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How To File 2010 Taxes

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How To File 2010 Taxes

How to file 2010 taxes 4. How to file 2010 taxes   Retirement Savings Contributions Credit (Saver's Credit) Table of Contents What's New Introduction Full-time student. How to file 2010 taxes Adjusted gross income. How to file 2010 taxes Distributions received by spouse. How to file 2010 taxes Testing period. How to file 2010 taxes What's New Modified AGI limit for retirement savings contributions credit increased. How to file 2010 taxes  For 2013, you may be able to claim the retirement savings contributions credit if your modified AGI is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). How to file 2010 taxes Introduction You may be able to take a tax credit if you make eligible contributions (defined later) to a qualified retirement plan, an eligible deferred compensation plan, or an individual retirement arrangement (IRA). How to file 2010 taxes You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). How to file 2010 taxes This credit could reduce the federal income tax you pay dollar for dollar. How to file 2010 taxes    Can you claim the credit?   If you make eligible contributions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply. How to file 2010 taxes You were born before January 2, 1996. How to file 2010 taxes You are not a full-time student (explained next). How to file 2010 taxes No one else, such as your parent(s), claims an exemption for you on their tax return. How to file 2010 taxes Your adjusted gross income (defined below) is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). How to file 2010 taxes Full-time student. How to file 2010 taxes   You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. How to file 2010 taxes You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full time. How to file 2010 taxes Adjusted gross income. How to file 2010 taxes   This is generally the amount on line 38 of your 2013 Form 1040; line 22 of your 2013 Form 1040A; or line 37 of your 2013 Form 1040NR. How to file 2010 taxes However, you must add to that amount any exclusion or deduction claimed for the year for: Foreign earned income, Foreign housing costs, Income for bona fide residents of American Samoa, and Income from Puerto Rico. How to file 2010 taxes Eligible contributions. How to file 2010 taxes   These include: Contributions to a traditional or Roth IRA, Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to: A 401(k) plan (including a SIMPLE 401(k)), A section 403(b) annuity, An eligible deferred compensation plan of a state or local government (a governmental 457 plan), A SIMPLE IRA plan, or A salary reduction SEP, and Contributions to a section 501(c)(18) plan. How to file 2010 taxes They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity. How to file 2010 taxes For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment. How to file 2010 taxes Reducing eligible contributions. How to file 2010 taxes   Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included above under Eligible contributions. How to file 2010 taxes Also reduce your eligible contributions by any distribution from a Roth IRA that is not rolled over, even if the distribution is not taxable. How to file 2010 taxes   Do not reduce your eligible contributions by any of the following. How to file 2010 taxes The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution. How to file 2010 taxes Distributions that are taxable as the result of an in-plan rollover to your designated Roth account. How to file 2010 taxes Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if: The distribution is made before the due date (including extensions) of your tax return for that year, You do not take a deduction for the contribution, and The distribution includes any income attributable to the contribution. How to file 2010 taxes Loans from a qualified employer plan treated as a distribution. How to file 2010 taxes Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals). How to file 2010 taxes Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). How to file 2010 taxes Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA. How to file 2010 taxes Distributions from a military retirement plan. How to file 2010 taxes Distributions from an inherited IRA by a nonspousal beneficiary. How to file 2010 taxes Distributions received by spouse. How to file 2010 taxes   Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit. How to file 2010 taxes Testing period. How to file 2010 taxes   The testing period consists of the year for which you claim the credit, the period after the end of that year and before the due date (including extensions) for filing your return for that year, and the 2 tax years before that year. How to file 2010 taxes Example. How to file 2010 taxes You and your spouse filed joint returns in 2011 and 2012, and plan to do so in 2013 and 2014. How to file 2010 taxes You received a taxable distribution from a qualified plan in 2011 and a taxable distribution from an eligible deferred compensation plan in 2012. How to file 2010 taxes Your spouse received taxable distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. How to file 2010 taxes You made eligible contributions to an IRA in 2013 and you otherwise qualify for this credit. How to file 2010 taxes You must reduce the amount of your qualifying contributions in 2013 by the total of the distributions you received in 2011, 2012, 2013, and 2014. How to file 2010 taxes Maximum eligible contributions. How to file 2010 taxes   After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person. How to file 2010 taxes Effect on other credits. How to file 2010 taxes   The amount of this credit will not change the amount of your refundable tax credits. How to file 2010 taxes A refundable tax credit, such as the earned income credit or the refundable amount of your child tax credit, is an amount that you would receive as a refund even if you did not otherwise owe any taxes. How to file 2010 taxes Maximum credit. How to file 2010 taxes   This is a nonrefundable credit. How to file 2010 taxes The amount of the credit in any year cannot be more than the amount of tax that you would otherwise pay (not counting any refundable credits) in any year. How to file 2010 taxes If your tax liability is reduced to zero because of other nonrefundable credits, such as the credit for child and dependent care expenses, then you will not be entitled to this credit. How to file 2010 taxes How to figure and report the credit. How to file 2010 taxes   The amount of the credit you can get is based on the contributions you make and your credit rate. How to file 2010 taxes Your credit rate can be as low as 10% or as high as 50%. How to file 2010 taxes Your credit rate depends on your income and your filing status. How to file 2010 taxes See Form 8880 to determine your credit rate. How to file 2010 taxes   The maximum contribution taken into account is $2,000 per person. How to file 2010 taxes On a joint return, up to $2,000 is taken into account for each spouse. How to file 2010 taxes   Figure the credit on Form 8880. How to file 2010 taxes Report the credit on line 50 of your Form 1040; line 32 of your Form 1040A; or line 47 of your Form 1040NR and attach Form 8880 to your return. How to file 2010 taxes Prev  Up  Next   Home   More Online Publications
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National Taxpayer Advocate Reports to Congress and Research

By law, the National Taxpayer Advocate must submit two reports to Congress each year.

National Taxpayer Advocate's Objectives Report


The first report (Objectives Report), delivered each June, contains the goals and activities planned by the Taxpayer Advocate for the coming year.

National Taxpayer Advocate's Reports to Congress


The second report (Annual Report), delivered at the end of December, includes: A summary of the 20 most serious problems encountered by taxpayers; recommendations for solving those problems; and other IRS efforts to improve customer service and reduce taxpayer burden.

 NTA Objectives Reports

 

 NTA Annual Reports to Congress

 


Annual Report to Congress Report Cards

These documents list the recommendations proposed by the National Taxpayer Advocate in each Annual Report to Congress, along with the IRS response to each recommendation and TAS's assessment of the IRS's actions.

Congressional District Statistics


TAS produces taxpayer statistics summaries annually for each Congressional District. Each state is listed on a separate sheet containing state totals followed by a breakdown for each congressional district. The totals are stratified by income levels listed at the top of each sheet.

 ARC Report Cards

 

 Congressional District Statistics

 

 

 

Page Last Reviewed or Updated: 10-Mar-2014

The How To File 2010 Taxes

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