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File 1040x 11. File 1040x Patient-Centered Outcomes Research Fee Table of Contents The patient-centered outcomes research fee is imposed on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4376) for policy and plan years ending on or after October 1, 2012. File 1040x Generally, references to taxes on Form 720 include this fee. File 1040x Specified health insurance policies. File 1040x For issuers of specified health insurance policies, the fee for a policy year ending before October 1, 2013, is $1. File 1040x 00, multiplied by the average number of lives covered under the policy for that policy year. File 1040x Generally, issuers of specified health insurance polices must use one of the following four alternative methods to determine the average number of lives covered under a policy for the policy year. File 1040x The actual count method. File 1040x For policy years that end on or after October 1, 2012, issuers using the actual count method may begin counting lives covered under a policy as of May 14, 2012, rather than the first day of the policy year, and divide by the appropriate number of days remaining in the policy year. File 1040x The snapshot method. File 1040x For policy years that end on or after October 1, 2012, but that began before May 14, 2012, issuers using the snapshot method may use counts from quarters beginning on or after May 14, 2012, to determine the average number of lives covered under the policy. File 1040x The member months method. File 1040x And, 4. File 1040x The state form method. File 1040x The member months data and the data reported on state forms are based on the calendar year. File 1040x To adjust for 2012, issuers will use a pro rata approach for calculating the average number of lives covered using the member months method or the state form method for 2012. File 1040x For example, issuers using the member months number for 2012 will divide the member months number by 12 and multiply the resulting number by one quarter to arrive at the average number of lives covered for October through December 2012. File 1040x Applicable self-insured health plans. File 1040x For plan sponsors of applicable self-insured health plans, the fee for a plan year ending on or after October 1, 2012, and ending before October 1, 2013 is $1. File 1040x 00, multiplied by the average number of lives covered under the plan for that plan year. File 1040x Generally, plan sponsors of applicable self-insured health plans must use one of the following three alternative methods to determine the average number of lives covered under a plan for the plan year. File 1040x Actual count method. File 1040x Snapshot method. File 1040x Form 5500 method. File 1040x However, for plan years beginning before July 11, 2012, and ending on or after October 1, 2012, plan sponsors may determine the average number of lives covered under the plan for the plan year using any reasonable method. File 1040x Reporting and paying the fee. File 1040x File Form 720 annually to report and pay the fee on the second quarter Form 720, no later than July 31 of the calendar year immediately following the last day of the policy year or plan year to which the fee applies. File 1040x If you file Form 720 only to report the fee, do not file Form 720 for the 1st, 3rd, or 4th quarters of the year. File 1040x If you file Form 720 to report quarterly excise tax liability for the 1st, 3rd, or 4th quarter of the year (for example, filers reporting the foreign insurance tax (IRS No. File 1040x 30)), do not make an entry on the line for IRS No. File 1040x 133 on those filings. File 1040x Deposits are not required for this fee, so issuers and plan sponsors are not required to pay the fee using Electronic Federal Tax Payment System (EFTPS). File 1040x However, if the fee is paid using EFTPS, the payment should be applied to the second quarter. File 1040x See Electronic deposit requirement under How To Make Deposits in chapter 13, later. File 1040x More information. File 1040x For more information, including methods for calculating the average number of lives covered, see sections 4375, 4376, and 4377; also see T. File 1040x D. File 1040x 9602, which is on page 746 of I. File 1040x R. File 1040x B. File 1040x 2012-52 at www. File 1040x irs. File 1040x gov/pub/irs-irbs/irb12-52. File 1040x pdf. File 1040x Prev Up Next Home More Online Publications
Understanding your CP13A Notice
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Answers to Common Questions
What should I do if I disagree with the changes you made?
Contact us at the toll free number listed on the top right corner of your notice if you disagree with the changes we made.
What should I do if I need to make another correction to my tax return?
You'll need to file an amended return to make a correction.
What's the difference between the "Child Tax Credit" and the "Additional Child Tax Credit?" Can I qualify for both?
The Child Tax Credit is for people who have a qualifying child. The maximum amount you can claim is $1000 for each qualifying child. The Additional Child Tax Credit is for individuals who receive less than the full amount of Child Tax Credit. You may qualify for both the Child Tax Credit and the Additional Child Tax Credit.
How do I claim an Additional Child Tax Credit?
You can claim the credit by completing a Form 1040 Schedule 8812, Child Tax Credit and attaching it to your income tax return.
My child is turning 18 this year. Can I still get the Additional Child Tax Credit?
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Tips for next year
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.
If you have any dependent children, remember to claim the Additional Child Tax Credit the next time you file your income tax return. Complete and attach a Form 1040 Schedule 8812, Child Tax Credit to your return to claim this credit.
Use the EITC Assistant to help you complete your Schedule EIC, Earned Income Credit and claim your Earned Income Credit.
Page Last Reviewed or Updated: 20-Feb-2014
The File 1040x
File 1040x Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. File 1040x For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. File 1040x If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. File 1040x Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. File 1040x A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. File 1040x Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. File 1040x Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). File 1040x It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. File 1040x A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. File 1040x Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. File 1040x It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. File 1040x Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. File 1040x Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. File 1040x Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. File 1040x Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. File 1040x Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. File 1040x Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. File 1040x Listed property placed in service before 1987. File 1040x For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. File 1040x Listed property placed in service after 1986. File 1040x For information on listed property placed in service after 1986, see Publication 946. File 1040x Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. File 1040x You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. File 1040x The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. File 1040x However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. File 1040x Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. File 1040x Example. File 1040x Sarah Bradley uses a home computer 50% of the time to manage her investments. File 1040x She also uses the computer 40% of the time in her part-time consumer research business. File 1040x Sarah's home computer is listed property because it is not used at a regular business establishment. File 1040x Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. File 1040x Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. File 1040x Her combined rate of business/investment use for determining her depreciation deduction is 90%. File 1040x Qualified Business Use A qualified business use is any use in your trade or business. File 1040x However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. File 1040x See Employees, later. File 1040x 5% owner. File 1040x A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. File 1040x A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. File 1040x Related person. File 1040x A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. File 1040x Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. File 1040x See Publication 463. File 1040x Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. File 1040x Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. File 1040x Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. File 1040x Any payment to you for the use of the automobile is treated as a rent payment for 3). File 1040x Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. File 1040x Use for the employer's convenience. File 1040x Whether the use of listed property is for the employer's convenience must be determined from all the facts. File 1040x The use is for the employer's convenience if it is for a substantial business reason of the employer. File 1040x The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. File 1040x Use required as a condition of employment. File 1040x Whether the use of listed property is a condition of employment depends on all the facts and circumstances. File 1040x The use of property must be required for the employee to perform duties properly. File 1040x The employer need not explicitly require the employee to use the property. File 1040x A mere statement by the employer that the use of the property is a condition of employment is not sufficient. File 1040x Example 1. File 1040x Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. File 1040x She owns and uses a motorcycle to deliver packages to downtown offices. File 1040x We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. File 1040x The company reimburses delivery persons for their costs. File 1040x Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. File 1040x Example 2. File 1040x Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. File 1040x He must travel to these sites on a regular basis. File 1040x Uplift does not furnish an automobile or explicitly require him to use his own automobile. File 1040x However, it reimburses him for any costs he incurs in traveling to the various sites. File 1040x The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. File 1040x Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. File 1040x You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. File 1040x For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. File 1040x For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. File 1040x Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. File 1040x First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. File 1040x Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. File 1040x It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. File 1040x Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. File 1040x Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. File 1040x See Recapture of excess depreciation, next. File 1040x Recapture of excess depreciation. File 1040x You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. File 1040x Any excess depreciation must also be added to the adjusted basis of your property. File 1040x Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. File 1040x This means you figure your depreciation using the percentages fromTable 16 or 17. File 1040x For information on investment credit recapture, see the instructions for Form 4255. File 1040x Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. File 1040x In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. File 1040x To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. File 1040x See Car Used 50% or Less for Business in Publication 917. File 1040x Leased Property The limitations on cost recovery deductions apply to the rental of listed property. File 1040x The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). File 1040x SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. File 1040x Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. File 1040x A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. File 1040x This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. File 1040x Occasional or incidental leasing activity is insufficient. File 1040x For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. File 1040x An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. File 1040x Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. File 1040x Inclusion amount for property leased before 1987. File 1040x You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. File 1040x You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. File 1040x The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. File 1040x For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. File 1040x You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. File 1040x Special rules. File 1040x The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. File 1040x The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. File 1040x If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. File 1040x Maximum inclusion amount. File 1040x The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. File 1040x What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. File 1040x How long to keep records. File 1040x For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). File 1040x Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. File 1040x It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. File 1040x However, your records should back up your receipts in an orderly manner. File 1040x Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. File 1040x Written documents of your expenditure or use are generally better evidence than oral statements alone. File 1040x A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. File 1040x A daily log is not required. File 1040x However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. File 1040x Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. File 1040x An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. File 1040x For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. File 1040x Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. File 1040x However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. File 1040x A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. File 1040x For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. File 1040x Business Use Supported An adequate record contains enough information on each element of every business or investment use. File 1040x The amount of detail required to support the use depends on the facts and circumstances. File 1040x For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. File 1040x Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. File 1040x Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. File 1040x However, repeated uses can be combined as a single item. File 1040x Each expenditure is recorded as a separate item and not combined with other expenditures. File 1040x If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. File 1040x If these expenses are combined, you do not need to support the business purpose of each expense. File 1040x Instead, you can divide the expenses based on the total business use of the listed property. File 1040x Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. File 1040x For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. File 1040x Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. File 1040x Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. File 1040x Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. File 1040x It must be kept elsewhere and made available as support to the district director on request. File 1040x Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. File 1040x If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. File 1040x If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. File 1040x If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. File 1040x Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. File 1040x Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. File 1040x Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. File 1040x If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. File 1040x Employees. File 1040x Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. File 1040x Employees claiming the standard mileage rate may be able to use Form 2106–EZ. File 1040x Employer who provides vehicles to employees. File 1040x An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. File 1040x An employer who provides more than five vehicles to employees need not include any information on his or her tax return. File 1040x Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. File 1040x You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. File 1040x See the instructions for Form 4562. File 1040x Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. File 1040x In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. File 1040x In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. File 1040x For more information about deductions after the recovery period for automobiles, see Publication 917. File 1040x Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. File 1040x Table 1. File 1040x 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. File 1040x Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev Up Next Home More Online Publications