File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Tax Exemptions For Disabled Veterans

Firstgov GovTurbo Tax 2010Irs 1040 FormIrs Free E File 2011Turbo Tax1040x SoftwareTaxcut ComE File Tax PreparationFree Turbo Tax 20122011 Free Efile TaxesHow Do I File My 2012 Taxes LateIrs Com Gov1040 Ez Tax TableHrblock Free FileFile My 2012 TaxesWhere Can I File Just My State Taxes For Free2010 Federal Tax Return FormHow To File A Tax AmendmentIrs Gov Form 1040H&r Block Free MilitaryHr BlockFree Federal And State Tax Filing 2012Free Tax Filing Military2012 Tax Amendment Form1040nr Ez InstructionIrs Gov EfileTurbo Tax For StudentsFree State Taxes Filing2011 10401040ez Tax Form And BookletState Tax Forms And InstructionsWhat If I Did Not File 2011 TaxesWww.irs.govform1040xWhere To File 2012 Federal Income Tax ReturnTax Forms For 2011 Tax Year1040esMilitary Tax Return1040 ATurbotax FreeGov Forms 1040

Tax Exemptions For Disabled Veterans

Tax exemptions for disabled veterans Publication 538 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Tax exemptions for disabled veterans Tax Questions. Tax exemptions for disabled veterans Reminders Useful Items - You may want to see: Introduction Every taxpayer (individuals, business entities, etc. Tax exemptions for disabled veterans ) must figure taxable income on the basis of an annual accounting period called a tax year. Tax exemptions for disabled veterans The calendar year is the most common tax year. Tax exemptions for disabled veterans Other tax years include a fiscal year and a short tax year. Tax exemptions for disabled veterans Each taxpayer must use a consistent accounting method, which is a set of rules for determining when to report income and expenses. Tax exemptions for disabled veterans The most commonly used accounting methods are the cash method and the accrual method. Tax exemptions for disabled veterans Under the cash method, you generally report income in the tax year you receive it, and deduct expenses in the tax year in which you pay them. Tax exemptions for disabled veterans Under the accrual method, you generally report income in the tax year you earn it, regardless of when payment is received. Tax exemptions for disabled veterans You deduct expenses in the tax year you incur them, regardless of when payment is made. Tax exemptions for disabled veterans This publication explains some of the rules for accounting periods and accounting methods. Tax exemptions for disabled veterans In some cases, you may have to refer to other sources for a more in-depth explanation of the topic. Tax exemptions for disabled veterans Comments and suggestions. Tax exemptions for disabled veterans   We welcome your comments about this publication and your suggestions for future editions. Tax exemptions for disabled veterans   You can write to us at the following address: Internal Revenue Service Business, Exempt Organization and International Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Tax exemptions for disabled veterans NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax exemptions for disabled veterans Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax exemptions for disabled veterans   You can email us at taxforms@irs. Tax exemptions for disabled veterans gov. Tax exemptions for disabled veterans Please put “Publications Comment” on the subject line. Tax exemptions for disabled veterans You can also send us comments from www. Tax exemptions for disabled veterans irs. Tax exemptions for disabled veterans gov/formspubs. Tax exemptions for disabled veterans Select “Comment on Tax Forms and Publications” under “More information. Tax exemptions for disabled veterans ”   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax exemptions for disabled veterans Ordering forms and publications. Tax exemptions for disabled veterans   Visit www. Tax exemptions for disabled veterans irs. Tax exemptions for disabled veterans gov/formspubs to download forms and publications, call 1-800–829–3676, or write to the address below and receive a response within 10 days after your request is received. Tax exemptions for disabled veterans Internal Revenue Service 1201 N. Tax exemptions for disabled veterans Mitsubishi Motorway Bloomington, IL 61705-6613 Tax Questions. Tax exemptions for disabled veterans   If you have a tax question, check the information available on IRS. Tax exemptions for disabled veterans gov or call 1-800-829-1040. Tax exemptions for disabled veterans We cannot answer tax questions sent to the above address. Tax exemptions for disabled veterans Reminders Photographs of missing children. Tax exemptions for disabled veterans  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax exemptions for disabled veterans Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax exemptions for disabled veterans You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax exemptions for disabled veterans Useful Items - You may want to see: Publication 537 Installment Sales 541 Partnerships 542 Corporations Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 2553 Election by a Small Business Corporation 3115 Application for Change in Accounting Method 8716 Election To Have a Tax Year Other Than a Required Tax Year See Ordering forms and publications, earlier for information about getting these publications and forms. Tax exemptions for disabled veterans Prev  Up  Next   Home   More Online Publications
Español

Big Business and Corporations

Find information for big business and corporations on financial disclosure, philanthropy, preventing fraud, and more.

    The Tax Exemptions For Disabled Veterans

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