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H&r Block Amended Return

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H&r Block Amended Return

H&r block amended return 5. H&r block amended return   Additional Rules for Listed Property Table of Contents Introduction Useful Items - You may want to see: What Is Listed Property?Passenger Automobiles Other Property Used for Transportation Computers and Related Peripheral Equipment Can Employees Claim a Deduction? What Is the Business-Use Requirement?How To Allocate Use Qualified Business Use Recapture of Excess Depreciation Lessee's Inclusion Amount Do the Passenger Automobile Limits Apply?Maximum Depreciation Deduction Deductions After the Recovery Period Deductions For Passenger Automobiles Acquired in a Trade-in What Records Must Be Kept?Adequate Records How Is Listed Property Information Reported? Introduction This chapter discusses the deduction limits and other special rules that apply to certain listed property. H&r block amended return Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers. H&r block amended return Deductions for listed property (other than certain leased property) are subject to the following special rules and limits. H&r block amended return Deduction for employees. H&r block amended return If your use of the property is not for your employer's convenience or is not required as a condition of your employment, you cannot deduct depreciation or rent expenses for your use of the property as an employee. H&r block amended return Business-use requirement. H&r block amended return If the property is not used predominantly (more than 50%) for qualified business use, you cannot claim the section 179 deduction or a special depreciation allowance. H&r block amended return In addition, you must figure any depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS) using the straight line method over the ADS recovery period. H&r block amended return You may also have to recapture (include in income) any excess depreciation claimed in previous years. H&r block amended return A similar inclusion amount applies to certain leased property. H&r block amended return Passenger automobile limits and rules. H&r block amended return Annual limits apply to depreciation deductions (including section 179 deductions and any special depreciation allowance) for certain passenger automobiles. H&r block amended return You can continue to deduct depreciation for the unrecovered basis resulting from these limits after the end of the recovery period. H&r block amended return This chapter defines listed property and explains the special rules and depreciation deduction limits that apply, including the special inclusion amount rule for leased property. H&r block amended return It also discusses the recordkeeping rules for listed property and explains how to report information about the property on your tax return. H&r block amended return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 4797 Sales of Business Property See chapter 6 for information about getting publications and forms. H&r block amended return What Is Listed Property? Listed property is any of the following. H&r block amended return Passenger automobiles (as defined later). H&r block amended return Any other property used for transportation, unless it is an excepted vehicle. H&r block amended return Property generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video-recording equipment). H&r block amended return Computers and related peripheral equipment, unless used only at a regular business establishment and owned or leased by the person operating the establishment. H&r block amended return A regular business establishment includes a portion of a dwelling unit that is used both regularly and exclusively for business as discussed in Publication 587. H&r block amended return Improvements to listed property. H&r block amended return   An improvement made to listed property that must be capitalized is treated as a new item of depreciable property. H&r block amended return The recovery period and method of depreciation that apply to the listed property as a whole also apply to the improvement. H&r block amended return For example, if you must depreciate the listed property using the straight line method, you also must depreciate the improvement using the straight line method. H&r block amended return Passenger Automobiles 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 (6,000 pounds or less of gross vehicle weight for trucks and vans). H&r block amended return It includes any part, component, or other item physically attached to the automobile at the time of purchase or usually included in the purchase price of an automobile. H&r block amended return The following vehicles are not considered passenger automobiles for these purposes. H&r block amended return An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business. H&r block amended return A vehicle used directly in the trade or business of transporting persons or property for pay or hire. H&r block amended return A truck or van that is a qualified nonpersonal use vehicle. H&r block amended return Qualified nonpersonal use vehicles. H&r block amended return   Qualified nonpersonal use vehicles are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. H&r block amended return They include the trucks and vans listed as excepted vehicles under Other Property Used for Transportation , next. H&r block amended return They also include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. H&r block amended return For a detailed discussion of passenger automobiles, including leased passenger automobiles, see  Publication 463. H&r block amended return Other Property Used for Transportation Although vehicles used to transport persons or property for pay or hire and vehicles rated at more than the 6,000-pound threshold are not passenger automobiles, they are still “other property used for transportation” and are subject to the special rules for listed property. H&r block amended return Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles used to transport persons or goods. H&r block amended return Excepted vehicles. H&r block amended return   Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ). H&r block amended return Clearly marked police and fire vehicles. H&r block amended return Unmarked vehicles used by law enforcement officers if the use is officially authorized. H&r block amended return Ambulances used as such and hearses used as such. H&r block amended return Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo. H&r block amended return Bucket trucks (cherry pickers), cement mixers, dump trucks (including garbage trucks), flatbed trucks, and refrigerated trucks. H&r block amended return Combines, cranes and derricks, and forklifts. H&r block amended return Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat. H&r block amended return Qualified moving vans. H&r block amended return Qualified specialized utility repair trucks. H&r block amended return School buses used in transporting students and employees of schools. H&r block amended return Other buses with a capacity of at least 20 passengers that are used as passenger buses. H&r block amended return Tractors and other special purpose farm vehicles. H&r block amended return Clearly marked police and fire vehicle. H&r block amended return   A clearly marked police or fire vehicle is a vehicle that meets all the following requirements. H&r block amended return It is owned or leased by a governmental unit or an agency or instrumentality of a governmental unit. H&r block amended return It is required to be used for commuting by a police officer or fire fighter who, when not on a regular shift, is on call at all times. H&r block amended return It is prohibited from being used for personal use (other than commuting) outside the limit of the police officer's arrest powers or the fire fighter's obligation to respond to an emergency. H&r block amended return It is clearly marked with painted insignia or words that make it readily apparent that it is a police or fire vehicle. H&r block amended return A marking on a license plate is not a clear marking for these purposes. H&r block amended return Qualified moving van. H&r block amended return   A qualified moving van is any truck or van used by a professional moving company for moving household or business goods if the following requirements are met. H&r block amended return No personal use of the van is allowed other than for travel to and from a move site or for minor personal use, such as a stop for lunch on the way from one move site to another. H&r block amended return Personal use for travel to and from a move site happens no more than five times a month on average. H&r block amended return Personal use is limited to situations in which it is more convenient to the employer, because of the location of the employee's residence in relation to the location of the move site, for the van not to be returned to the employer's business location. H&r block amended return Qualified specialized utility repair truck. H&r block amended return   A truck is a qualified specialized utility repair truck if it is not a van or pickup truck and all the following apply. H&r block amended return The truck was specifically designed for and is used to carry heavy tools, testing equipment, or parts. H&r block amended return Shelves, racks, or other permanent interior construction has been installed to carry and store the tools, equipment, or parts and would make it unlikely that the truck would be used, other than minimally, for personal purposes. H&r block amended return The employer requires the employee to drive the truck home in order to be able to respond in emergency situations for purposes of restoring or maintaining electricity, gas, telephone, water, sewer, or steam utility services. H&r block amended return Computers and Related Peripheral Equipment A computer is a programmable, electronically activated device capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention. H&r block amended return It consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. H&r block amended return Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. H&r block amended return The following are neither computers nor related peripheral equipment. H&r block amended return Any equipment that is an integral part of other property that is not a computer. H&r block amended return Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment. H&r block amended return Equipment of a kind used primarily for the user's amusement or entertainment, such as video games. H&r block amended return Can Employees Claim a Deduction? If you are an employee, you can claim a depreciation deduction for the use of your listed property (whether owned or rented) in performing services as an employee only if your use is a business use. H&r block amended return The use of your property in performing services as an employee is a business use only if both the following requirements are met. H&r block amended return The use is for your employer's convenience. H&r block amended return The use is required as a condition of your employment. H&r block amended return If these requirements are not met, you cannot deduct depreciation (including the section 179 deduction) or rent expenses for your use of the property as an employee. H&r block amended return Employer's convenience. H&r block amended return   Whether the use of listed property is for your employer's convenience must be determined from all the facts. H&r block amended return The use is for your employer's convenience if it is for a substantial business reason of the employer. H&r block amended return The use of listed property during your regular working hours to carry on your employer's business generally is for the employer's convenience. H&r block amended return Condition of employment. H&r block amended return   Whether the use of listed property is a condition of your employment depends on all the facts and circumstances. H&r block amended return The use of property must be required for you to perform your duties properly. H&r block amended return Your employer does not have to require explicitly that you use the property. H&r block amended return However, a mere statement by the employer that the use of the property is a condition of your employment is not sufficient. H&r block amended return Example 1. H&r block amended return Virginia Sycamore is employed as a courier with We Deliver, which provides local courier services. H&r block amended return She owns and uses a motorcycle to deliver packages to downtown offices. H&r block amended return We Deliver explicitly requires all delivery persons to own a car or motorcycle for use in their employment. H&r block amended return Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. H&r block amended return Example 2. H&r block amended return Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. H&r block amended return He must travel to these sites on a regular basis. H&r block amended return Uplift does not furnish an automobile or explicitly require him to use his own automobile. H&r block amended return However, it pays him for any costs he incurs in traveling to the various sites. H&r block amended return The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. H&r block amended return Example 3. H&r block amended return Assume the same facts as in Example 2 except that Uplift furnishes a car to Bill, who chooses to use his own car and receive payment for using it. H&r block amended return The use of his own car is neither for the convenience of Uplift nor required as a condition of employment. H&r block amended return Example 4. H&r block amended return Marilyn Lee is a pilot for Y Company, a small charter airline. H&r block amended return Y requires pilots to obtain 80 hours of flight time annually in addition to flight time spent with the airline. H&r block amended return Pilots usually can obtain these hours by flying with the Air Force Reserve or by flying part-time with another airline. H&r block amended return Marilyn owns her own airplane. H&r block amended return The use of her airplane to obtain the required flight hours is neither for the convenience of the employer nor required as a condition of employment. H&r block amended return Example 5. H&r block amended return David Rule is employed as an engineer with Zip, an engineering contracting firm. H&r block amended return He occasionally takes work home at night rather than work late in the office. H&r block amended return He owns and uses a home computer which is virtually identical to the office model. H&r block amended return His use of the computer is neither for the convenience of his employer nor required as a condition of employment. H&r block amended return What Is the Business-Use Requirement? You can claim the section 179 deduction and a special depreciation allowance for listed property and depreciate listed property using GDS and a declining balance method if the property meets the business-use requirement. H&r block amended return To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. H&r block amended return If this requirement is not met, the following rules apply. H&r block amended return Property not used predominantly for qualified business use during the year it is placed in service does not qualify for the section 179 deduction. H&r block amended return Property not used predominantly for qualified business use during the year it is placed in service does not qualify for a special depreciation allowance. H&r block amended return Any depreciation deduction under MACRS for property not used predominantly for qualified business use during any year must be figured using the straight line method over the ADS recovery period. H&r block amended return This rule applies each year of the recovery period. H&r block amended return Excess depreciation on property previously used predominantly for qualified business use must be recaptured (included in income) in the first year in which it is no longer used predominantly for qualified business use. H&r block amended return A lessee must add an inclusion amount to income in the first year in which the leased property is not used predominantly for qualified business use. H&r block amended return Being required to use the straight line method for an item of listed property not used predominantly for qualified business use is not the same as electing the straight line method. H&r block amended return 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. H&r block amended return Exception for leased property. H&r block amended return   The business-use requirement generally does not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. H&r block amended return   You are considered regularly engaged in the business of leasing listed property only if you enter into contracts for the leasing of listed property with some frequency over a continuous period of time. H&r block amended return This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of your business in its entirety. H&r block amended return Occasional or incidental leasing activity is insufficient. H&r block amended return For example, if you lease only one passenger automobile during a tax year, you are not regularly engaged in the business of leasing automobiles. H&r block amended return 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. H&r block amended return How To Allocate Use To determine whether the business-use requirement is met, you must allocate the use of any item of listed property used for more than one purpose during the year among its various uses. H&r block amended return For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. H&r block amended return You determine the percentage of qualified business use by dividing the number of miles you drove the vehicle for business purposes during the year by the total number of miles you drove the vehicle for all purposes (including business miles) during the year. H&r block amended return For other listed property, allocate the property's use on the basis of the most appropriate unit of time the property is actually used (rather than merely being available for use). H&r block amended return For example, you can determine the percentage of business use of a computer by dividing the number of hours you used the computer for business purposes during the year by the total number of hours you used the computer for all purposes (including business use) during the year. H&r block amended return Entertainment use. H&r block amended return   Treat the use of listed property for entertainment, recreation, or amusement purposes as a business use only to the extent you can deduct expenses (other than interest and property tax expenses) due to its use as an ordinary and necessary business expense. H&r block amended return Commuting use. H&r block amended return   The use of an automobile for commuting is not business use, regardless of whether work is performed during the trip. H&r block amended return For example, a business telephone call made on a car telephone while commuting to work does not change the character of the trip from commuting to business. H&r block amended return This is also true for a business meeting held in a car while commuting to work. H&r block amended return Similarly, a business call made on an otherwise personal trip does not change the character of a trip from personal to business. H&r block amended return The fact that an automobile is used to display material that advertises the owner's or user's trade or business does not convert an otherwise personal use into business use. H&r block amended return Use of your automobile by another person. H&r block amended return   If someone else uses your automobile, do not treat that use as business use unless one of the following conditions applies. H&r block amended return That use is directly connected with your business. H&r block amended return You properly report the value of the use as income to the other person and withhold tax on the income where required. H&r block amended return You are paid a fair market rent. H&r block amended return Treat any payment to you for the use of the automobile as a rent payment for purposes of item (3). H&r block amended return Employee deductions. H&r block amended return   If you are an employee, do not treat your use of listed property as business use unless it is for your employer's convenience and is required as a condition of your employment. H&r block amended return See Can Employees Claim a Deduction , earlier. H&r block amended return Qualified Business Use Qualified business use of listed property is any use of the property in your trade or business. H&r block amended return However, it does not include the following uses. H&r block amended return The leasing of property to any 5% owner or related person (to the extent the property is used by a 5% owner or person related to the owner or lessee of the property). H&r block amended return The use of property as pay for the services of a 5% owner or related person. H&r block amended return The use of property as pay for services of any person (other than a 5% owner or related person), unless the value of the use is included in that person's gross income and income tax is withheld on that amount where required. H&r block amended return Property does not stop being used predominantly for qualified business use because of a transfer at death. H&r block amended return Exception for leasing or compensatory use of aircraft. H&r block amended return   Treat the leasing of any aircraft by a 5% owner or related person, or the compensatory use of any aircraft, as a qualified business use if at least 25% of the total use of the aircraft during the year is for a qualified business use. H&r block amended return 5% owner. H&r block amended return   For a business entity that is not a corporation, a 5% owner is any person who owns more than 5% of the capital or profits interest in the business. H&r block amended return   For a corporation, a 5% owner is any person who owns, or is considered to own, either of the following. H&r block amended return More than 5% of the outstanding stock of the corporation. H&r block amended return Stock possessing more than 5% of the total combined voting power of all stock in the corporation. H&r block amended return Related persons. H&r block amended return   For a description of related persons, see Related persons in the discussion on property owned or used in 1986 under What Method Can You Use To Depreciate Your Property in chapter 1 . H&r block amended return 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. H&r block amended return Examples. H&r block amended return   The following examples illustrate whether the use of business property is qualified business use. H&r block amended return Example 1. H&r block amended return John Maple is the sole proprietor of a plumbing contracting business. H&r block amended return John employs his brother, Richard, in the business. H&r block amended return As part of Richard's pay, he is allowed to use one of the company automobiles for personal use. H&r block amended return The company includes the value of the personal use of the automobile in Richard's gross income and properly withholds tax on it. H&r block amended return The use of the automobile is pay for the performance of services by a related person, so it is not a qualified business use. H&r block amended return Example 2. H&r block amended return John, in Example 1, allows unrelated employees to use company automobiles for personal purposes. H&r block amended return He does not include the value of the personal use of the company automobiles as part of their compensation and he does not withhold tax on the value of the use of the automobiles. H&r block amended return This use of company automobiles by employees is not a qualified business use. H&r block amended return Example 3. H&r block amended return James Company Inc. H&r block amended return owns several automobiles that its employees use for business purposes. H&r block amended return The employees also are allowed to take the automobiles home at night. H&r block amended return The fair market value of each employee's use of an automobile for any personal purpose, such as commuting to and from work, is reported as income to the employee and James Company withholds tax on it. H&r block amended return This use of company automobiles by employees, even for personal purposes, is a qualified business use for the company. H&r block amended return Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. H&r block amended return However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. H&r block amended return Example 1. H&r block amended return Sarah Bradley uses a home computer 50% of the time to manage her investments. H&r block amended return She also uses the computer 40% of the time in her part-time consumer research business. H&r block amended return Sarah's home computer is listed property because it is not used at a regular business establishment. H&r block amended return She does not use the computer predominantly for qualified business use. H&r block amended return Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. H&r block amended return She must depreciate it using the straight line method over the ADS recovery period. H&r block amended return Her combined business/investment use for determining her depreciation deduction is 90%. H&r block amended return Example 2. H&r block amended return If Sarah uses her computer 30% of the time to manage her investments and 60% of the time in her consumer research business, it is used predominantly for qualified business use. H&r block amended return She can elect a section 179 deduction and, if she does not deduct all the computer's cost, she can claim a special depreciation allowance and depreciate the computer using the 200% declining balance method over the GDS recovery period. H&r block amended return Her combined business/investment use for determining her depreciation deduction is 90%. H&r block amended return Recapture of Excess Depreciation If you used listed property more than 50% in a qualified business use in the year you placed it in service, you must recapture (include in income) excess depreciation in the first year you use it 50% or less. H&r block amended return You also increase the adjusted basis of your property by the same amount. H&r block amended return Excess depreciation is: The depreciation allowable for the property (including any section 179 deduction and special depreciation allowance claimed) for years before the first year you do not use the property predominantly for qualified business use, minus The depreciation that would have been allowable for those years if you had not used the property predominantly for qualified business use in the year you placed it in service. H&r block amended return To determine the amount in (2) above, you must refigure the depreciation using the straight line method and the ADS recovery period. H&r block amended return Example. H&r block amended return In June 2009, Ellen Rye purchased and placed in service a pickup truck that cost $18,000. H&r block amended return She used it only for qualified business use for 2009 through 2012. H&r block amended return Ellen claimed a section 179 deduction of $10,000 based on the purchase of the truck. H&r block amended return She began depreciating it using the 200% DB method over a 5-year GDS recovery period. H&r block amended return The pickup truck's gross vehicle weight was over 6,000 pounds, so it was not subject to the passenger automobile limits discussed later under Do the Passenger Automobile Limits Apply. H&r block amended return During 2013, she used the truck 50% for business and 50% for personal purposes. H&r block amended return She includes $4,018 excess depreciation in her gross income for 2013. H&r block amended return The excess depreciation is determined as follows. H&r block amended return Total section 179 deduction ($10,000) and depreciation claimed ($6,618) for 2009 through 2012. H&r block amended return (Depreciation is from Table A-1. H&r block amended return ) $16,618 Minus: Depreciation allowable (Table A-8):     2009 – 10% of $18,000 $1,800   2010 – 20% of $18,000 3,600   2011 – 20% of $18,000 3,600   2012 – 20% of $18,000 3,600 12,600 Excess depreciation $4,018 If Ellen's use of the truck does not change to 50% for business and 50% for personal purposes until 2015, there will be no excess depreciation. H&r block amended return The total depreciation allowable using Table A-8 through 2015 will be $18,000, which equals the total of the section 179 deduction and depreciation she will have claimed. H&r block amended return Where to figure and report recapture. H&r block amended return   Use Form 4797, Part IV, to figure the recapture amount. H&r block amended return Report the recapture amount as other income on the same form or schedule on which you took the depreciation deduction. H&r block amended return For example, report the recapture amount as other income on Schedule C (Form 1040) if you took the depreciation deduction on Schedule C. H&r block amended return If you took the depreciation deduction on Form 2106, report the recapture amount as other income on Form 1040, line 21. H&r block amended return Lessee's Inclusion Amount If you use leased listed property other than a passenger automobile for business/investment use, you must include an amount in your income in the first year your qualified business-use percentage is 50% or less. H&r block amended return Your qualified business-use percentage is the part of the property's total use that is qualified business use (defined earlier). H&r block amended return For the inclusion amount rules for a leased passenger automobile, see Leasing a Car in chapter 4 of Publication 463. H&r block amended return The inclusion amount is the sum of Amount A and Amount B, described next. H&r block amended return However, see the special rules for the inclusion amount, later, if your lease begins in the last 9 months of your tax year or is for less than one year. H&r block amended return Amount A. H&r block amended return   Amount A is: The fair market value of the property, multiplied by The business/investment use for the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A-19 in Appendix A . H&r block amended return   The fair market value of the property is the value on the first day of the lease term. H&r block amended return If the capitalized cost of an item of listed property is specified in the lease agreement, you must treat that amount as the fair market value. H&r block amended return Amount B. H&r block amended return   Amount B is: The fair market value of the property, multiplied by The average of the business/investment use for all tax years the property was leased that precede the first tax year the qualified business-use percentage is 50% or less, multiplied by The applicable percentage from Table A–20 in Appendix A . H&r block amended return Maximum inclusion amount. H&r block amended return   The inclusion amount cannot be more than the sum of the deductible amounts of rent for the tax year in which the lessee must include the amount in gross income. H&r block amended return Inclusion amount worksheet. H&r block amended return   The following worksheet is provided to help you figure the inclusion amount for leased listed property. H&r block amended return Inclusion Amount Worksheet for Leased Listed Property 1. H&r block amended return Fair market value   2. H&r block amended return Business/investment use for first year business use is 50% or less   3. H&r block amended return Multiply line 1 by line 2. H&r block amended return   4. H&r block amended return Rate (%) from Table A-19   5. H&r block amended return Multiply line 3 by line 4. H&r block amended return This is Amount A. H&r block amended return   6. H&r block amended return Fair market value   7. H&r block amended return Average business/investment use for years property leased before the first year business use is 50% or less . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return . H&r block amended return   8. H&r block amended return Multiply line 6 by line 7   9. H&r block amended return Rate (%) from Table A-20   10. H&r block amended return Multiply line 8 by line 9. H&r block amended return This is Amount B. H&r block amended return   11. H&r block amended return Add line 5 and line 10. H&r block amended return This is your inclusion amount. H&r block amended return Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. H&r block amended return )         Example. H&r block amended return On February 1, 2011, Larry House, a calendar year taxpayer, leased and placed in service a computer with a fair market value of $3,000. H&r block amended return The lease is for a period of 5 years. H&r block amended return Larry does not use the computer at a regular business establishment, so it is listed property. H&r block amended return His business use of the property (all of which is qualified business use) is 80% in 2011, 60% in 2012, and 40% in 2013. H&r block amended return He must add an inclusion amount to gross income for 2013, the first tax year his qualified business-use percentage is 50% or less. H&r block amended return The computer has a 5-year recovery period under both GDS and ADS. H&r block amended return 2013 is the third tax year of the lease, so the applicable percentage from Table A-19 is −19. H&r block amended return 8%. H&r block amended return The applicable percentage from Table A-20 is 22. H&r block amended return 0%. H&r block amended return Larry's deductible rent for the computer for 2013 is $800. H&r block amended return Larry uses the Inclusion amount worksheet. H&r block amended return to figure the amount he must include in income for 2013. H&r block amended return His inclusion amount is $224, which is the sum of −$238 (Amount A) and $462 (Amount B). H&r block amended return Inclusion Amount Worksheet for Leased Listed Property 1. H&r block amended return Fair market value $3,000   2. H&r block amended return Business/investment use for first year business use is 50% or less 40 % 3. H&r block amended return Multiply line 1 by line 2. H&r block amended return 1,200   4. H&r block amended return Rate (%) from Table A-19 −19. H&r block amended return 8 % 5. H&r block amended return Multiply line 3 by line 4. H&r block amended return This is Amount A. H&r block amended return −238   6. H&r block amended return Fair market value 3,000   7. H&r block amended return Average business/investment use for years property leased before the first year business use is 50% or less 70 % 8. H&r block amended return Multiply line 6 by line 7 2,100   9. H&r block amended return Rate (%) from Table A-20 22. H&r block amended return 0 % 10. H&r block amended return Multiply line 8 by line 9. H&r block amended return This is Amount B. H&r block amended return 462   11. H&r block amended return Add line 5 and line 10. H&r block amended return This is your inclusion amount. H&r block amended return Enter here and as other income on the form or schedule on which you originally took the deduction (for example, Schedule C or F (Form 1040), Form 1040, Form 1120, etc. H&r block amended return ) $224           Lease beginning in the last 9 months of your tax year. H&r block amended return    The inclusion amount is subject to a special rule if all the following apply. H&r block amended return The lease term begins within 9 months before the close of your tax year. H&r block amended return You do not use the property predominantly (more than 50%) for qualified business use during that part of the tax year. H&r block amended return The lease term continues into your next tax year. H&r block amended return Under this special rule, add the inclusion amount to income in the next tax year. H&r block amended return Figure the inclusion amount by taking into account the average of the business/investment use for both tax years (line 2 of the Inclusion Amount Worksheet for Leased Listed Property) and the applicable percentage for the tax year the lease term begins. H&r block amended return Skip lines 6 through 9 of the worksheet and enter zero on line 10. H&r block amended return Example 1. H&r block amended return On August 1, 2012, Julie Rule, a calendar year taxpayer, leased and placed in service an item of listed property. H&r block amended return The property is 5-year property with a fair market value of $10,000. H&r block amended return Her property has a recovery period of 5 years under ADS. H&r block amended return The lease is for 5 years. H&r block amended return Her business use of the property was 50% in 2012 and 90% in 2013. H&r block amended return She paid rent of $3,600 for 2012, of which $3,240 is deductible. H&r block amended return She must include $147 in income in 2013. H&r block amended return The $147 is the sum of Amount A and Amount B. H&r block amended return Amount A is $147 ($10,000 × 70% × 2. H&r block amended return 1%), the product of the fair market value, the average business use for 2012 and 2013, and the applicable percentage for year one from Table A-19 . H&r block amended return Amount B is zero. H&r block amended return Lease for less than one year. H&r block amended return   A special rule for the inclusion amount applies if the lease term is less than one year and you do not use the property predominantly (more than 50%) for qualified business use. H&r block amended return The amount included in income is the inclusion amount (figured as described in the preceding discussions) multiplied by a fraction. H&r block amended return The numerator of the fraction is the number of days in the lease term and the denominator is 365 (or 366 for leap years). H&r block amended return   The lease term for listed property other than residential rental or nonresidential real property includes options to renew. H&r block amended return If you have 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, treat them as one lease. H&r block amended return Example 2. H&r block amended return On October 1, 2012, John Joyce, a calendar year taxpayer, leased and placed in service an item of listed property that is 3-year property. H&r block amended return This property had a fair market value of $15,000 and a recovery period of 5 years under ADS. H&r block amended return The lease term was 6 months (ending on March 31, 2013), during which he used the property 45% in business. H&r block amended return He must include $71 in income in 2013. H&r block amended return The $71 is the sum of Amount A and Amount B. H&r block amended return Amount A is $71 ($15,000 × 45% × 2. H&r block amended return 1% × 183/365), the product of the fair market value, the average business use for both years, and the applicable percentage for year one from Table A-19 , prorated for the length of the lease. H&r block amended return Amount B is zero. H&r block amended return Where to report inclusion amount. H&r block amended return   Report the inclusion amount figured as described in the preceding discussions as other income on the same form or schedule on which you took the deduction for your rental costs. H&r block amended return For example, report the inclusion amount as other income on Schedule C (Form 1040) if you took the deduction on Schedule C. H&r block amended return If you took the deduction for rental costs on Form 2106, report the inclusion amount as other income on Form 1040, line 21. H&r block amended return Do the Passenger Automobile Limits Apply? The depreciation deduction, including the section 179 deduction and special depreciation allowance, you can claim for a passenger automobile (defined earlier) each year is limited. H&r block amended return This section describes the maximum depreciation deduction amounts for 2013 and explains how to deduct, after the recovery period, the unrecovered basis of your property that results from applying the passenger automobile limit. H&r block amended return Exception for leased cars. H&r block amended return   The passenger automobile limits generally do not apply to passenger automobiles leased or held for leasing by anyone regularly engaged in the business of leasing passenger automobiles. H&r block amended return For information on when you are considered regularly engaged in the business of leasing listed property, including passenger automobiles, see Exception for leased property , earlier, under What Is the Business-Use Requirement . H&r block amended return Maximum Depreciation Deduction The passenger automobile limits are the maximum depreciation amounts you can deduct for a passenger automobile. H&r block amended return They are based on the date you placed the automobile in service. H&r block amended return Passenger Automobiles The maximum deduction amounts for most passenger automobiles are shown in the following table. H&r block amended return Maximum Depreciation Deduction for Passenger Automobiles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,1601 $5,100 $3,050 $1,875 2012 11,1601 5,100 3,050 1,875 2011 11,0602 4,900 2,950 1,775 2010 11,0602  4,900 2,950 1,775 2009 10,9603 4,800 2,850 1,775 2008 10,9603  4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6104 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7105 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6606 4,900 2,950 1,775 1If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. H&r block amended return 2If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,060. H&r block amended return 3If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $2,960. H&r block amended return 4If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $2,960. H&r block amended return 5If you acquired the vehicle before 5/06/03, the maximum deduction is $7,660. H&r block amended return If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. H&r block amended return 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,060. H&r block amended return If your business/investment use of the automobile is less than 100%, you must reduce the maximum deduction amount by multiplying the maximum amount by the percentage of business/investment use determined on an annual basis during the tax year. H&r block amended return If you have a short tax year, you must reduce the maximum deduction amount by multiplying the maximum amount by a fraction. H&r block amended return The numerator of the fraction is the number of months and partial months in the short tax year and the denominator is 12. H&r block amended return Example. H&r block amended return On April 15, 2013, Virginia Hart bought and placed in service a new car for $14,500. H&r block amended return She used the car only in her business. H&r block amended return She files her tax return based on the calendar year. H&r block amended return She does not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. H&r block amended return Under MACRS, a car is 5-year property. H&r block amended return Since she placed her car in service on April 15 and used it only for business, she uses the percentages in Table A-1 to figure her MACRS depreciation on the car. H&r block amended return Virginia multiplies the $14,500 unadjusted basis of her car by 0. H&r block amended return 20 to get her MACRS depreciation of $2,900 for 2013. H&r block amended return This $2,900 is below the maximum depreciation deduction of $3,160 for passenger automobiles placed in service in 2013. H&r block amended return She can deduct the full $2,900. H&r block amended return Electric Vehicles The maximum depreciation deductions for passenger automobiles that are produced to run primarily on electricity are higher than those for other automobiles. H&r block amended return The maximum deduction amounts for electric vehicles placed in service after August 5, 1997, and before January 1, 2007, are shown in the following table. H&r block amended return Owners of electric vehicles placed in service after December 31, 2006, should use the table of maximum deduction amounts later for electric vehicles classified as passenger automobiles or use the table of maximum deduction amounts for trucks and vans later, for electric vehicles classified as trucks and vans. H&r block amended return Maximum Depreciation Deduction For Electric Vehicles Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2006 $8,980 $14,400 $8,650 $5,225 2005 8,880 14,200 8,450 5,125 2004 31,8301 14,300 8,550 5,125 5/06/2003– 12/31/2003 32,0302 14,600 8,750 5,225 1/01/2003– 5/05/2003 22,8803 14,600 8,750 5,225 1If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $8,880. H&r block amended return 2If you acquired the vehicle before 5/06/03, the maximum deduction is $22,880. H&r block amended return If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. H&r block amended return 3 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $9,080. H&r block amended return Trucks and Vans The maximum depreciation deductions for trucks and vans placed in service after 2002 are higher than those for other passenger automobiles. H&r block amended return The maximum deduction amounts for trucks and vans are shown in the following table. H&r block amended return Maximum Depreciation Deduction For Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 11,3601 5,300 3,150 1,875 2011 11,2602 5,200 3,150 1,875 2010 11,1603 5,100 3,050 1,875 2009 11,0604 4,900 2,950 1,775 2008 11,1605 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2006 3,260 5,200 3,150 1,875 2005 3,260 5,200 3,150 1,875 2004 10,9106 5,300 3,150 1,875 5/06/2003– 12/31/2003 11,0107 5,400 3,250 1,975 1/01/2003– 5/05/2003 7,9608 5,400 3,250 1,975 1 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,360. H&r block amended return 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,260. H&r block amended return 3 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. H&r block amended return 4 If you elect not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,060. H&r block amended return 5If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $3,160. H&r block amended return 6If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, or the maximum deduction is $3,260. H&r block amended return 7 If you acquired the vehicle before 5/06/03, the maximum deduction is $7,960. H&r block amended return If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. H&r block amended return 8 If you elected not to claim any special depreciation allowance for the vehicle, the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $3,360. H&r block amended return Depreciation Worksheet for Passenger Automobiles You can use the following worksheet to figure your depreciation deduction using the percentage tables. H&r block amended return Then use the information from this worksheet to prepare Form 4562. H&r block amended return Depreciation Worksheet for Passenger Automobiles   Part I   1. H&r block amended return MACRS system (GDS or ADS)     2. H&r block amended return Property class     3. H&r block amended return Date placed in service     4. H&r block amended return Recovery period     5. H&r block amended return Method and convention     6. H&r block amended return Depreciation rate (from tables)     7. H&r block amended return Maximum depreciation deduction for this year from the appropriate table       8. H&r block amended return Business/investment-use percentage       9. H&r block amended return Multiply line 7 by line 8. H&r block amended return This is your adjusted maximum depreciation deduction       10. H&r block amended return Section 179 deduction claimed this year (not more than line 9). H&r block amended return Enter -0- if this is not the year you placed the car in service. H&r block amended return         Note. H&r block amended return  1) If line 10 is equal to line 9, stop here. H&r block amended return Your combined section 179 and depreciation deduction (including your special depreciation allowance) is limited to the amount on line 9. H&r block amended return  2) If line 10 is less than line 9, complete Part II. H&r block amended return   Part II   11. H&r block amended return Subtract line 10 from line 9. H&r block amended return This is the limit on the amount you can deduct for depreciation (including any special depreciation allowance )       12. H&r block amended return Cost or other basis (reduced by any alternative motor vehicle credit 1or credit for electric vehicles 2)       13. H&r block amended return Multiply line 12 by line 8. H&r block amended return This is your business/investment cost       14. H&r block amended return Section 179 deduction claimed in the year you placed the car in service       15. H&r block amended return Subtract line 14 from line 13. H&r block amended return This is your tentative basis for depreciation       16. H&r block amended return Multiply line 15 by . H&r block amended return 50 if the 50% special depreciation allowance applies. H&r block amended return This is your special depreciation allowance. H&r block amended return Enter -0- if this is not the year you placed the car in service, the car is not qualified property, or you elected not to claim a special depreciation allowance       Note 1) If line 16 is equal to line 11, stop here. H&r block amended return Your depreciation deduction (including your special depreciation allowance) is limited to the amount on line 11. H&r block amended return  2) If line 16 is less than line 11, complete Part III. H&r block amended return   Part III   17. H&r block amended return Subtract line 16 from 11. H&r block amended return This is the limit on the amount you can deduct for MACRS depreciation       18. H&r block amended return Subtract line 16 from line 15. H&r block amended return This is your basis for depreciation. H&r block amended return       19. H&r block amended return Multiply line 18 by line 6. H&r block amended return This is your tentative MACRS depreciation deduction. H&r block amended return       20. H&r block amended return Enter the lesser of line 17 or line 19. H&r block amended return This is your MACRS depreciation deduction. H&r block amended return     1 When figuring the amount to enter on line 12, do not reduce your cost or other basis by any section 179 deduction you claimed for your car. H&r block amended return 2 Reduce the basis by the lesser of $4,000 or 10% of the cost of the vehicle even if the credit is less than that amount. H&r block amended return             Deductions After the Recovery Period If the depreciation deductions for your automobile are reduced under the passenger automobile limits, you will have unrecovered basis in your automobile at the end of the recovery period. H&r block amended return If you continue to use the automobile for business, you can deduct that unrecovered basis after the recovery period ends. H&r block amended return You can claim a depreciation deduction in each succeeding tax year until you recover your full basis in the car. H&r block amended return The maximum amount you can deduct each year is determined by the date you placed the car in service and your business/investment-use percentage. H&r block amended return See Maximum Depreciation Deduction , earlier. H&r block amended return Unrecovered basis is the cost or other basis of the passenger automobile reduced by any clean-fuel vehicle deduction, electric vehicle credit, depreciation, and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use and the passenger automobile limits had not applied. H&r block amended return You cannot claim a depreciation deduction for listed property other than passenger automobiles after the recovery period ends. H&r block amended return There is no unrecovered basis at the end of the recovery period because you are considered to have used this property 100% for business and investment purposes during all of the recovery period. H&r block amended return Example. H&r block amended return In May 2007, you bought and placed in service a car costing $31,500. H&r block amended return The car was 5-year property under GDS (MACRS). H&r block amended return You did not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. H&r block amended return You used the car exclusively for business during the recovery period (2007 through 2012). H&r block amended return You figured your depreciation as shown below. H&r block amended return Year Percentage Amount Limit   Allowed 2007 20. H&r block amended return 0% $6,300 $2,960   $2,960 2008 32. H&r block amended return 0 10,080 4,800   4,800 2009 19. H&r block amended return 2 6,048 2,850   2,850 2010 11. H&r block amended return 52 3,629 1,675   1,675 2011 11. H&r block amended return 52 3,629 1,675   1,675 2012 5. H&r block amended return 76 1,814 1,675   1,675 Total   $15,635 At the end of 2012, you had an unrecovered basis of $15,865 ($31,500 − $15,635). H&r block amended return If in 2013 and later years you continue to use the car 100% for business, you can deduct each year the lesser of $1,675 or your remaining unrecovered basis. H&r block amended return If your business use of the car had been less than 100% during any year, your depreciation deduction would have been less than the maximum amount allowable for that year. H&r block amended return However, in figuring your unrecovered basis in the car, you would still reduce your basis by the maximum amount allowable as if the business use had been 100%. H&r block amended return For example, if you had used your car 60% for business instead of 100%, your allowable depreciation deductions would have been $9,519 ($15,865 × 60%), but you still would have to reduce your basis by $15,865 to determine your unrecovered basis. H&r block amended return Deductions For Passenger Automobiles Acquired in a Trade-in If you acquire a passenger automobile in a trade-in, depreciate the carryover basis separately as if the trade-in did not occur. H&r block amended return Depreciate the part of the new automobile's basis that exceeds its carryover basis (excess basis) as if it were newly placed in service property. H&r block amended return This excess basis is the additional cash paid for the new automobile in the trade-in. H&r block amended return The depreciation figured for the two components of the basis (carryover basis and excess basis) is subject to a single passenger automobile limit. H&r block amended return Special rules apply in determining the passenger automobile limits. H&r block amended return These rules and examples are discussed in section 1. H&r block amended return 168(i)-6(d)(3) of the regulations. H&r block amended return Instead of figuring depreciation for the carryover basis and the excess basis separately, you can elect to treat the old automobile as disposed of and both of the basis components for the new automobile as if placed in service at the time of the trade-in. H&r block amended return For more information, including how to make this election, see Election out under Property Acquired in a Like-kind Exchange or Involuntary Conversion in chapter 4 and sections 1. H&r block amended return 168(i)-6(i) and 1. H&r block amended return 168(i)-6(j) of the regulations. H&r block amended return What Records Must Be Kept? You cannot take any depreciation or section 179 deduction for the use of listed property unless you can prove your business/investment use with adequate records or with sufficient evidence to support your own statements. H&r block amended return For listed property, you must keep records for as long as any recapture can still occur. H&r block amended return Recapture can occur in any tax year of the recovery period. H&r block amended return 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. H&r block amended return You do not have to record information in an account book, diary, or similar record if the information is already shown on the receipt. H&r block amended return However, your records should back up your receipts in an orderly manner. H&r block amended return Elements of expenditure or use. H&r block amended return   Your records or other documentary evidence must support all the following. H&r block amended return 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. H&r block amended return 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. H&r block amended return The date of the expenditure or use. H&r block amended return The business or investment purpose for the expenditure or use. H&r block amended return   Written documents of your expenditure or use are generally better evidence than oral statements alone. H&r block amended return You do not have to keep a daily log. H&r block amended return 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 of the expenditure or use and backed up by other documents is preferable to a statement you prepare later. H&r block amended return Timeliness. H&r block amended return   You must record the elements of an expenditure or use at the time you have full knowledge of the elements. H&r block amended return 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 generally is considered a timely record if, in the regular course of business: The statement is given by an employee to the employer, or The statement is given by an independent contractor to the client or customer. H&r block amended return   For example, a log maintained on a weekly basis, that accounts for use during the week, will be considered a record made at or near the time of use. H&r block amended return Business purpose supported. H&r block amended return   Generally, an adequate record of business purpose must be in the form of a written statement. H&r block amended return However, the amount of detail necessary to establish a business purpose depends on the facts and circumstances of each case. H&r block amended return A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. H&r block amended return 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. H&r block amended return Business use supported. H&r block amended return   An adequate record contains enough information on each element of every business or investment use. H&r block amended return The amount of detail required to support the use depends on the facts and circumstances. H&r block amended return For example, a taxpayer who uses a truck for both business and personal purposes and whose only business use of the 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. H&r block amended return   Although you generally must prepare an adequate written record, you can prepare a record of the business use of listed property in a computer memory device that uses a logging program. H&r block amended return Separate or combined expenditures or uses. H&r block amended return   Each use by you normally is considered a separate use. H&r block amended return However, you can combine repeated uses as a single item. H&r block amended return   Record each expenditure as a separate item. H&r block amended return Do not combine it with other expenditures. H&r block amended return If you choose, however, you can combine amounts you spent for the use of listed property during a tax year, such as for gasoline or automobile repairs. H&r block amended return If you combine these expenses, you do not need to support the business purpose of each expense. H&r block amended return Instead, you can divide the expenses based on the total business use of the listed property. H&r block amended return   You can account for uses that can be considered part of a single use, such as a round trip or uninterrupted business use, by a single record. H&r block amended return For example, you can account for the use of a truck to make deliveries at several locations that begin and end at the business premises and can include a stop at the business in between deliveries by a single record of miles driven. H&r block amended return You can account for the use of a passenger automobile by a salesperson for a business trip away from home over a period of time by a single record of miles traveled. H&r block amended return Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. H&r block amended return Confidential information. H&r block amended return   If any of the information on the elements of an expenditure or use is confidential, you do not need to include it in the account book or similar record if you record it at or near the time of the expenditure or use. H&r block amended return You must keep it elsewhere and make it available as support to the IRS director for your area on request. H&r block amended return Substantial compliance. H&r block amended return   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 satisfaction of the IRS director for your area, you can establish this element by any evidence the IRS director for your area deems adequate. H&r block amended return   If you fail to establish to the satisfaction of the IRS director for your area that you have substantially complied with the adequate records requirement for an element of an expenditure or use, you must establish the element as follows. H&r block amended return By your own oral or written statement containing detailed information as to the element. H&r block amended return By other evidence sufficient to establish the element. H&r block amended return   If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct evidence, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. H&r block amended return If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. H&r block amended return Sampling. H&r block amended return   You can maintain an adequate record for part of a tax year and use that record to support your business and investment use of listed property for the entire tax year if it can be shown by other evidence that the periods for which you maintain an adequate record are representative of the use throughout the year. H&r block amended return Example 1. H&r block amended return Denise Williams, a sole proprietor and calendar year taxpayer, operates an interior decorating business out of her home. H&r block amended return She uses her automobile for local business visits to the homes or offices of clients, for meetings with suppliers and subcontractors, and to pick up and deliver items to clients. H&r block amended return There is no other business use of the automobile, but she and family members also use it for personal purposes. H&r block amended return She maintains adequate records for the first 3 months of the year showing that 75% of the automobile use was for business. H&r block amended return Subcontractor invoices and paid bills show that her business continued at approximately the same rate for the rest of the year. H&r block amended return If there is no change in circumstances, such as the purchase of a second car for exclusive use in her business, the determination that her combined business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. H&r block amended return Example 2. H&r block amended return Assume the same facts as in Example 1, except that Denise maintains adequate records during the first week of every month showing that 75% of her use of the automobile is for business. H&r block amended return Her business invoices show that her business continued at the same rate during the later weeks of each month so that her weekly records are representative of the automobile's business use throughout the month. H&r block amended return The determination that her business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. H&r block amended return Example 3. H&r block amended return Bill Baker, a sole proprietor and calendar year taxpayer, is a salesman in a large metropolitan area for a company that manufactures household products. H&r block amended return For the first 3 weeks of each month, he occasionally uses his own automobile for business travel within the metropolitan area. H&r block amended return During these weeks, his business use of the automobile does not follow a consistent pattern. H&r block amended return During the fourth week of each month, he delivers all business orders taken during the previous month. H&r block amended return The business use of his automobile, as supported by adequate records, is 70% of its total use during that fourth week. H&r block amended return The determination based on the record maintained during the fourth week of the month that his business/investment use of the automobile for the tax year is 70% does not rest on sufficient supporting evidence because his use during that week is not representative of use during other periods. H&r block amended return Loss of records. H&r block amended return   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. H&r block amended return How Is Listed Property Information Reported? You must provide the information about your listed property requested in Part V of Form 4562, Section A, if you claim either of the following deductions. H&r block amended return Any deduction for a vehicle. H&r block amended return A depreciation deduction for any other listed property. H&r block amended return If you claim any deduction for a vehicle, you also must provide the information requested in Section B. H&r block amended return If you provide the vehicle for your employee's use, the employee must give you this information. H&r block amended return If you provide any vehicle for use by an employee, you must first answer the questions in Section C to see if you meet an exception to completing Section B for that vehicle. H&r block amended return Vehicles used by your employees. H&r block amended return   You do not have to complete Section B, Part V, for vehicles used by your employees who are not more-than-5% owners or related persons if you meet at least one of the following requirements. H&r block amended return You maintain a written policy statement that prohibits one of the following uses of the vehicles. H&r block amended return All personal use including commuting. H&r block amended return Personal use, other than commuting, by employees who are not officers, directors, or 1%-or-more owners. H&r block amended return You treat all use of the vehicles by your employees as personal use. H&r block amended return You provide more than five vehicles for use by your employees, and you keep in your records the information on their use given to you by the employees. H&r block amended return For demonstrator automobiles provided to full-time salespersons, you maintain a written policy statement that limits the total mileage outside the salesperson's normal working hours and prohibits use of the automobile by anyone else, for vacation trips, or to store personal possessions. H&r block amended return Exceptions. H&r block amended return   If you file Form 2106, 2106-EZ, or Schedule C-EZ (Form 1040), and you are not required to file Form 4562, report information about listed property on that form and not on Form 4562. H&r block amended return Also, if you file Schedule C (Form 1040) and are claiming the standard mileage rate or actual vehicle expenses (except depreciation) and you are not required to file Form 4562 for any other reason, report vehicle information in Part IV of Schedule C and not on Form 4562. H&r block amended return Prev  Up  Next   Home   More Online Publications
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Recent Updates

Exempt Organizations Financial Data—2013 data on tax-exempt organizations were published on Tax Stats. These data include selected financial items from more than 600,000 Forms 990, 990-EZ and 990-PF filed by tax-exempt organizations and processed by the IRS during calendar year 2013. The latest release was expanded to include nearly 500 financial and other data items. The data are in ASCII space-delimited format, and supporting documentation is available.

2013 IRS Data BookThe Internal Revenue Service (IRS) has released the 2013 IRS Data Book, a snapshot of agency activities for Fiscal Year 2013—Oct. 1, 2012, to Sept. 30, 2013. In addition to information on taxes collected and returns processed, the report also includes information about enforcement, taxpayer assistance, and the IRS budget and workforce, among others.

2014 Winter SOI Bulletin—Statistics of Income (SOI) has released the 2014 Winter SOI Bulletin. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers.

This issue of the SOI Bulletin includes articles on the following topics:

  • Individual Income Tax Returns, Preliminary Data, 2012
  • Sales of Capital Assets Panel Data Reported on Individual Tax Returns, 2004–2007
  • Split-Interest Trusts, Filing Year 2012
  • Nonprofit Charitable Organizations, 2010

(March 2014)

Corporation Foreign Tax Credit, 2010Two new tables presenting data from Form 1118, Foreign Tax Credit—Corporations, are now available on SOI’s Tax Stats Webpage. The tables present data from the population of returns filed for Tax Year 2010. Table 1.1 displays data on returns with income in an excess credit position while table 1.2 shows data on returns in an excess limit position. Data presented includes foreign-source income, deductions, and taxes by major and selected minor industry. (February, 2014)

Exempt Organizations Microdata Files, Tax Years 1985–1997—Historical microdata files based on Forms 990 and Forms 990-EZ sampled for the annual studies of nonprofit charitable and other tax-exempt organizations are now available. Annual data are available for organizations exempt from income tax under Internal Revenue Code Section 501(c)(3). Additional data for tax-exempt organizations under IRC Sections 501(c)(4) through 501(c)(9) are available for limited tax years. (February, 2014)

2011 Individual Income Tax ZIP Code and County DataUnited States’ ZIP Code and county data for Tax Year 2011 are now available on Tax Stats. The data present selected income and tax return items by State, ZIP Code, county, and size of adjusted gross income. These data are based on individual income tax returns filed with the IRS. (February, 2014)

Fiduciary Income Tax, 2012—Three tables presenting Filing Year 2012 data for income from estates and trusts (Form 1041) are now available. The statistics cover sources of income and deductions at the National and State levels. Data are classified by trust type and filing status. (February, 2014)

U.S. Gift Tax Returns table Gift Tax, 2012 - One table presenting Filing Year 2012 data for United States Gift (and Generation-Skipping Transfer) Tax Returns (Form 709), including information on total gifts, deductions, credits, and net tax amounts, is now available. Data are presented by tax status and size of total taxable gifts. (January 2014)

2013 Fall SOI Bulletin—Statistics of Income (SOI) has released the 2013 Fall SOI Bulletin. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers.

This issue of the SOI Bulletin includes articles on the following topics:

  • Individual Income Tax Returns, 2011
  • Partnership Returns, 2011
  • Accumulation and Distribution of Individual Retirement Arrangements, 2010

(January 2014)

The Statistics of Income Tax Stats Table Wizard was recently updated! The Table Wizard allows users to query tax data on corporations, individuals, tax-exempt organizations, estates, gifts trusts, and more. The resulting data can then be downloaded. This update includes the following data:

  • Corporate data by industry (Forms 1120 and 1120s)—2004 through 2010
  • 501c(3)  Exempt Organizations (Form 990)—2004 through 2007
  • Domestic Private Foundations and Charitable Trusts (Form 990-PF)—2004 through 2008
  • Unrelated Business Income Tax Returns (Form 990-T)—2006 through 2008
  • Estate Tax Returns (Form 706)—2007 through 2010
  • Gift Tax Returns (Form 709)—2005 through 2010

(December 2013)

2011 Individual Income Tax Estimated Data Line CountsThe 2011 Statistics of Income (SOI) estimated data line counts publication presents estimates of frequencies of taxpayer entries on the lines of the forms and schedules filed with individual tax returns as shown on the 2011 Individual SOI Complete Report file. The statistics are based on a sample of returns that have been weighted to estimate the entire 2011 Tax Year population. The publication includes corresponding dollar amounts of selected lines filed in concurrence with the number of returns filed. (December 2013)

Tax Year 2001–2011 Individual Income Tax Return Statistics by Selected Descending and Ascending Cumulative PercentilesStatistics based on all individual income tax returns by selected descending and ascending cumulative percentiles are now available for Tax Years 2001–2011. Tables present historical statistics on income and tax by cumulative percentiles based on the number of returns. They also show distributions of adjusted gross income (AGI) and total income tax, as defined for each tax year, by descending and ascending cumulative percentiles of returns in both current and constant dollars. These tables can be used to make comparisons across cumulative percentile classes beginning with Tax Year 2001. This release is based on all individual income tax returns except returns of dependents. (December 2013)

2011 Partnership Returns Line Item Estimates (Publication 5035)—This publication presents estimates of frequencies of taxpayer entries recorded on the applicable lines of the forms and schedules filed with partnership tax returns for Tax Year 2011. It also contains corresponding population estimates of dollar amounts recorded on those lines (as applicable). (November 2013)

Partnerships, 2011—Twenty-two tables presenting Tax Year 2011 data for partnership returns (Forms 1065 and 1065-B), including types of partnerships and specific industrial sectors, are now available. The statistics cover balance sheets, trade or business income and deductions, portfolio income, rental income (including rental real estate income), and total net income. Data are classified by industry and size of total assets. In addition, historical tables provide balance sheet and income statement data as well as counts of partnership returns, by size of assets and receipts. 
(November 2013)

Foreign Recipients of US Income Study, 2011 Tax Year—Two tables presenting data for Tax Year 2011 from Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, are now available. The tables include statistics for the number of returns, total income, tax withheld, income subject to withholding, income exempt from withholding, and income by category. Data are available by selected countries and selected recipient types. (October 2013)

Issue Year 2011 Tax-Exempt Bond Tables— Updated tax-exempt bond data for both governmental and private activity bonds issued in calendar year 2011 are now available on Tax Stats. Data include the term of issue, purpose, bond size, and uses of bond proceeds. Tax credit bond data, by bond type, and State-level data, by bond purpose, are also available. (October 2013)

 

 



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The H&r Block Amended Return

H&r block amended return Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. H&r block amended return Proc. H&r block amended return 2012-23 Table of Contents SECTION 1. H&r block amended return PURPOSE SECTION 2. H&r block amended return BACKGROUND SECTION 3. H&r block amended return SCOPE SECTION 4. H&r block amended return APPLICATION. H&r block amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. H&r block amended return . H&r block amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. H&r block amended return SECTION 5. H&r block amended return EFFECTIVE DATE SECTION 6. H&r block amended return DRAFTING INFORMATION SECTION 1. H&r block amended return PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. H&r block amended return The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. H&r block amended return SECTION 2. H&r block amended return BACKGROUND . H&r block amended return 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. H&r block amended return For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. H&r block amended return The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. H&r block amended return This change reflects the higher rate of price inflation for trucks and vans since 1988. H&r block amended return . H&r block amended return 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. H&r block amended return L. H&r block amended return No. H&r block amended return 111-312, 124 Stat. H&r block amended return 3296 (Dec. H&r block amended return 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. H&r block amended return Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. H&r block amended return . H&r block amended return 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). H&r block amended return Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. H&r block amended return Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). H&r block amended return Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. H&r block amended return This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. H&r block amended return . H&r block amended return 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. H&r block amended return The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. H&r block amended return Under § 1. H&r block amended return 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. H&r block amended return One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. H&r block amended return Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. H&r block amended return SECTION 3. H&r block amended return SCOPE . H&r block amended return 01 The limitations on depreciation deductions in section 4. H&r block amended return 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. H&r block amended return . H&r block amended return 02 The tables in section 4. H&r block amended return 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. H&r block amended return Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. H&r block amended return See Rev. H&r block amended return Proc. H&r block amended return 2007-30, 2007-1 C. H&r block amended return B. H&r block amended return 1104, for passenger automobiles first leased during calendar year 2007; Rev. H&r block amended return Proc. H&r block amended return 2008-22, 2008-1 C. H&r block amended return B. H&r block amended return 658, for passenger automobiles first leased during calendar year 2008; Rev. H&r block amended return Proc. H&r block amended return 2009-24, 2009-17 I. H&r block amended return R. H&r block amended return B. H&r block amended return 885, for passenger automobiles first leased during calendar year 2009; Rev. H&r block amended return Proc. H&r block amended return 2010-18, 2010-9 I. H&r block amended return R. H&r block amended return B. H&r block amended return 427, as amplified and modified by section 4. H&r block amended return 03 of Rev. H&r block amended return Proc. H&r block amended return 2011-21, 2011-12 I. H&r block amended return R. H&r block amended return B. H&r block amended return 560, for passenger automobiles first leased during calendar year 2010; and Rev. H&r block amended return Proc. H&r block amended return 2011-21, for passenger automobiles first leased during calendar year 2011. H&r block amended return SECTION 4. H&r block amended return APPLICATION . H&r block amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. H&r block amended return (1) Amount of the inflation adjustment. H&r block amended return (a) Passenger automobiles (other than trucks or vans). H&r block amended return Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. H&r block amended return Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. H&r block amended return The new car component of the CPI was 115. H&r block amended return 2 for October 1987 and 143. H&r block amended return 419 for October 2011. H&r block amended return The October 2011 index exceeded the October 1987 index by 28. H&r block amended return 219. H&r block amended return Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. H&r block amended return 5 percent (28. H&r block amended return 219/115. H&r block amended return 2 x 100%). H&r block amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. H&r block amended return 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. H&r block amended return This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. H&r block amended return (b) Trucks and vans. H&r block amended return To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. H&r block amended return The new truck component of the CPI was 112. H&r block amended return 4 for October 1987 and 146. H&r block amended return 607 for October 2011. H&r block amended return The October 2011 index exceeded the October 1987 index by 34. H&r block amended return 207. H&r block amended return Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. H&r block amended return 43 percent (34. H&r block amended return 207/112. H&r block amended return 4 x 100%). H&r block amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. H&r block amended return 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. H&r block amended return This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. H&r block amended return (2) Amount of the limitation. H&r block amended return Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. H&r block amended return Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. H&r block amended return Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. H&r block amended return REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . H&r block amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. H&r block amended return A taxpayer must follow the procedures in § 1. H&r block amended return 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. H&r block amended return In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. H&r block amended return REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. H&r block amended return PROC. H&r block amended return 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. H&r block amended return EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. H&r block amended return SECTION 6. H&r block amended return DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. H&r block amended return Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). H&r block amended return For further information regarding this revenue procedure, contact Mr. H&r block amended return Harvey at (202) 622-4930 (not a toll-free call). H&r block amended return Prev  Up  Next   Home   More Internal Revenue Bulletins