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Where To Mail 1040x

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Where To Mail 1040x

Where to mail 1040x Publication 51 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 51 (Circular A), such as legislation enacted after it was published, go to www. Where to mail 1040x irs. Where to mail 1040x gov/pub51. Where to mail 1040x What's New Social security and Medicare tax for 2014. Where to mail 1040x  The social security tax rate is 6. Where to mail 1040x 2% each for the employee and employer, unchanged from 2013. Where to mail 1040x The social security wage base limit is $117,000. Where to mail 1040x The Medicare tax rate is 1. Where to mail 1040x 45% each for the employee and employer, unchanged from 2013. Where to mail 1040x There is no wage base limit for Medicare tax. Where to mail 1040x Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Where to mail 1040x Withholding allowance. Where to mail 1040x  The 2014 amount for one withholding allowance on an annual basis is $3,950. Where to mail 1040x Change of responsible party. Where to mail 1040x  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Where to mail 1040x Form 8822-B must be filed within 60 days of the change. Where to mail 1040x If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Where to mail 1040x For a definition of "responsible party", see the Form 8822-B instructions. Where to mail 1040x Same-sex marriage. Where to mail 1040x  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Where to mail 1040x For more information, see Revenue Ruling 2013-17, 2013-38 I. Where to mail 1040x R. Where to mail 1040x B. Where to mail 1040x 201, available at www. Where to mail 1040x irs. Where to mail 1040x gov/irb/2013-38_IRB/ar07. Where to mail 1040x html. Where to mail 1040x Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Where to mail 1040x Notice 2013-61, 2013-44 I. Where to mail 1040x R. Where to mail 1040x B. Where to mail 1040x 432, is available at www. Where to mail 1040x irs. Where to mail 1040x gov/irb/2013-44_IRB/ar10. Where to mail 1040x html. Where to mail 1040x Reminders Additional Medicare Tax withholding. Where to mail 1040x  In addition to withholding Medicare tax at 1. Where to mail 1040x 45%, you must withhold a 0. Where to mail 1040x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Where to mail 1040x You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Where to mail 1040x Additional Medicare Tax is only imposed on the employee. Where to mail 1040x There is no employer share of Additional Medicare Tax. Where to mail 1040x All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Where to mail 1040x For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Where to mail 1040x For more information on Additional Medicare Tax, visit IRS. Where to mail 1040x gov and enter “Additional Medicare Tax” in the search box. Where to mail 1040x Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Where to mail 1040x  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Where to mail 1040x Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Where to mail 1040x For more information, visit IRS. Where to mail 1040x gov and enter “work opportunity tax credit” in the search box. Where to mail 1040x Outsourcing payroll duties. Where to mail 1040x  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Where to mail 1040x The employer remains responsible if the third party fails to perform any required action. Where to mail 1040x If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Where to mail 1040x gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Where to mail 1040x COBRA premium assistance credit. Where to mail 1040x  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. Where to mail 1040x For more information, see COBRA premium assistance credit under Introduction. Where to mail 1040x Compensation paid to H-2A foreign agricultural workers. Where to mail 1040x  Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2, Wage and Tax Statement. Where to mail 1040x Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax withholding (line 6) on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. Where to mail 1040x On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. Where to mail 1040x An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Where to mail 1040x In that case, the worker must give the employer a completed Form W-4, Employee's Withholding Allowance Certificate. Where to mail 1040x Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. Where to mail 1040x These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Where to mail 1040x For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. Where to mail 1040x Additional employment tax information. Where to mail 1040x  Visit the IRS website at www. Where to mail 1040x irs. Where to mail 1040x gov/businesses and click on Employment Taxes under Businesses Topics. Where to mail 1040x For employment tax information by telephone, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. Where to mail 1040x m. Where to mail 1040x –7:00 p. Where to mail 1040x m. Where to mail 1040x local time (Alaska and Hawaii follow Pacific time). Where to mail 1040x Additionally, you can call IRS TeleTax at 1-800-829-4477 for recorded information by topic. Where to mail 1040x Disregarded entities and qualified subchapter S subsidiaries (QSubs). Where to mail 1040x  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Where to mail 1040x Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Where to mail 1040x See Regulations sections 1. Where to mail 1040x 1361-4(a)(7) and 301. Where to mail 1040x 7701-2(c)(2)(iv). Where to mail 1040x Differential wage payments. Where to mail 1040x  Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. Where to mail 1040x For more information, see Publication 15 (Circular E). Where to mail 1040x Federal tax deposits must be made by electronic funds transfer. Where to mail 1040x  You must use electronic funds transfer to make all federal tax deposits. Where to mail 1040x Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Where to mail 1040x If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Where to mail 1040x Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Where to mail 1040x EFTPS is a free service provided by the Department of Treasury. Where to mail 1040x Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Where to mail 1040x For more information on making federal tax deposits, see How To Deposit in section 7. Where to mail 1040x To get more information about EFTPS or to enroll in EFTPS, visit www. Where to mail 1040x eftps. Where to mail 1040x gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Where to mail 1040x Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Where to mail 1040x Electronic filing and payment. Where to mail 1040x  Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. Where to mail 1040x Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier. Where to mail 1040x Spend less time and worry on taxes and more time running your business. Where to mail 1040x Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. Where to mail 1040x For e-file, visit the IRS website at www. Where to mail 1040x irs. Where to mail 1040x gov/efile for additional information. Where to mail 1040x For EFTPS, visit www. Where to mail 1040x eftps. Where to mail 1040x gov or call EFTPS Customer Service at 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD) for additional information. Where to mail 1040x For electronic filing of Form W-2, visit www. Where to mail 1040x socialsecurity. Where to mail 1040x gov/employer. Where to mail 1040x If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Where to mail 1040x If a valid EIN is not provided, the return or payment will not be processed. Where to mail 1040x This may result in penalties and delays in processing your return or payment. Where to mail 1040x Electronic funds withdrawal (EFW). Where to mail 1040x  If you file Form 943 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. Where to mail 1040x However, do not use EFW to make federal tax deposits. Where to mail 1040x For more information on paying your taxes using EFW, visit the IRS website at www. Where to mail 1040x irs. Where to mail 1040x gov/e-pay. Where to mail 1040x A fee may be charged to file electronically. Where to mail 1040x Credit or debit card payments. Where to mail 1040x   Employers can pay the balance due shown on Form 943 by credit or debit card. Where to mail 1040x Do not use a credit or debit card to make federal tax deposits. Where to mail 1040x For more information on paying your taxes with a credit or debit card, visit the IRS website at www. Where to mail 1040x irs. Where to mail 1040x gov/e-pay. Where to mail 1040x When you hire a new employee. Where to mail 1040x  Ask each new employee to complete the 2014 Form W-4 or its Spanish version, Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado. Where to mail 1040x Also, ask the employee to show you his or her social security card so that you can record the employee's name and social security number accurately. Where to mail 1040x If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. Where to mail 1040x If the employee does not have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. Where to mail 1040x See section 1 for more information. Where to mail 1040x Eligibility for employment. Where to mail 1040x  You must verify that each new employee is legally eligible to work in the United States. Where to mail 1040x This includes completing the U. Where to mail 1040x S. Where to mail 1040x Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Where to mail 1040x You can get the form from USCIS offices or by calling 1-800-870-3676. Where to mail 1040x Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. Where to mail 1040x uscis. Where to mail 1040x gov for more information. Where to mail 1040x New hire reporting. Where to mail 1040x   You are required to report any new employee to a designated state new-hire registry. Where to mail 1040x A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. Where to mail 1040x Many states accept a copy of Form W-4 with employer information added. Where to mail 1040x Visit the Office of Child Support Enforcement's website at www. Where to mail 1040x acf. Where to mail 1040x hhs. Where to mail 1040x gov/programs/cse/newhire for more information. Where to mail 1040x Dishonored payments. Where to mail 1040x  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Where to mail 1040x The penalty is $25 or 2% of the payment, whichever is more. Where to mail 1040x However, the penalty on dishonored payments of $24. Where to mail 1040x 99 or less is an amount equal to the payment. Where to mail 1040x For example, a dishonored payment of $18 is charged a penalty of $18. Where to mail 1040x Forms in Spanish. Where to mail 1040x  You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. Where to mail 1040x For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). Where to mail 1040x For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. Where to mail 1040x References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP). Where to mail 1040x Information returns. Where to mail 1040x  You may be required to file information returns to report certain types of payments made during the year. Where to mail 1040x For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. Where to mail 1040x For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). Where to mail 1040x Generally, do not use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2. Where to mail 1040x See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. Where to mail 1040x If you file 250 or more Forms W-2, you must file them electronically. Where to mail 1040x SSA will not accept Forms W-2 and W-3 filed on any magnetic media. Where to mail 1040x Information reporting customer service site. Where to mail 1040x  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. Where to mail 1040x If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability). Where to mail 1040x The call site can also be reached by email at mccirp@irs. Where to mail 1040x gov. Where to mail 1040x Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. Where to mail 1040x Web-based application for an employer identification number (EIN). Where to mail 1040x  You can apply for an employer identification number (EIN) online by visiting IRS. Where to mail 1040x gov and clicking on the Apply for an EIN Online link under Tools. Where to mail 1040x When a crew leader furnishes workers to you. Where to mail 1040x  Record the crew leader's name, address, and EIN. Where to mail 1040x See sections 2 and 10. Where to mail 1040x Change of address. Where to mail 1040x  Use Form 8822-B to notify the IRS of an address change. Where to mail 1040x Do not mail form 8822-B with your employment tax return. Where to mail 1040x Ordering forms and publications. Where to mail 1040x  You can order your 2013 and 2014 employment tax and information return forms, instructions, and publications online at www. Where to mail 1040x irs. Where to mail 1040x gov/businesses. Where to mail 1040x Click on the Online Ordering for Information Returns and Employer Returns. Where to mail 1040x You can also visit www. Where to mail 1040x irs. Where to mail 1040x gov/formspubs to download other forms and publications. Where to mail 1040x Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. Where to mail 1040x Visit the SSA's Employer W-2 Filing Instructions & Information website at  www. Where to mail 1040x socialsecurity. Where to mail 1040x gov/employer, to register for Business Services Online. Where to mail 1040x You will be able to create and file “fill-in” versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. Where to mail 1040x Form W-3 will be created for you based on your Forms W-2. Where to mail 1040x Tax Questions. Where to mail 1040x   If you have a tax question, check the information available on IRS. Where to mail 1040x gov or call 1-800-829-4933 (businesses), 1-800-829-1040 (individuals), or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. Where to mail 1040x m. Where to mail 1040x –7:00 p. Where to mail 1040x m. Where to mail 1040x local time (Alaska and Hawaii follow Pacific time). Where to mail 1040x We cannot answer tax questions sent to the address provided later for comments and suggestions. Where to mail 1040x Recordkeeping. Where to mail 1040x  Keep all records of employment taxes for at least 4 years. Where to mail 1040x These should be available for IRS review. Where to mail 1040x Your records should include the following information. Where to mail 1040x Your employer identification number (EIN). Where to mail 1040x Amounts and dates of all wage, annuity, and pension payments. Where to mail 1040x Names, addresses, social security numbers, and occupations of employees and recipients. Where to mail 1040x Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. Where to mail 1040x Dates of employment for each employee. Where to mail 1040x Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them. Where to mail 1040x Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S). Where to mail 1040x Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. Where to mail 1040x Copies of returns filed and confirmation numbers. Where to mail 1040x Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. Where to mail 1040x If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. Where to mail 1040x If the crew leader has no permanent mailing address, record his or her present address. Where to mail 1040x Private delivery services. Where to mail 1040x  You can use certain private delivery services designated by the IRS to send tax returns and payments. Where to mail 1040x The list includes only the following. Where to mail 1040x DHL Express (DHL): DHL Same Day Service. Where to mail 1040x Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Where to mail 1040x United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Where to mail 1040x M. Where to mail 1040x , UPS Worldwide Express Plus, and UPS Worldwide Express. Where to mail 1040x For the IRS mailing address to use if you are using a private delivery service, go to IRS. Where to mail 1040x gov and enter "private delivery service" in the search box. Where to mail 1040x Your private delivery service can tell you how to get written proof of the mailing date. Where to mail 1040x Private delivery services cannot deliver items to P. Where to mail 1040x O. Where to mail 1040x boxes. Where to mail 1040x You must use the U. Where to mail 1040x S. Where to mail 1040x Postal Service to mail any item to an IRS P. Where to mail 1040x O. Where to mail 1040x box address. Where to mail 1040x Photographs of missing children. Where to mail 1040x  The IRS is a proud partner with the National Center for Missing and Exploited Children. Where to mail 1040x Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Where to mail 1040x 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. Where to mail 1040x Calendar The following are important dates and responsibilities. Where to mail 1040x See section 7 for information about depositing taxes reported on Forms 941, 943, 944, and 945. Where to mail 1040x Also see Publication 509, Tax Calendars. Where to mail 1040x   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Where to mail 1040x A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Where to mail 1040x However, a statewide legal holiday does not delay the due date of federal tax deposits. Where to mail 1040x See Deposits on Business Days Only in section 7. Where to mail 1040x For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Where to mail 1040x S. Where to mail 1040x Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Where to mail 1040x See Private delivery services under Reminders. Where to mail 1040x By January 31 . Where to mail 1040x   File Form 943. Where to mail 1040x See section 8 for more information on Form 943. Where to mail 1040x If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Where to mail 1040x Furnish each employee with a completed Form W-2. Where to mail 1040x Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). Where to mail 1040x File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Where to mail 1040x See section 10 for more information on FUTA. Where to mail 1040x If you deposited all the FUTA tax when due, you have 10 additional calendar days to file. Where to mail 1040x File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2013. Where to mail 1040x If you deposited all Form 945 taxes when due, you have 10 additional calendar days to file. Where to mail 1040x By February 15. Where to mail 1040x  Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year. Where to mail 1040x On February 16. Where to mail 1040x  Any Form W-4 claiming exemption from withholding for the previous year has now expired. Where to mail 1040x Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. Where to mail 1040x If the employee does not give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. Where to mail 1040x See section 5 for more information. Where to mail 1040x If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Where to mail 1040x By February 28. Where to mail 1040x   File paper Forms 1099 and 1096. Where to mail 1040x File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. Where to mail 1040x S. Where to mail 1040x Information Returns, with the IRS. Where to mail 1040x For electronically filed returns, see By March 31 below. Where to mail 1040x File paper Forms W-2 and W-3. Where to mail 1040x File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the SSA. Where to mail 1040x For electronically filed returns, see By March 31 next. Where to mail 1040x By March 31. Where to mail 1040x   File electronic Forms W-2 and 1099. Where to mail 1040x File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. Where to mail 1040x For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Where to mail 1040x socialsecurity. Where to mail 1040x gov/employer. Where to mail 1040x For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G. Where to mail 1040x By April 30, July 31, October 31, and January 31. Where to mail 1040x   Deposit FUTA taxes. Where to mail 1040x Deposit FUTA tax if the undeposited amount is over $500. Where to mail 1040x Before December 1. Where to mail 1040x  Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year. Where to mail 1040x Introduction This publication is for employers of agricultural workers (farmworkers). Where to mail 1040x It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). Where to mail 1040x Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940. Where to mail 1040x If you have nonfarm employees, see Publication 15 (Circular E). Where to mail 1040x If you have employees in the U. Where to mail 1040x S. Where to mail 1040x Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Publication 80 (Circular SS). Where to mail 1040x Publication 15-A, Employer's Supplemental Tax Guide, contains more employment-related information, including information about sick pay and pension income. Where to mail 1040x Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. Where to mail 1040x Comments and suggestions. Where to mail 1040x   We welcome your comments about this publication and your suggestions for future editions. Where to mail 1040x   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division  1111 Constitution Ave. Where to mail 1040x NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Where to mail 1040x Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Where to mail 1040x   You can also send us comments from www. Where to mail 1040x irs. Where to mail 1040x gov/formspubs. Where to mail 1040x Click on More Information and then click on Comment on Tax Forms and Publications. Where to mail 1040x   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Where to mail 1040x COBRA premium assistance credit. Where to mail 1040x   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. Where to mail 1040x COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. Where to mail 1040x Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). Where to mail 1040x Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. Where to mail 1040x Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. Where to mail 1040x For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. Where to mail 1040x   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. Where to mail 1040x For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. Where to mail 1040x   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. Where to mail 1040x The assistance for the coverage can last up to 15 months. Where to mail 1040x   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. Where to mail 1040x For more information, see Notice 2009-27, 2009-16 I. Where to mail 1040x R. Where to mail 1040x B. Where to mail 1040x 838, available at www. Where to mail 1040x irs. Where to mail 1040x gov/irb/2009-16_irb/ar09. Where to mail 1040x html. Where to mail 1040x   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. Where to mail 1040x   The 65% of the premium not paid by the assistance eligible individual is reimbursed to the employer maintaining the group health plan. Where to mail 1040x The reimbursement is made through a credit against the employer's employment tax liabilities. Where to mail 1040x For information on how to claim the credit, see the Instructions for Form 943. Where to mail 1040x The credit is treated as a deposit made on the first day of the return period. Where to mail 1040x In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. Where to mail 1040x In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. Where to mail 1040x   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. Where to mail 1040x Information on the receipt of the assistance eligible individuals' 35% share of the premium including dates and amounts. Where to mail 1040x In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. Where to mail 1040x In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. Where to mail 1040x Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. Where to mail 1040x Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. Where to mail 1040x A record of the social security numbers (SSNs) of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. Where to mail 1040x   For more information, visit IRS. Where to mail 1040x gov and enter “COBRA” in the search box. Where to mail 1040x Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 225 Farmer's Tax Guide 535 Business Expenses 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in South Dakota

Face-to-face Tax Help

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

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

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

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

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

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

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

City  Street Address  Days/Hours of Service  Telephone* 
Aberdeen  115 Fourth Ave. S.E.
Aberdeen, SD 57401 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 11:00 a.m. - 12:00 noon)

 

Services Provided

(605) 226-7273 
Rapid City  515 Ninth St.
Rapid City, SD 57701 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(605) 348-2006 
Sioux Falls  1720 S. Southeastern Ave.
Sioux Falls, SD 57103 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

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

 

Services Provided

(605) 330-4539 

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

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

The Taxpayer Advocate Service: Call (605) 377-1600 in Aberdeen or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see  Tax Topic 104

Partnerships

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

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

Internal Revenue Service
115 4th Ave. SE
Aberdeen, SD 57401

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

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

Page Last Reviewed or Updated: 28-Mar-2014

The Where To Mail 1040x

Where to mail 1040x 4. Where to mail 1040x   Figuring Depreciation Under MACRS Table of Contents Introduction Useful Items - You may want to see: Which Depreciation System (GDS or ADS) Applies? Which Property Class Applies Under GDS?Rent-to-own dealer. Where to mail 1040x Rent-to-own contract. Where to mail 1040x What Is the Placed in Service Date? What Is the Basis for Depreciation? Which Recovery Period Applies?Recovery Periods Under GDS Recovery Periods Under ADS Additions and Improvements Which Convention Applies? Which Depreciation Method Applies?Depreciation Methods for Farm Property Electing a Different Method How Is the Depreciation Deduction Figured?Using the MACRS Percentage Tables Figuring the Deduction Without Using the Tables Figuring the Deduction for Property Acquired in a Nontaxable Exchange Figuring the Deduction for a Short Tax Year How Do You Use General Asset Accounts?Grouping Property Figuring Depreciation for a GAA Disposing of GAA Property Terminating GAA Treatment Electing To Use a GAA When Do You Recapture MACRS Depreciation? Introduction The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986. Where to mail 1040x MACRS consists of two depreciation systems, the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). Where to mail 1040x Generally, these systems provide different methods and recovery periods to use in figuring depreciation deductions. Where to mail 1040x To be sure you can use MACRS to figure depreciation for your property, see What Method Can You Use To Depreciate Your Property in chapter 1. Where to mail 1040x This chapter explains how to determine which MACRS depreciation system applies to your property. Where to mail 1040x It also discusses other information you need to know before you can figure depreciation under MACRS. Where to mail 1040x This information includes the property's recovery class, placed in service date, and basis, as well as the applicable recovery period, convention, and depreciation method. Where to mail 1040x It explains how to use this information to figure your depreciation deduction and how to use a general asset account to depreciate a group of properties. Where to mail 1040x Finally, it explains when and how to recapture MACRS depreciation. Where to mail 1040x Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 463 Travel, Entertainment, Gift, and Car  Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 587 Business Use of Your Home (Including Use by Daycare Providers) Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization See chapter 6 for information about getting publications and forms. Where to mail 1040x 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. Where to mail 1040x You generally must use GDS unless you are specifically required by law to use ADS or you elect to use ADS. Where to mail 1040x If you placed your property in service in 2013, complete Part III of Form 4562 to report depreciation using MACRS. Where to mail 1040x Complete section B of Part III to report depreciation using GDS, and complete section C of Part III to report depreciation using ADS. Where to mail 1040x If you placed your property in service before 2013 and are required to file Form 4562, report depreciation using either GDS or ADS on line 17 in Part III. Where to mail 1040x Required use of ADS. Where to mail 1040x   You must use ADS for the following property. Where to mail 1040x Listed property used 50% or less in a qualified business use. Where to mail 1040x See chapter 5 for information on listed property. Where to mail 1040x Any tangible property used predominantly outside the United States during the year. Where to mail 1040x Any tax-exempt use property. Where to mail 1040x Any tax-exempt bond-financed property. Where to mail 1040x 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. Where to mail 1040x 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. Where to mail 1040x If you are required to use ADS to depreciate your property, you cannot claim any special depreciation allowance (discussed in chapter 3) for the property. Where to mail 1040x Electing ADS. Where to mail 1040x   Although your property may qualify for GDS, you can elect to use ADS. Where to mail 1040x The election generally must cover all property in the same property class that you placed in service during the year. Where to mail 1040x However, the election for residential rental property and nonresidential real property can be made on a property-by-property basis. Where to mail 1040x Once you make this election, you can never revoke it. Where to mail 1040x   You make the election by completing line 20 in Part III of Form 4562. Where to mail 1040x Which Property Class Applies Under GDS? The following is a list of the nine property classifications under GDS and examples of the types of property included in each class. Where to mail 1040x These property classes are also listed under column (a) in section B, Part III, of Form 4562. Where to mail 1040x For detailed information on property classes, see Appendix B, Table of Class Lives and Recovery Periods, in this publication. Where to mail 1040x 3-year property. Where to mail 1040x Tractor units for over-the-road use. Where to mail 1040x Any race horse over 2 years old when placed in service. Where to mail 1040x (All race horses placed in service after December 31, 2008, and before January 1, 2014, are deemed to be 3-year property, regardless of age. Where to mail 1040x ) Any other horse (other than a race horse) over 12 years old when placed in service. Where to mail 1040x Qualified rent-to-own property (defined later). Where to mail 1040x 5-year property. Where to mail 1040x Automobiles, taxis, buses, and trucks. Where to mail 1040x Computers and peripheral equipment. Where to mail 1040x Office machinery (such as typewriters, calculators, and copiers). Where to mail 1040x Any property used in research and experimentation. Where to mail 1040x Breeding cattle and dairy cattle. Where to mail 1040x Appliances, carpets, furniture, etc. Where to mail 1040x , used in a residential rental real estate activity. Where to mail 1040x Certain geothermal, solar, and wind energy property. Where to mail 1040x 7-year property. Where to mail 1040x Office furniture and fixtures (such as desks, files, and safes). Where to mail 1040x Agricultural machinery and equipment. Where to mail 1040x Any property that does not have a class life and has not been designated by law as being in any other class. Where to mail 1040x Certain motorsports entertainment complex property (defined later) placed in service before January 1, 2014. Where to mail 1040x Any natural gas gathering line placed in service after April 11, 2005. Where to mail 1040x See Natural gas gathering line and electric transmission property , later. Where to mail 1040x 10-year property. Where to mail 1040x Vessels, barges, tugs, and similar water transportation equipment. Where to mail 1040x Any single purpose agricultural or horticultural structure. Where to mail 1040x Any tree or vine bearing fruits or nuts. Where to mail 1040x Qualified small electric meter and qualified smart electric grid system (defined later) placed in service on or after October 3, 2008. Where to mail 1040x 15-year property. Where to mail 1040x Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges). Where to mail 1040x Any retail motor fuels outlet (defined later), such as a convenience store. Where to mail 1040x Any municipal wastewater treatment plant. Where to mail 1040x Any qualified leasehold improvement property (defined later) placed in service before January 1, 2014. Where to mail 1040x Any qualified restaurant property (defined later) placed in service before January 1, 2014. Where to mail 1040x Initial clearing and grading land improvements for gas utility property. Where to mail 1040x Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. Where to mail 1040x See Natural gas gathering line and electric transmission property , later. Where to mail 1040x Any natural gas distribution line placed in service after April 11, 2005 and before January 1, 2011. Where to mail 1040x Any qualified retail improvement property placed in service before January 1, 2014. Where to mail 1040x 20-year property. Where to mail 1040x Farm buildings (other than single purpose agricultural or horticultural structures). Where to mail 1040x Municipal sewers not classified as 25-year property. Where to mail 1040x Initial clearing and grading land improvements for electric utility transmission and distribution plants. Where to mail 1040x 25-year property. Where to mail 1040x This class is water utility property, which is either of the following. Where to mail 1040x Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property. Where to mail 1040x Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996. Where to mail 1040x Residential rental property. Where to mail 1040x This is any building or structure, such as a rental home (including a mobile home), if 80% or more of its gross rental income for the tax year is from dwelling units. Where to mail 1040x A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. Where to mail 1040x It does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. Where to mail 1040x If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy. Where to mail 1040x Nonresidential real property. Where to mail 1040x This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27. Where to mail 1040x 5 years. Where to mail 1040x Qualified rent-to-own property. Where to mail 1040x   Qualified rent-to-own property is property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract. Where to mail 1040x It is tangible personal property generally used in the home for personal use. Where to mail 1040x It includes computers and peripheral equipment, televisions, videocassette recorders, stereos, camcorders, appliances, furniture, washing machines and dryers, refrigerators, and other similar consumer durable property. Where to mail 1040x Consumer durable property does not include real property, aircraft, boats, motor vehicles, or trailers. Where to mail 1040x   If some of the property you rent to others under a rent-to-own agreement is of a type that may be used by the renters for either personal or business purposes, you still can treat this property as qualified property as long as it does not represent a significant portion of your leasing property. Where to mail 1040x However, if this dual-use property does represent a significant portion of your leasing property, you must prove that this property is qualified rent-to-own property. Where to mail 1040x Rent-to-own dealer. Where to mail 1040x   You are a rent-to-own dealer if you meet all the following requirements. Where to mail 1040x You regularly enter into rent-to-own contracts (defined below) in the ordinary course of your business for the use of consumer property. Where to mail 1040x A substantial portion of these contracts end with the customer returning the property before making all the payments required to transfer ownership. Where to mail 1040x The property is tangible personal property of a type generally used within the home for personal use. Where to mail 1040x Rent-to-own contract. Where to mail 1040x   This is any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which— Is titled “Rent-to-Own Agreement,” “Lease Agreement with Ownership Option,” or other similar language. Where to mail 1040x Provides a beginning date and a maximum period of time, not to exceed 156 weeks or 36 months from the beginning date, for which the contract can be in effect (including renewals or options to extend). Where to mail 1040x Provides for regular periodic (weekly or monthly) payments that can be either level or decreasing. Where to mail 1040x If the payments are decreasing, no payment can be less than 40% of the largest payment. Where to mail 1040x Provides for total payments that generally exceed the normal retail price of the property plus interest. Where to mail 1040x Provides for total payments that do not exceed $10,000 for each item of property. Where to mail 1040x Provides that the customer has no legal obligation to make all payments outlined in the contract and that, at the end of each weekly or monthly payment period, the customer can either continue to use the property by making the next payment or return the property in good working order with no further obligations and no entitlement to a return of any prior payments. Where to mail 1040x Provides that legal title to the property remains with the rent-to-own dealer until the customer makes either all the required payments or the early purchase payments required under the contract to acquire legal title. Where to mail 1040x Provides that the customer has no right to sell, sublease, mortgage, pawn, pledge, or otherwise dispose of the property until all contract payments have been made. Where to mail 1040x Motorsports entertainment complex. Where to mail 1040x   This is a racing track facility permanently situated on land that hosts one or more racing events for automobiles, trucks, or motorcycles during the 36-month period after the first day of the month in which the facility is placed in service. Where to mail 1040x The events must be open to the public for the price of admission. Where to mail 1040x Qualified smart electric grid system. Where to mail 1040x   A qualified smart electric grid system means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service after October 3, 2008, by a taxpayer who is a supplier of electrical energy or a provider of electrical energy services. Where to mail 1040x Smart grid property includes electronics and related equipment that is capable of: Sensing, collecting, and monitoring data of or from all portions of a utility's electric distribution grid, Providing real-time, two-way communications to monitor or to manage the grid, and Providing real-time analysis of an event prediction based on collected data that can be used to provide electric distribution system reliability, quality, and performance. Where to mail 1040x Retail motor fuels outlet. Where to mail 1040x   Real property is a retail motor fuels outlet if it is used to a substantial extent in the retail marketing of petroleum or petroleum products (whether or not it is also used to sell food or other convenience items) and meets any one of the following three tests. Where to mail 1040x It is not larger than 1,400 square feet. Where to mail 1040x 50% or more of the gross revenues generated from the property are derived from petroleum sales. Where to mail 1040x 50% or more of the floor space in the property is devoted to petroleum marketing sales. Where to mail 1040x A retail motor fuels outlet does not include any facility related to petroleum and natural gas trunk pipelines. Where to mail 1040x Qualified leasehold improvement property. Where to mail 1040x    Generally, this is any improvement to an interior part of a building (placed in service before January 1, 2014) that is nonresidential real property, provided all of the requirements discussed in chapter 3 under Qualified leasehold improvement property are met. Where to mail 1040x   In addition, an improvement made by the lessor does not qualify as qualified leasehold improvement property to any subsequent owner unless it is acquired from the original lessor by reason of the lessor's death or in any of the following types of transactions. Where to mail 1040x A transaction to which section 381(a) applies, A mere change in the form of conducting the trade or business so long as the property is retained in the trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in the trade or business, A like-kind exchange, involuntary conversion, or reacquisition of real property to the extent that the basis in the property represents the carryover basis, or Certain nonrecognition transactions to the extent that your basis in the property is determined by reference to the transferor's or distributor's basis in the property. Where to mail 1040x Examples include the following. Where to mail 1040x A complete liquidation of a subsidiary. Where to mail 1040x A transfer to a corporation controlled by the transferor. Where to mail 1040x An exchange of property by a corporation solely for stock or securities in another corporation in a reorganization. Where to mail 1040x Qualified restaurant property. Where to mail 1040x   Qualified restaurant property is any section 1250 property that is a building placed in service after December 31, 2008, and before January 1, 2014. Where to mail 1040x Also, more than 50% of the building's square footage must be devoted to preparation of meals and seating for on-premises consumption of prepared meals. Where to mail 1040x Qualified smart electric meter. Where to mail 1040x   A qualified smart electric meter is any time-based meter and related communication equipment which is placed in service by a supplier of electric energy or a provider of electric energy services and which is capable of being used by you as part of a system that: Measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day; Provides for the exchange of information between the supplier or provider and the customer's smart electric meter in support of time-based rates or other forms of demand response; Provides data to the supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and Provides all commercial and residential customers of such supplier or provider with net metering. Where to mail 1040x Net metering means allowing a customer a credit, if any, as complies with applicable federal and state laws and regulations for providing electricity to the supplier or provider. Where to mail 1040x Natural gas gathering line and electric transmission property. Where to mail 1040x   Any natural gas gathering line placed in service after April 11, 2005, is treated as 7-year property, and electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity and any natural gas distribution line placed in service after April 11, 2005, are treated as 15-year property, if the following requirements are met. Where to mail 1040x The original use of the property must have begun with you after April 11, 2005. Where to mail 1040x Original use means the first use to which the property is put, whether or not by you. Where to mail 1040x Therefore, property used by any person before April 12, 2005, is not original use. Where to mail 1040x Original use includes additional capital expenditures you incurred to recondition or rebuild your property. Where to mail 1040x However, original use does not include the cost of reconditioned or rebuilt property you acquired. Where to mail 1040x Property containing used parts will not be treated as reconditioned or rebuilt if the cost of the used parts is not more than 20% of the total cost of the property. Where to mail 1040x The property must not be placed in service under a binding contract in effect before April 12, 2005. Where to mail 1040x The property must not be self-constructed property (property you manufacture, construct, or produce for your own use), if you began the manufacture, construction, or production of the property before April 12, 2005. Where to mail 1040x Property that is manufactured, constructed, or produced for your use by another person under a written binding contract entered into by you or a related party before the manufacture, construction, or production of the property is considered to be manufactured, constructed, or produced by you. Where to mail 1040x What Is the Placed in Service Date? You begin to claim depreciation when your property is placed in service for either use in a trade or business or the production of income. Where to mail 1040x The placed in service date for your property is the date the property is ready and available for a specific use. Where to mail 1040x It is therefore not necessarily the date it is first used. Where to mail 1040x 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. Where to mail 1040x See Placed in Service under When Does Depreciation Begin and End in chapter 1 for examples illustrating when property is placed in service. Where to mail 1040x 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. Where to mail 1040x 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 . Where to mail 1040x Reduce that amount by any credits and deductions allocable to the property. Where to mail 1040x The following are examples of some credits and deductions that reduce basis. Where to mail 1040x Any deduction for section 179 property. Where to mail 1040x Any deduction under section 179B of the Internal Revenue Code for capital costs to comply with Environmental Protection Agency sulfur regulations. Where to mail 1040x Any deduction under section 179C of the Internal Revenue Code for certain qualified refinery property placed in service after August 8, 2005, and before January 1, 2014. Where to mail 1040x Any deduction under section 179D of the Internal Revenue Code for certain energy efficient commercial building property placed in service after December 31, 2005, and before January 1, 2014. Where to mail 1040x Any deduction under section 179E of the Internal Revenue Code for qualified advanced mine safety equipment property placed in service after December 20, 2006, and before January 1, 2014 . Where to mail 1040x Any deduction for removal of barriers to the disabled and the elderly. Where to mail 1040x Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. Where to mail 1040x Any special depreciation allowance. Where to mail 1040x Basis adjustment for investment credit property under section 50(c) of the Internal Revenue Code. Where to mail 1040x For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. Where to mail 1040x Enter the basis for depreciation under column (c) in Part III of Form 4562. Where to mail 1040x 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 . Where to mail 1040x Which Recovery Period Applies? The recovery period of property is the number of years over which you recover its cost or other basis. Where to mail 1040x It is determined based on the depreciation system (GDS or ADS) used. Where to mail 1040x Recovery Periods Under GDS Under GDS, property that is not qualified Indian reservation property is depreciated over one of the following recovery periods. Where to mail 1040x Property Class Recovery Period 3-year property   3 years 1   5-year property   5 years     7-year property   7 years     10-year property   10 years     15-year property   15 years 2   20-year property   20 years     25-year property   25 years 3   Residential rental property   27. Where to mail 1040x 5 years     Nonresidential real property   39 years 4   15 years for qualified rent-to-own property placed in service before August 6, 1997. Where to mail 1040x 239 years for property that is a retail motor fuels outlet placed in service before August 20, 1996 (31. Where to mail 1040x 5 years if placed in service before May 13, 1993), unless you elected to depreciate it over 15 years. Where to mail 1040x 320 years for property placed in service before June 13, 1996, or under a binding contract in effect before June 10, 1996. Where to mail 1040x 431. Where to mail 1040x 5 years for property placed in service before May 13, 1993 (or before January 1, 1994, if the purchase or construction of the property is under a binding contract in effect before May 13, 1993, or if construction began before May 13, 1993). Where to mail 1040x The GDS recovery periods for property not listed above can be found in Appendix B, Table of Class Lives and Recovery Periods. Where to mail 1040x Residential rental property and nonresidential real property are defined earlier under Which Depreciation System (GDS or ADS) Applies. Where to mail 1040x Enter the appropriate recovery period on Form 4562 under column (d) in section B of Part III, unless already shown (for 25-year property, residential rental property, and nonresidential real property). Where to mail 1040x Office in the home. Where to mail 1040x   If your home is a personal-use single family residence and you begin to use part of your home as an office, depreciate that part of your home as nonresidential real property over 39 years (31. Where to mail 1040x 5 years if you began using it for business before May 13, 1993). Where to mail 1040x However, if your home is an apartment in an apartment building that you own and the building is residential rental property as defined earlier under Which Depreciation System (GDS or ADS) Applies , depreciate the part used as an office as residential rental property over 27. Where to mail 1040x 5 years. Where to mail 1040x See Publication 587 for a discussion of the tests you must meet to claim expenses, including depreciation, for the business use of your home. Where to mail 1040x Home changed to rental use. Where to mail 1040x   If you begin to rent a home that was your personal home before 1987, you depreciate it as residential rental property over 27. Where to mail 1040x 5 years. Where to mail 1040x Indian Reservation Property The recovery periods for qualified property you placed in service on an Indian reservation after 1993 and before 2014 are shorter than those listed earlier. Where to mail 1040x The following table shows these shorter recovery periods. Where to mail 1040x Property Class Recovery  Period 3-year property 2 years 5-year property 3 years 7-year property 4 years 10-year property 6 years 15-year property 9 years 20-year property 12 years Nonresidential real property 22 years Nonresidential real property is defined earlier under Which Property Class Applies Under GDS . Where to mail 1040x Use this chart to find the correct percentage table to use for qualified Indian reservation property. Where to mail 1040x IF your recovery period is: THEN use the following table in Appendix A: 2 years A-21 3 years A-1, A-2, A-3, A-4, or A-5 4 years A-22 6 years A-23 9 years A-14, A-15, A-16, A-17, or A-18 12 years A-14, A-15, A-16, A-17, or A-18 22 years A-24 Qualified property. Where to mail 1040x   Property eligible for the shorter recovery periods are 3-, 5-, 7-, 10-, 15-, and 20-year property and nonresidential real property. Where to mail 1040x You must use this property predominantly in the active conduct of a trade or business within an Indian reservation. Where to mail 1040x The rental of real property that is located on an Indian reservation is treated as the active conduct of a trade or business within an Indian reservation. Where to mail 1040x   The following property is not qualified property. Where to mail 1040x Property used or located outside an Indian reservation on a regular basis, other than qualified infrastructure property. Where to mail 1040x Property acquired directly or indirectly from a related person. Where to mail 1040x Property placed in service for purposes of conducting or housing class I, II, or III gaming activities. Where to mail 1040x These activities are defined in section 4 of the Indian Regulatory Act (25 U. Where to mail 1040x S. Where to mail 1040x C. Where to mail 1040x 2703). Where to mail 1040x Any property you must depreciate under ADS. Where to mail 1040x Determine whether property is qualified without regard to the election to use ADS and after applying the special rules for listed property not used predominantly for qualified business use (discussed in chapter 5). Where to mail 1040x Qualified infrastructure property. Where to mail 1040x   Item (1) above does not apply to qualified infrastructure property located outside the reservation that is used to connect with qualified infrastructure property within the reservation. Where to mail 1040x Qualified infrastructure property is property that meets all the following rules. Where to mail 1040x It is qualified property, as defined earlier, except that it is outside the reservation. Where to mail 1040x It benefits the tribal infrastructure. Where to mail 1040x It is available to the general public. Where to mail 1040x It is placed in service in connection with the active conduct of a trade or business within a reservation. Where to mail 1040x Infrastructure property includes, but is not limited to, roads, power lines, water systems, railroad spurs, and communications facilities. Where to mail 1040x Related person. Where to mail 1040x   For purposes of item (2) above, see Related persons in the discussion on property owned or used in 1986 under What Method Can You Use To Depreciate Your Property in chapter 1 for a description of related persons. Where to mail 1040x Indian reservation. Where to mail 1040x   The term Indian reservation means a reservation as defined in section 3(d) of the Indian Financing Act of 1974 (25 U. Where to mail 1040x S. Where to mail 1040x C. Where to mail 1040x 1452(d)) or section 4(10) of the Indian Child Welfare Act of 1978 (25 U. Where to mail 1040x S. Where to mail 1040x C. Where to mail 1040x 1903(10)). Where to mail 1040x Section 3(d) of the Indian Financing Act of 1974 defines reservation to include former Indian reservations in Oklahoma. Where to mail 1040x For a definition of the term “former Indian reservations in Oklahoma,” see Notice 98-45 in Internal Revenue Bulletin 1998-35. Where to mail 1040x Recovery Periods Under ADS The recovery periods for most property generally are longer under ADS than they are under GDS. Where to mail 1040x The following table shows some of the ADS recovery periods. Where to mail 1040x Property Recovery  Period Rent-to-own property 4 years Automobiles and light duty trucks 5 years Computers and peripheral equipment 5 years High technology telephone station equipment installed on customer premises 5 years High technology medical equipment 5 years Personal property with no class life 12 years Natural gas gathering lines 14 years Single purpose agricultural and horticultural structures 15 years Any tree or vine bearing fruit or nuts 20 years Initial clearing and grading land  improvements for gas utility property 20 years Initial clearing and grading land  improvements for electric utility  transmission and distribution plants 25 years Electric transmission property used in the transmission at 69 or more kilovolts of electricity 30 years Natural gas distribution lines 35 years Any qualified leasehold improvement property 39 years Any qualified restaurant property 39 years Nonresidential real property 40 years Residential rental property 40 years Section 1245 real property not listed in Appendix B 40 years Railroad grading and tunnel bore 50 years The ADS recovery periods for property not listed above can be found in the tables in Appendix B. Where to mail 1040x Rent-to-own property, qualified leasehold improvement property, qualified restaurant property, residential rental property, and nonresidential real property are defined earlier under Which Property Class Applies Under GDS . Where to mail 1040x Tax-exempt use property subject to a lease. Where to mail 1040x   The ADS recovery period for any property leased under a lease agreement to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership) cannot be less than 125% of the lease term. Where to mail 1040x Additions and Improvements An addition or improvement you make to depreciable property is treated as separate depreciable property. Where to mail 1040x See How Do You Treat Repairs and Improvements in chapter 1 for a definition of improvements. Where to mail 1040x Its property class and recovery period are the same as those that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. Where to mail 1040x The recovery period begins on the later of the following dates. Where to mail 1040x The date you place the addition or improvement in service. Where to mail 1040x The date you place in service the property to which you made the addition or improvement. Where to mail 1040x If the improvement you make is qualified leasehold improvement property, qualified restaurant property, or qualified retail improvement property, the GDS recovery period is 15 years (39 years under ADS). Where to mail 1040x Example. Where to mail 1040x You own a rental home that you have been renting out since 1981. Where to mail 1040x If you put an addition on the home and place the addition in service this year, you would use MACRS to figure your depreciation deduction for the addition. Where to mail 1040x Under GDS, the property class for the addition is residential rental property and its recovery period is 27. Where to mail 1040x 5 years because the home to which the addition is made would be residential rental property if you had placed it in service this year. Where to mail 1040x Which Convention Applies? Under MACRS, averaging conventions establish when the recovery period begins and ends. Where to mail 1040x 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. Where to mail 1040x The mid-month convention. Where to mail 1040x   Use this convention for nonresidential real property, residential rental property, and any railroad grading or tunnel bore. Where to mail 1040x   Under this convention, you treat all property placed in service or disposed of during a month as placed in service or disposed of at the midpoint of the month. Where to mail 1040x This means that a one-half month of depreciation is allowed for the month the property is placed in service or disposed of. Where to mail 1040x   Your use of the mid-month convention is indicated by the “MM” already shown under column (e) in Part III of Form 4562. Where to mail 1040x The mid-quarter convention. Where to mail 1040x   Use this convention if the mid-month convention does not apply and the total depreciable bases of MACRS property you placed in service during the last 3 months of the tax year (excluding nonresidential real property, residential rental property, any railroad grading or tunnel bore, property placed in service and disposed of in the same year, and property that is being depreciated under a method other than MACRS) are more than 40% of the total depreciable bases of all MACRS property you placed in service during the entire year. Where to mail 1040x   Under this convention, you treat all property placed in service or disposed of during any quarter of the tax year as placed in service or disposed of at the midpoint of that quarter. Where to mail 1040x This means that 1½ months of depreciation is allowed for the quarter the property is placed in service or disposed of. Where to mail 1040x   If you use this convention, enter “MQ” under column (e) in Part III of Form 4562. Where to mail 1040x    For purposes of determining whether the mid-quarter convention applies, the depreciable basis of property you placed in service during the tax year reflects the reduction in basis for amounts expensed under section 179 and the part of the basis of property attributable to personal use. Where to mail 1040x However, it does not reflect any reduction in basis for any special depreciation allowance. Where to mail 1040x The half-year convention. Where to mail 1040x   Use this convention if neither the mid-quarter convention nor the mid-month convention applies. Where to mail 1040x   Under this convention, you treat all property placed in service or disposed of during a tax year as placed in service or disposed of at the midpoint of the year. Where to mail 1040x This means that a one-half year of depreciation is allowed for the year the property is placed in service or disposed of. Where to mail 1040x   If you use this convention, enter “HY” under column (e) in Part III of Form 4562. Where to mail 1040x Which Depreciation Method Applies? MACRS provides three depreciation methods under GDS and one depreciation method under ADS. Where to mail 1040x The 200% declining balance method over a GDS recovery period. Where to mail 1040x The 150% declining balance method over a GDS recovery period. Where to mail 1040x The straight line method over a GDS recovery period. Where to mail 1040x The straight line method over an ADS recovery period. Where to mail 1040x For property placed in service before 1999, you could have elected the 150% declining balance method using the ADS recovery periods for certain property classes. Where to mail 1040x If you made this election, continue to use the same method and recovery period for that property. Where to mail 1040x Table 4–1 lists the types of property you can depreciate under each method. Where to mail 1040x It also gives a brief explanation of the method, including any benefits that may apply. Where to mail 1040x Depreciation Methods for Farm Property If you place personal property in service in a farming business after 1988, you generally must depreciate it under GDS using the 150% declining balance method unless you are a farmer who must depreciate the property under ADS using the straight line method or you elect to depreciate the property under GDS or ADS using the straight line method. Where to mail 1040x You can depreciate real property using the straight line method under either GDS or ADS. Where to mail 1040x Fruit or nut trees and vines. Where to mail 1040x   Depreciate trees and vines bearing fruit or nuts under GDS using the straight line method over a recovery period of 10 years. Where to mail 1040x ADS required for some farmers. Where to mail 1040x   If you elect not to apply the uniform capitalization rules to any plant produced in your farming business, you must use ADS. Where to mail 1040x You must use ADS for all property you place in service in any year the election is in effect. Where to mail 1040x See the regulations under section 263A of the Internal Revenue Code for information on the uniform capitalization rules that apply to farm property. Where to mail 1040x Electing a Different Method As shown in Table 4–1 , you can elect a different method for depreciation for certain types of property. Where to mail 1040x You must make the election by the due date of the return (including extensions) for the year you placed the property in service. Where to mail 1040x However, if you timely filed your return for the year without making the election, you still can make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Where to mail 1040x Attach the election to the amended return and write “Filed pursuant to section 301. Where to mail 1040x 9100-2” on the election statement. Where to mail 1040x File the amended return at the same address you filed the original return. Where to mail 1040x Once you make the election, you cannot change it. Where to mail 1040x 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. Where to mail 1040x However, you can make the election on a property-by-property basis for nonresidential real and residential rental property. Where to mail 1040x 150% election. Where to mail 1040x   Instead of using the 200% declining balance method over the GDS recovery period for nonfarm property in the 3-, 5-, 7-, and 10-year property classes, you can elect to use the 150% declining balance method. Where to mail 1040x Make the election by entering “150 DB” under column (f) in Part III of Form 4562. Where to mail 1040x Straight line election. Where to mail 1040x   Instead of using either the 200% or 150% declining balance methods over the GDS recovery period, you can elect to use the straight line method over the GDS recovery period. Where to mail 1040x Make the election by entering  “S/L” under column (f) in Part III of Form 4562. Where to mail 1040x Election of ADS. Where to mail 1040x   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. Where to mail 1040x ADS uses the straight line method of depreciation over fixed ADS recovery periods. Where to mail 1040x Most ADS recovery periods are listed in Appendix B, or see the table under Recovery Periods Under ADS , earlier. Where to mail 1040x   Make the election by completing line 20 in Part III of Form 4562. Where to mail 1040x Farm property. Where to mail 1040x   Instead of using the 150% declining balance method over a GDS recovery period for property you use in a farming business (other than real property), you can elect to depreciate it using either of the following methods. Where to mail 1040x The straight line method over a GDS recovery period. Where to mail 1040x The straight line method over an ADS recovery period. Where to mail 1040x Table 4-1. Where to mail 1040x Depreciation Methods Note. Where to mail 1040x The declining balance method is abbreviated as DB and the straight line method is abbreviated as SL. Where to mail 1040x Method Type of Property Benefit GDS using 200% DB • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction GDS using 150% DB • All farm property (except real property) • All 15- and 20-year property (except qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property placed in service before January 1, 2014) • Nonfarm 3-, 5-, 7-, and 10-year property • Provides a greater deduction during the earlier recovery years • Changes to SL when that method provides an equal or greater deduction1 GDS using SL • Nonresidential real property • Qualified leasehold improvement property placed in service before January 1, 2014 • Qualified restaurant property placed in service before January 1, 2014 • Qualified retail improvement property placed in service before January 1, 2014 • Residential rental property • Trees or vines bearing fruit or nuts • Water utility property • All 3-, 5-, 7-, 10-, 15-, and 20-year property2 • Property for which you elected section 168(k)(4) • Provides for equal yearly deductions (except for the first and last years) ADS using SL • Listed property used 50% or less for business • Property used predominantly outside the U. Where to mail 1040x S. Where to mail 1040x  • Tax-exempt property • Tax-exempt bond-financed property • Farm property used when an election not to apply the uniform capitalization rules is in effect • Imported property3 • Any property for which you elect to use this method4 • Provides for equal yearly deductions (except for the first and last years) 1The MACRS percentage tables in Appendix A have the switch to the straight line method built into their rates 2See section 168(b)(5) of the Internal Revenue Code. Where to mail 1040x 3See section 168(g)(6) of the Internal Revenue Code 4See section 168(g)(7) of the Internal Revenue Code How Is the Depreciation Deduction Figured? To figure your depreciation deduction under MACRS, you first determine the depreciation system, property class, placed in service date, basis amount, recovery period, convention, and depreciation method that applies to your property. Where to mail 1040x Then, you are ready to figure your depreciation deduction. Where to mail 1040x You can figure it using a percentage table provided by the IRS, or you can figure it yourself without using the table. Where to mail 1040x 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. Where to mail 1040x These percentage tables are in Appendix A near the end of this publication. Where to mail 1040x Which table to use. Where to mail 1040x    Appendix A contains the MACRS Percentage Table Guide, which is designed to help you locate the correct percentage table to use for depreciating your property. Where to mail 1040x The percentage tables immediately follow the guide. Where to mail 1040x Rules Covering the Use of the Tables The following rules cover the use of the percentage tables. Where to mail 1040x You must apply the rates in the percentage tables to your property's unadjusted basis. Where to mail 1040x You cannot use the percentage tables for a short tax year. Where to mail 1040x See Figuring the Deduction for a Short Tax Year, later, for information on the short tax year rules. Where to mail 1040x Once you start using the percentage tables for any item of property, you generally must continue to use them for the entire recovery period of the property. Where to mail 1040x You must stop using the tables if you adjust the basis of the property for any reason other than— Depreciation allowed or allowable, or An addition or improvement to that property that is depreciated as a separate item of property. Where to mail 1040x Basis adjustments other than those made due to the items listed in (4) include an increase in basis for the recapture of a clean-fuel deduction or credit and a reduction in basis for a casualty loss. Where to mail 1040x Basis adjustment due to recapture of clean-fuel vehicle deduction or credit. Where to mail 1040x   If you increase the basis of your property because of the recapture of part or all of a deduction for clean-fuel vehicles or the credit for clean-fuel vehicle refueling property placed in service before January 1, 2006, you cannot continue to use the percentage tables. Where to mail 1040x For the year of the adjustment and the remaining recovery period, you must figure the depreciation deduction yourself using the property's adjusted basis at the end of the year. Where to mail 1040x See Figuring the Deduction Without Using the Tables, later. Where to mail 1040x Basis adjustment due to casualty loss. Where to mail 1040x   If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables. Where to mail 1040x 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. Where to mail 1040x See Figuring the Deduction Without Using the Tables, later. Where to mail 1040x Example. Where to mail 1040x On October 26, 2012, Sandra Elm, a calendar year taxpayer, bought and placed in service in her business a new item of 7-year property. Where to mail 1040x It cost $39,000 and she elected a section 179 deduction of $24,000. Where to mail 1040x She also took a special depreciation allowance of $7,500 [50% of $15,000 ($39,000 − $24,000)]. Where to mail 1040x Her unadjusted basis after the section 179 deduction and special depreciation allowance was $7,500 ($15,000 − $7,500). Where to mail 1040x She figured her MACRS depreciation deduction using the percentage tables. Where to mail 1040x For 2012, her MACRS depreciation deduction was $268. Where to mail 1040x In July 2013, the property was vandalized and Sandra had a deductible casualty loss of $3,000. Where to mail 1040x She must adjust the property's basis for the casualty loss, so she can no longer use the percentage tables. Where to mail 1040x Her adjusted basis at the end of 2013, before figuring her 2013 depreciation, is $4,232. Where to mail 1040x She figures that amount by subtracting the 2012 MACRS depreciation of $268 and the casualty loss of $3,000 from the unadjusted basis of $7,500. Where to mail 1040x She must now figure her depreciation for 2013 without using the percentage tables. Where to mail 1040x Figuring the Unadjusted Basis of Your Property You must apply the table rates to your property's unadjusted basis each year of the recovery period. Where to mail 1040x Unadjusted basis is the same basis amount you would use to figure gain on a sale, but you figure it without reducing your original basis by any MACRS depreciation taken in earlier years. Where to mail 1040x However, you do reduce your original basis by other amounts, including the following. Where to mail 1040x Any amortization taken on the property. Where to mail 1040x Any section 179 deduction claimed. Where to mail 1040x Any special depreciation allowance taken on the property. Where to mail 1040x For business property you purchase during the year, the unadjusted basis is its cost minus these and other applicable adjustments. Where to mail 1040x If you trade property, your unadjusted basis in the property received is the cash paid plus the adjusted basis of the property traded minus these adjustments. Where to mail 1040x MACRS Worksheet You can use this worksheet to help you figure your depreciation deduction using the percentage tables. Where to mail 1040x Use a separate worksheet for each item of property. Where to mail 1040x Then, use the information from this worksheet to prepare Form 4562. Where to mail 1040x Do not use this worksheet for automobiles. Where to mail 1040x Use the Depreciation Worksheet for Passenger Automobiles in chapter 5. Where to mail 1040x MACRS Worksheet Part I   1. Where to mail 1040x MACRS system (GDS or ADS)   2. Where to mail 1040x Property class   3. Where to mail 1040x Date placed in service   4. Where to mail 1040x Recovery period   5. Where to mail 1040x Method and convention   6. Where to mail 1040x Depreciation rate (from tables)   Part II   7. Where to mail 1040x Cost or other basis* $     8. Where to mail 1040x Business/investment use   %   9. Where to mail 1040x Multiply line 7 by line 8   $ 10. Where to mail 1040x Total claimed for section 179 deduction and other items   $ 11. Where to mail 1040x Subtract line 10 from line 9. Where to mail 1040x This is your tentative basis for depreciation   $ 12. Where to mail 1040x Multiply line 11 by . Where to mail 1040x 50 if the 50% special depreciation allowance applies. Where to mail 1040x This is your special depreciation allowance. Where to mail 1040x Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance   $ 13. Where to mail 1040x Subtract line 12 from line 11. Where to mail 1040x This is your basis for depreciation     14. Where to mail 1040x Depreciation rate (from line 6)     15. Where to mail 1040x Multiply line 13 by line 14. Where to mail 1040x This is your MACRS depreciation deduction   $ *If real estate, do not include cost (basis) of land. Where to mail 1040x The following example shows how to figure your MACRS depreciation deduction using the percentage tables and the MACRS worksheet. Where to mail 1040x Example. Where to mail 1040x You bought office furniture (7-year property) for $10,000 and placed it in service on August 11, 2013. Where to mail 1040x You use the furniture only for business. Where to mail 1040x This is the only property you placed in service this year. Where to mail 1040x You did not elect a section 179 deduction and the property is not qualified property for purposes of claiming a special depreciation allowance so your property's unadjusted basis is its cost, $10,000. Where to mail 1040x You use GDS and the half-year convention to figure your depreciation. Where to mail 1040x You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-1. Where to mail 1040x Multiply your property's unadjusted basis each year by the percentage for 7-year property given in Table A-1. Where to mail 1040x You figure your depreciation deduction using the MACRS worksheet as follows. Where to mail 1040x MACRS Worksheet Part I 1. Where to mail 1040x MACRS system (GDS or ADS) GDS 2. Where to mail 1040x Property class 7-year 3. Where to mail 1040x Date placed in service 8/11/13 4. Where to mail 1040x Recovery period 7-Year 5. Where to mail 1040x Method and convention 200%DB/Half-Year 6. Where to mail 1040x Depreciation rate (from tables) . Where to mail 1040x 1429 Part II 7. Where to mail 1040x Cost or other basis* $10,000     8. Where to mail 1040x Business/investment use 100 %   9. Where to mail 1040x Multiply line 7 by line 8   $10,000 10. Where to mail 1040x Total claimed for section 179 deduction and other items   -0- 11. Where to mail 1040x Subtract line 10 from line 9. Where to mail 1040x This is your tentative basis for depreciation   $10,000 12. Where to mail 1040x Multiply line 11 by . Where to mail 1040x 50 if the 50% special depreciation allowance applies. Where to mail 1040x This is your special depreciation allowance. Where to mail 1040x Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance   -0- 13. Where to mail 1040x Subtract line 12 from line 11. Where to mail 1040x This is your basis for depreciation   $10,000 14. Where to mail 1040x Depreciation rate (from line 6)   . Where to mail 1040x 1429 15. Where to mail 1040x Multiply line 13 by line 14. Where to mail 1040x This is your MACRS depreciation deduction   $1,429 *If real estate, do not include cost (basis) of land. Where to mail 1040x If there are no adjustments to the basis of the property other than depreciation, your depreciation deduction for each subsequent year of the recovery period will be as follows. Where to mail 1040x Year   Basis Percentage Deduction 2014 $ 10,000 24. Where to mail 1040x 49%   $2,449   2015   10,000 17. Where to mail 1040x 49   1,749   2016   10,000 12. Where to mail 1040x 49   1,249   2017   10,000 8. Where to mail 1040x 93   893   2018   10,000 8. Where to mail 1040x 92   892   2019   10,000 8. Where to mail 1040x 93   893   2020   10,000 4. Where to mail 1040x 46   446   Examples The following examples are provided to show you how to use the percentage tables. Where to mail 1040x In both examples, assume the following. Where to mail 1040x You use the property only for business. Where to mail 1040x You use the calendar year as your tax year. Where to mail 1040x You use GDS for all the properties. Where to mail 1040x Example 1. Where to mail 1040x You bought a building and land for $120,000 and placed it in service on March 8. Where to mail 1040x The sales contract showed that the building cost $100,000 and the land cost $20,000. Where to mail 1040x It is nonresidential real property. Where to mail 1040x The building's unadjusted basis is its original cost, $100,000. Where to mail 1040x You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-7a. Where to mail 1040x March is the third month of your tax year, so multiply the building's unadjusted basis, $100,000, by the percentages for the third month in Table A-7a. Where to mail 1040x Your depreciation deduction for each of the first 3 years is as follows: Year   Basis Percentage Deduction 1st $ 100,000 2. Where to mail 1040x 033%   $2,033   2nd   100,000 2. Where to mail 1040x 564   2,564   3rd   100,000 2. Where to mail 1040x 564   2,564   Example 2. Where to mail 1040x During the year, you bought a machine (7-year property) for $4,000, office furniture (7-year property) for $1,000, and a computer (5-year property) for $5,000. Where to mail 1040x You placed the machine in service in January, the furniture in September, and the computer in October. Where to mail 1040x You do not elect a section 179 deduction and none of these items is qualified property for purposes of claiming a special depreciation allowance. Where to mail 1040x You placed property in service during the last 3 months of the year, so you must first determine if you have to use the mid-quarter convention. Where to mail 1040x The total bases of all property you placed in service during the year is $10,000. Where to mail 1040x The $5,000 basis of the computer, which you placed in service during the last 3 months (the fourth quarter) of your tax year, is more than 40% of the total bases of all property ($10,000) you placed in service during the year. Where to mail 1040x Therefore, you must use the mid-quarter convention for all three items. Where to mail 1040x You refer to the MACRS Percentage Table Guide in Appendix A to determine which table you should use under the mid-quarter convention. Where to mail 1040x The machine is 7-year property placed in service in the first quarter, so you use Table A-2. Where to mail 1040x The furniture is 7-year property placed in service in the third quarter, so you use Table A-4. Where to mail 1040x Finally, because the computer is 5-year property placed in service in the fourth quarter, you use Table A-6. Where to mail 1040x Knowing what table to use for each property, you figure the depreciation for the first 2 years as follows. Where to mail 1040x Year Property Basis Percentage Deduction 1st Machine $4,000 25. Where to mail 1040x 00 $1,000   2nd Machine 4,000 21. Where to mail 1040x 43 857   1st Furniture 1,000 10. Where to mail 1040x 71 107   2nd Furniture 1,000 25. Where to mail 1040x 51 255   1st Computer 5,000 5. Where to mail 1040x 00 250   2nd Computer 5,000 38. Where to mail 1040x 00 1,900   Sale or Other Disposition Before the Recovery Period Ends If you sell or otherwise dispose of your property before the end of its recovery period, your depreciation deduction for the year of the disposition will be only part of the depreciation amount for the full year. Where to mail 1040x You have disposed of your property if you have permanently withdrawn it from use in your business or income-producing activity because of its sale, exchange, retirement, abandonment, involuntary conversion, or destruction. Where to mail 1040x After you figure the full-year depreciation amount, figure the deductible part using the convention that applies to the property. Where to mail 1040x Half-year convention used. Where to mail 1040x   For property for which you used a half-year convention, the depreciation deduction for the year of the disposition is half the depreciation determined for the full year. Where to mail 1040x Mid-quarter convention used. Where to mail 1040x   For property for which you used the mid-quarter convention, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter in which you disposed of the property. Where to mail 1040x Quarter Percentage First 12. Where to mail 1040x 5% Second 37. Where to mail 1040x 5 Third 62. Where to mail 1040x 5 Fourth 87. Where to mail 1040x 5 Example. Where to mail 1040x On December 2, 2010, you placed in service an item of 5-year property costing $10,000. Where to mail 1040x You did not claim a section 179 deduction and the property does not qualify for a special depreciation allowance. Where to mail 1040x Your unadjusted basis for the property was $10,000. Where to mail 1040x You used the mid-quarter convention because this was the only item of business property you placed in service in 2010 and it was placed in service during the last 3 months of your tax year. Where to mail 1040x Your property is in the 5-year property class, so you used Table A-5 to figure your depreciation deduction. Where to mail 1040x Your deductions for 2010, 2011, and 2012 were $500 (5% of $10,000), $3,800 (38% of $10,000), and $2,280 (22. Where to mail 1040x 80% of $10,000). Where to mail 1040x You disposed of the property on April 6, 2013. Where to mail 1040x To determine your depreciation deduction for 2013, first figure the deduction for the full year. Where to mail 1040x This is $1,368 (13. Where to mail 1040x 68% of $10,000). Where to mail 1040x April is in the second quarter of the year, so you multiply $1,368 by 37. Where to mail 1040x 5% to get your depreciation deduction of $513 for 2013. Where to mail 1040x Mid-month convention used. Where to mail 1040x   If you dispose of residential rental or nonresidential real property, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by a fraction. Where to mail 1040x The numerator of the fraction is the number of months (including partial months) in the year that the property is considered in service. Where to mail 1040x The denominator is 12. Where to mail 1040x Example. Where to mail 1040x On July 2, 2011, you purchased and placed in service residential rental property. Where to mail 1040x The property cost $100,000, not including the cost of land. Where to mail 1040x You used Table A-6 to figure your MACRS depreciation for this property. Where to mail 1040x You sold the property on March 2, 2013. Where to mail 1040x You file your tax return based on the calendar year. Where to mail 1040x A full year of depreciation for 2013 is $3,636. Where to mail 1040x This is $100,000 multiplied by . Where to mail 1040x 03636 (the percentage for the seventh month of the third recovery year) from Table A-6 . Where to mail 1040x You then apply the mid-month convention for the 2½ months of use in 2013. Where to mail 1040x Treat the month of disposition as one-half month of use. Where to mail 1040x Multiply $3,636 by the fraction, 2. Where to mail 1040x 5 over 12, to get your 2013 depreciation deduction of $757. Where to mail 1040x 50. Where to mail 1040x Figuring the Deduction Without Using the Tables Instead of using the rates in the percentage tables to figure your depreciation deduction, you can figure it yourself. Where to mail 1040x Before making the computation each year, you must reduce your adjusted basis in the property by the depreciation claimed the previous year. Where to mail 1040x Figuring MACRS deductions without using the tables generally will result in a slightly different amount than using the tables. Where to mail 1040x Declining Balance Method When using a declining balance method, you apply the same depreciation rate each year to the adjusted basis of your property. Where to mail 1040x You must use the applicable convention for the first tax year and you must switch to the straight line method beginning in the first year for which it will give an equal or greater deduction. Where to mail 1040x The straight line method is explained later. Where to mail 1040x You figure depreciation for the year you place property in service as follows. Where to mail 1040x Multiply your adjusted basis in the property by the declining balance rate. Where to mail 1040x Apply the applicable convention. Where to mail 1040x You figure depreciation for all other years (before the year you switch to the straight line method) as follows. Where to mail 1040x Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years. Where to mail 1040x Multiply this new adjusted basis by the same declining balance rate used in earlier years. Where to mail 1040x If you dispose of property before the end of its recovery period, see Using the Applicable Convention, later, for information on how to figure depreciation for the year you dispose of it. Where to mail 1040x Figuring depreciation under the declining balance method and switching to the straight line method is illustrated in Example 1 , later, under Examples. Where to mail 1040x Declining balance rate. Where to mail 1040x   You figure your declining balance rate by dividing the specified declining balance percentage (150% or 200% changed to a decimal) by the number of years in the property's recovery period. Where to mail 1040x For example, for 3-year property depreciated using the 200% declining balance method, divide 2. Where to mail 1040x 00 (200%) by 3 to get 0. Where to mail 1040x 6667, or a 66. Where to mail 1040x 67% declining balance rate. Where to mail 1040x For 15-year property depreciated using the 150% declining balance method, divide 1. Where to mail 1040x 50 (150%) by 15 to get 0. Where to mail 1040x 10, or a 10% declining balance rate. Where to mail 1040x   The following table shows the declining balance rate for each property class and the first year for which the straight line method gives an equal or greater deduction. Where to mail 1040x Property Class Method Declining Balance Rate Year 3-year 200% DB 66. Where to mail 1040x 667% 3rd 5-year 200% DB 40. Where to mail 1040x 0 4th 7-year 200% DB 28. Where to mail 1040x 571 5th 10-year 200% DB 20. Where to mail 1040x 0 7th 15-year 150% DB 10. Where to mail 1040x 0 7th 20-year 150% DB 7. Where to mail 1040x 5 9th Straight Line Method When using the straight line method, you apply a different depreciation rate each year to the adjusted basis of your property. Where to mail 1040x You must use the applicable convention in the year you place the property in service and the year you dispose of the property. Where to mail 1040x You figure depreciation for the year you place property in service as follows. Where to mail 1040x Multiply your adjusted basis in the property by the straight line rate. Where to mail 1040x Apply the applicable convention. Where to mail 1040x You figure depreciation for all other years (including the year you switch from the declining balance method to the straight line method) as follows. Where to mail 1040x Reduce your adjusted basis in the property by the depreciation allowed or allowable in earlier years (under any method). Where to mail 1040x Determine the depreciation rate for the year. Where to mail 1040x Multiply the adjusted basis figured in (1) by the depreciation rate figured in (2). Where to mail 1040x If you dispose of property before the end of its recovery period, see Using the Applicable Convention , later, for information on how to figure depreciation for the year you dispose of it. Where to mail 1040x Straight line rate. Where to mail 1040x   You determine the straight line depreciation rate for any tax year by dividing the number 1 by the years remaining in the recovery period at the beginning of that year. Where to mail 1040x When figuring the number of years remaining, you must take into account the convention used in the year you placed the property in service. Where to mail 1040x If the number of years remaining is less than 1, the depreciation rate for that tax year is 1. Where to mail 1040x 0 (100%). Where to mail 1040x Using the Applicable Convention The applicable convention (discussed earlier under Which Convention Applies ) affects how you figure your depreciation deduction for the year you place your property in service and for the year you dispose of it. Where to mail 1040x It determines how much of the recovery period remains at the beginning of each year, so it also affects the depreciation rate for property you depreciate under the straight line method. Where to mail 1040x See Straight line rate in the previous discussion. Where to mail 1040x Use the applicable convention as explained in the following discussions. Where to mail 1040x Half-year convention. Where to mail 1040x   If this convention applies, you deduct a half-year of depreciation for the first year and the last year that you depreciate the property. Where to mail 1040x You deduct a full year of depreciation for any other year during the recovery period. Where to mail 1040x   Figure your depreciation deduction for the year you place the property in service by dividing the depreciation for a full year by 2. Where to mail 1040x If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. Where to mail 1040x If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final 6 months of the recovery period is the amount of your unrecovered basis in the property. Where to mail 1040x Mid-quarter convention. Where to mail 1040x   If this convention applies, the depreciation you can deduct for the first year you depreciate the property depends on the quarter in which you place the property in service. Where to mail 1040x   A quarter of a full 12-month tax year is a period of 3 months. Where to mail 1040x The first quarter in a year begins on the first day of the tax year. Where to mail 1040x The second quarter begins on the first day of the fourth month of the tax year. Where to mail 1040x The third quarter begins on the first day of the seventh month of the tax year. Where to mail 1040x The fourth quarter begins on the first day of the tenth month of the tax year. Where to mail 1040x A calendar year is divided into the following quarters. Where to mail 1040x Quarter Months First January, February, March Second April, May, June Third July, August, September Fourth October, November, December   Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by the percentage listed below for the quarter you place the property in service. Where to mail 1040x Quarter Percentage First 87. Where to mail 1040x 5% Second 62. Where to mail 1040x 5 Third 37. Where to mail 1040x 5 Fourth 12. Where to mail 1040x 5   If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition by multiplying a full year of depreciation by the percentage listed below for the quarter you dispose of the property. Where to mail 1040x Quarter Percentage First 12. Where to mail 1040x 5% Second 37. Where to mail 1040x 5 Third 62. Where to mail 1040x 5 Fourth 87. Where to mail 1040x 5   If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final quarter of the recovery period is the amount of your unrecovered basis in the property. Where to mail 1040x Mid-month convention. Where to mail 1040x   If this convention applies, the depreciation you can deduct for the first year that you depreciate the property depends on the month in which you place the property in service. Where to mail 1040x Figure your depreciation deduction for the year you place the property in service by multiplying the depreciation for a full year by a fraction. Where to mail 1040x The numerator of the fraction is the number of full months in the year that the property is in service plus ½ (or 0. Where to mail 1040x 5). Where to mail 1040x The denominator is 12. Where to mail 1040x   If you dispose of the property before the end of the recovery period, figure your depreciation deduction for the year of the disposition the same way. Where to mail 1040x If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final month of the recovery period is the amount of your unrecovered basis in the property. Where to mail 1040x Example. Where to mail 1040x You use the calendar year and place nonresidential real property in service in August. Where to mail 1040x The property is in service 4 full months (September, October, November, and December). Where to mail 1040x Your numerator is 4. Where to mail 1040x 5 (4 full months plus 0. Where to mail 1040x 5). Where to mail 1040x You multiply the depreciation for a full year by 4. Where to mail 1040x 5/12, or 0. Where to mail 1040x 375. Where to mail 1040x Examples The following examples show how to figure depreciation under MACRS without using the percentage tables. Where to mail 1040x Figures are rounded for purposes of the examples. Where to mail 1040x Assume for all the examples that you use a calendar year as your tax year. Where to mail 1040x Example 1—200% DB method and half-year convention. Where to mail 1040x In February, you placed in service depreciable property with a 5-year recovery period and a basis of $1,000. Where to mail 1040x You do not elect to take the section 179 deduction and the property does not qualify for a special depreciation allowance. Where to mail 1040x You use GDS and the 200% declining balance (DB) method to figure your depreciation. Where to mail 1040x When the straight line (SL) method results in an equal or larger deduction, you switch to the SL method. Where to mail 1040x You did not place any property in service in the last 3 months of the year, so you must use the half-year convention. Where to mail 1040x First year. Where to mail 1040x You figure the depreciation rate under the 200% DB method by dividing 2 (200%) by 5 (the number of years in the recovery period). Where to mail 1040x The result is 40%. Where to mail 1040x You multiply the adjusted basis of the property ($1,000) by the 40% DB rate. Where to mail 1040x You apply the half-year convention by dividing the result ($400) by 2. Where to mail 1040x Depreciation for the first year under the 200% DB method is $200. Where to mail 1040x You figure the depreciation rate under the straight line (SL) method by dividing 1 by 5, the number of years in the recovery period. Where to mail 1040x The result is 20%. Where to mail 1040x You multiply the adjusted basis of the property ($1,000) by the 20% SL rate. Where to mail 1040x You apply the half-year convention by dividing the result ($200) by 2. Where to mail 1040x Depreciation for the first year under the SL method is $100. Where to mail 1040x The DB method provides a larger deduction, so you deduct the $200 figured under the 200% DB method. Where to mail 1040x Second year. Where to mail 1040x You reduce the adjusted basis ($1,000) by the depreciation claimed in the first year ($200). Where to mail 1040x You multiply the result ($800) by the DB rate (40%). Where to mail 1040x Depreciation for the second year under the 200% DB method is $320. Where to mail 1040x You figure the SL depreciation rate by dividing 1 by 4. Where to mail 1040x 5, the number of years remaining in the recovery period. Where to mail 1040x (Based on the half-year convention, you used only half a year of the recovery period in the first year. Where to mail 1040x ) You multiply the reduced adjusted basis ($800) by the result (22. Where to mail 1040x 22%). Where to mail 1040x Depreciation under the SL method for the second year is $178. Where to mail 1040x The DB method provides a larger deduction, so you deduct the $320 figured under the 200% DB method. Where to mail 1040x Third year. Where to mail 1040x You reduce the adjusted basis ($800) by the depreciation claimed in the second year ($320). Where to mail 1040x You multiply the result ($480) by the DB rate (40%). Where to mail 1040x Depreciation for the third year under the 200% DB method is $192. Where to mail 1040x You figure the SL depreciation rate by dividing 1 by 3. Where to mail 1040x 5. Where to mail 1040x You multiply the reduced adjusted basis ($480) by the result (28. Where to mail 1040x 57%). Where to mail 1040x Depreciation under the SL method for the third year is $137. Where to mail 1040x The DB method provides a larger deduction, so you deduct the $192 figured under the 200% DB method. Where to mail 1040x Fourth year. Where to mail 1040x You reduce the adjusted basis ($480) by the de