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Hr block e file 30. Hr block e file   Cómo Calcular los Impuestos Table of Contents Introduction Cómo Calcular los Impuestos Impuesto Mínimo Alternativo (AMT) Impuestos Calculados por el IRS Cómo Presentar la Declaración Introduction Una vez que haya calculado los ingresos y deducciones según se explica en las Partes Uno a Cinco, calcule los impuestos. Hr block e file Este capítulo trata sobre los temas siguientes: Los pasos a seguir para calcular los impuestos, Un impuesto adicional que podría verse obligado a pagar, el cual se denomina “impuesto mínimo alternativo” (AMT, por sus siglas en inglés) y Las condiciones que tiene que cumplir si desea que el IRS le calcule los impuestos. Hr block e file Cómo Calcular los Impuestos El impuesto sobre los ingresos se basa en los ingresos tributables. Hr block e file Después de haber calculado el impuesto sobre los ingresos y el impuesto mínimo alternativo, si lo hubiera, reste los créditos tributarios y sume cualquier otro impuesto adeudado. Hr block e file El resultado es el total de los impuestos. Hr block e file Compare el total de los impuestos con el total de los pagos que ha efectuado para saber si tiene derecho a un reembolso o si tiene que efectuar un pago. Hr block e file Esta sección expone los puntos generales para calcular el impuesto. Hr block e file Puede encontrar instrucciones detalladas en las Instrucciones de los Formularios 1040EZ, 1040A y 1040. Hr block e file Si no está seguro de qué formulario tributario debe presentar, vea ¿Qué Formulario Debo Usar? , en el capítulo 1. Hr block e file Impuestos. Hr block e file   La mayor parte de los contribuyentes utiliza la Tabla de Impuestos o la Hoja de Trabajo para el Cálculo del Impuesto para calcular el impuesto sobre el ingreso. Hr block e file No obstante, existen métodos especiales si los ingresos incluyen cualquiera de los siguientes puntos: Una ganancia neta de capital. Hr block e file (Vea el capítulo 16). Hr block e file Dividendos calificados gravados a la misma tasa que una ganancia neta de capital. Hr block e file (Vea los capítulos 8 y 16). Hr block e file Distribuciones de suma global. Hr block e file (Vea el capítulo 10). Hr block e file Ingresos procedentes de la agricultura o pesca. Hr block e file (Vea el Anexo J del Formulario 1040, Income Averaging for Farmers and Fishermen (Cómo calcular el promedio de ingresos para los agricultores y pescadores), en inglés. Hr block e file Ingresos de inversiones de más de $2,000 para determinados hijos. Hr block e file (Vea el capítulo 31). Hr block e file Elección del padre o de la madre de declarar los intereses y dividendos de un hijo. Hr block e file (Vea el capítulo 31). Hr block e file Exclusión de ingresos devengados en el extranjero o exclusión por concepto de vivienda en el extranjero. Hr block e file (Vea el Formulario 2555, Foreign Earned Income (Ingresos devengados en el extranjero) o el Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingresos devengados en el extranjero) y el Foreign Earned Income Tax Worksheet (Hoja de trabajo para los impuestos sobre ingresos devengados en el extranjero) de las Instrucciones del Formulario 1040), todos en inglés. Hr block e file Créditos. Hr block e file   Luego de haber calculado el impuesto sobre los ingresos y todo impuesto mínimo alternativo (explicado más adelante), verifique si tiene derecho a algún crédito tributario. Hr block e file Puede encontrar información para saber si tiene derecho a estos créditos tributarios en los capítulos 32 al 37 y en las instrucciones de los formularios de impuestos. Hr block e file La tabla a continuación muestra los créditos que tal vez pueda restar del impuesto y le indica en dónde puede encontrar más información sobre cada crédito. Hr block e file CRÉDITOS Para información sobre: Vea el   capítulo: Adopción 37 Vehículo motorizado alternativo 37 Propiedad para reabastecimiento de vehículos con combustible alternativo 37 Cuidado de menores y dependientes 32 Crédito tributario por hijos 34 Crédito para titulares de bonos de crédito tributario 37 Estudios 35 Ancianos o personas incapacitadas 33 Crédito por vehículos eléctricos 37 Impuestos del extranjero 37 Intereses hipotecarios 37 Impuesto mínimo de años anteriores 37 Energía residencial 37 Aportaciones a arreglos de ahorros para la jubilación 37   Hay algunos créditos (como el crédito por ingreso del trabajo) que no aparecen en la lista porque se consideran pagos. Hr block e file Vea Pagos , más adelante. Hr block e file   Existen otros créditos no abordados en esta publicación. Hr block e file Éstos abarcan los siguientes créditos: Crédito general para negocios, el cual se compone de distintos créditos relacionados con los negocios. Hr block e file Éstos suelen declararse en el Formulario 3800, General Business Credit (Crédito general para negocios) y se explican en el capítulo 4 de la Publicación 334, Tax Guide for Small Business (Guía tributaria para pequeños negocios), ambos en inglés. Hr block e file Crédito por producción de electricidad renovable, carbón refinado y carbón de yacimientos en tierras pertenecientes a indios para electricidad y carbón refinado producidos en instalaciones puestas en funcionamiento después del 22 de octubre de 2004 (después del 2 de octubre de 2008, para la electricidad producida mediante la energía hidrocinética renovable y la energía marina renovable) y carbón de yacimientos en tierras pertenecientes a indios producido en instalaciones puestas en funcionamiento después del 8 de agosto de 2005. Hr block e file Vea la Parte II del Formulario 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit (Crédito por producción de electricidad renovable, carbón refinado y carbón de yacimientos en tierras pertenecientes a indios), en inglés. Hr block e file Crédito de oportunidad laboral. Hr block e file Vea el Formulario 5884, Work Opportunity Credit (Crédito de oportunidad laboral), en inglés. Hr block e file Crédito por impuestos del Seguro Social y Medicare del empleador pagados sobre ciertas propinas del empleado. Hr block e file Vea el Formulario 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips (Crédito por impuestos del Seguro Social y del Medicare pagados por el empleador sobre ciertas propinas del empleado), en inglés. Hr block e file Otros impuestos. Hr block e file   Después de haber restado los créditos tributarios, determine si tiene que pagar impuestos adicionales. Hr block e file Este capítulo no explica dichos impuestos adicionales. Hr block e file Esa información aparece en otros capítulos de esta publicación y en las instrucciones de los formularios. Hr block e file Consulte la tabla siguiente para ver otros impuestos que tal vez necesite sumar al impuesto sobre los ingresos. Hr block e file OTROS IMPUESTOS Para información sobre: Vea el   capítulo: Impuestos adicionales sobre planes de jubilación y arreglos IRA calificados 10, 17 Impuestos sobre el empleo de empleados domésticos 32 Recuperación de un crédito para estudios 35 Impuesto del Seguro Social y Medicare sobre el salario 5 Impuesto del Seguro Social y Medicare sobre las propinas 6 Impuestos no retenidos del Seguro Social y Medicare sobre propinas 6   Usted quizás podría verse obligado a pagar el impuesto mínimo alternativo (el cual se explica más adelante en este capítulo). Hr block e file   Existen impuestos adicionales que no se explican en esta publicación. Hr block e file Éstos abarcan lo siguiente: Impuesto sobre el trabajo por cuenta propia. Hr block e file Tiene que calcular este impuesto si cualquiera de las dos condiciones siguientes le corresponde (o a su cónyuge, si usted presenta una declaración conjunta). Hr block e file Tiene ganancias netas provenientes del trabajo por cuenta propia de $400 o más, salvo ingresos de un empleado de una iglesia. Hr block e file El término “ganancias netas provenientes del trabajo por cuenta propia” puede incluir determinada remuneración que no recibió como empleado y otras cantidades detalladas en el Formulario 1099-MISC, Miscellaneous Income (Ingresos misceláneos), en inglés. Hr block e file Si recibió el Formulario 1099-MISC, vea las Instructions for Recipient (Instrucciones para el destinatario), al dorso del mismo. Hr block e file Asimismo, vea las instrucciones del Anexo SE del Formulario 1040, Self-Employment Tax (Impuesto sobre el trabajo por cuenta propia) y la Publicación 334, Tax Guide for Small Business (Guía tributaria para pequeños negocios), ambas en inglés. Hr block e file Recibió ingresos de $108. Hr block e file 28 o más como empleado de una iglesia. Hr block e file Impuesto Adicional del Medicare. Hr block e file Comenzando en el año 2013, usted quizás podría estar sujeto a un Impuesto Adicional del Medicare de 0. Hr block e file 9%, que se le aplica a los salarios sujetos al impuesto Medicare, la remuneración recibida conforme a la Railroad Retirement Act (Ley de Jubilación Ferroviaria) y el ingreso sobre el trabajo por cuenta propia que esté sobre cierta cantidad según su estado civil para efectos de la declaración. Hr block e file Si desea más información, vea las instrucciones para la línea 60 del Formulario 1040 y las Instrucciones para el Formulario 8959, ambas disponibles en inglés. Hr block e file Impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). Hr block e file Comenzando en el año 2013, usted quizás podría estar sujeto al impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). Hr block e file El NIIT es un impuesto de 3. Hr block e file 8% sobre la cantidad menor entre el ingreso neto de inversión o la cantidad en exceso de su ingreso bruto ajustado modificado sobre una cantidad límite. Hr block e file Si desea más información, vea las instrucciones para la línea 60 del Formulario 1040 y las Instrucciones para el Formulario 8960, ambas disponibles en inglés. Hr block e file Impuestos sobre recuperaciones. Hr block e file Podría verse obligado a pagar estos impuestos si antes ha reclamado un crédito por inversiones, crédito de vivienda para personas de bajos recursos, crédito por mercados nuevos, crédito por vehículos enchufables con motor de dirección eléctrica que reúnen los requisitos, crédito por vehículo motorizado alternativo, crédito por instalaciones para proveer cuidado de niños provistas por el empleador, crédito por empleo de indios estadounidenses u otros créditos enumerados en las instrucciones para la línea 60 del Formulario 1040. Hr block e file Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Impuesto sobre beneficios en exceso de la sección 72(m)(5). Hr block e file Si usted es (o fue) propietario del 5% de un negocio y recibió una distribución superior a los beneficios que se le ofrecen conforme a la fórmula para planes de pensiones o de anualidades calificados, tal vez tenga que pagar este impuesto adicional. Hr block e file Vea Tax on Excess Benefits (Impuesto sobre beneficios en exceso), en el capítulo 4 de la Publicación 560, Retirement Plans for Small Business (Planes de jubilación para pequeños negocios), en inglés. Hr block e file Impuesto del Seguro Social y Medicare sobre el seguro de vida colectivo a término fijo que no fue recaudado. Hr block e file Si su antiguo empleador proveyó más de $50,000 en cobertura de seguro de vida colectivo a término fijo, usted tiene que pagar la parte correspondiente al empleado de los impuestos del Seguro Social y Medicare sobre esas primas. Hr block e file La cantidad debe aparecer en el recuadro 12 del Formulario W-2 con los códigos M y N. Hr block e file Impuestos sobre pagos de contrato blindado. Hr block e file Este impuesto le corresponde si recibió un “pago de contrato blindado en exceso” ( “excess parachute payment” o EPP, por sus siglas en inglés) debido a un cambio de propietario o administración de la empresa. Hr block e file La cantidad de este impuesto debe estar indicada en el recuadro 12 del Formulario W-2 con el código K. Hr block e file Vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Impuestos sobre distribuciones acumuladas de fideicomisos. Hr block e file Esto le corresponde si es el beneficiario de un fideicomiso que haya acumulado ingresos, en vez de haberlos distribuido a intervalos regulares. Hr block e file Vea el Formulario 4970, Tax on Accumulation Distribution of Trusts (Impuestos sobre distribuciones acumuladas de fideicomisos), y sus instrucciones, en inglés. Hr block e file Impuestos adicionales sobre las cuentas HSA o MSA. Hr block e file Puede que tenga que pagar impuestos adicionales si las cantidades que se han aportado a su cuenta de ahorros para la salud (HSA, por sus siglas en inglés) o su cuenta de ahorros para gastos médicos (MSA, por sus siglas en inglés) o las cantidades que se han distribuido de éstas no cumplen los requisitos correspondientes a dichas cuentas. Hr block e file Vea la Publicación 969, Health Savings Accounts and Other Tax-Favored Health Plans (Cuentas de ahorros para la salud y otros planes para la salud con beneficios tributarios); el Formulario 8853, Archer MSAs and Long-Term Care Insurance Contracts (Cuentas Archer MSA de ahorros médicos y contratos del seguro de cuidado a largo plazo); Formulario 8889, Health Savings Accounts (HSAs) (Cuentas de ahorros médicos (HSA, por sus siglas en inglés)) y el Formulario 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (Impuestos adicionales sobre planes calificados (incluidos los arreglos IRA) y otras cuentas con beneficios tributarios), todos en inglés. Hr block e file Impuestos adicionales en cuentas Coverdell ESA para estudios. Hr block e file Esto es aplicable si las cantidades que se han aportado a su cuenta Coverdell ESA para estudios o que se han distribuido de la misma no satisfacen los requisitos correspondientes a dichas cuentas. Hr block e file Vea la Publicación 970, Tax Benefits for Education (Prestaciones tributarias para estudios) y el Formulario 5329, ambos en inglés. Hr block e file Impuestos adicionales sobre programas de matrícula calificada. Hr block e file Esto corresponde a cantidades distribuidas de programas de matrícula calificada generales pero que no cumplan los requisitos de dichas cuentas. Hr block e file Vea la Publicación 970 y el Formulario 5329, ambos en inglés. Hr block e file Impuestos sobre artículos de uso y consumo gravados sobre remuneraciones de acciones internas de una empresa expatriada. Hr block e file Tal vez adeude un impuesto sobre artículos de uso y consumo del 15% sobre el valor de opciones de acciones no estatutarias y sobre otra remuneración determinada procedente de las acciones, de las cuales usted o un miembro de su familia es dueño, que es de una empresa expatriada o su grupo ampliado de filiales en las que usted fue ejecutivo, directivo o propietario de más del 10%. Hr block e file Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Impuestos adicionales sobre ingresos recibidos de un plan de remuneración diferida no calificado que no reúna determinados requisitos adicionales. Hr block e file Estos ingresos tienen que aparecer en el recuadro 12 del Formulario W-2, con el código Z o en el recuadro 15b del Formulario 1099-MISC. Hr block e file Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Intereses sobre los impuestos adeudados sobre ingresos de pagos a plazo procedentes de la venta de ciertos terrenos residenciales y multipropiedades. Hr block e file Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Intereses sobre los impuestos diferidos sobre ganancias de ciertas ventas a plazos con precio de venta superior a $150,000. Hr block e file Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. Hr block e file Devolución del crédito tributario para comprador de primera vivienda. Hr block e file Si desea más información, vea el Formulario 5405, Repayment of the First-Time Homebuyer Credit (Devolución del crédito tributario para comprador de primera vivienda) y sus instrucciones, disponibles en inglés. Hr block e file Además, vea las instrucciones para la línea 59b del Formulario 1040, en inglés. Hr block e file Pagos. Hr block e file   Después de calcular el impuesto total, calcule el total de los pagos que ya haya efectuado para el año. Hr block e file Incluya los créditos que se tratan como pagos. Hr block e file Este capítulo no explica dichos pagos ni créditos. Hr block e file Esa información aparece en otros capítulos de esta publicación y en las instrucciones de los formularios. Hr block e file Vea la siguiente tabla para saber qué cantidades se pueden incluir en el total de sus pagos. Hr block e file PAGOS Para información sobre: Vea el   capítulo: Crédito tributario por hijos (adicional) 34 Crédito por ingreso del trabajo 36 Impuestos estimados pagados 4 Impuestos de Seguro Social o impuestos de la jubilación ferroviaria retenidos en exceso 37 Retención del impuesto federal sobre los ingresos 4 Crédito tributario por cobertura del seguro médico 37 Crédito por sociedad inversionista reglamentada 37 Impuesto pagado a través de prórroga 1   Otro crédito que se considera un pago es el crédito por concepto del impuesto federal sobre artículos de uso y consumo pagado sobre combustibles. Hr block e file Este crédito es para personas que hagan uso no tributable de determinados combustibles, tales como diésel y keroseno. Hr block e file Se declara en la línea 70 del Formulario 1040. Hr block e file Vea el Formulario 4136, Credit for Federal Tax Paid on Fuels (Crédito por impuestos federales pagados sobre combustibles), en inglés. Hr block e file Reembolso o saldo adeudado. Hr block e file   Para saber si tiene derecho a recibir un reembolso o si tiene que efectuar algún pago, compare el total de los pagos con el total del impuesto. Hr block e file Si tiene derecho a un reembolso, vea las instrucciones del formulario que presentará para saber cómo puede depositar dicho reembolso directamente en una o más de sus cuentas o para comprar bonos de ahorros de los Estados Unidos en vez de recibir un cheque en papel. Hr block e file Impuesto Mínimo Alternativo (AMT) Esta sección explica brevemente el impuesto adicional que podría verse obligado a pagar. Hr block e file La ley tributaria les da un trato especial a determinados tipos de ingresos y permite deducciones y créditos especiales para algunos tipos de gastos. Hr block e file Los contribuyentes que se vean beneficiados por este trato particular podrían estar obligados a pagar al menos una cantidad mínima de impuestos mediante otro impuesto adicional denominado “impuesto mínimo alternativo” (AMT, por sus siglas en inglés). Hr block e file Tal vez tenga que pagar el impuesto mínimo alternativo si sus ingresos tributables para fines tributarios normales, sumados a determinados ajustes y elementos de preferencia tributaria, superan una determinada cantidad. Hr block e file Vea el Formulario 6251, Alternative Minimum Tax — Individuals (Impuesto mínimo alternativo — personas físicas), en inglés. Hr block e file Ajustes y elementos de preferencia tributaria. Hr block e file   Los ajustes más comunes y elementos de preferencia tributaria abarcan los siguientes casos: Inclusión de exenciones personales, Inclusión de la deducción estándar (si ésta se reclamó), Inclusión de deducciones detalladas por concepto de impuestos estatales y locales, determinados intereses, la mayor parte de las deducciones misceláneas y parte de los gastos médicos, Exclusión de todo reembolso de impuestos estatales y locales que se haya incluido en los ingresos brutos, Cambios en la depreciación acelerada de determinados bienes, La diferencia entre ganancias y pérdidas sobre la venta de bienes declarada para fines tributarios normales y del impuesto mínimo alternativo, Inclusión de determinados ingresos procedentes de opciones de compra de acciones con incentivo, Cambio en ciertas deducciones por pérdidas de actividades pasivas, Inclusión de algún valor de agotamiento que sea superior a la base ajustada de los bienes, Inclusión de una parte de la deducción por ciertos gastos de perforación intangibles e Inclusión de intereses exentos de impuestos sobre determinados bonos de una actividad privada. Hr block e file Información adicional. Hr block e file   Para más información acerca del impuesto mínimo alternativo, vea las Instrucciones para el Formulario 6251, en inglés. Hr block e file Impuestos Calculados por el IRS Si presenta la declaración para el 15 de abril de 2014, puede pedir que el IRS le calcule los impuestos en el Formulario 1040EZ, el Formulario 1040A o el Formulario 1040. Hr block e file Si el IRS le calcula los impuestos y usted pagó demasiado, recibirá un reembolso. Hr block e file Si no pagó lo suficiente, recibirá una factura que indique el saldo adeudado. Hr block e file Para no tener que pagar intereses o una multa por pagos morosos, tiene que pagar la factura dentro de 30 días a partir de la fecha de la factura o para la fecha de vencimiento para la presentación de la declaración, la que ocurra más tarde. Hr block e file El IRS también le calcula el crédito para ancianos o personas incapacitadas además del crédito por ingreso del trabajo. Hr block e file Cuándo el IRS no puede calcularle los impuestos. Hr block e file   El IRS no puede calcularle los impuestos si se da alguna de las siguientes condiciones: Desea que el reembolso se deposite directamente en sus cuentas. Hr block e file Desea que alguna parte del reembolso se aplique al impuesto estimado de 2014. Hr block e file Recibió ingresos para el año de fuentes que no sean salarios, sueldos, propinas, intereses, dividendos, beneficios de Seguro Social sujetos a impuestos, compensación por desempleo, distribuciones de un arreglo IRA, pensiones y anualidades. Hr block e file Su ingreso tributable es $100,000 o más. Hr block e file Detalla las deducciones. Hr block e file Presenta cualquiera de los siguientes formularios: Formulario 2555, Foreign Earned Income (Ingresos devengados en el extranjero), en inglés. Hr block e file Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingresos devengados en el extranjero), en inglés. Hr block e file Formulario 4137, Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y Medicare sobre el ingreso de propinas no declaradas), en inglés. Hr block e file Formulario 4970, Tax on Accumulation Distribution of Trusts (Impuesto sobre distribuciones acumuladas de un fideicomiso), en inglés. Hr block e file Formulario 4972, Tax on Lump-Sum Distributions (Impuesto sobre distribuciones de sumas globales), en inglés. Hr block e file Formulario 6198, At-Risk Limitations (Límites sobre el monto en riesgo), en inglés. Hr block e file Formulario 6251, Alternative Minimum Tax—Individuals (Impuesto mínimo alternativo—personas físicas), en inglés. Hr block e file Formulario 8606, Nondeductible IRAs (Arreglos IRA no deducibles), en inglés. Hr block e file Formulario 8615, Tax for Certain Children Who Have Unearned Income (Impuesto para determinados hijos con ingresos no derivados del trabajo), en inglés. Hr block e file Formulario 8814, Parents' Election To Report Child's Interest and Dividends (Decisión de los padres de declarar los intereses y dividendos del hijo), en inglés. Hr block e file Formulario 8839, Qualified Adoption Expenses (Gastos de adopción calificados), en inglés. Hr block e file Formulario 8853, Archer MSAs and Long-Term Care Insurance Contracts (Planes de ahorros para gastos médicos Archer y contratos de seguro para cuidados a largo plazo), en inglés. Hr block e file Formulario 8889, Health Savings Accounts (HSAs) (Cuentas de ahorro para gastos médicos (HSA)), en inglés. Hr block e file Formulario 8919, Uncollected Social Security and Medicare Tax on Wages (Impuestos sobre salarios sujetos al Seguro Social y al Medicare no recaudados), en inglés. Hr block e file Cómo Presentar la Declaración Después de haber completado las líneas del formulario de impuestos que va a presentar, escriba su nombre y dirección. Hr block e file En el espacio provisto, anote su número de Seguro Social. Hr block e file Si es casado, escriba los números de Seguro Social de usted y su cónyuge aun si presenta una declaración por separado. Hr block e file Firme y feche la declaración y escriba su(s) oficio(s). Hr block e file Si presenta una declaración conjunta, usted y su cónyuge tienen que firmarla. Hr block e file En el espacio provisto, anote un número telefónico con su código de área donde ubicarlo durante el día. Hr block e file Esto agilizará la tramitación de su declaración si el IRS tiene una pregunta que puede ser resuelta por teléfono. Hr block e file Si presenta una declaración conjunta de impuestos, anote el número de teléfono donde usted o su cónyuge pueden ser localizados durante el día. Hr block e file Si desea autorizar al IRS para que hable sobre su declaración de impuestos del año 2013 con su amigo, con un miembro de su familia o con cualquier persona que usted elija, marque el recuadro “ Yes ” (Sí) en el área titulada “ Third Party Designee ” (Designación de un tercero) de su declaración de impuestos. Hr block e file También, escriba el nombre del designado, número de teléfono y cualesquier 5 dígitos que el designado elija como su número de identificación personal (PIN, por sus siglas en inglés). Hr block e file Si marca el recuadro “ Yes ” (Sí), usted y su cónyuge, si presentan una declaración conjunta, autoriza(n) a los empleados del IRS a llamar al designado para que éste conteste toda pregunta que surja durante el trámite de su declaración de impuestos. Hr block e file Complete y adjunte a su declaración en papel cualesquier anexo y formulario solicitado en las líneas que usted completó. Hr block e file Adjunte una copia de cada uno de los Formularios W-2 a la declaración en papel. Hr block e file Además, adjunte a su declaración en papel todo Formulario 1099-R recibido que indique retención de impuestos en el recuadro 4. Hr block e file Envíe la declaración al Internal Revenue Service Center (Centro de Servicio del IRS) que corresponda al área donde vive. Hr block e file Una lista de direcciones de Centros de Servicio se halla al final de la publicación y en las instrucciones de su declaración de impuestos. Hr block e file Datos a Incluir en el Formulario 1040EZ Lea las líneas 1 a 8b y llene las líneas que le correspondan. Hr block e file No llene las líneas 9 a 12. Hr block e file Si presenta una declaración conjunta, utilice el espacio a la izquierda de la línea 6 para indicar por separado los ingresos tributables suyos y los de su cónyuge. Hr block e file Pagos. Hr block e file   Anote en la línea 7 todo impuesto federal sobre los ingresos que se le haya retenido. Hr block e file El impuesto federal sobre los ingresos retenido aparece en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099. Hr block e file Crédito por ingreso del trabajo. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo puede calcular. Hr block e file Escriba “EIC” en el espacio a la izquierda de la línea 8a. Hr block e file Anote en la línea 8b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. Hr block e file   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, quizás tenga que presentar junto con la declaración el Formulario 8862(SP), Información Para Reclamar el Crédito Por Ingreso del Trabajo Después de Haber Sido Denegado (o el Formulario 8862, Information To Claim Earned Income Credit After Disallowance, en inglés). Hr block e file Para detalles adicionales, vea las Instrucciones para el Formulario 1040EZ, en inglés. Hr block e file Datos a Incluir en el Formulario 1040A Lea las líneas 1 a 27 y llene las líneas que le correspondan. Hr block e file Si presenta una declaración conjunta, utilice el espacio a la izquierda de la línea 27 para indicar por separado los ingresos tributables suyos y los de su cónyuge. Hr block e file No llene la línea 28. Hr block e file Llene las líneas 29 a 33 y 36 a 40 si le corresponden. Hr block e file Sin embargo, no llene las líneas 30 ni 38a si desea que el IRS le calcule los créditos indicados en dichas líneas. Hr block e file Además, escriba toda información adicional que le corresponda en el espacio a la izquierda de la línea 41. Hr block e file No llene las líneas 34, 35 ni 42 a la 46. Hr block e file Pagos. Hr block e file   Anote todo impuesto federal retenido sobre los ingresos que se indique en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099, en la línea 36. Hr block e file Anote en la línea 37 todo pago de impuesto estimado que haya efectuado. Hr block e file Crédito por gastos del cuidado de menores y dependientes. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 32 , complete el Formulario 2441, Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés, y adjúntelo a su declaración. Hr block e file Anote la cantidad del crédito en la línea 29. Hr block e file El IRS no le calculará este crédito. Hr block e file Crédito para ancianos o personas incapacitadas. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 33 , el IRS le calculará este crédito. Hr block e file Escriba “ CFE ” en el espacio a la izquierda de la línea 30 y adjunte el Anexo R del Formulario 1040, Credit for the Elderly or the Disabled (Crédito para ancianos o personas incapacitadas), en inglés, a su declaración de impuestos en papel. Hr block e file En el Anexo R, marque el recuadro de la Parte I correspondiente a su estado civil para efectos de la declaración y edad. Hr block e file Complete la Parte II y las líneas 11 y 13 de la Parte III, si le corresponden. Hr block e file Crédito por ingreso del trabajo. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo calculará. Hr block e file Anote “EIC” a la izquierda del espacio de la línea 38a. Hr block e file Anote en la línea 38b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. Hr block e file   Si tiene un hijo que le da derecho a este crédito, tiene que llenar el Anexo EIC (Formulario 1040 ó 1040A), Earned Income Credit (Crédito por ingreso del trabajo), en inglés, y adjuntarlo a su declaración en papel. Hr block e file Si no provee el número de Seguro Social de su hijo en la línea 2 del Anexo EIC, el crédito será reducido o denegado a menos que el hijo haya nacido y fallecido en el año 2013. Hr block e file   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, tal vez tenga que presentar junto con la declaración el Formulario 8862(SP) (o el Formulario 8862, en inglés). Hr block e file Para detalles adicionales, vea las Instrucciones para el Formulario 1040A. Hr block e file Datos a Incluir en el Formulario 1040 Lea las líneas 1 a 43 y llene las líneas que le correspondan. Hr block e file No llene la línea 44. Hr block e file Si presenta una declaración conjunta, utilice el espacio bajo las palabras “ Adjusted Gross Income ” (Ingresos brutos ajustados), en la primera página de la declaración para indicar por separado los ingresos tributables suyos y los de su cónyuge. Hr block e file Lea las líneas 45 a la 71. Hr block e file Llene las líneas que le correspondan, pero no llene las líneas 54, 61 ni 72. Hr block e file Además, no complete la línea 55 ni las líneas 73 a 77. Hr block e file No llene el recuadro “ c ” de la línea 53 si completa el Anexo R del Formulario 1040A o 1040, ni la línea 64a si desea que el IRS le calcule los créditos indicados en dichas líneas. Hr block e file Pagos. Hr block e file   Anote todo impuesto federal retenido sobre los ingresos que se indique en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099, en la línea 62. Hr block e file Anote en la línea 63 todo pago de impuesto estimado que haya efectuado. Hr block e file Crédito por gastos del cuidado de menores y dependientes. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 32 , complete el Formulario 2441, en inglés, y adjúntelo a su declaración en papel. Hr block e file Anote la cantidad del crédito en la línea 48. Hr block e file El IRS no le calculará este crédito. Hr block e file Crédito para ancianos o personas incapacitadas. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 33 , el IRS puede calcularle este crédito. Hr block e file Escriba “CFE” al lado de la línea 53 y marque el recuadro “ c ” y adjunte el Anexo R del Formulario 1040A o 1040 a su declaración en papel. Hr block e file En el Anexo R del Formulario 1040A o 1040, marque el recuadro de la Parte I correspondiente a su estado civil para efectos de la declaración y edad. Hr block e file Complete la Parte II y las líneas 11 y 13 de la Parte III, si le corresponden. Hr block e file Crédito por ingreso del trabajo. Hr block e file   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo calculará. Hr block e file Anote “EIC” en la línea de puntos al lado de la línea 64a del Formulario 1040. Hr block e file Anote en la línea 64b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. Hr block e file   Si tiene un hijo que le dé derecho a este crédito, tiene que llenar el Anexo EIC, Earned Income Credit (Crédito por ingreso del trabajo), en inglés, y adjuntarlo a su declaración en papel. Hr block e file Si no provee el número de Seguro Social de su hijo en la línea 2 del Anexo EIC (Formulario 1040 ó 1040A), el crédito será reducido o denegado a menos que su hijo haya nacido y fallecido en el año 2013. Hr block e file   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, tal vez tenga que presentar junto con la declaración el Formulario 8862(SP), (o el Formulario 8862, en inglés). Hr block e file Para detalles adicionales, vea las Instrucciones para el Formulario 1040, en inglés. Hr block e file Prev  Up  Next   Home   More Online Publications
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The Hr Block E File

Hr block e file 5. Hr block e file   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. Hr block e file Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers. Hr block e file Deductions for listed property (other than certain leased property) are subject to the following special rules and limits. Hr block e file Deduction for employees. Hr block e file 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. Hr block e file Business-use requirement. Hr block e file 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. Hr block e file 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. Hr block e file You may also have to recapture (include in income) any excess depreciation claimed in previous years. Hr block e file A similar inclusion amount applies to certain leased property. Hr block e file Passenger automobile limits and rules. Hr block e file Annual limits apply to depreciation deductions (including section 179 deductions and any special depreciation allowance) for certain passenger automobiles. Hr block e file You can continue to deduct depreciation for the unrecovered basis resulting from these limits after the end of the recovery period. Hr block e file 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. Hr block e file It also discusses the recordkeeping rules for listed property and explains how to report information about the property on your tax return. Hr block e file 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. Hr block e file What Is Listed Property? Listed property is any of the following. Hr block e file Passenger automobiles (as defined later). Hr block e file Any other property used for transportation, unless it is an excepted vehicle. Hr block e file Property generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video-recording equipment). Hr block e file Computers and related peripheral equipment, unless used only at a regular business establishment and owned or leased by the person operating the establishment. Hr block e file 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. Hr block e file Improvements to listed property. Hr block e file   An improvement made to listed property that must be capitalized is treated as a new item of depreciable property. Hr block e file The recovery period and method of depreciation that apply to the listed property as a whole also apply to the improvement. Hr block e file 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. Hr block e file 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). Hr block e file 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. Hr block e file The following vehicles are not considered passenger automobiles for these purposes. Hr block e file An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business. Hr block e file A vehicle used directly in the trade or business of transporting persons or property for pay or hire. Hr block e file A truck or van that is a qualified nonpersonal use vehicle. Hr block e file Qualified nonpersonal use vehicles. Hr block e file   Qualified nonpersonal use vehicles are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Hr block e file They include the trucks and vans listed as excepted vehicles under Other Property Used for Transportation , next. Hr block e file 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. Hr block e file For a detailed discussion of passenger automobiles, including leased passenger automobiles, see  Publication 463. Hr block e file 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. Hr block e file Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles used to transport persons or goods. Hr block e file Excepted vehicles. Hr block e file   Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ). Hr block e file Clearly marked police and fire vehicles. Hr block e file Unmarked vehicles used by law enforcement officers if the use is officially authorized. Hr block e file Ambulances used as such and hearses used as such. Hr block e file Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo. Hr block e file Bucket trucks (cherry pickers), cement mixers, dump trucks (including garbage trucks), flatbed trucks, and refrigerated trucks. Hr block e file Combines, cranes and derricks, and forklifts. Hr block e file Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat. Hr block e file Qualified moving vans. Hr block e file Qualified specialized utility repair trucks. Hr block e file School buses used in transporting students and employees of schools. Hr block e file Other buses with a capacity of at least 20 passengers that are used as passenger buses. Hr block e file Tractors and other special purpose farm vehicles. Hr block e file Clearly marked police and fire vehicle. Hr block e file   A clearly marked police or fire vehicle is a vehicle that meets all the following requirements. Hr block e file It is owned or leased by a governmental unit or an agency or instrumentality of a governmental unit. Hr block e file 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. Hr block e file 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. Hr block e file It is clearly marked with painted insignia or words that make it readily apparent that it is a police or fire vehicle. Hr block e file A marking on a license plate is not a clear marking for these purposes. Hr block e file Qualified moving van. Hr block e file   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. Hr block e file 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. Hr block e file Personal use for travel to and from a move site happens no more than five times a month on average. Hr block e file 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. Hr block e file Qualified specialized utility repair truck. Hr block e file   A truck is a qualified specialized utility repair truck if it is not a van or pickup truck and all the following apply. Hr block e file The truck was specifically designed for and is used to carry heavy tools, testing equipment, or parts. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file It consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. Hr block e file Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. Hr block e file The following are neither computers nor related peripheral equipment. Hr block e file Any equipment that is an integral part of other property that is not a computer. Hr block e file Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment. Hr block e file Equipment of a kind used primarily for the user's amusement or entertainment, such as video games. Hr block e file 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. Hr block e file The use of your property in performing services as an employee is a business use only if both the following requirements are met. Hr block e file The use is for your employer's convenience. Hr block e file The use is required as a condition of your employment. Hr block e file 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. Hr block e file Employer's convenience. Hr block e file   Whether the use of listed property is for your employer's convenience must be determined from all the facts. Hr block e file The use is for your employer's convenience if it is for a substantial business reason of the employer. Hr block e file The use of listed property during your regular working hours to carry on your employer's business generally is for the employer's convenience. Hr block e file Condition of employment. Hr block e file   Whether the use of listed property is a condition of your employment depends on all the facts and circumstances. Hr block e file The use of property must be required for you to perform your duties properly. Hr block e file Your employer does not have to require explicitly that you use the property. Hr block e file However, a mere statement by the employer that the use of the property is a condition of your employment is not sufficient. Hr block e file Example 1. Hr block e file Virginia Sycamore is employed as a courier with We Deliver, which provides local courier services. Hr block e file She owns and uses a motorcycle to deliver packages to downtown offices. Hr block e file We Deliver explicitly requires all delivery persons to own a car or motorcycle for use in their employment. Hr block e file Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. Hr block e file Example 2. Hr block e file Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. Hr block e file He must travel to these sites on a regular basis. Hr block e file Uplift does not furnish an automobile or explicitly require him to use his own automobile. Hr block e file However, it pays him for any costs he incurs in traveling to the various sites. Hr block e file The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. Hr block e file Example 3. Hr block e file 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. Hr block e file The use of his own car is neither for the convenience of Uplift nor required as a condition of employment. Hr block e file Example 4. Hr block e file Marilyn Lee is a pilot for Y Company, a small charter airline. Hr block e file Y requires pilots to obtain 80 hours of flight time annually in addition to flight time spent with the airline. Hr block e file Pilots usually can obtain these hours by flying with the Air Force Reserve or by flying part-time with another airline. Hr block e file Marilyn owns her own airplane. Hr block e file 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. Hr block e file Example 5. Hr block e file David Rule is employed as an engineer with Zip, an engineering contracting firm. Hr block e file He occasionally takes work home at night rather than work late in the office. Hr block e file He owns and uses a home computer which is virtually identical to the office model. Hr block e file His use of the computer is neither for the convenience of his employer nor required as a condition of employment. Hr block e file 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. Hr block e file To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. Hr block e file If this requirement is not met, the following rules apply. Hr block e file Property not used predominantly for qualified business use during the year it is placed in service does not qualify for the section 179 deduction. Hr block e file Property not used predominantly for qualified business use during the year it is placed in service does not qualify for a special depreciation allowance. Hr block e file 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. Hr block e file This rule applies each year of the recovery period. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file Exception for leased property. Hr block e file   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. Hr block e file   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. Hr block e file 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. Hr block e file Occasional or incidental leasing activity is insufficient. Hr block e file For example, if you lease only one passenger automobile during a tax year, you are not regularly engaged in the business of leasing automobiles. Hr block e file 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. Hr block e file 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. Hr block e file For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. Hr block e file 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. Hr block e file 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). Hr block e file 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. Hr block e file Entertainment use. Hr block e file   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. Hr block e file Commuting use. Hr block e file   The use of an automobile for commuting is not business use, regardless of whether work is performed during the trip. Hr block e file 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. Hr block e file This is also true for a business meeting held in a car while commuting to work. Hr block e file Similarly, a business call made on an otherwise personal trip does not change the character of a trip from personal to business. Hr block e file 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. Hr block e file Use of your automobile by another person. Hr block e file   If someone else uses your automobile, do not treat that use as business use unless one of the following conditions applies. Hr block e file That use is directly connected with your business. Hr block e file You properly report the value of the use as income to the other person and withhold tax on the income where required. Hr block e file You are paid a fair market rent. Hr block e file Treat any payment to you for the use of the automobile as a rent payment for purposes of item (3). Hr block e file Employee deductions. Hr block e file   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. Hr block e file See Can Employees Claim a Deduction , earlier. Hr block e file Qualified Business Use Qualified business use of listed property is any use of the property in your trade or business. Hr block e file However, it does not include the following uses. Hr block e file 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). Hr block e file The use of property as pay for the services of a 5% owner or related person. Hr block e file 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. Hr block e file Property does not stop being used predominantly for qualified business use because of a transfer at death. Hr block e file Exception for leasing or compensatory use of aircraft. Hr block e file   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. Hr block e file 5% owner. Hr block e file   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. Hr block e file   For a corporation, a 5% owner is any person who owns, or is considered to own, either of the following. Hr block e file More than 5% of the outstanding stock of the corporation. Hr block e file Stock possessing more than 5% of the total combined voting power of all stock in the corporation. Hr block e file Related persons. Hr block e file   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 . Hr block e file 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. Hr block e file Examples. Hr block e file   The following examples illustrate whether the use of business property is qualified business use. Hr block e file Example 1. Hr block e file John Maple is the sole proprietor of a plumbing contracting business. Hr block e file John employs his brother, Richard, in the business. Hr block e file As part of Richard's pay, he is allowed to use one of the company automobiles for personal use. Hr block e file The company includes the value of the personal use of the automobile in Richard's gross income and properly withholds tax on it. Hr block e file The use of the automobile is pay for the performance of services by a related person, so it is not a qualified business use. Hr block e file Example 2. Hr block e file John, in Example 1, allows unrelated employees to use company automobiles for personal purposes. Hr block e file 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. Hr block e file This use of company automobiles by employees is not a qualified business use. Hr block e file Example 3. Hr block e file James Company Inc. Hr block e file owns several automobiles that its employees use for business purposes. Hr block e file The employees also are allowed to take the automobiles home at night. Hr block e file 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. Hr block e file This use of company automobiles by employees, even for personal purposes, is a qualified business use for the company. Hr block e file Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. Hr block e file However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. Hr block e file Example 1. Hr block e file Sarah Bradley uses a home computer 50% of the time to manage her investments. Hr block e file She also uses the computer 40% of the time in her part-time consumer research business. Hr block e file Sarah's home computer is listed property because it is not used at a regular business establishment. Hr block e file She does not use the computer predominantly for qualified business use. Hr block e file Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. Hr block e file She must depreciate it using the straight line method over the ADS recovery period. Hr block e file Her combined business/investment use for determining her depreciation deduction is 90%. Hr block e file Example 2. Hr block e file 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. Hr block e file 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. Hr block e file Her combined business/investment use for determining her depreciation deduction is 90%. Hr block e file 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. Hr block e file You also increase the adjusted basis of your property by the same amount. Hr block e file 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. Hr block e file To determine the amount in (2) above, you must refigure the depreciation using the straight line method and the ADS recovery period. Hr block e file Example. Hr block e file In June 2009, Ellen Rye purchased and placed in service a pickup truck that cost $18,000. Hr block e file She used it only for qualified business use for 2009 through 2012. Hr block e file Ellen claimed a section 179 deduction of $10,000 based on the purchase of the truck. Hr block e file She began depreciating it using the 200% DB method over a 5-year GDS recovery period. Hr block e file 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. Hr block e file During 2013, she used the truck 50% for business and 50% for personal purposes. Hr block e file She includes $4,018 excess depreciation in her gross income for 2013. Hr block e file The excess depreciation is determined as follows. Hr block e file Total section 179 deduction ($10,000) and depreciation claimed ($6,618) for 2009 through 2012. Hr block e file (Depreciation is from Table A-1. Hr block e file ) $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. Hr block e file 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. Hr block e file Where to figure and report recapture. Hr block e file   Use Form 4797, Part IV, to figure the recapture amount. Hr block e file Report the recapture amount as other income on the same form or schedule on which you took the depreciation deduction. Hr block e file For example, report the recapture amount as other income on Schedule C (Form 1040) if you took the depreciation deduction on Schedule C. Hr block e file If you took the depreciation deduction on Form 2106, report the recapture amount as other income on Form 1040, line 21. Hr block e file 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. Hr block e file Your qualified business-use percentage is the part of the property's total use that is qualified business use (defined earlier). Hr block e file For the inclusion amount rules for a leased passenger automobile, see Leasing a Car in chapter 4 of Publication 463. Hr block e file The inclusion amount is the sum of Amount A and Amount B, described next. Hr block e file 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. Hr block e file Amount A. Hr block e file   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 . Hr block e file   The fair market value of the property is the value on the first day of the lease term. Hr block e file 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. Hr block e file Amount B. Hr block e file   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 . Hr block e file Maximum inclusion amount. Hr block e file   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. Hr block e file Inclusion amount worksheet. Hr block e file   The following worksheet is provided to help you figure the inclusion amount for leased listed property. Hr block e file Inclusion Amount Worksheet for Leased Listed Property 1. Hr block e file Fair market value   2. Hr block e file Business/investment use for first year business use is 50% or less   3. Hr block e file Multiply line 1 by line 2. Hr block e file   4. Hr block e file Rate (%) from Table A-19   5. Hr block e file Multiply line 3 by line 4. Hr block e file This is Amount A. Hr block e file   6. Hr block e file Fair market value   7. Hr block e file Average business/investment use for years property leased before the first year business use is 50% or less . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file . Hr block e file   8. Hr block e file Multiply line 6 by line 7   9. Hr block e file Rate (%) from Table A-20   10. Hr block e file Multiply line 8 by line 9. Hr block e file This is Amount B. Hr block e file   11. Hr block e file Add line 5 and line 10. Hr block e file This is your inclusion amount. Hr block e file 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. Hr block e file )         Example. Hr block e file 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. Hr block e file The lease is for a period of 5 years. Hr block e file Larry does not use the computer at a regular business establishment, so it is listed property. Hr block e file His business use of the property (all of which is qualified business use) is 80% in 2011, 60% in 2012, and 40% in 2013. Hr block e file He must add an inclusion amount to gross income for 2013, the first tax year his qualified business-use percentage is 50% or less. Hr block e file The computer has a 5-year recovery period under both GDS and ADS. Hr block e file 2013 is the third tax year of the lease, so the applicable percentage from Table A-19 is −19. Hr block e file 8%. Hr block e file The applicable percentage from Table A-20 is 22. Hr block e file 0%. Hr block e file Larry's deductible rent for the computer for 2013 is $800. Hr block e file Larry uses the Inclusion amount worksheet. Hr block e file to figure the amount he must include in income for 2013. Hr block e file His inclusion amount is $224, which is the sum of −$238 (Amount A) and $462 (Amount B). Hr block e file Inclusion Amount Worksheet for Leased Listed Property 1. Hr block e file Fair market value $3,000   2. Hr block e file Business/investment use for first year business use is 50% or less 40 % 3. Hr block e file Multiply line 1 by line 2. Hr block e file 1,200   4. Hr block e file Rate (%) from Table A-19 −19. Hr block e file 8 % 5. Hr block e file Multiply line 3 by line 4. Hr block e file This is Amount A. Hr block e file −238   6. Hr block e file Fair market value 3,000   7. Hr block e file Average business/investment use for years property leased before the first year business use is 50% or less 70 % 8. Hr block e file Multiply line 6 by line 7 2,100   9. Hr block e file Rate (%) from Table A-20 22. Hr block e file 0 % 10. Hr block e file Multiply line 8 by line 9. Hr block e file This is Amount B. Hr block e file 462   11. Hr block e file Add line 5 and line 10. Hr block e file This is your inclusion amount. Hr block e file 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. Hr block e file ) $224           Lease beginning in the last 9 months of your tax year. Hr block e file    The inclusion amount is subject to a special rule if all the following apply. Hr block e file The lease term begins within 9 months before the close of your tax year. Hr block e file You do not use the property predominantly (more than 50%) for qualified business use during that part of the tax year. Hr block e file The lease term continues into your next tax year. Hr block e file Under this special rule, add the inclusion amount to income in the next tax year. Hr block e file 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. Hr block e file Skip lines 6 through 9 of the worksheet and enter zero on line 10. Hr block e file Example 1. Hr block e file On August 1, 2012, Julie Rule, a calendar year taxpayer, leased and placed in service an item of listed property. Hr block e file The property is 5-year property with a fair market value of $10,000. Hr block e file Her property has a recovery period of 5 years under ADS. Hr block e file The lease is for 5 years. Hr block e file Her business use of the property was 50% in 2012 and 90% in 2013. Hr block e file She paid rent of $3,600 for 2012, of which $3,240 is deductible. Hr block e file She must include $147 in income in 2013. Hr block e file The $147 is the sum of Amount A and Amount B. Hr block e file Amount A is $147 ($10,000 × 70% × 2. Hr block e file 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 . Hr block e file Amount B is zero. Hr block e file Lease for less than one year. Hr block e file   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. Hr block e file The amount included in income is the inclusion amount (figured as described in the preceding discussions) multiplied by a fraction. Hr block e file The numerator of the fraction is the number of days in the lease term and the denominator is 365 (or 366 for leap years). Hr block e file   The lease term for listed property other than residential rental or nonresidential real property includes options to renew. Hr block e file 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. Hr block e file Example 2. Hr block e file 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. Hr block e file This property had a fair market value of $15,000 and a recovery period of 5 years under ADS. Hr block e file The lease term was 6 months (ending on March 31, 2013), during which he used the property 45% in business. Hr block e file He must include $71 in income in 2013. Hr block e file The $71 is the sum of Amount A and Amount B. Hr block e file Amount A is $71 ($15,000 × 45% × 2. Hr block e file 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. Hr block e file Amount B is zero. Hr block e file Where to report inclusion amount. Hr block e file   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. Hr block e file For example, report the inclusion amount as other income on Schedule C (Form 1040) if you took the deduction on Schedule C. Hr block e file If you took the deduction for rental costs on Form 2106, report the inclusion amount as other income on Form 1040, line 21. Hr block e file 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. Hr block e file 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. Hr block e file Exception for leased cars. Hr block e file   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. Hr block e file 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 . Hr block e file Maximum Depreciation Deduction The passenger automobile limits are the maximum depreciation amounts you can deduct for a passenger automobile. Hr block e file They are based on the date you placed the automobile in service. Hr block e file Passenger Automobiles The maximum deduction amounts for most passenger automobiles are shown in the following table. Hr block e file 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. Hr block e file 2If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,060. Hr block e file 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. Hr block e file 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. Hr block e file 5If you acquired the vehicle before 5/06/03, the maximum deduction is $7,660. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file If you have a short tax year, you must reduce the maximum deduction amount by multiplying the maximum amount by a fraction. Hr block e file The numerator of the fraction is the number of months and partial months in the short tax year and the denominator is 12. Hr block e file Example. Hr block e file On April 15, 2013, Virginia Hart bought and placed in service a new car for $14,500. Hr block e file She used the car only in her business. Hr block e file She files her tax return based on the calendar year. Hr block e file She does not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Hr block e file Under MACRS, a car is 5-year property. Hr block e file 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. Hr block e file Virginia multiplies the $14,500 unadjusted basis of her car by 0. Hr block e file 20 to get her MACRS depreciation of $2,900 for 2013. Hr block e file This $2,900 is below the maximum depreciation deduction of $3,160 for passenger automobiles placed in service in 2013. Hr block e file She can deduct the full $2,900. Hr block e file Electric Vehicles The maximum depreciation deductions for passenger automobiles that are produced to run primarily on electricity are higher than those for other automobiles. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file 2If you acquired the vehicle before 5/06/03, the maximum deduction is $22,880. Hr block e file 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. Hr block e file 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. Hr block e file Trucks and Vans The maximum depreciation deductions for trucks and vans placed in service after 2002 are higher than those for other passenger automobiles. Hr block e file The maximum deduction amounts for trucks and vans are shown in the following table. Hr block e file 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. Hr block e file 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,260. Hr block e file 3 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file 7 If you acquired the vehicle before 5/06/03, the maximum deduction is $7,960. Hr block e file 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. Hr block e file 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. Hr block e file Depreciation Worksheet for Passenger Automobiles You can use the following worksheet to figure your depreciation deduction using the percentage tables. Hr block e file Then use the information from this worksheet to prepare Form 4562. Hr block e file Depreciation Worksheet for Passenger Automobiles   Part I   1. Hr block e file MACRS system (GDS or ADS)     2. Hr block e file Property class     3. Hr block e file Date placed in service     4. Hr block e file Recovery period     5. Hr block e file Method and convention     6. Hr block e file Depreciation rate (from tables)     7. Hr block e file Maximum depreciation deduction for this year from the appropriate table       8. Hr block e file Business/investment-use percentage       9. Hr block e file Multiply line 7 by line 8. Hr block e file This is your adjusted maximum depreciation deduction       10. Hr block e file Section 179 deduction claimed this year (not more than line 9). Hr block e file Enter -0- if this is not the year you placed the car in service. Hr block e file         Note. Hr block e file  1) If line 10 is equal to line 9, stop here. Hr block e file Your combined section 179 and depreciation deduction (including your special depreciation allowance) is limited to the amount on line 9. Hr block e file  2) If line 10 is less than line 9, complete Part II. Hr block e file   Part II   11. Hr block e file Subtract line 10 from line 9. Hr block e file This is the limit on the amount you can deduct for depreciation (including any special depreciation allowance )       12. Hr block e file Cost or other basis (reduced by any alternative motor vehicle credit 1or credit for electric vehicles 2)       13. Hr block e file Multiply line 12 by line 8. Hr block e file This is your business/investment cost       14. Hr block e file Section 179 deduction claimed in the year you placed the car in service       15. Hr block e file Subtract line 14 from line 13. Hr block e file This is your tentative basis for depreciation       16. Hr block e file Multiply line 15 by . Hr block e file 50 if the 50% special depreciation allowance applies. Hr block e file This is your special depreciation allowance. Hr block e file 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. Hr block e file Your depreciation deduction (including your special depreciation allowance) is limited to the amount on line 11. Hr block e file  2) If line 16 is less than line 11, complete Part III. Hr block e file   Part III   17. Hr block e file Subtract line 16 from 11. Hr block e file This is the limit on the amount you can deduct for MACRS depreciation       18. Hr block e file Subtract line 16 from line 15. Hr block e file This is your basis for depreciation. Hr block e file       19. Hr block e file Multiply line 18 by line 6. Hr block e file This is your tentative MACRS depreciation deduction. Hr block e file       20. Hr block e file Enter the lesser of line 17 or line 19. Hr block e file This is your MACRS depreciation deduction. Hr block e file     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. Hr block e file 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. Hr block e file             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. Hr block e file If you continue to use the automobile for business, you can deduct that unrecovered basis after the recovery period ends. Hr block e file You can claim a depreciation deduction in each succeeding tax year until you recover your full basis in the car. Hr block e file 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. Hr block e file See Maximum Depreciation Deduction , earlier. Hr block e file 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. Hr block e file You cannot claim a depreciation deduction for listed property other than passenger automobiles after the recovery period ends. Hr block e file 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. Hr block e file Example. Hr block e file In May 2007, you bought and placed in service a car costing $31,500. Hr block e file The car was 5-year property under GDS (MACRS). Hr block e file You did not elect a section 179 deduction and elected not to claim any special depreciation allowance for the car. Hr block e file You used the car exclusively for business during the recovery period (2007 through 2012). Hr block e file You figured your depreciation as shown below. Hr block e file Year Percentage Amount Limit   Allowed 2007 20. Hr block e file 0% $6,300 $2,960   $2,960 2008 32. Hr block e file 0 10,080 4,800   4,800 2009 19. Hr block e file 2 6,048 2,850   2,850 2010 11. Hr block e file 52 3,629 1,675   1,675 2011 11. Hr block e file 52 3,629 1,675   1,675 2012 5. Hr block e file 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). Hr block e file 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. Hr block e file 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. Hr block e file 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%. Hr block e file 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. Hr block e file 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. Hr block e file 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. Hr block e file This excess basis is the additional cash paid for the new automobile in the trade-in. Hr block e file The depreciation figured for the two components of the basis (carryover basis and excess basis) is subject to a single passenger automobile limit. Hr block e file Special rules apply in determining the passenger automobile limits. Hr block e file These rules and examples are discussed in section 1. Hr block e file 168(i)-6(d)(3) of the regulations. Hr block e file 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. Hr block e file 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. Hr block e file 168(i)-6(i) and 1. Hr block e file 168(i)-6(j) of the regulations. Hr block e file 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. Hr block e file For listed property, you must keep records for as long as any recapture can still occur. Hr block e file Recapture can occur in any tax year of the recovery period. Hr block e file 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. Hr block e file You do not have to record information in an account book, diary, or similar record if the information is already shown on the receipt. Hr block e file However, your records should back up your receipts in an orderly manner. Hr block e file Elements of expenditure or use. Hr block e file   Your records or other documentary evidence must support all the following. Hr block e file 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. Hr block e file 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. Hr block e file The date of the expenditure or use. Hr block e file The business or investment purpose for the expenditure or use. Hr block e file   Written documents of your expenditure or use are generally better evidence than oral statements alone. Hr block e file You do not have to keep a daily log. Hr block e file 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. Hr block e file Timeliness. Hr block e file   You must record the elements of an expenditure or use at the time you have full knowledge of the elements. Hr block e file 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. Hr block e file   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. Hr block e file Business purpose supported. Hr block e file   Generally, an adequate record of business purpose must be in the form of a written statement. Hr block e file However, the amount of detail necessary to establish a business purpose depends on the facts and circumstances of each case. Hr block e file A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. Hr block e file 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. Hr block e file Business use supported. Hr block e file   An adequate record contains enough information on each element of every business or investment use. Hr block e file The amount of detail required to support the use depends on the facts and circumstances. Hr block e file 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. Hr block e file   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. Hr block e file Separate or combined expenditures or uses. Hr block e file   Each use by you normally is considered a separate use. Hr block e file However, you can combine repeated uses as a single item. Hr block e file   Record each expenditure as a separate item. Hr block e file Do not combine it with other expenditures. Hr block e file 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. Hr block e file If you combine these expenses, you do not need to support the business purpose of each expense. Hr block e file Instead, you can divide the expenses based on the total business use of the listed property. Hr block e file   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. Hr block e file 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. Hr block e file 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. Hr block e file Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. Hr block e file Confidential information. Hr block e file   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. Hr block e file You must keep it elsewhere and make it available as support to the IRS director for your area on request. Hr block e file Substantial compliance. Hr block e file   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. Hr block e file   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. Hr block e file By your own oral or written statement containing detailed information as to the element. Hr block e file By other evidence sufficient to establish the element. Hr block e file   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. Hr block e file If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. Hr block e file Sampling. Hr block e file   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. Hr block e file Example 1. Hr block e file Denise Williams, a sole proprietor and calendar year taxpayer, operates an interior decorating business out of her home. Hr block e file 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. Hr block e file There is no other business use of the automobile, but she and family members also use it for personal purposes. Hr block e file She maintains adequate records for the first 3 months of the year showing that 75% of the automobile use was for business. Hr block e file Subcontractor invoices and paid bills show that her business continued at approximately the same rate for the rest of the year. Hr block e file 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. Hr block e file Example 2. Hr block e file 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. Hr block e file 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. Hr block e file The determination that her business/investment use of the automobile for the tax year is 75% rests on sufficient supporting evidence. Hr block e file Example 3. Hr block e file Bill Baker, a sole proprietor and calendar year taxpayer, is a salesman in a large metropolitan area for a company that manufactures household products. Hr block e file For the first 3 weeks of each month, he occasionally uses his own automobile for business travel within the metropolitan area. Hr block e file During these weeks, his business use of the automobile does not follow a consistent pattern. Hr block e file During the fourth week of each month, he delivers all business orders taken during the previous month. Hr block e file The business use of his automobile, as supported by adequate records, is 70% of its total use during that fourth week. Hr block e file 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. Hr block e file Loss of records. Hr block e file   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. Hr block e file 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. Hr block e file Any deduction for a vehicle. Hr block e file A depreciation deduction for any other listed property. Hr block e file If you claim any deduction for a vehicle, you also must provide the information requested in Section B. Hr block e file If you provide the vehicle for your employee's use, the employee must give you this information. Hr block e file 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. Hr block e file Vehicles used by your employees. Hr block e file   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. Hr block e file You maintain a written policy statement that prohibits one of the following uses of the vehicles. Hr block e file All personal use including commuting. Hr block e file Personal use, other than commuting, by employees who are not officers, directors, or 1%-or-more owners. Hr block e file You treat all use of the vehicles by your employees as personal use. Hr block e file 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. Hr block e file 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. Hr block e file Exceptions. Hr block e file   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. Hr block e file 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. Hr block e file Prev  Up  Next   Home   More Online Publications