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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Www Myfreetaxes Com Unitedwaymhc

Irs 2012 Form 1040a2009 Tax ReturnsIncome Tax ExtentionAmending A Tax Return1040x 20131040ez Form For 20131040 FormTaxes MilitaryHow Can I File My 2011 TaxesTax AideWww Irs GovCan I Efile A 2012 Tax ReturnFiling State Tax ReturnsTax Amendment Form 20131040x Instructions 2012If Unemployed Do I File Taxes1040x Electronically FileDownload 1040xFree State Tax E FilingFree Tax Filing For State And FederalFile 2006 Taxes OnlineState Income Tax HelpTax Form 1040ez Instructions1040ez OnlineHow To Fill Out A 1040x Tax Amendment FormFree 2007 Tax Software DownloadFederal Form 1040ez1040easy2012 Tax AmendmentAmend 2010 Tax Return FreeState Tax Return FormsAmend Tax Return OnlineWww Irs GovHow Do I File An Amended ReturnEz Tax Form 2013Amended 1040xTax Form For StudentsCan I Efile 1040xAmmend TaxCan You Still File 2012 Taxes

Www Myfreetaxes Com Unitedwaymhc

Www myfreetaxes com unitedwaymhc 1. Www myfreetaxes com unitedwaymhc   Overview of Depreciation Table of Contents Introduction Useful Items - You may want to see: What Property Can Be Depreciated?Property You Own Property Used in Your Business or Income-Producing Activity Property Having a Determinable Useful Life Property Lasting More Than One Year What Property Cannot Be Depreciated?Land Excepted Property When Does Depreciation Begin and End?Placed in Service Idle Property Cost or Other Basis Fully Recovered Retired From Service What Method Can You Use To Depreciate Your Property?Property You Placed in Service Before 1987 Property Owned or Used in 1986 Intangible Property Corporate or Partnership Property Acquired in a Nontaxable Transfer Election To Exclude Property From MACRS What Is the Basis of Your Depreciable Property?Cost as Basis Other Basis Adjusted Basis How Do You Treat Repairs and Improvements? Do You Have To File Form 4562? How Do You Correct Depreciation Deductions?Filing an Amended Return Changing Your Accounting Method Introduction Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. Www myfreetaxes com unitedwaymhc It is an allowance for the wear and tear, deterioration, or obsolescence of the property. Www myfreetaxes com unitedwaymhc This chapter discusses the general rules for depreciating property and answers the following questions. Www myfreetaxes com unitedwaymhc What property can be depreciated? What property cannot be depreciated? When does depreciation begin and end? What method can you use to depreciate your property? What is the basis of your depreciable property? How do you treat repairs and improvements? Do you have to file Form 4562? How do you correct depreciation deductions? Useful Items - You may want to see: Publication 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization See chapter 6 for information about getting publications and forms. Www myfreetaxes com unitedwaymhc What Property Can Be Depreciated? You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment. Www myfreetaxes com unitedwaymhc You also can depreciate certain intangible property, such as patents, copyrights, and computer software. Www myfreetaxes com unitedwaymhc To be depreciable, the property must meet all the following requirements. Www myfreetaxes com unitedwaymhc It must be property you own. Www myfreetaxes com unitedwaymhc It must be used in your business or income-producing activity. Www myfreetaxes com unitedwaymhc It must have a determinable useful life. Www myfreetaxes com unitedwaymhc It must be expected to last more than one year. Www myfreetaxes com unitedwaymhc The following discussions provide information about these requirements. Www myfreetaxes com unitedwaymhc Property You Own To claim depreciation, you usually must be the owner of the property. Www myfreetaxes com unitedwaymhc You are considered as owning property even if it is subject to a debt. Www myfreetaxes com unitedwaymhc Example 1. Www myfreetaxes com unitedwaymhc You made a down payment to purchase rental property and assumed the previous owner's mortgage. Www myfreetaxes com unitedwaymhc You own the property and you can depreciate it. Www myfreetaxes com unitedwaymhc Example 2. Www myfreetaxes com unitedwaymhc You bought a new van that you will use only for your courier business. Www myfreetaxes com unitedwaymhc You will be making payments on the van over the next 5 years. Www myfreetaxes com unitedwaymhc You own the van and you can depreciate it. Www myfreetaxes com unitedwaymhc Leased property. Www myfreetaxes com unitedwaymhc   You can depreciate leased property only if you retain the incidents of ownership in the property (explained below). Www myfreetaxes com unitedwaymhc This means you bear the burden of exhaustion of the capital investment in the property. Www myfreetaxes com unitedwaymhc Therefore, if you lease property from someone to use in your trade or business or for the production of income, you generally cannot depreciate its cost because you do not retain the incidents of ownership. Www myfreetaxes com unitedwaymhc You can, however, depreciate any capital improvements you make to the property. Www myfreetaxes com unitedwaymhc See How Do You Treat Repairs and Improvements later in this chapter and Additions and Improvements under Which Recovery Period Applies in chapter 4. Www myfreetaxes com unitedwaymhc   If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. Www myfreetaxes com unitedwaymhc However, if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased, you cannot depreciate the cost of the property. Www myfreetaxes com unitedwaymhc Incidents of ownership. Www myfreetaxes com unitedwaymhc   Incidents of ownership in property include the following. Www myfreetaxes com unitedwaymhc The legal title to the property. Www myfreetaxes com unitedwaymhc The legal obligation to pay for the property. Www myfreetaxes com unitedwaymhc The responsibility to pay maintenance and operating expenses. Www myfreetaxes com unitedwaymhc The duty to pay any taxes on the property. Www myfreetaxes com unitedwaymhc The risk of loss if the property is destroyed, condemned, or diminished in value through obsolescence or exhaustion. Www myfreetaxes com unitedwaymhc Life tenant. Www myfreetaxes com unitedwaymhc   Generally, if you hold business or investment property as a life tenant, you can depreciate it as if you were the absolute owner of the property. Www myfreetaxes com unitedwaymhc However, see Certain term interests in property under Excepted Property, later. Www myfreetaxes com unitedwaymhc Cooperative apartments. Www myfreetaxes com unitedwaymhc   If you are a tenant-stockholder in a cooperative housing corporation and use your cooperative apartment in your business or for the production of income, you can depreciate your stock in the corporation, even though the corporation owns the apartment. Www myfreetaxes com unitedwaymhc   Figure your depreciation deduction as follows. Www myfreetaxes com unitedwaymhc Figure the depreciation for all the depreciable real property owned by the corporation in which you have a proprietary lease or right of tenancy. Www myfreetaxes com unitedwaymhc If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. Www myfreetaxes com unitedwaymhc Multiply your cost per share by the total number of outstanding shares, including any shares held by the corporation. Www myfreetaxes com unitedwaymhc Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. Www myfreetaxes com unitedwaymhc Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. Www myfreetaxes com unitedwaymhc Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. Www myfreetaxes com unitedwaymhc Divide the number of your shares of stock by the total number of outstanding shares, including any shares held by the corporation. Www myfreetaxes com unitedwaymhc Multiply the result of (2) by the percentage you figured in (3). Www myfreetaxes com unitedwaymhc This is your depreciation on the stock. Www myfreetaxes com unitedwaymhc   Your depreciation deduction for the year cannot be more than the part of your adjusted basis in the stock of the corporation that is allocable to your business or income-producing property. Www myfreetaxes com unitedwaymhc You must also reduce your depreciation deduction if only a portion of the property is used in a business or for the production of income. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You figure your share of the cooperative housing corporation's depreciation to be $30,000. Www myfreetaxes com unitedwaymhc Your adjusted basis in the stock of the corporation is $50,000. Www myfreetaxes com unitedwaymhc You use one half of your apartment solely for business purposes. Www myfreetaxes com unitedwaymhc Your depreciation deduction for the stock for the year cannot be more than $25,000 (½ of $50,000). Www myfreetaxes com unitedwaymhc Change to business use. Www myfreetaxes com unitedwaymhc   If you change your cooperative apartment to business use, figure your allowable depreciation as explained earlier. Www myfreetaxes com unitedwaymhc The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. Www myfreetaxes com unitedwaymhc The fair market value of the property on the date you change your apartment to business use. Www myfreetaxes com unitedwaymhc This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. Www myfreetaxes com unitedwaymhc The corporation's adjusted basis in the property on that date. Www myfreetaxes com unitedwaymhc Do not subtract depreciation when figuring the corporation's adjusted basis. Www myfreetaxes com unitedwaymhc   If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1), above. Www myfreetaxes com unitedwaymhc The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. Www myfreetaxes com unitedwaymhc   For a discussion of fair market value and adjusted basis, see Publication 551. Www myfreetaxes com unitedwaymhc Property Used in Your Business or Income-Producing Activity To claim depreciation on property, you must use it in your business or income-producing activity. Www myfreetaxes com unitedwaymhc If you use property to produce income (investment use), the income must be taxable. Www myfreetaxes com unitedwaymhc You cannot depreciate property that you use solely for personal activities. Www myfreetaxes com unitedwaymhc Partial business or investment use. Www myfreetaxes com unitedwaymhc   If you use property for business or investment purposes and for personal purposes, you can deduct depreciation based only on the business or investment use. Www myfreetaxes com unitedwaymhc For example, you cannot deduct depreciation on a car used only for commuting, personal shopping trips, family vacations, driving children to and from school, or similar activities. Www myfreetaxes com unitedwaymhc    You must keep records showing the business, investment, and personal use of your property. Www myfreetaxes com unitedwaymhc For more information on the records you must keep for listed property, such as a car, see What Records Must Be Kept in chapter 5. Www myfreetaxes com unitedwaymhc    Although you can combine business and investment use of property when figuring depreciation deductions, do not treat investment use as qualified business use when determining whether the business-use requirement for listed property is met. Www myfreetaxes com unitedwaymhc For information about qualified business use of listed property, see What Is the Business-Use Requirement in chapter 5. Www myfreetaxes com unitedwaymhc Office in the home. Www myfreetaxes com unitedwaymhc   If you use part of your home as an office, you may be able to deduct depreciation on that part based on its business use. Www myfreetaxes com unitedwaymhc For information about depreciating your home office, see Publication 587. Www myfreetaxes com unitedwaymhc Inventory. Www myfreetaxes com unitedwaymhc   You cannot depreciate inventory because it is not held for use in your business. Www myfreetaxes com unitedwaymhc Inventory is any property you hold primarily for sale to customers in the ordinary course of your business. Www myfreetaxes com unitedwaymhc   If you are a rent-to-own dealer, you may be able to treat certain property held in your business as depreciable property rather than as inventory. Www myfreetaxes com unitedwaymhc See Rent-to-own dealer under Which Property Class Applies Under GDS in chapter 4. Www myfreetaxes com unitedwaymhc   In some cases, it is not clear whether property is held for sale (inventory) or for use in your business. Www myfreetaxes com unitedwaymhc If it is unclear, examine carefully all the facts in the operation of the particular business. Www myfreetaxes com unitedwaymhc The following example shows how a careful examination of the facts in two similar situations results in different conclusions. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc Maple Corporation is in the business of leasing cars. Www myfreetaxes com unitedwaymhc At the end of their useful lives, when the cars are no longer profitable to lease, Maple sells them. Www myfreetaxes com unitedwaymhc Maple does not have a showroom, used car lot, or individuals to sell the cars. Www myfreetaxes com unitedwaymhc Instead, it sells them through wholesalers or by similar arrangements in which a dealer's profit is not intended or considered. Www myfreetaxes com unitedwaymhc Maple can depreciate the leased cars because the cars are not held primarily for sale to customers in the ordinary course of business, but are leased. Www myfreetaxes com unitedwaymhc If Maple buys cars at wholesale prices, leases them for a short time, and then sells them at retail prices or in sales in which a dealer's profit is intended, the cars are treated as inventory and are not depreciable property. Www myfreetaxes com unitedwaymhc In this situation, the cars are held primarily for sale to customers in the ordinary course of business. Www myfreetaxes com unitedwaymhc Containers. Www myfreetaxes com unitedwaymhc   Generally, containers for the products you sell are part of inventory and you cannot depreciate them. Www myfreetaxes com unitedwaymhc However, you can depreciate containers used to ship your products if they have a life longer than one year and meet the following requirements. Www myfreetaxes com unitedwaymhc They qualify as property used in your business. Www myfreetaxes com unitedwaymhc Title to the containers does not pass to the buyer. Www myfreetaxes com unitedwaymhc   To determine if these requirements are met, consider the following questions. Www myfreetaxes com unitedwaymhc Does your sales contract, sales invoice, or other type of order acknowledgment indicate whether you have retained title? Does your invoice treat the containers as separate items? Do any of your records state your basis in the containers? Property Having a Determinable Useful Life To be depreciable, your property must have a determinable useful life. Www myfreetaxes com unitedwaymhc This means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Www myfreetaxes com unitedwaymhc Property Lasting More Than One Year To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You maintain a library for use in your profession. Www myfreetaxes com unitedwaymhc You can depreciate it. Www myfreetaxes com unitedwaymhc However, if you buy technical books, journals, or information services for use in your business that have a useful life of one year or less, you cannot depreciate them. Www myfreetaxes com unitedwaymhc Instead, you deduct their cost as a business expense. Www myfreetaxes com unitedwaymhc What Property Cannot Be Depreciated? Certain property cannot be depreciated. Www myfreetaxes com unitedwaymhc This includes land and certain excepted property. Www myfreetaxes com unitedwaymhc Land You cannot depreciate the cost of land because land does not wear out, become obsolete, or get used up. Www myfreetaxes com unitedwaymhc The cost of land generally includes the cost of clearing, grading, planting, and landscaping. Www myfreetaxes com unitedwaymhc Although you cannot depreciate land, you can depreciate certain land preparation costs, such as landscaping costs, incurred in preparing land for business use. Www myfreetaxes com unitedwaymhc These costs must be so closely associated with other depreciable property that you can determine a life for them along with the life of the associated property. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You constructed a new building for use in your business and paid for grading, clearing, seeding, and planting bushes and trees. Www myfreetaxes com unitedwaymhc Some of the bushes and trees were planted right next to the building, while others were planted around the outer border of the lot. Www myfreetaxes com unitedwaymhc If you replace the building, you would have to destroy the bushes and trees right next to it. Www myfreetaxes com unitedwaymhc These bushes and trees are closely associated with the building, so they have a determinable useful life. Www myfreetaxes com unitedwaymhc Therefore, you can depreciate them. Www myfreetaxes com unitedwaymhc Add your other land preparation costs to the basis of your land because they have no determinable life and you cannot depreciate them. Www myfreetaxes com unitedwaymhc Excepted Property Even if the requirements explained in the preceding discussions are met, you cannot depreciate the following property. Www myfreetaxes com unitedwaymhc Property placed in service and disposed of in the same year. Www myfreetaxes com unitedwaymhc Determining when property is placed in service is explained later. Www myfreetaxes com unitedwaymhc Equipment used to build capital improvements. Www myfreetaxes com unitedwaymhc You must add otherwise allowable depreciation on the equipment during the period of construction to the basis of your improvements. Www myfreetaxes com unitedwaymhc See Uniform Capitalization Rules in Publication 551. Www myfreetaxes com unitedwaymhc Section 197 intangibles. Www myfreetaxes com unitedwaymhc You must amortize these costs. Www myfreetaxes com unitedwaymhc Section 197 intangibles are discussed in detail in Chapter 8 of Publication 535. Www myfreetaxes com unitedwaymhc Intangible property, such as certain computer software, that is not section 197 intangible property, can be depreciated if it meets certain requirements. Www myfreetaxes com unitedwaymhc See Intangible Property , later. Www myfreetaxes com unitedwaymhc Certain term interests. Www myfreetaxes com unitedwaymhc Certain term interests in property. Www myfreetaxes com unitedwaymhc   You cannot depreciate a term interest in property created or acquired after July 27, 1989, for any period during which the remainder interest is held, directly or indirectly, by a person related to you. Www myfreetaxes com unitedwaymhc A term interest in property means a life interest in property, an interest in property for a term of years, or an income interest in a trust. Www myfreetaxes com unitedwaymhc Related persons. Www myfreetaxes com unitedwaymhc   For a description of related persons, see Related Persons, later. Www myfreetaxes com unitedwaymhc For this purpose, however, treat as related persons only the relationships listed in items (1) through (10) of that discussion and substitute “50%” for “10%” each place it appears. Www myfreetaxes com unitedwaymhc Basis adjustments. Www myfreetaxes com unitedwaymhc   If you would be allowed a depreciation deduction for a term interest in property except that the holder of the remainder interest is related to you, you generally must reduce your basis in the term interest by any depreciation or amortization not allowed. Www myfreetaxes com unitedwaymhc   If you hold the remainder interest, you generally must increase your basis in that interest by the depreciation not allowed to the term interest holder. Www myfreetaxes com unitedwaymhc However, do not increase your basis for depreciation not allowed for periods during which either of the following situations applies. Www myfreetaxes com unitedwaymhc The term interest is held by an organization exempt from tax. Www myfreetaxes com unitedwaymhc The term interest is held by a nonresident alien individual or foreign corporation, and the income from the term interest is not effectively connected with the conduct of a trade or business in the United States. Www myfreetaxes com unitedwaymhc Exceptions. Www myfreetaxes com unitedwaymhc   The above rules do not apply to the holder of a term interest in property acquired by gift, bequest, or inheritance. Www myfreetaxes com unitedwaymhc They also do not apply to the holder of dividend rights that were separated from any stripped preferred stock if the rights were purchased after April 30, 1993, or to a person whose basis in the stock is determined by reference to the basis in the hands of the purchaser. Www myfreetaxes com unitedwaymhc When Does Depreciation Begin and End? You begin to depreciate your property when you place it in service for use in your trade or business or for the production of income. Www myfreetaxes com unitedwaymhc You stop depreciating property either when you have fully recovered your cost or other basis or when you retire it from service, whichever happens first. Www myfreetaxes com unitedwaymhc Placed in Service You place property in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. Www myfreetaxes com unitedwaymhc Even if you are not using the property, it is in service when it is ready and available for its specific use. Www myfreetaxes com unitedwaymhc Example 1. Www myfreetaxes com unitedwaymhc Donald Steep bought a machine for his business. Www myfreetaxes com unitedwaymhc The machine was delivered last year. Www myfreetaxes com unitedwaymhc However, it was not installed and operational until this year. Www myfreetaxes com unitedwaymhc It is considered placed in service this year. Www myfreetaxes com unitedwaymhc If the machine had been ready and available for use when it was delivered, it would be considered placed in service last year even if it was not actually used until this year. Www myfreetaxes com unitedwaymhc Example 2. Www myfreetaxes com unitedwaymhc On April 6, Sue Thorn bought a house to use as residential rental property. Www myfreetaxes com unitedwaymhc She made several repairs and had it ready for rent on July 5. Www myfreetaxes com unitedwaymhc At that time, she began to advertise it for rent in the local newspaper. Www myfreetaxes com unitedwaymhc The house is considered placed in service in July when it was ready and available for rent. Www myfreetaxes com unitedwaymhc She can begin to depreciate it in July. Www myfreetaxes com unitedwaymhc Example 3. Www myfreetaxes com unitedwaymhc James Elm is a building contractor who specializes in constructing office buildings. Www myfreetaxes com unitedwaymhc He bought a truck last year that had to be modified to lift materials to second-story levels. Www myfreetaxes com unitedwaymhc The installation of the lifting equipment was completed and James accepted delivery of the modified truck on January 10 of this year. Www myfreetaxes com unitedwaymhc The truck was placed in service on January 10, the date it was ready and available to perform the function for which it was bought. Www myfreetaxes com unitedwaymhc Conversion to business use. Www myfreetaxes com unitedwaymhc   If you place property in service in a personal activity, you cannot claim depreciation. Www myfreetaxes com unitedwaymhc However, if you change the property's use to use in a business or income-producing activity, then you can begin to depreciate it at the time of the change. Www myfreetaxes com unitedwaymhc You place the property in service in the business or income-producing activity on the date of the change. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You bought a home and used it as your personal home several years before you converted it to rental property. Www myfreetaxes com unitedwaymhc Although its specific use was personal and no depreciation was allowable, you placed the home in service when you began using it as your home. Www myfreetaxes com unitedwaymhc You can begin to claim depreciation in the year you converted it to rental property because its use changed to an income-producing use at that time. Www myfreetaxes com unitedwaymhc Idle Property Continue to claim a deduction for depreciation on property used in your business or for the production of income even if it is temporarily idle (not in use). Www myfreetaxes com unitedwaymhc For example, if you stop using a machine because there is a temporary lack of a market for a product made with that machine, continue to deduct depreciation on the machine. Www myfreetaxes com unitedwaymhc Cost or Other Basis Fully Recovered You stop depreciating property when you have fully recovered your cost or other basis. Www myfreetaxes com unitedwaymhc You recover your basis when your section 179 and allowed or allowable depreciation deductions equal your cost or investment in the property. Www myfreetaxes com unitedwaymhc See What Is the Basis of Your Depreciable Property , later. Www myfreetaxes com unitedwaymhc Retired From Service You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. Www myfreetaxes com unitedwaymhc You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events. Www myfreetaxes com unitedwaymhc You sell or exchange the property. Www myfreetaxes com unitedwaymhc You convert the property to personal use. Www myfreetaxes com unitedwaymhc You abandon the property. Www myfreetaxes com unitedwaymhc You transfer the property to a supplies or scrap account. Www myfreetaxes com unitedwaymhc The property is destroyed. Www myfreetaxes com unitedwaymhc If you included the property in a general asset account, see How Do You Use General Asset Accounts in chapter 4 for the rules that apply when you dispose of that property. Www myfreetaxes com unitedwaymhc What Method Can You Use To Depreciate Your Property? You must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate most property. Www myfreetaxes com unitedwaymhc MACRS is discussed in chapter 4. Www myfreetaxes com unitedwaymhc You cannot use MACRS to depreciate the following property. Www myfreetaxes com unitedwaymhc Property you placed in service before 1987. Www myfreetaxes com unitedwaymhc Certain property owned or used in 1986. Www myfreetaxes com unitedwaymhc Intangible property. Www myfreetaxes com unitedwaymhc Films, video tapes, and recordings. Www myfreetaxes com unitedwaymhc Certain corporate or partnership property acquired in a nontaxable transfer. Www myfreetaxes com unitedwaymhc Property you elected to exclude from MACRS. Www myfreetaxes com unitedwaymhc The following discussions describe the property listed above and explain what depreciation method should be used. Www myfreetaxes com unitedwaymhc Property You Placed in Service Before 1987 You cannot use MACRS for property you placed in service before 1987 (except property you placed in service after July 31, 1986, if MACRS was elected). Www myfreetaxes com unitedwaymhc Property placed in service before 1987 must be depreciated under the methods discussed in Publication 534. Www myfreetaxes com unitedwaymhc For a discussion of when property is placed in service, see When Does Depreciation Begin and End , earlier. Www myfreetaxes com unitedwaymhc Use of real property changed. Www myfreetaxes com unitedwaymhc   You generally must use MACRS to depreciate real property that you acquired for personal use before 1987 and changed to business or income-producing use after 1986. Www myfreetaxes com unitedwaymhc Improvements made after 1986. Www myfreetaxes com unitedwaymhc   You must treat an improvement made after 1986 to property you placed in service before 1987 as separate depreciable property. Www myfreetaxes com unitedwaymhc Therefore, you can depreciate that improvement as separate property under MACRS if it is the type of property that otherwise qualifies for MACRS depreciation. Www myfreetaxes com unitedwaymhc For more information about improvements, see How Do You Treat Repairs and Improvements , later and Additions and Improvements under Which Recovery Period Applies in chapter 4. Www myfreetaxes com unitedwaymhc Property Owned or Used in 1986 You may not be able to use MACRS for property you acquired and placed in service after 1986 if any of the situations described below apply. Www myfreetaxes com unitedwaymhc If you cannot use MACRS, the property must be depreciated under the methods discussed in Publication 534. Www myfreetaxes com unitedwaymhc For the following discussions, do not treat property as owned before you placed it in service. Www myfreetaxes com unitedwaymhc If you owned property in 1986 but did not place it in service until 1987, you do not treat it as owned in 1986. Www myfreetaxes com unitedwaymhc Personal property. Www myfreetaxes com unitedwaymhc   You cannot use MACRS for personal property (section 1245 property) in any of the following situations. Www myfreetaxes com unitedwaymhc You or someone related to you owned or used the property in 1986. Www myfreetaxes com unitedwaymhc You acquired the property from a person who owned it in 1986 and as part of the transaction the user of the property did not change. Www myfreetaxes com unitedwaymhc You lease the property to a person (or someone related to this person) who owned or used the property in 1986. Www myfreetaxes com unitedwaymhc You acquired the property in a transaction in which: The user of the property did not change, and The property was not MACRS property in the hands of the person from whom you acquired it because of (2) or (3) above. Www myfreetaxes com unitedwaymhc Real property. Www myfreetaxes com unitedwaymhc   You generally cannot use MACRS for real property (section 1250 property) in any of the following situations. Www myfreetaxes com unitedwaymhc You or someone related to you owned the property in 1986. Www myfreetaxes com unitedwaymhc You lease the property to a person who owned the property in 1986 (or someone related to that person). Www myfreetaxes com unitedwaymhc You acquired the property in a like-kind exchange, involuntary conversion, or repossession of property you or someone related to you owned in 1986. Www myfreetaxes com unitedwaymhc MACRS applies only to that part of your basis in the acquired property that represents cash paid or unlike property given up. Www myfreetaxes com unitedwaymhc It does not apply to the carried-over part of the basis. Www myfreetaxes com unitedwaymhc Exceptions. Www myfreetaxes com unitedwaymhc   The rules above do not apply to the following. Www myfreetaxes com unitedwaymhc Residential rental property or nonresidential real property. Www myfreetaxes com unitedwaymhc Any property if, in the first tax year it is placed in service, the deduction under the Accelerated Cost Recovery System (ACRS) is more than the deduction under MACRS using the half-year convention. Www myfreetaxes com unitedwaymhc For information on how to figure depreciation under ACRS, see Publication 534. Www myfreetaxes com unitedwaymhc Property that was MACRS property in the hands of the person from whom you acquired it because of (2) above. Www myfreetaxes com unitedwaymhc Related persons. Www myfreetaxes com unitedwaymhc   For this purpose, the following are related persons. Www myfreetaxes com unitedwaymhc An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. Www myfreetaxes com unitedwaymhc A corporation and an individual who directly or indirectly owns more than 10% of the value of the outstanding stock of that corporation. Www myfreetaxes com unitedwaymhc Two corporations that are members of the same controlled group. Www myfreetaxes com unitedwaymhc A trust fiduciary and a corporation if more than 10% of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. Www myfreetaxes com unitedwaymhc The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Www myfreetaxes com unitedwaymhc The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. Www myfreetaxes com unitedwaymhc A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. Www myfreetaxes com unitedwaymhc Two S corporations, and an S corporation and a regular corporation, if the same persons own more than 10% of the value of the outstanding stock of each corporation. Www myfreetaxes com unitedwaymhc A corporation and a partnership if the same persons own both of the following. Www myfreetaxes com unitedwaymhc More than 10% of the value of the outstanding stock of the corporation. Www myfreetaxes com unitedwaymhc More than 10% of the capital or profits interest in the partnership. Www myfreetaxes com unitedwaymhc The executor and beneficiary of any estate. Www myfreetaxes com unitedwaymhc A partnership and a person who directly or indirectly owns more than 10% of the capital or profits interest in the partnership. Www myfreetaxes com unitedwaymhc Two partnerships, if the same persons directly or indirectly own more than 10% of the capital or profits interest in each. Www myfreetaxes com unitedwaymhc The related person and a person who is engaged in trades or businesses under common control. Www myfreetaxes com unitedwaymhc See section 52(a) and 52(b) of the Internal Revenue Code. Www myfreetaxes com unitedwaymhc When to determine relationship. Www myfreetaxes com unitedwaymhc   You must determine whether you are related to another person at the time you acquire the property. Www myfreetaxes com unitedwaymhc   A partnership acquiring property from a terminating partnership must determine whether it is related to the terminating partnership immediately before the event causing the termination. Www myfreetaxes com unitedwaymhc For this rule, a terminating partnership is one that sells or exchanges, within 12 months, 50% or more of its total interest in partnership capital or profits. Www myfreetaxes com unitedwaymhc Constructive ownership of stock or partnership interest. Www myfreetaxes com unitedwaymhc   To determine whether a person directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership, apply the following rules. Www myfreetaxes com unitedwaymhc Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Www myfreetaxes com unitedwaymhc However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more of the value of the stock of the corporation. Www myfreetaxes com unitedwaymhc An individual is considered to own the stock or partnership interest directly or indirectly owned by or for the individual's family. Www myfreetaxes com unitedwaymhc An individual who owns, except by applying rule (2), any stock in a corporation is considered to own the stock directly or indirectly owned by or for the individual's partner. Www myfreetaxes com unitedwaymhc For purposes of rules (1), (2), or (3), stock or a partnership interest considered to be owned by a person under rule (1) is treated as actually owned by that person. Www myfreetaxes com unitedwaymhc However, stock or a partnership interest considered to be owned by an individual under rule (2) or (3) is not treated as owned by that individual for reapplying either rule (2) or (3) to make another person considered to be the owner of the same stock or partnership interest. Www myfreetaxes com unitedwaymhc Intangible Property Generally, if you can depreciate intangible property, you usually use the straight line method of depreciation. Www myfreetaxes com unitedwaymhc However, you can choose to depreciate certain intangible property under the income forecast method (discussed later). Www myfreetaxes com unitedwaymhc You cannot depreciate intangible property that is a section 197 intangible or that otherwise does not meet all the requirements discussed earlier under What Property Can Be Depreciated. Www myfreetaxes com unitedwaymhc Straight Line Method This method lets you deduct the same amount of depreciation each year over the useful life of the property. Www myfreetaxes com unitedwaymhc To figure your deduction, first determine the adjusted basis, salvage value, and estimated useful life of your property. Www myfreetaxes com unitedwaymhc Subtract the salvage value, if any, from the adjusted basis. Www myfreetaxes com unitedwaymhc The balance is the total depreciation you can take over the useful life of the property. Www myfreetaxes com unitedwaymhc Divide the balance by the number of years in the useful life. Www myfreetaxes com unitedwaymhc This gives you your yearly depreciation deduction. Www myfreetaxes com unitedwaymhc Unless there is a big change in adjusted basis or useful life, this amount will stay the same throughout the time you depreciate the property. Www myfreetaxes com unitedwaymhc If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc In April, Frank bought a patent for $5,100 that is not a section 197 intangible. Www myfreetaxes com unitedwaymhc He depreciates the patent under the straight line method, using a 17-year useful life and no salvage value. Www myfreetaxes com unitedwaymhc He divides the $5,100 basis by 17 years to get his $300 yearly depreciation deduction. Www myfreetaxes com unitedwaymhc He only used the patent for 9 months during the first year, so he multiplies $300 by 9/12 to get his deduction of $225 for the first year. Www myfreetaxes com unitedwaymhc Next year, Frank can deduct $300 for the full year. Www myfreetaxes com unitedwaymhc Patents and copyrights. Www myfreetaxes com unitedwaymhc   If you can depreciate the cost of a patent or copyright, use the straight line method over the useful life. Www myfreetaxes com unitedwaymhc The useful life of a patent or copyright is the lesser of the life granted to it by the government or the remaining life when you acquire it. Www myfreetaxes com unitedwaymhc However, if the patent or copyright becomes valueless before the end of its useful life, you can deduct in that year any of its remaining cost or other basis. Www myfreetaxes com unitedwaymhc Computer software. Www myfreetaxes com unitedwaymhc   Computer software is generally a section 197 intangible and cannot be depreciated if you acquired it in connection with the acquisition of assets constituting a business or a substantial part of a business. Www myfreetaxes com unitedwaymhc   However, computer software is not a section 197 intangible and can be depreciated, even if acquired in connection with the acquisition of a business, if it meets all of the following tests. Www myfreetaxes com unitedwaymhc It is readily available for purchase by the general public. Www myfreetaxes com unitedwaymhc It is subject to a nonexclusive license. Www myfreetaxes com unitedwaymhc It has not been substantially modified. Www myfreetaxes com unitedwaymhc   If the software meets the tests above, it may also qualify for the section 179 deduction and the special depreciation allowance, discussed later. Www myfreetaxes com unitedwaymhc If you can depreciate the cost of computer software, use the straight line method over a useful life of 36 months. Www myfreetaxes com unitedwaymhc    Tax-exempt use property subject to a lease. Www myfreetaxes com unitedwaymhc   The useful life of computer software leased under a lease agreement entered into after March 12, 2004, 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. Www myfreetaxes com unitedwaymhc Certain created intangibles. Www myfreetaxes com unitedwaymhc   You can amortize certain intangibles created on or after December 31, 2003, over a 15-year period using the straight line method and no salvage value, even though they have a useful life that cannot be estimated with reasonable accuracy. Www myfreetaxes com unitedwaymhc For example, amounts paid to acquire memberships or privileges of indefinite duration, such as a trade association membership, are eligible costs. Www myfreetaxes com unitedwaymhc   The following are not eligible. Www myfreetaxes com unitedwaymhc Any intangible asset acquired from another person. Www myfreetaxes com unitedwaymhc Created financial interests. Www myfreetaxes com unitedwaymhc Any intangible asset that has a useful life that can be estimated with reasonable accuracy. Www myfreetaxes com unitedwaymhc Any intangible asset that has an amortization period or limited useful life that is specifically prescribed or prohibited by the Code, regulations, or other published IRS guidance. Www myfreetaxes com unitedwaymhc Any amount paid to facilitate an acquisition of a trade or business, a change in the capital structure of a business entity, and certain other transactions. Www myfreetaxes com unitedwaymhc   You must also increase the 15-year safe harbor amortization period to a 25-year period for certain intangibles related to benefits arising from the provision, production, or improvement of real property. Www myfreetaxes com unitedwaymhc For this purpose, real property includes property that will remain attached to the real property for an indefinite period of time, such as roads, bridges, tunnels, pavements, and pollution control facilities. Www myfreetaxes com unitedwaymhc Income Forecast Method You can choose to use the income forecast method instead of the straight line method to depreciate the following depreciable intangibles. Www myfreetaxes com unitedwaymhc Motion picture films or video tapes. Www myfreetaxes com unitedwaymhc Sound recordings. Www myfreetaxes com unitedwaymhc Copyrights. Www myfreetaxes com unitedwaymhc Books. Www myfreetaxes com unitedwaymhc Patents. Www myfreetaxes com unitedwaymhc Under the income forecast method, each year's depreciation deduction is equal to the cost of the property, multiplied by a fraction. Www myfreetaxes com unitedwaymhc The numerator of the fraction is the current year's net income from the property, and the denominator is the total income anticipated from the property through the end of the 10th taxable year following the taxable year the property is placed in service. Www myfreetaxes com unitedwaymhc For more information, see section 167(g) of the Internal Revenue Code. Www myfreetaxes com unitedwaymhc Films, video tapes, and recordings. Www myfreetaxes com unitedwaymhc   You cannot use MACRS for motion picture films, video tapes, and sound recordings. Www myfreetaxes com unitedwaymhc For this purpose, sound recordings are discs, tapes, or other phonorecordings resulting from the fixation of a series of sounds. Www myfreetaxes com unitedwaymhc You can depreciate this property using either the straight line method or the income forecast method. Www myfreetaxes com unitedwaymhc Participations and residuals. Www myfreetaxes com unitedwaymhc   You can include participations and residuals in the adjusted basis of the property for purposes of computing your depreciation deduction under the income forecast method. Www myfreetaxes com unitedwaymhc The participations and residuals must relate to income to be derived from the property before the end of the 10th taxable year after the property is placed in service. Www myfreetaxes com unitedwaymhc For this purpose, participations and residuals are defined as costs which by contract vary with the amount of income earned in connection with the property. Www myfreetaxes com unitedwaymhc   Instead of including these amounts in the adjusted basis of the property, you can deduct the costs in the taxable year that they are paid. Www myfreetaxes com unitedwaymhc Videocassettes. Www myfreetaxes com unitedwaymhc   If you are in the business of renting videocassettes, you can depreciate only those videocassettes bought for rental. Www myfreetaxes com unitedwaymhc If the videocassette has a useful life of one year or less, you can currently deduct the cost as a business expense. Www myfreetaxes com unitedwaymhc Corporate or Partnership Property Acquired in a Nontaxable Transfer MACRS does not apply to property used before 1987 and transferred after 1986 to a corporation or partnership (except property the transferor placed in service after July 31, 1986, if MACRS was elected) to the extent its basis is carried over from the property's adjusted basis in the transferor's hands. Www myfreetaxes com unitedwaymhc You must continue to use the same depreciation method as the transferor and figure depreciation as if the transfer had not occurred. Www myfreetaxes com unitedwaymhc However, if MACRS would otherwise apply, you can use it to depreciate the part of the property's basis that exceeds the carried-over basis. Www myfreetaxes com unitedwaymhc The nontaxable transfers covered by this rule include the following. Www myfreetaxes com unitedwaymhc A distribution in complete liquidation of a subsidiary. Www myfreetaxes com unitedwaymhc A transfer to a corporation controlled by the transferor. Www myfreetaxes com unitedwaymhc An exchange of property solely for corporate stock or securities in a reorganization. Www myfreetaxes com unitedwaymhc A contribution of property to a partnership in exchange for a partnership interest. Www myfreetaxes com unitedwaymhc A partnership distribution of property to a partner. Www myfreetaxes com unitedwaymhc Election To Exclude Property From MACRS If you can properly depreciate any property under a method not based on a term of years, such as the unit-of-production method, you can elect to exclude that property from MACRS. Www myfreetaxes com unitedwaymhc You make the election by reporting your depreciation for the property on line 15 in Part II of Form 4562 and attaching a statement as described in the instructions for Form 4562. Www myfreetaxes com unitedwaymhc You must make this election by the return due date (including extensions) for the tax year you place your property in service. Www myfreetaxes com unitedwaymhc However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within six months of the due date of the return (excluding extensions). Www myfreetaxes com unitedwaymhc Attach the election to the amended return and write “Filed pursuant to section 301. Www myfreetaxes com unitedwaymhc 9100-2” on the election statement. Www myfreetaxes com unitedwaymhc File the amended return at the same address you filed the original return. Www myfreetaxes com unitedwaymhc Use of standard mileage rate. Www myfreetaxes com unitedwaymhc   If you use the standard mileage rate to figure your tax deduction for your business automobile, you are treated as having made an election to exclude the automobile from MACRS. Www myfreetaxes com unitedwaymhc See Publication 463 for a discussion of the standard mileage rate. Www myfreetaxes com unitedwaymhc What Is the Basis of Your Depreciable Property? To figure your depreciation deduction, you must determine the basis of your property. Www myfreetaxes com unitedwaymhc To determine basis, you need to know the cost or other basis of your property. Www myfreetaxes com unitedwaymhc Cost as Basis The basis of property you buy is its cost plus amounts you paid for items such as sales tax (see Exception , below), freight charges, and installation and testing fees. Www myfreetaxes com unitedwaymhc The cost includes the amount you pay in cash, debt obligations, other property, or services. Www myfreetaxes com unitedwaymhc Exception. Www myfreetaxes com unitedwaymhc   You can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). Www myfreetaxes com unitedwaymhc If you make that choice, you cannot include those sales taxes as part of your cost basis. Www myfreetaxes com unitedwaymhc Assumed debt. Www myfreetaxes com unitedwaymhc   If you buy property and assume (or buy subject to) an existing mortgage or other debt on the property, your basis includes the amount you pay for the property plus the amount of the assumed debt. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You make a $20,000 down payment on property and assume the seller's mortgage of $120,000. Www myfreetaxes com unitedwaymhc Your total cost is $140,000, the cash you paid plus the mortgage you assumed. Www myfreetaxes com unitedwaymhc Settlement costs. Www myfreetaxes com unitedwaymhc   The basis of real property also includes certain fees and charges you pay in addition to the purchase price. Www myfreetaxes com unitedwaymhc These generally are shown on your settlement statement and include the following. Www myfreetaxes com unitedwaymhc Legal and recording fees. Www myfreetaxes com unitedwaymhc Abstract fees. Www myfreetaxes com unitedwaymhc Survey charges. Www myfreetaxes com unitedwaymhc Owner's title insurance. Www myfreetaxes com unitedwaymhc Amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. Www myfreetaxes com unitedwaymhc   For fees and charges you cannot include in the basis of property, see Real Property in Publication 551. Www myfreetaxes com unitedwaymhc Property you construct or build. Www myfreetaxes com unitedwaymhc   If you construct, build, or otherwise produce property for use in your business, you may have to use the uniform capitalization rules to determine the basis of your property. Www myfreetaxes com unitedwaymhc For information about the uniform capitalization rules, see Publication 551 and the regulations under section 263A of the Internal Revenue Code. Www myfreetaxes com unitedwaymhc Other Basis Other basis usually refers to basis that is determined by the way you received the property. Www myfreetaxes com unitedwaymhc For example, your basis is other than cost if you acquired the property in exchange for other property, as payment for services you performed, as a gift, or as an inheritance. Www myfreetaxes com unitedwaymhc If you acquired property in this or some other way, see Publication 551 to determine your basis. Www myfreetaxes com unitedwaymhc Property changed from personal use. Www myfreetaxes com unitedwaymhc   If you held property for personal use and later use it in your business or income-producing activity, your depreciable basis is the lesser of the following. Www myfreetaxes com unitedwaymhc The fair market value (FMV) of the property on the date of the change in use. Www myfreetaxes com unitedwaymhc Your original cost or other basis adjusted as follows. Www myfreetaxes com unitedwaymhc Increased by the cost of any permanent improvements or additions and other costs that must be added to basis. Www myfreetaxes com unitedwaymhc Decreased by any deductions you claimed for casualty and theft losses and other items that reduced your basis. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc Several years ago, Nia paid $160,000 to have her home built on a lot that cost her $25,000. Www myfreetaxes com unitedwaymhc Before changing the property to rental use last year, she paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house. Www myfreetaxes com unitedwaymhc Land is not depreciable, so she includes only the cost of the house when figuring the basis for depreciation. Www myfreetaxes com unitedwaymhc Nia's adjusted basis in the house when she changed its use was $178,000 ($160,000 + $20,000 − $2,000). Www myfreetaxes com unitedwaymhc On the same date, her property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. Www myfreetaxes com unitedwaymhc The basis for depreciation on the house is the FMV on the date of change ($165,000), because it is less than her adjusted basis ($178,000). Www myfreetaxes com unitedwaymhc Property acquired in a nontaxable transaction. Www myfreetaxes com unitedwaymhc   Generally, if you receive property in a nontaxable exchange, the basis of the property you receive is the same as the adjusted basis of the property you gave up. Www myfreetaxes com unitedwaymhc Special rules apply in determining the basis and figuring the MACRS depreciation deduction and special depreciation allowance for property acquired in a like-kind exchange or involuntary conversion. Www myfreetaxes com unitedwaymhc See Like-kind exchanges and involuntary conversions. Www myfreetaxes com unitedwaymhc under How Much Can You Deduct? in chapter 3 and Figuring the Deduction for Property Acquired in a Nontaxable Exchange in chapter 4. Www myfreetaxes com unitedwaymhc   There are also special rules for determining the basis of MACRS property involved in a like-kind exchange or involuntary conversion when the property is contained in a general asset account. Www myfreetaxes com unitedwaymhc See How Do You Use General Asset Accounts in chapter 4. Www myfreetaxes com unitedwaymhc Adjusted Basis To find your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service. Www myfreetaxes com unitedwaymhc These events could include the following. Www myfreetaxes com unitedwaymhc Installing utility lines. Www myfreetaxes com unitedwaymhc Paying legal fees for perfecting the title. Www myfreetaxes com unitedwaymhc Settling zoning issues. Www myfreetaxes com unitedwaymhc Receiving rebates. Www myfreetaxes com unitedwaymhc Incurring a casualty or theft loss. Www myfreetaxes com unitedwaymhc For a discussion of adjustments to the basis of your property, see Adjusted Basis in Publication 551. Www myfreetaxes com unitedwaymhc If you depreciate your property under MACRS, you also may have to reduce your basis by certain deductions and credits with respect to the property. Www myfreetaxes com unitedwaymhc For more information, see What Is the Basis for Depreciation in chapter 4. Www myfreetaxes com unitedwaymhc . Www myfreetaxes com unitedwaymhc Basis adjustment for depreciation allowed or allowable. Www myfreetaxes com unitedwaymhc   You must reduce the basis of property by the depreciation allowed or allowable, whichever is greater. Www myfreetaxes com unitedwaymhc Depreciation allowed is depreciation you actually deducted (from which you received a tax benefit). Www myfreetaxes com unitedwaymhc Depreciation allowable is depreciation you are entitled to deduct. Www myfreetaxes com unitedwaymhc   If you do not claim depreciation you are entitled to deduct, you must still reduce the basis of the property by the full amount of depreciation allowable. Www myfreetaxes com unitedwaymhc   If you deduct more depreciation than you should, you must reduce your basis by any amount deducted from which you received a tax benefit (the depreciation allowed). Www myfreetaxes com unitedwaymhc How Do You Treat Repairs and Improvements? If you improve depreciable property, you must treat the improvement as separate depreciable property. Www myfreetaxes com unitedwaymhc Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use. Www myfreetaxes com unitedwaymhc You generally deduct the cost of repairing business property in the same way as any other business expense. Www myfreetaxes com unitedwaymhc However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it. Www myfreetaxes com unitedwaymhc Example. Www myfreetaxes com unitedwaymhc You repair a small section on one corner of the roof of a rental house. Www myfreetaxes com unitedwaymhc You deduct the cost of the repair as a rental expense. Www myfreetaxes com unitedwaymhc However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. Www myfreetaxes com unitedwaymhc You depreciate the cost of the new roof. Www myfreetaxes com unitedwaymhc Improvements to rented property. Www myfreetaxes com unitedwaymhc   You can depreciate permanent improvements you make to business property you rent from someone else. Www myfreetaxes com unitedwaymhc Do You Have To File Form 4562? Use Form 4562 to figure your deduction for depreciation and amortization. Www myfreetaxes com unitedwaymhc Attach Form 4562 to your tax return for the current tax year if you are claiming any of the following items. Www myfreetaxes com unitedwaymhc A section 179 deduction for the current year or a section 179 carryover from a prior year. Www myfreetaxes com unitedwaymhc See chapter 2 for information on the section 179 deduction. Www myfreetaxes com unitedwaymhc Depreciation for property placed in service during the current year. Www myfreetaxes com unitedwaymhc Depreciation on any vehicle or other listed property, regardless of when it was placed in service. Www myfreetaxes com unitedwaymhc See chapter 5 for information on listed property. Www myfreetaxes com unitedwaymhc A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040). Www myfreetaxes com unitedwaymhc Amortization of costs if the current year is the first year of the amortization period. Www myfreetaxes com unitedwaymhc Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Income Tax Return for an S Corporation) regardless of when it was placed in service. Www myfreetaxes com unitedwaymhc You must submit a separate Form 4562 for each business or activity on your return for which a Form 4562 is required. Www myfreetaxes com unitedwaymhc Table 1-1 presents an overview of the purpose of the various parts of Form 4562. Www myfreetaxes com unitedwaymhc Employee. Www myfreetaxes com unitedwaymhc   Do not use Form 4562 if you are an employee and you deduct job-related vehicle expenses using either actual expenses (including depreciation) or the standard mileage rate. Www myfreetaxes com unitedwaymhc Instead, use either Form 2106 or Form 2106-EZ. Www myfreetaxes com unitedwaymhc Use Form 2106-EZ if you are claiming the standard mileage rate and you are not reimbursed by your employer for any expenses. Www myfreetaxes com unitedwaymhc How Do You Correct Depreciation Deductions? If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. Www myfreetaxes com unitedwaymhc See Filing an Amended Return , next. Www myfreetaxes com unitedwaymhc If you are not allowed to make the correction on an amended return, you may be able to change your accounting method to claim the correct amount of depreciation. Www myfreetaxes com unitedwaymhc See Changing Your Accounting Method , later. Www myfreetaxes com unitedwaymhc Filing an Amended Return You can file an amended return to correct the amount of depreciation claimed for any property in any of the following situations. Www myfreetaxes com unitedwaymhc You claimed the incorrect amount because of a mathematical error made in any year. Www myfreetaxes com unitedwaymhc You claimed the incorrect amount because of a posting error made in any year. Www myfreetaxes com unitedwaymhc You have not adopted a method of accounting for property placed in service by you in tax years ending after December 29, 2003. Www myfreetaxes com unitedwaymhc You claimed the incorrect amount on property placed in service by you in tax years ending before December 30, 2003. Www myfreetaxes com unitedwaymhc Adoption of accounting method defined. Www myfreetaxes com unitedwaymhc   Generally, you adopt a method of accounting for depreciation by using a permissible method of determining depreciation when you file your first tax return, or by using the same impermissible method of determining depreciation in two or more consecutively filed tax returns. Www myfreetaxes com unitedwaymhc   For an exception to this 2-year rule, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb11-04. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc (Note. Www myfreetaxes com unitedwaymhc Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. Www myfreetaxes com unitedwaymhc For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb12-14. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets and procedures to obtain automatic consent to change to the safe harbor method of accounting, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb07-29. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc When to file. Www myfreetaxes com unitedwaymhc   If an amended return is allowed, you must file it by the later of the following. Www myfreetaxes com unitedwaymhc 3 years from the date you filed your original return for the year in which you did not deduct the correct amount. Www myfreetaxes com unitedwaymhc A return filed before an unextended due date is considered filed on that due date. Www myfreetaxes com unitedwaymhc 2 years from the time you paid your tax for that year. Www myfreetaxes com unitedwaymhc Changing Your Accounting Method Generally, you must get IRS approval to change your method of accounting. Www myfreetaxes com unitedwaymhc You generally must file Form 3115, Application for Change in Accounting Method, to request a change in your method of accounting for depreciation. Www myfreetaxes com unitedwaymhc The following are examples of a change in method of accounting for depreciation. Www myfreetaxes com unitedwaymhc A change from an impermissible method of determining depreciation for depreciable property, if the impermissible method was used in two or more consecutively filed tax returns. Www myfreetaxes com unitedwaymhc A change in the treatment of an asset from nondepreciable to depreciable or vice versa. Www myfreetaxes com unitedwaymhc A change in the depreciation method, period of recovery, or convention of a depreciable asset. Www myfreetaxes com unitedwaymhc A change from not claiming to claiming the special depreciation allowance if you did not make the election to not claim any special allowance. Www myfreetaxes com unitedwaymhc A change from claiming a 50% special depreciation allowance to claiming a 30% special depreciation allowance for qualified property (including property that is included in a class of property for which you elected a 30% special allowance instead of a 50% special allowance). Www myfreetaxes com unitedwaymhc Changes in depreciation that are not a change in method of accounting (and may only be made on an amended return) include the following. Www myfreetaxes com unitedwaymhc An adjustment in the useful life of a depreciable asset for which depreciation is determined under section 167. Www myfreetaxes com unitedwaymhc A change in use of an asset in the hands of the same taxpayer. Www myfreetaxes com unitedwaymhc Making a late depreciation election or revoking a timely valid depreciation election (including the election not to deduct the special depreciation allowance). Www myfreetaxes com unitedwaymhc If you elected not to claim any special allowance, a change from not claiming to claiming the special allowance is a revocation of the election and is not an accounting method change. Www myfreetaxes com unitedwaymhc Generally, you must get IRS approval to make a late depreciation election or revoke a depreciation election. Www myfreetaxes com unitedwaymhc You must submit a request for a letter ruling to make a late election or revoke an election. Www myfreetaxes com unitedwaymhc Any change in the placed in service date of a depreciable asset. Www myfreetaxes com unitedwaymhc See section 1. Www myfreetaxes com unitedwaymhc 446-1(e)(2)(ii)(d) of the regulations for more information and examples. Www myfreetaxes com unitedwaymhc IRS approval. Www myfreetaxes com unitedwaymhc   In some instances, you may be able to get approval from the IRS to change your method of accounting for depreciation under the automatic change request procedures generally covered in Revenue Procedure 2011-14. Www myfreetaxes com unitedwaymhc If you do not qualify to use the automatic procedures to get approval, you must use the advance consent request procedures generally covered in Revenue Procedure 97-27, 1997-1 C. Www myfreetaxes com unitedwaymhc B. Www myfreetaxes com unitedwaymhc 680. Www myfreetaxes com unitedwaymhc Also see the Instructions for Form 3115 for more information on getting approval, including lists of scope limitations and automatic accounting method changes. Www myfreetaxes com unitedwaymhc Additional guidance. Www myfreetaxes com unitedwaymhc    For additional guidance and special procedures for changing your accounting method, automatic change procedures, amending your return, and filing Form 3115, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb11-04. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc (Note. Www myfreetaxes com unitedwaymhc Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. Www myfreetaxes com unitedwaymhc For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb12-14. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. Www myfreetaxes com unitedwaymhc irs. Www myfreetaxes com unitedwaymhc gov/pub/irs-irbs/irb07-29. Www myfreetaxes com unitedwaymhc pdf. Www myfreetaxes com unitedwaymhc Table 1-1. Www myfreetaxes com unitedwaymhc Purpose of Form 4562 This table describes the purpose of the various parts of Form 4562. Www myfreetaxes com unitedwaymhc For more information, see Form 4562 and its instructions. Www myfreetaxes com unitedwaymhc Part Purpose I • Electing the section 179 deduction • Figuring the maximum section 179 deduction for the current year • Figuring any section 179 deduction carryover to the next year II • Reporting the special depreciation allowance for property (other than listed property) placed in service during the tax year • Reporting depreciation deductions on property being depreciated under any method other than Modified Accelerated Cost Recovery System (MACRS) III • Reporting MACRS depreciation deductions for property placed in service before this year • Reporting MACRS depreciation deductions for property (other than listed property) placed in service during the current year IV • Summarizing other parts V • Reporting the special depreciation allowance for automobiles and other listed property • Reporting MACRS depreciation on automobiles and other listed property • Reporting the section 179 cost elected for automobiles and other listed property • Reporting information on the use of automobiles and other transportation vehicles VI • Reporting amortization deductions Section 481(a) adjustment. Www myfreetaxes com unitedwaymhc   If you file Form 3115 and change from an impermissible method to a permissible method of accounting for depreciation, you can make a section 481(a) adjustment for any unclaimed or excess amount of allowable depreciation. Www myfreetaxes com unitedwaymhc The adjustment is the difference between the total depreciation actually deducted for the property and the total amount allowable prior to the year of change. Www myfreetaxes com unitedwaymhc If no depreciation was deducted, the adjustment is the total depreciation allowable prior to the year of change. Www myfreetaxes com unitedwaymhc A negative section 481(a) adjustment results in a decrease in taxable income. Www myfreetaxes com unitedwaymhc It is taken into account in the year of change and is reported on your business tax returns as “other expenses. Www myfreetaxes com unitedwaymhc ” A positive section 481(a) adjustment results in an increase in taxable income. Www myfreetaxes com unitedwaymhc It is generally taken into account over 4 tax years and is reported on your business tax returns as “other income. Www myfreetaxes com unitedwaymhc ” However, you can elect to use a one-year adjustment period and report the adjustment in the year of change if the total adjustment is less than $25,000. Www myfreetaxes com unitedwaymhc Make the election by completing the appropriate line on Form 3115. Www myfreetaxes com unitedwaymhc   If you file a Form 3115 and change from one permissible method to another permissible method, the section 481(a) adjustment is zero. Www myfreetaxes com unitedwaymhc Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

The American Recovery and Reinvestment Act of 2009

Contractor Name

Award #

Category

Obligated Value

Date of Award

Presidio Networked Solutions, Inc. TIRNO-99-Z-00002, DO 00731, Modification 0045

Tax Provisions

$535,500.00

01/12/2011

Macro International TIRNO-05-Z-00012, DO 0030 HCTC $52,008.00

09/22/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0020

Tax Provisions

$32,269.00

06/23/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0013 Tax Provisions $0.00

04/27/2010

Information Systems Consulting Group TIRNO-06-D-00024, DO 0006, Modification 0002 HCTC $88,707.20

04/12/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0009

Tax Provisions

$27,963.00

12/22/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0019 HCTC $13,790,162.00

12/14/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0018 HCTC $60,000.00

09/29/2009

AT&T TIRNO-04-Z-00007, DO 0110

Tax Provisions

$520,159.00

09/29/2009

Macro International TIRNO-05-Z-00012, DO 0026, Modification 0002 HCTC $98,312.00

09/15/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0013 HCTC $20,000.00

 04/17/2009

Page Last Reviewed or Updated: 03-Feb-2014

The Www Myfreetaxes Com Unitedwaymhc

Www myfreetaxes com unitedwaymhc Index A Abroad, citizens living, filing requirements, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad Absence, temporary, Temporary absences. Www myfreetaxes com unitedwaymhc , Temporary absences. Www myfreetaxes com unitedwaymhc , Temporary absences. Www myfreetaxes com unitedwaymhc Accounting periods, joint returns, Accounting period. Www myfreetaxes com unitedwaymhc Adopted child, Exception for adopted child. Www myfreetaxes com unitedwaymhc , Adopted child. Www myfreetaxes com unitedwaymhc , Adopted child. Www myfreetaxes com unitedwaymhc Taxpayer identification number, Taxpayer identification numbers for adoptees. Www myfreetaxes com unitedwaymhc Age Filing status determination, Age. Www myfreetaxes com unitedwaymhc Gross income and filing requirements (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Test, Age Test Aliens Dual-status (see Dual-status taxpayers) Nonresident (see Nonresident aliens) Alimony, Alimony. Www myfreetaxes com unitedwaymhc Alternative minimum tax (AMT), effect on filing requirements (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Amended returns, Joint Return After Separate Returns, Changing your mind. Www myfreetaxes com unitedwaymhc (see also Form 1040X) Change from itemized to standard deduction (or vice versa), Electing to itemize for state tax or other purposes. Www myfreetaxes com unitedwaymhc American citizens abroad, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad Annulled marriages, filing status, Annulled marriages. Www myfreetaxes com unitedwaymhc Armed forces Combat zone, signing return for spouse, Spouse in combat zone. Www myfreetaxes com unitedwaymhc Dependency allotments, Armed Forces dependency allotments. Www myfreetaxes com unitedwaymhc GI Bill benefits, Tuition payments and allowances under the GI Bill. Www myfreetaxes com unitedwaymhc Military quarters allotments, Tax-exempt military quarters allowances. Www myfreetaxes com unitedwaymhc Assistance (see Tax help) ATINs (Adoption taxpayer identification numbers), Taxpayer identification numbers for adoptees. Www myfreetaxes com unitedwaymhc B Birth of child, Death or birth. Www myfreetaxes com unitedwaymhc Blind persons, standard deduction, Higher Standard Deduction for Blindness C Canada, resident of, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc citizen or resident alien. Www myfreetaxes com unitedwaymhc , Citizen or Resident Test, Child in Canada or Mexico. Www myfreetaxes com unitedwaymhc Capital expenses, Capital expenses. Www myfreetaxes com unitedwaymhc Child born alive, Child born alive. Www myfreetaxes com unitedwaymhc Child care expenses, Child care expenses. Www myfreetaxes com unitedwaymhc Child custody, Custodial parent and noncustodial parent. Www myfreetaxes com unitedwaymhc Child support under pre-1985 agreement, Child support under pre-1985 agreement. Www myfreetaxes com unitedwaymhc Child tax credit, Child tax credit. Www myfreetaxes com unitedwaymhc Child, qualifying, Qualifying Child Children Adopted child (see Adoption) Adoption (see Adopted child) Birth of child, Death or birth. Www myfreetaxes com unitedwaymhc , Death or birth. Www myfreetaxes com unitedwaymhc Claiming parent, when child is head of household, Special rule for parent. Www myfreetaxes com unitedwaymhc Custody of, Custodial parent and noncustodial parent. Www myfreetaxes com unitedwaymhc Death of child, Death or birth. Www myfreetaxes com unitedwaymhc , Death or birth. Www myfreetaxes com unitedwaymhc Dividends of, Unearned income. Www myfreetaxes com unitedwaymhc Filing requirements as dependents (Table 2), Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents Investment income of child under age 18, Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents , Unearned income. Www myfreetaxes com unitedwaymhc Kidnapped, Kidnapped child. Www myfreetaxes com unitedwaymhc , Kidnapped child. Www myfreetaxes com unitedwaymhc Social security number, Social Security Numbers for Dependents Stillborn, Stillborn child. Www myfreetaxes com unitedwaymhc Church employees, filing requirements (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Citizen or resident test, Citizen or Resident Test Citizens outside U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc , filing requirements, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad Common law marriage, Considered married. Www myfreetaxes com unitedwaymhc Community property states, Community property states. Www myfreetaxes com unitedwaymhc Cousin, Cousin. Www myfreetaxes com unitedwaymhc Custody of child, Custodial parent and noncustodial parent. Www myfreetaxes com unitedwaymhc D Death Of child, Death or birth of child. Www myfreetaxes com unitedwaymhc Of dependent, Death or birth. Www myfreetaxes com unitedwaymhc , Death or birth. Www myfreetaxes com unitedwaymhc Of spouse, Spouse died during the year. Www myfreetaxes com unitedwaymhc , Spouse died. Www myfreetaxes com unitedwaymhc , Spouse died before signing. Www myfreetaxes com unitedwaymhc , Death of spouse. Www myfreetaxes com unitedwaymhc Decedents, Spouse died during the year. Www myfreetaxes com unitedwaymhc , Decedent's final return. Www myfreetaxes com unitedwaymhc (see also Death of spouse) Filing requirements, Deceased Persons Deductions Personal exemption, Personal Exemptions Standard deduction, Standard Deduction Dependent taxpayer test, Dependent Taxpayer Test Dependents Birth of, Death or birth. Www myfreetaxes com unitedwaymhc Born and died within year, Born and died in 2013. Www myfreetaxes com unitedwaymhc Child's earnings, Child's earnings. Www myfreetaxes com unitedwaymhc Death of, Death or birth. Www myfreetaxes com unitedwaymhc Earned income, Earned income. Www myfreetaxes com unitedwaymhc Exemption for, Exemptions for Dependents Filing requirements, Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents , Dependents Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Not allowed to claim dependents, Dependent Taxpayer Test Qualifying child, Qualifying Child Qualifying relative, Qualifying Relative Social security number, Social Security Numbers for Dependents, Taxpayer identification numbers for adoptees. Www myfreetaxes com unitedwaymhc Standard deduction for, Standard Deduction for Dependents Unearned income, Unearned income. Www myfreetaxes com unitedwaymhc Disabled Child, Permanently and totally disabled. Www myfreetaxes com unitedwaymhc Dependent, Disabled dependent working at sheltered workshop. Www myfreetaxes com unitedwaymhc Divorced parents, Children of divorced or separated parents (or parents who live apart). Www myfreetaxes com unitedwaymhc Divorced taxpayers Child custody, Custodial parent and noncustodial parent. Www myfreetaxes com unitedwaymhc Filing status, Divorced persons. Www myfreetaxes com unitedwaymhc , Divorce and remarriage. Www myfreetaxes com unitedwaymhc , Divorced persons. Www myfreetaxes com unitedwaymhc Joint returns, responsibility for, Divorced taxpayer. Www myfreetaxes com unitedwaymhc Personal exemption, Divorced or separated spouse. Www myfreetaxes com unitedwaymhc Domestic help, no exemption for, Housekeepers, maids, or servants. Www myfreetaxes com unitedwaymhc Dual-status taxpayers Exemptions, Dual-status taxpayers. Www myfreetaxes com unitedwaymhc Joint returns not available, Nonresident alien or dual-status alien. Www myfreetaxes com unitedwaymhc E Earned income Defined for purposes of standard deduction, Earned income defined. Www myfreetaxes com unitedwaymhc Dependent filing requirements (Table 2), Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents Earned income credit Two persons with same qualifying child, Special Rule for Qualifying Child of More Than One Person Elderly persons Home for the aged, Home for the aged. Www myfreetaxes com unitedwaymhc Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Equitable relief, Innocent spouse, Relief from joint responsibility. Www myfreetaxes com unitedwaymhc Exemptions, Exemptions, Taxpayer identification numbers for adoptees. Www myfreetaxes com unitedwaymhc Dependents, Exemptions for Dependents Personal (see Personal exemption) F Fair rental value, Fair rental value defined. Www myfreetaxes com unitedwaymhc Figures (see Tables and figures) Filing requirements, Who Must File, Filing Status Filing status, Filing Status, Qualifying Widow(er) With Dependent Child Annulled marriages, Annulled marriages. Www myfreetaxes com unitedwaymhc Change to Joint return after separate returns, Joint Return After Separate Returns Separate returns after joint return, Separate Returns After Joint Return, Kidnapped child. Www myfreetaxes com unitedwaymhc Determination of, Filing status. Www myfreetaxes com unitedwaymhc , Filing Status Head of household, Head of household or qualifying widow(er) with dependent child. Www myfreetaxes com unitedwaymhc , Head of Household Marital status, determination of, Marital Status Married filing jointly (see Joint returns) Married filing separately (see Married filing separately) Unmarried persons (see Single taxpayers) Food benefits, Support provided by the state (welfare, food benefits, housing, etc. Www myfreetaxes com unitedwaymhc ). Www myfreetaxes com unitedwaymhc Foreign employment, filing requirements, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad Foreign students, Foreign students' place of residence. Www myfreetaxes com unitedwaymhc Form 1040 Personal exemption, Form 1040 filers. Www myfreetaxes com unitedwaymhc Social security numbers, Social Security Numbers for Dependents Use of, How to file. Www myfreetaxes com unitedwaymhc , How to file. Www myfreetaxes com unitedwaymhc , How to file. Www myfreetaxes com unitedwaymhc Form 1040A Personal exemption, Form 1040A filers. Www myfreetaxes com unitedwaymhc Social security numbers, Social Security Numbers for Dependents Use of, How to file. Www myfreetaxes com unitedwaymhc , How to file. Www myfreetaxes com unitedwaymhc , How to file. Www myfreetaxes com unitedwaymhc Form 1040EZ Personal exemption, Form 1040EZ filers. Www myfreetaxes com unitedwaymhc Use of, How to file. Www myfreetaxes com unitedwaymhc , How to file. Www myfreetaxes com unitedwaymhc Form 1040X Change of filing status, Joint Return After Separate Returns Itemized deductions, change to standard deduction, Changing your mind. Www myfreetaxes com unitedwaymhc Standard deduction, change to itemized deductions, Changing your mind. Www myfreetaxes com unitedwaymhc Form 1099-B, Form 1099-B received. Www myfreetaxes com unitedwaymhc Form 8814, parents' election to report child's interest and dividends, Election to report child's unearned income on parent's return. Www myfreetaxes com unitedwaymhc Form 8857, innocent spouse relief, Relief from joint responsibility. Www myfreetaxes com unitedwaymhc Form SS-5, social security number request, No SSN. Www myfreetaxes com unitedwaymhc Form W-7, individual taxpayer identification number request, Taxpayer identification numbers for aliens. Www myfreetaxes com unitedwaymhc Form W-7A, adoption taxpayer identification number request, Taxpayer identification numbers for adoptees. Www myfreetaxes com unitedwaymhc Foster care payments and expenses, Foster care payments and expenses. Www myfreetaxes com unitedwaymhc , Foster care. Www myfreetaxes com unitedwaymhc Foster child, Foster child. Www myfreetaxes com unitedwaymhc , Foster care payments and expenses. Www myfreetaxes com unitedwaymhc , Foster child. Www myfreetaxes com unitedwaymhc , Foster care. Www myfreetaxes com unitedwaymhc Free tax services, Free help with your tax return. Www myfreetaxes com unitedwaymhc Funeral expenses, Do Not Include in Total Support G GI Bill benefits, Tuition payments and allowances under the GI Bill. Www myfreetaxes com unitedwaymhc Gross income Defined, Gross income. Www myfreetaxes com unitedwaymhc Filing requirements (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers Dependent filing requirements (Table 2), Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents Test, Gross Income Test Group-term life insurance, Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return H Head of household, Head of Household, Kidnapped child. Www myfreetaxes com unitedwaymhc Exemption for spouse, Head of household. Www myfreetaxes com unitedwaymhc Filing requirements (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers Health insurance premiums, Medical insurance premiums. Www myfreetaxes com unitedwaymhc Help (see Tax help) Home Aged, home for, Home for the aged. Www myfreetaxes com unitedwaymhc Cost of keeping up, Keeping Up a Home Household workers, no exemption for, Housekeepers, maids, or servants. Www myfreetaxes com unitedwaymhc I Income Gross, Gross Income Test Tax exempt, Tax-exempt income. Www myfreetaxes com unitedwaymhc Individual retirement arrangements (IRAs) Filing requirements (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Married filing separately, Individual retirement arrangements (IRAs). Www myfreetaxes com unitedwaymhc Individual taxpayer identification numbers (ITINs), Reminders, Taxpayer identification numbers for aliens. Www myfreetaxes com unitedwaymhc Innocent spouse relief, Relief from joint responsibility. Www myfreetaxes com unitedwaymhc Insurance premiums Life, Do Not Include in Total Support Medical, Medical insurance premiums. Www myfreetaxes com unitedwaymhc IRAs (see Individual retirement arrangements (IRAs)) Itemized deductions Changing from standard to itemized deduction (or vice versa), Changing your mind. Www myfreetaxes com unitedwaymhc Choosing to itemize, Who Should Itemize Married filing separately, Married persons who filed separate returns. Www myfreetaxes com unitedwaymhc When to itemize, When to itemize. Www myfreetaxes com unitedwaymhc ITINs (Individual taxpayer identification numbers), Taxpayer identification numbers for aliens. Www myfreetaxes com unitedwaymhc J Joint return test, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Joint returns, Married Filing Jointly, Nonresident alien or dual-status alien. Www myfreetaxes com unitedwaymhc Dependents on, Joint return. Www myfreetaxes com unitedwaymhc Personal exemption, Joint return. Www myfreetaxes com unitedwaymhc K Kidnapped children Qualifying child, Kidnapped child. Www myfreetaxes com unitedwaymhc Qualifying relative, Kidnapped child. Www myfreetaxes com unitedwaymhc Widow(er) with dependent child, Death or birth. Www myfreetaxes com unitedwaymhc L Life insurance premiums, Do Not Include in Total Support Local income taxes, itemized deductions, Electing to itemize for state tax or other purposes. Www myfreetaxes com unitedwaymhc Local law violated, Local law violated. Www myfreetaxes com unitedwaymhc Lodging, Lodging. Www myfreetaxes com unitedwaymhc Losses, rental real estate, Rental activity losses. Www myfreetaxes com unitedwaymhc M Marital status, determination of, Marital Status Married dependents, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Married filing jointly (see Joint returns) Married filing separately, Married Filing Separately Changing method from or to itemized deductions, Changing your mind. Www myfreetaxes com unitedwaymhc Exemption for spouse, Separate return. Www myfreetaxes com unitedwaymhc Itemized deductions, Married persons who filed separate returns. Www myfreetaxes com unitedwaymhc Married taxpayers, Married Filing Jointly (see also Joint returns) Age 65 or older spouse, standard deduction, Higher Standard Deduction for Age (65 or Older), Spouse 65 or Older or Blind Blind spouse, standard deduction, Higher Standard Deduction for Blindness, Spouse 65 or Older or Blind Dual-status alien spouse, Nonresident alien or dual-status alien. Www myfreetaxes com unitedwaymhc Filing status, Married persons. Www myfreetaxes com unitedwaymhc Medical insurance premiums, Medical insurance premiums. Www myfreetaxes com unitedwaymhc Medical savings accounts (MSAs, effect on filing requirements (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Medicare taxes, not support, Do Not Include in Total Support Member of household or relationship test, Member of Household or Relationship Test Mexico, resident of, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc citizen or resident alien. Www myfreetaxes com unitedwaymhc , Citizen or Resident Test, Child in Canada or Mexico. Www myfreetaxes com unitedwaymhc Military (see Armed forces) Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Multiple Support Agreement N National of the United States, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc national. Www myfreetaxes com unitedwaymhc Nonresident aliens, Nonresident aliens. Www myfreetaxes com unitedwaymhc Dependents, Taxpayer identification numbers for aliens. Www myfreetaxes com unitedwaymhc Exemptions, Nonresident aliens. Www myfreetaxes com unitedwaymhc Joint return, Nonresident alien or dual-status alien. Www myfreetaxes com unitedwaymhc Spouse, Nonresident alien spouse. Www myfreetaxes com unitedwaymhc Taxpayer identification number, Taxpayer identification numbers for aliens. Www myfreetaxes com unitedwaymhc O Overseas taxpayers, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad P Parent, claiming head of household for, Special rule for parent. Www myfreetaxes com unitedwaymhc Parents who never married, Parents who never married. Www myfreetaxes com unitedwaymhc Parents, divorced or separated, Children of divorced or separated parents (or parents who live apart). Www myfreetaxes com unitedwaymhc Penalty, failure to file, Who Must File Personal exemption, Personal Exemptions Photographs of missing children in IRS publications, Reminders Publications (see Tax help) Puerto Rico, residents of, Residents of Puerto Rico Q Qualifying Child, Qualifying Child Relative, Qualifying Relative Surviving spouse, Qualifying Widow(er) With Dependent Child Widow/widower, Qualifying Widow(er) With Dependent Child R Recapture taxes, Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Relationship test, Relationship Test, Member of Household or Relationship Test Relative, qualifying, Qualifying Relative Remarriage after divorce, Divorce and remarriage. Www myfreetaxes com unitedwaymhc Rental losses, Rental activity losses. Www myfreetaxes com unitedwaymhc Residency test, Residency Test S Same-sex marriage Filing status, Same-sex marriage. Www myfreetaxes com unitedwaymhc Scholarships, Earned income. Www myfreetaxes com unitedwaymhc , Scholarships. Www myfreetaxes com unitedwaymhc , Gross income defined. Www myfreetaxes com unitedwaymhc , Do Not Include in Total Support , Earned income defined. Www myfreetaxes com unitedwaymhc Self-employed persons Filing requirements (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Gross income, Self-employed persons. Www myfreetaxes com unitedwaymhc Separate returns (see Married filing separately) Separated parents, Children of divorced or separated parents (or parents who live apart). Www myfreetaxes com unitedwaymhc Separated taxpayers Filing status, Considered married. Www myfreetaxes com unitedwaymhc , Married persons living apart. Www myfreetaxes com unitedwaymhc Living apart but not legally separated, Considered married. Www myfreetaxes com unitedwaymhc Personal exemption, Divorced or separated spouse. Www myfreetaxes com unitedwaymhc Signatures, joint returns, Signing a joint return. Www myfreetaxes com unitedwaymhc Single taxpayers Filing status, Unmarried persons. Www myfreetaxes com unitedwaymhc , Single Gross income filing requirements (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers How to file and forms, How to file. Www myfreetaxes com unitedwaymhc Personal exemption, Your Own Exemption Social security and Medicare taxes Reporting of (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Support, not included in, Do Not Include in Total Support Social security benefits, Social security benefits. Www myfreetaxes com unitedwaymhc Social security numbers (SSNs) for dependents, Social Security Numbers for Dependents Spouse Deceased, Spouse died. Www myfreetaxes com unitedwaymhc , Spouse died before signing. Www myfreetaxes com unitedwaymhc , Death of spouse. Www myfreetaxes com unitedwaymhc Dual-status alien spouse, Nonresident alien or dual-status alien. Www myfreetaxes com unitedwaymhc Exemption for, Your Spouse's Exemption Innocent spouse relief, Relief from joint responsibility. Www myfreetaxes com unitedwaymhc Nonresident alien, Nonresident alien spouse. Www myfreetaxes com unitedwaymhc Signing joint returns, Signing a joint return. Www myfreetaxes com unitedwaymhc Surviving (see Surviving spouse) SSNs (see Social security numbers (SSNs) for dependents) Standard deduction, What's New, Standard Deduction, Married persons who filed separate returns. Www myfreetaxes com unitedwaymhc Married filing jointly, Married Filing Jointly State or local income taxes, Electing to itemize for state tax or other purposes. Www myfreetaxes com unitedwaymhc Stillborn child, Stillborn child. Www myfreetaxes com unitedwaymhc Students Defined, Student defined. Www myfreetaxes com unitedwaymhc Foreign, Foreign students' place of residence. Www myfreetaxes com unitedwaymhc Support test Qualifying child, Support Test (To Be a Qualifying Child) Qualifying relative, Support Test (To Be a Qualifying Relative) Surviving spouse Death of spouse (see Death of spouse) Gross income filing requirements (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers Single filing status, Widow(er). Www myfreetaxes com unitedwaymhc Widow(er) with dependent child, Qualifying Widow(er) With Dependent Child, How to file. Www myfreetaxes com unitedwaymhc , Death or birth. Www myfreetaxes com unitedwaymhc T Tables and figures, Keeping Up a Home, Worksheet 2. Www myfreetaxes com unitedwaymhc Worksheet for Determining Support (see also Worksheets) Filing requirements Dependents (Table 2), Table 2. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements for Dependents Gross income levels (Table 1), Table 1. Www myfreetaxes com unitedwaymhc 2013 Filing Requirements Chart for Most Taxpayers Other situations requiring filing (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Tax help, How To Get Tax Help Tax returns Amended (see Form 1040X) Filing of (see Filing requirements) Joint returns (see Joint returns) Who must file, What's New, Who Must File, Filing Requirements for Most Taxpayers, Who Should File Tax-exempt income, Tax-exempt income. Www myfreetaxes com unitedwaymhc Taxes, not support, Do Not Include in Total Support Temporary absences, Temporary absences. Www myfreetaxes com unitedwaymhc , Temporary absences. Www myfreetaxes com unitedwaymhc Tiebreaker rules, Tiebreaker rules. Www myfreetaxes com unitedwaymhc Tips, reporting of (Table 3), Table 3. Www myfreetaxes com unitedwaymhc Other Situations When You Must File a 2013 Return Total support, Total Support Tuition, benefits under GI Bill, Tuition payments and allowances under the GI Bill. Www myfreetaxes com unitedwaymhc U U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc citizen or resident, Citizen or Resident Test U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc citizens filing abroad, filing requirements Filing requirements, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Citizens or Resident Aliens Living Abroad U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc national, U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc national. Www myfreetaxes com unitedwaymhc U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc possessions, income from, Individuals With Income From U. Www myfreetaxes com unitedwaymhc S. Www myfreetaxes com unitedwaymhc Possessions Unmarried persons (see Single taxpayers) W Welfare benefits, Support provided by the state (welfare, food benefits, housing, etc. Www myfreetaxes com unitedwaymhc ). Www myfreetaxes com unitedwaymhc What's New, What's New Widow/widower (see Surviving spouse) Worksheets Exemption Phaseout, Worksheet 3. Www myfreetaxes com unitedwaymhc Worksheet for Determining the Deduction for Exemptions Head of household status and cost of keeping up home, Keeping Up a Home Support test, Worksheet 2. Www myfreetaxes com unitedwaymhc Worksheet for Determining Support Prev  Up     Home   More Online Publications