all or a part of the cost will be carried forward. Irs e file extension Your selections must be shown in your books and records. Irs e file extension Example. Irs e file extension Last year, Joyce Jones placed in service a machine that cost $8,000 and elected to deduct all $8,000 under section 179. Irs e file extension The taxable income from her business (determined without regard to both a section 179 expense deduction for the cost of the machine and the self-employment tax deduction) was $6,000. Irs e file extension Her section 179 expense deduction was limited to $6,000. Irs e file extension The $2,000 cost that was not allowed as a section 179 expense deduction (because of the business income limit) is carried to this year. Irs e file extension This year, Joyce placed another machine in service that cost $9,000. Irs e file extension Her taxable income from business (determined without regard to both a section 179 expense deduction for the cost of the machine and the self-employment tax deduction) is $10,000. Irs e file extension Joyce can deduct the full cost of the machine ($9,000) but only $1,000 of the carryover from last year because of the business income limit. Irs e file extension She can carry over the balance of $1,000 to next year. Irs e file extension Partnerships and S Corporations The section 179 expense deduction limits apply both to the partnership or S corporation and to each partner or shareholder. Irs e file extension The partnership or S corporation determines its section 179 expense deduction subject to the limits. Irs e file extension It then allocates the deduction among its partners or shareholders. Irs e file extension If you are a partner in a partnership or shareholder of an S corporation, you add the amount allocated from the partnership or S corporation to any section 179 costs not related to the partnership or S corporation and then apply the dollar limit to this total. Irs e file extension To determine any reduction in the dollar limit for costs over $560,000, you do not include any of the cost of section 179 property placed in service by the partnership or S corporation. Irs e file extension After you apply the dollar limit, you apply the business income limit to any remaining section 179 costs. Irs e file extension For more information, see chapter 2 of Publication 946. Irs e file extension Example. Irs e file extension In 2013, Partnership P placed in service section 179 property with a total cost of $2,160,000. Irs e file extension P must reduce its dollar limit by $160,000 ($2,160,000 − $2,000,000). Irs e file extension Its maximum section 179 expense deduction is $340,000 ($500,000 − $160,000), and it elects to expense that amount. Irs e file extension Because P's taxable income from the active conduct of all its trades or businesses for the year was $400,000, it can deduct the full $340,000. Irs e file extension P allocates $100,000 of its section 179 expense deduction and $110,000 of its taxable income to John, one of its partners. Irs e file extension John also conducts a business as a sole proprietor and in 2013, placed in service in that business, section 179 property costing $28,000. Irs e file extension John's taxable income from that business was $10,000. Irs e file extension In addition to the $100,000 allocated from P, he elects to expense the $28,000 of his sole proprietorship's section 179 costs. Irs e file extension However, John's deduction is limited to his business taxable income of $120,000 ($110,000 from P plus $10,000 from his sole proprietorship). Irs e file extension He carries over $8,000 ($128,000 − $120,000) of the elected section 179 costs to 2014. Irs e file extension How Do You Elect the Deduction? You elect to take the section 179 expense deduction by completing Part I of Form 4562. Irs e file extension If you elect the deduction for listed property, complete Part V of  Form 4562 before completing Part I. Irs e file extension   File Form 4562 with either of the following: Your original tax return (whether or not you filed it timely), or An amended return filed within the time prescribed by law. Irs e file extension 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 e file extension The amended return must also include any resulting adjustments to taxable income. Irs e file extension Revoking an election. Irs e file extension   An election (or any specification made in the election) to take a section 179 expense deduction for 2013 can be revoked without IRS approval by filing an amended return. Irs e file extension The amended return must be filed within the time prescribed by law. Irs e file extension The amended return must also include any resulting adjustments to taxable income (for example, allowable depreciation in that tax year for the item of section 179 property for which the election pertains. Irs e file extension ) Once made, the revocation is irrevocable. Irs e file extension When Must You Recapture the Deduction? You may have to recapture the section 179 expense deduction if, in any year during the property's recovery period, the percentage of business use drops to 50% or less. Irs e file extension In the year the business use drops to 50% or less, you include the recapture amount as ordinary income. Irs e file extension You also increase the basis of the property by the recapture amount. Irs e file extension Recovery periods for property are discussed later. Irs e file extension If you sell, exchange, or otherwise dispose of the property, do not figure the recapture amount under the rules explained in this discussion. Irs e file extension Instead, use the rules for recapturing depreciation explained in  chapter 9 under Section 1245 Property. Irs e file extension   If the property is listed property, do not figure the recapture amount under the rules explained in this discussion when the percentage of business use drops to 50% or less. Irs e file extension Instead, use the rules for recapturing depreciation explained in chapter 5 of Publication 946 under Recapture of Excess Depreciation. Irs e file extension Figuring the recapture amount. Irs e file extension   To figure the amount to recapture, take the following steps. Irs e file extension Figure the allowable depreciation for the section 179 expense deduction you claimed. Irs e file extension Begin with the year you placed the property in service and include the year of recapture. Irs e file extension Subtract the depreciation figured in (1) from the section 179 expense deduction you actually claimed. Irs e file extension The result is the amount you must recapture. Irs e file extension Example. Irs e file extension In January 2011, Paul Lamb, a calendar year taxpayer, bought and placed in service section 179 property costing $10,000. Irs e file extension The property is not listed property. Irs e file extension He elected a $5,000 section 179 expense deduction for the property and also elected not to claim a special depreciation allowance. Irs e file extension He used the property only for business in 2011 and 2012. Irs e file extension During 2013, he used the property 40% for business and 60% for personal use. Irs e file extension He figures his recapture amount as follows. Irs e file extension Section 179 expense deduction claimed (2011) $5,000 Minus: Allowable depreciation (instead of section 179 expense deduction):   2011 $1,250   2012 1,875   2013 ($1,250 × 40% (business)) 500 3,625 2013 — Recapture amount $1,375     Paul must include $1,375 in income for 2013. Irs e file extension Where to report recapture. Irs e file extension   Report any recapture of the section 179 expense deduction as ordinary income in Part IV of Form 4797 and include it in income on Schedule F (Form 1040). Irs e file extension Recapture for qualified section 179 GO Zone property. Irs e file extension   If any qualified section 179 GO Zone property ceases to be used in the GO Zone in a later year, you must recapture the benefit of the increased section 179 expense deduction as “other income. Irs e file extension ” Claiming the Special Depreciation Allowance For qualified property (defined below) placed in service in 2013, you can take an additional 50% special depreciation allowance. Irs e file extension The allowance is an additional deduction you can take after any section 179 expense deduction and before you figure regular depreciation under MACRS. Irs e file extension Figure the special depreciation allowance by multiplying the depreciable basis of the qualified property by 50%. Irs e file extension What is Qualified Property? For farmers, qualified property generally is certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. Irs e file extension Certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. Irs e file extension   Certain qualified property (defined below) acquired after December 31, 2007, and before January 1, 2014, is eligible for a 50% special depreciation allowance. Irs e file extension   Qualified property includes the following: Tangible property depreciated under the Modified Accelerated Cost Recovery System (MACRS) with a recovery period of 20 years or less. Irs e file extension Water utility property. Irs e file extension Off-the-shelf computer software. Irs e file extension Qualified leasehold improvement property. Irs e file extension   Qualified property must also meet all of the following tests: You must have acquired qualified property by purchase after December 31, 2007. Irs e file extension If a binding contract to acquire the property existed before January 1, 2008, the property does not qualify. Irs e file extension Qualified property must be placed in service after December 31, 2007 and placed in service before January 1, 2014 (before January 1, 2015 for certain property with a long production period and for certain aircraft). Irs e file extension The original use of the property must begin with you after December 31, 2007. Irs e file extension For more information, see chapter 3 of Publication 946. Irs e file extension How Can You Elect Not To Claim the Allowance? You can elect, for any class of property, not to deduct the special depreciation allowance for all property in such class placed in service during the tax year. Irs e file extension To make the election, attach a statement to your return indicating the class of property for which you are making the election. Irs e file extension Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Irs e file extension However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Irs e file extension Attach the election statement to the amended return. Irs e file extension On the amended return, write “Filed pursuant to section 301. Irs e file extension 9100-2. Irs e file extension ” Once made, the election may not be revoked without IRS consent. Irs e file extension If you elect not to have the special depreciation allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. Irs e file extension When Must You Recapture an Allowance When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. Irs e file extension For more information, see chapter 3 of Publication 946. Irs e file extension Figuring Depreciation Under MACRS The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986. Irs e file extension MACRS consists of two depreciation systems, the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). Irs e file extension Generally, these systems provide different methods and recovery periods to use in figuring depreciation deductions. Irs e file extension To be sure you can use MACRS to figure depreciation for your property, see Can You Use MACRS To Depreciate Your Property, earlier. Irs e file extension This part explains how to determine which MACRS depreciation system applies to your property. Irs e file extension It also discusses the following information that you need to know before you can figure depreciation under MACRS. Irs e file extension Property's recovery class. Irs e file extension Placed-in-service date. Irs e file extension Basis for depreciation. Irs e file extension Recovery period. Irs e file extension Convention. Irs e file extension Depreciation method. Irs e file extension Finally, this part explains how to use this information to figure your depreciation deduction. Irs e file extension Which Depreciation System (GDS or ADS) Applies? Your use of either the General Depreciation System (GDS) or the Alternative Depreciation System (ADS) to depreciate property under MACRS determines what depreciation method and recovery period you use. Irs e file extension You generally must use GDS unless you are specifically required by law to use ADS or you elect to use ADS. Irs e file extension Required use of ADS. Irs e file extension   You must use ADS for the following property. Irs e file extension All property used predominantly in a farming business and placed in service in any tax year during which an election not to apply the uniform capitalization rules to certain farming costs is in effect. Irs e file extension Listed property used 50% or less in a qualified business use. Irs e file extension See Additional Rules for Listed Property , later. Irs e file extension Any tax-exempt use property. Irs e file extension Any tax-exempt bond-financed property. Irs e file extension Any property imported from a foreign country for which an Executive Order is in effect because the country maintains trade restrictions or engages in other discriminatory acts. Irs e file extension Any tangible property used predominantly outside the United States during the year. Irs e file extension If you are required to use ADS to depreciate your property, you cannot claim the special depreciation allowance. Irs e file extension Electing ADS. Irs e file extension   Although your property may qualify for GDS, you can elect to use ADS. Irs e file extension The election generally must cover all property in the same property class you placed in service during the year. Irs e file extension However, the election for residential rental property and nonresidential real property can be made on a property-by-property basis. Irs e file extension Once you make this election, you can never revoke it. Irs e file extension   You make the election by completing line 20 in Part III of Form 4562. Irs e file extension Which Property Class Applies Under GDS? The following is a list of the nine property classes under GDS. Irs e file extension 3-year property. Irs e file extension 5-year property. Irs e file extension 7-year property. Irs e file extension 10-year property. Irs e file extension 15-year property. Irs e file extension 20-year property. Irs e file extension 25-year property. Irs e file extension Residential rental property. Irs e file extension Nonresidential real property. Irs e file extension See Which Property Class Applies Under GDS in chapter 4 of Publication 946 for examples of the types of property included in each class. Irs e file extension What Is the Placed-in-Service Date? You begin to claim depreciation when your property is placed in service for use either in a trade or business or for the production of income. Irs e file extension The placed-in-service date for your property is the date the property is ready and available for a specific use. Irs e file extension It is therefore not necessarily the date it is first used. Irs e file extension If you converted property held for personal use to use in a trade or business or for the production of income, treat the property as being placed in service on the conversion date. Irs e file extension See Placed in Service under When Does Depreciation Begin and End , earlier, for examples illustrating when property is placed in service. Irs e file extension What Is the Basis for Depreciation? The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. Irs e file extension Reduce that amount by any credits and deductions allocable to the property. Irs e file extension The following are examples of some of the credits and deductions that reduce basis. Irs e file extension Any deduction for section 179 property. Irs e file extension Any deduction for removal of barriers to the disabled and the elderly. Irs e file extension Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. Irs e file extension Any special depreciation allowance. Irs e file extension Basis adjustment for investment credit property under section 50(c) of the Internal Revenue Code. Irs e file extension For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property , earlier. Irs e file extension Also, see chapter 6. Irs e file extension For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. Irs e file extension Which Recovery Period Applies? The recovery period of property is the number of years over which you recover its cost or other basis. Irs e file extension It is determined based on the depreciation system (GDS or ADS) used. Irs e file extension See Table 7-1 for recovery periods under both GDS and ADS for some commonly used assets. Irs e file extension For a complete list of recovery periods, see the Table of Class Lives and Recovery Periods in Appendix B of Publication 946. Irs e file extension House trailers for farm laborers. Irs e file extension   To depreciate a house trailer you supply as housing for those who work on your farm, use one of the following recovery periods if the house trailer is mobile (it has wheels and a history of movement). Irs e file extension A 7-year recovery period under GDS. Irs e file extension A 10-year recovery period under ADS. Irs e file extension   However, if the house trailer is not mobile (its wheels have been removed and permanent utilities and pipes attached to it), use one of the following recovery periods. Irs e file extension A 20-year recovery period under GDS. Irs e file extension A 25-year recovery period under ADS. Irs e file extension Water wells. Irs e file extension   Water wells used to provide water for raising poultry and livestock are land improvements. Irs e file extension If they are depreciable, use one of the following recovery periods. Irs e file extension A 15-year recovery period under GDS. Irs e file extension A 20-year recovery period under ADS. Irs e file extension   The types of water wells that can be depreciated were discussed earlier in Irrigation systems and water wells under Property Having a Determinable Useful Life . Irs e file extension Table 7-1. Irs e file extension Farm Property Recovery Periods   Recovery Period in Years Assets GDS ADS Agricultural structures (single purpose) 10 15 Automobiles 5 5 Calculators and copiers 5 6 Cattle (dairy or breeding) 5 7 Communication equipment1 7 10 Computer and peripheral equipment 5 5 Drainage facilities 15 20 Farm buildings2 20 25 Farm machinery and equipment 7 10 Fences (agricultural) 7 10 Goats and sheep (breeding) 5 5 Grain bin 7 10 Hogs (breeding) 3 3 Horses (age when placed in service)     Breeding and working (12 years or less) 7 10 Breeding and working (more than 12 years) 3 10 Racing horses 3 12 Horticultural structures (single purpose) 10 15 Logging machinery and equipment3 5 6 Nonresidential real property 394 40 Office furniture, fixtures, and equipment (not calculators, copiers, or typewriters) 7 10 Paved lots 15 20 Residential rental property 27. Irs e file extension 5 40 Tractor units (over-the-road) 3 4 Trees or vines bearing fruit or nuts 10 20 Truck (heavy duty, unloaded weight 13,000 lbs. Irs e file extension or more) 5 6 Truck (actual weight less than 13,000 lbs) 5 5 Water wells 15 20 1 Not including communication equipment listed in other classes. Irs e file extension 2 Not including single purpose agricultural or horticultural structures. Irs e file extension 3 Used by logging and sawmill operators for cutting of timber. Irs e file extension 4 For property placed in service after May 12, 1993; for property placed in service before May 13, 1993,  the recovery period is 31. Irs e file extension 5 years. Irs e file extension Which Convention Applies? Under MACRS, averaging conventions establish when the recovery period begins and ends. Irs e file extension The convention you use determines the number of months for which you can claim depreciation in the year you place property in service and in the year you dispose of the property. Irs e file extension Use one of the following conventions. Irs e file extension The half-year convention. Irs e file extension The mid-month convention. Irs e file extension The mid-quarter convention. Irs e file extension For a detailed explanation of each convention, see Which Convention Applies in chapter 4 of Publication 946. Irs e file extension Also, see the Instructions for Form 4562. Irs e file extension Which Depreciation Method Applies? MACRS provides three depreciation methods under GDS and one depreciation method under ADS. Irs e file extension The 200% declining balance method over a GDS recovery period. Irs e file extension The 150% declining balance method over a GDS recovery period. Irs e file extension The straight line method over a GDS recovery period. Irs e file extension The straight line method over an ADS recovery period. Irs e file extension Depreciation Table. Irs e file extension   The following table lists the types of property you can depreciate under each method. Irs e file extension The declining balance method is abbreviated as DB and the straight line method is abbreviated as SL. Irs e file extension Depreciation Table System/Method   Type of Property GDS using  150% DB • All property used in a farming business (except real property)   • All 15- and 20-year property   • Nonfarm 3-, 5-, 7-, and 10-year property1 GDS using SL • Nonresidential real property   • Residential rental property   • Trees or vines bearing fruit or nuts   • All 3-, 5-, 7-, 10-, 15-, and 20-year property1 ADS using SL • Property used predomi- nantly outside the United States   • Farm property used when an election not to apply the uniform capitalization rules is in effect   • Tax-exempt property   • Tax-exempt bond-financed property   • Imported property2   • Any property for which you elect to use this method1 GDS using  200% DB • Nonfarm 3-, 5-, 7-, and 10-year property 1Elective method 2See section 168(g)(6) of the Internal Revenue  Code Property used in farming business. Irs e file extension   For personal property placed in service after 1988 in a farming business, you must use the 150% declining balance method over a GDS recovery period or you can elect one of the following methods. Irs e file extension The straight line method over a GDS recovery period. Irs e file extension The straight line method over an ADS recovery period. Irs e file extension For property placed in service before 1999, you could have elected to use the 150% declining balance method using the ADS recovery periods for certain property classes. Irs e file extension If you made this election, continue to use the same method and recovery period for that property. Irs e file extension Real property. Irs e file extension   You can depreciate real property using the straight line method under either GDS or ADS. Irs e file extension Switching to straight line. Irs e file extension   If you use a declining balance method, you switch to the straight line method in the year it provides an equal or greater deduction. Irs e file extension If you use the MACRS percentage tables, discussed later under How Is the Depreciation Deduction Figured , you do not need to determine in which year your deduction is greater using the straight line method. Irs e file extension The tables have the switch to the straight line method built into their rates. Irs e file extension Fruit or nut trees and vines. Irs e file extension   Depreciate trees and vines bearing fruit or nuts under GDS using the straight line method over a 10-year recovery period. Irs e file extension ADS required for some farmers. Irs e file extension   If you elect not to apply the uniform capitalization rules to any plant shown in Table 6-1 of chapter 6 and produced in your farming business, you must use ADS for all property you place in service in any year the election is in effect. Irs e file extension See chapter 6 for a discussion of the application of the uniform capitalization rules to farm property. Irs e file extension Electing a different method. Irs e file extension   As shown in the Depreciation Table , you can elect a different method for depreciation for certain types of property. Irs e file extension You must make the election by the due date of the return (including extensions) for the year you placed the property in service. Irs e file extension However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of your return (excluding extensions). Irs e file extension Attach the election to the amended return and write “Filed pursuant to section 301. Irs e file extension 9100-2” on the election statement. Irs e file extension File the amended return at the same address you filed the original return. Irs e file extension Once you make the election, you cannot change it. Irs e file extension    If you elect to use a different method for one item in a property class, you must apply the same method to all property in that class placed in service during the year of the election. Irs e file extension However, you can make the election on a property-by-property basis for residential rental and nonresidential real property. Irs e file extension Straight line election. Irs e file extension   Instead of using the declining balance method, you can elect to use the straight line method over the GDS recovery period. Irs e file extension Make the election by entering “S/L” under column (f) in Part III of Form 4562. Irs e file extension ADS election. Irs e file extension   As explained earlier under Which Depreciation System (GDS or ADS) Applies , you can elect to use ADS even though your property may come under GDS. Irs e file extension ADS uses the straight line method of depreciation over the ADS recovery periods, which are generally longer than the GDS recovery periods. Irs e file extension The ADS recovery periods for many assets used in the business of farming are listed in Table 7–1. Irs e file extension Additional ADS recovery periods for other classes of property may be found in the Table of Class Lives and Recovery Periods in Appendix B of Publication 946. Irs e file extension How Is the Depreciation Deduction Figured? To figure your depreciation deduction under MACRS, you first determine the depreciation system, property class, placed-in-service date, basis amount, recovery period, convention, and depreciation method that applies to your property. Irs e file extension Then you are ready to figure your depreciation deduction. Irs e file extension You can figure it in one of two ways. Irs e file extension You can use the percentage tables provided by the IRS. Irs e file extension You can figure your own deduction without using the tables. Irs e file extension Figuring your own MACRS deduction will generally result in a slightly different amount than using the tables. Irs e file extension Using the MACRS Percentage Tables To help you figure your deduction under MACRS, the IRS has established percentage tables that incorporate the applicable convention and depreciation method. Irs e file extension These percentage tables are in Appendix A of Publication 946. Irs e file extension Rules for using the tables. Irs e file extension   The following rules cover the use of the percentage tables. Irs e file extension You must apply the rates in the percentage tables to your property's unadjusted basis. Irs e file extension Unadjusted basis is the same basis amount you would use to figure gain on a sale but figured without reducing your original basis by any MACRS depreciation taken in earlier years. Irs e file extension You cannot use the percentage tables for a short tax year. Irs e file extension See chapter 4 of Publication 946 for information on how to figure the deduction for a short tax year. Irs e file extension You generally must continue to use them for the entire recovery period of the property. Irs e file extension You must stop using the tables if you adjust the basis of the property for any reason other than— Depreciation allowed or allowable, or An addition or improvement to the property, which is depreciated as a separate property. Irs e file extension Basis adjustment due to casualty loss. Irs e file extension   If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables. Irs e file extension For the year of the adjustment and the remaining recovery period, you must figure the depreciation yourself using the property's adjusted basis at the end of the year. Irs e file extension See Figuring the Deduction Without Using the Tables in chapter 4 of Publication 946. Irs e file extension Figuring depreciation using the 150% DB method and half-year convention. Irs e file extension    Table 7-2 has the percentages for 3-, 5-, 7-, and 20-year property. Irs e file extension The percentages are based on the 150% declining balance method with a change to the straight line method. Irs e file extension This table covers only the half-year convention and the first 8 years for 20-year property. Irs e file extension See Appendix A in Publication 946 for complete MACRS tables, including tables for the mid-quarter and mid-month convention. Irs e file extension   The following examples show how to figure depreciation under MACRS using the percentages in Table 7-2 . Irs e file extension Example 1. Irs e file extension During the year, you bought an item of 7-year property for $10,000 and placed it in service. Irs e file extension You do not elect a section 179 expense deduction for this property. Irs e file extension In addition, the property is not qualified property for purposes of the special depreciation allowance. Irs e file extension The unadjusted basis of the property is $10,000. Irs e file extension You use the percentages in Table 7-2 to figure your deduction. Irs e file extension Since this is 7-year property, you multiply $10,000 by 10. Irs e file extension 71% to get this year's depreciation of $1,071. Irs e file extension For next year, your depreciation will be $1,913 ($10,000 × 19. Irs e file extension 13%). Irs e file extension Example 2. Irs e file extension You had a barn constructed on your farm at a cost of $20,000. Irs e file extension You placed the barn in service this year. Irs e file extension You elect not to claim the special depreciation allowance. Irs e file extension The barn is 20-year property and you use the table percentages to figure your deduction. Irs e file extension You figure this year's depreciation by multiplying $20,000 (unadjusted basis) by 3. Irs e file extension 75% to get $750. Irs e file extension For next year, your depreciation will be $1,443. Irs e file extension 80 ($20,000 × 7. Irs e file extension 219%). Irs e file extension Table 7-2. Irs e file extension 150% Declining Balance Method (Half-Year Convention) Year 3-Year 5-Year 7-Year 20-Year 1 25. Irs e file extension 0 % 15. Irs e file extension 00 % 10. Irs e file extension 71 % 3. Irs e file extension 750 % 2 37. Irs e file extension 5   25. Irs e file extension 50   19. Irs e file extension 13   7. Irs e file extension 219   3 25. Irs e file extension 0   17. Irs e file extension 85   15. Irs e file extension 03   6. Irs e file extension 677   4 12. Irs e file extension 5   16. Irs e file extension 66   12. Irs e file extension 25   6. Irs e file extension 177   5     16. Irs e file extension 66   12. Irs e file extension 25   5. Irs e file extension 713   6     8. Irs e file extension 33   12. Irs e file extension 25   5. Irs e file extension 285   7         12. Irs e file extension 25   4. Irs e file extension 888   8         6. Irs e file extension 13   4. Irs e file extension 522   Figuring depreciation using the straight line method and half-year convention. Irs e file extension   The following table has the straight line percentages for 3-, 5-, 7-, and 20-year property using the half-year convention. Irs e file extension The table covers only the first 8 years for 20-year property. Irs e file extension See Appendix A in Publication 946 for complete MACRS tables, including tables for the mid-quarter and mid-month convention. Irs e file extension Table 7-3. Irs e file extension Straight Line Method (Half-Year Convention) Year 3-Year 5-Year 7-Year 20-Year 1 16. Irs e file extension 67 % 10 % 7. Irs e file extension 14 % 2. Irs e file extension 5 % 2 33. Irs e file extension 33   20   14. Irs e file extension 29   5. Irs e file extension 0   3 33. Irs e file extension 33   20   14. Irs e file extension 29   5. Irs e file extension 0   4 16. Irs e file extension 67   20   14. Irs e file extension 28   5. Irs e file extension 0   5     20   14. Irs e file extension 29   5. Irs e file extension 0   6     10   14. Irs e file extension 28   5. Irs e file extension 0   7         14. Irs e file extension 29   5. Irs e file extension 0   8         7. Irs e file extension 14   5. Irs e file extension 0