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Income Tax Forms 2010

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Income Tax Forms 2010

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The Income Tax Forms 2010

Income tax forms 2010 Internal Revenue Bulletin:  2009-17  April 27, 2009  Rev. Income tax forms 2010 Proc. Income tax forms 2010 2009-24 Table of Contents SECTION 1. Income tax forms 2010 PURPOSE SECTION 2. Income tax forms 2010 BACKGROUND SECTION 3. Income tax forms 2010 SCOPE SECTION 4. Income tax forms 2010 APPLICATION. Income tax forms 2010 01 In General. Income tax forms 2010 . Income tax forms 2010 02 Limitations on Depreciation Deductions for Certain Automobiles. Income tax forms 2010 . Income tax forms 2010 03 Inclusions in Income of Lessees of Passenger Automobiles. Income tax forms 2010 SECTION 5. Income tax forms 2010 EFFECTIVE DATE SECTION 6. Income tax forms 2010 DRAFTING INFORMATION SECTION 1. Income tax forms 2010 PURPOSE . Income tax forms 2010 01 This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2009, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2009, including a separate table of inclusion amounts for lessees of trucks and vans. Income tax forms 2010 . Income tax forms 2010 02 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Income tax forms 2010 SECTION 2. Income tax forms 2010 BACKGROUND . Income tax forms 2010 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. Income tax forms 2010 Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Income tax forms 2010 The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Income tax forms 2010 This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. Income tax forms 2010 . Income tax forms 2010 02 Section 168(k)(1)(A) provides a 50 percent additional first year depreciation deduction for certain new property acquired by a taxpayer after December 31, 2007, and before January 1, 2010, if no written binding contract for the acquisition of the property existed before January 1, 2008. Income tax forms 2010 Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A) by $8,000 for passenger automobiles to which the 50 percent additional first year depreciation deduction applies. Income tax forms 2010 . Income tax forms 2010 03 Section 168(k)(2)(D)(i) provides that the 50 percent additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Income tax forms 2010 Section 168(k)(2)(D)(iii) permits a taxpayer to elect to not claim the 50 percent additional first year depreciation deduction for any class of property. Income tax forms 2010 Section 168(k)(4) permits a corporation to elect to not claim the 50 percent additional first year depreciation deduction for all eligible qualified property (that is extension property or that is not extension property, as applicable) and instead to increase the business credit limitation under § 38(c) or the alternative minimum tax credit limitation under § 53(c). Income tax forms 2010 Accordingly, this revenue procedure provides tables for passenger automobiles for which the 50 percent additional depreciation deduction applies and tables for passenger automobiles for which the 50 percent additional first year depreciation deduction does not apply, including passenger automobiles in a class of property for which the taxpayer “elects out” of the 50 percent additional first year depreciation deduction or passenger automobiles that are eligible qualified property to which the § 168(k)(4) election applies. Income tax forms 2010 . Income tax forms 2010 04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. Income tax forms 2010 The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Income tax forms 2010 Under § 1. Income tax forms 2010 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Income tax forms 2010 One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Income tax forms 2010 Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Income tax forms 2010 SECTION 3. Income tax forms 2010 SCOPE . Income tax forms 2010 01 The limitations on depreciation deductions in section 4. Income tax forms 2010 02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2009, and continue to apply for each taxable year that the passenger automobile remains in service. Income tax forms 2010 . Income tax forms 2010 02 The tables in section 4. Income tax forms 2010 03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2009. Income tax forms 2010 Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Income tax forms 2010 See Rev. Income tax forms 2010 Proc. Income tax forms 2010 2002-14, 2002-1 C. Income tax forms 2010 B. Income tax forms 2010 450, for passenger automobiles first leased before January 1, 2003, Rev. Income tax forms 2010 Proc. Income tax forms 2010 2003-75, 2003-2 C. Income tax forms 2010 B. Income tax forms 2010 1018, for passenger automobiles first leased during calendar year 2003, Rev. Income tax forms 2010 Proc. Income tax forms 2010 2004-20, 2004-1 C. Income tax forms 2010 B. Income tax forms 2010 642, for passenger automobiles first leased during calendar year 2004, Rev. Income tax forms 2010 Proc. Income tax forms 2010 2005-13, 2005-1 C. Income tax forms 2010 B. Income tax forms 2010 759, for passenger automobiles first leased during calendar year 2005, Rev. Income tax forms 2010 Proc. Income tax forms 2010 2006-18, 2006-1 C. Income tax forms 2010 B. Income tax forms 2010 645, for passenger automobiles first leased during calendar year 2006, Rev. Income tax forms 2010 Proc. Income tax forms 2010 2007-30, 2007-1 C. Income tax forms 2010 B. Income tax forms 2010 1104, for passenger automobiles first leased during calendar year 2007, and Rev. Income tax forms 2010 Proc. Income tax forms 2010 2008-22, 2008-12 I. Income tax forms 2010 R. Income tax forms 2010 B. Income tax forms 2010 658, for passenger automobiles first leased during calendar year 2008. Income tax forms 2010 SECTION 4. Income tax forms 2010 APPLICATION . Income tax forms 2010 01 In General. Income tax forms 2010 (1) Limitations on depreciation deductions for certain automobiles. Income tax forms 2010 The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2009 are in Tables 1 through 4 in section 4. Income tax forms 2010 02(2) of this revenue procedure. Income tax forms 2010 (2) Inclusions in income of lessees of passenger automobiles. Income tax forms 2010 A taxpayer first leasing a passenger automobile during calendar year 2009 must determine the inclusion amount that is added to gross income using Tables 5 and 6 in section 4. Income tax forms 2010 03 of this revenue procedure. Income tax forms 2010 In addition, the taxpayer must follow the procedures of § 1. Income tax forms 2010 280F-7(a). Income tax forms 2010 . Income tax forms 2010 02 Limitations on Depreciation Deductions for Certain Automobiles. Income tax forms 2010 (1) Amount of the inflation adjustment. Income tax forms 2010 (a) Passenger automobiles (other than trucks or vans). Income tax forms 2010 Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Income tax forms 2010 The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Income tax forms 2010 The new car component of the CPI was 115. Income tax forms 2010 2 for October 1987 and 134. Income tax forms 2010 837 for October 2008. Income tax forms 2010 The October 2008 index exceeded the October 1987 index by 19. Income tax forms 2010 637. Income tax forms 2010 The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2009 for passenger automobiles (other than trucks and vans) is 17. Income tax forms 2010 05 percent (19. Income tax forms 2010 637/115. Income tax forms 2010 2 x 100%). Income tax forms 2010 This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2009. Income tax forms 2010 The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. Income tax forms 2010 1705, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2009. Income tax forms 2010 (b) Trucks and vans. Income tax forms 2010 To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2009, the new truck component of the CPI is used instead of the new car component. Income tax forms 2010 The new truck component of the CPI was 112. Income tax forms 2010 4 for October 1987 and 133. Income tax forms 2010 640 for October 2008. Income tax forms 2010 The October 2008 index exceeded the October 1987 index by 21. Income tax forms 2010 24. Income tax forms 2010 The Service has, therefore, determined that the automobile price inflation adjustment for 2009 for trucks and vans is 18. Income tax forms 2010 90 percent (21. Income tax forms 2010 24/112. Income tax forms 2010 4 x 100%). Income tax forms 2010 This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2009. Income tax forms 2010 The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. Income tax forms 2010 1890, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans. Income tax forms 2010 (2) Amount of the limitation. Income tax forms 2010 For passenger automobiles placed in service by the taxpayer in calendar year 2009, Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year. Income tax forms 2010 Use Table 1 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a passenger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a passenger automobile that is eligible qualified property to which the § 168(k)(4) election applies. Income tax forms 2010 Use Table 2 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. Income tax forms 2010 Use Table 3 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a truck or van that is eligible qualified property to which the § 168(k)(4) election applies. Income tax forms 2010 Use Table 4 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. Income tax forms 2010 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $2,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 2 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $10,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 3 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 . Income tax forms 2010 03 Inclusions in Income of Lessees of Passenger Automobiles. Income tax forms 2010 The inclusion amounts for passenger automobiles first leased in calendar year 2009 are calculated under the procedures described in § 1. Income tax forms 2010 280F-7(a). Income tax forms 2010 Lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 6 of this revenue procedure. Income tax forms 2010 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 9 19 28 34 38 19,000 19,500 10 21 32 38 43 19,500 20,000 11 24 36 42 48 20,000 20,500 12 27 39 46 54 20,500 21,000 13 29 43 51 58 21,000 21,500 15 31 47 55 64 21,500 22,000 16 34 50 60 68 22,000 23,000 17 38 56 66 76 23,000 24,000 20 42 64 75 86 24,000 25,000 22 47 71 84 96 25,000 26,000 24 52 78 93 107 26,000 27,000 26 58 85 101 117 27,000 28,000 29 62 93 110 127 28,000 29,000 31 67 100 119 138 29,000 30,000 33 72 108 128 147 30,000 31,000 35 77 115 137 157 31,000 32,000 38 82 122 146 167 32,000 33,000 40 87 129 155 178 33,000 34,000 42 92 137 163 188 34,000 35,000 44 97 144 172 199 35,000 36,000 47 102 151 181 208 36,000 37,000 49 107 159 189 219 37,000 38,000 51 112 166 199 228 38,000 39,000 53 117 173 208 239 39,000 40,000 56 122 180 216 250 40,000 41,000 58 127 188 225 259 41,000 42,000 60 132 195 234 269 42,000 43,000 62 137 203 242 280 43,000 44,000 65 141 210 252 290 44,000 45,000 67 146 218 260 300 45,000 46,000 69 151 225 269 311 46,000 47,000 71 157 232 278 320 47,000 48,000 74 161 240 286 331 48,000 49,000 76 166 247 296 340 49,000 50,000 78 171 255 304 351 50,000 51,000 80 176 262 313 361 51,000 52,000 83 181 269 322 371 52,000 53,000 85 186 276 331 381 53,000 54,000 87 191 284 339 392 54,000 55,000 89 196 291 349 401 55,000 56,000 92 201 298 357 412 56,000 57,000 94 206 306 365 423 57,000 58,000 96 211 313 375 432 58,000 59,000 98 216 320 384 442 59,000 60,000 101 221 327 393 452 60,000 62,000 104 228 339 406 467 62,000 64,000 109 238 353 424 488 64,000 66,000 113 248 368 441 509 66,000 68,000 118 258 382 459 529 68,000 70,000 122 268 397 476 550 70,000 72,000 127 277 413 493 570 72,000 74,000 131 288 427 511 590 74,000 76,000 136 297 442 529 610 76,000 78,000 140 307 457 546 631 78,000 80,000 145 317 471 564 651 80,000 85,000 152 335 497 595 686 85,000 90,000 164 359 534 639 737 90,000 95,000 175 384 570 683 789 95,000 100,000 186 409 607 727 839 100,000 110,000 203 446 662 793 916 110,000 120,000 226 495 736 881 1,018 120,000 130,000 248 545 809 970 1,119 130,000 140,000 271 594 883 1,058 1,220 140,000 150,000 293 644 956 1,146 1,322 150,000 160,000 316 693 1,030 1,234 1,424 160,000 170,000 338 743 1,103 1,322 1,526 170,000 180,000 361 792 1,177 1,410 1,628 180,000 190,000 383 842 1,250 1,498 1,730 190,000 200,000 406 891 1,324 1,586 1,831 200,000 210,000 428 941 1,397 1,675 1,932 210,000 220,000 451 990 1,471 1,762 2,035 220,000 230,000 473 1,040 1,544 1,851 2,136 230,000 240,000 496 1,089 1,618 1,939 2,238 240,000 And up 518 1,139 1,691 2,027 2,340 REV. Income tax forms 2010 PROC. Income tax forms 2010 2009-24 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Electric Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later $18,500 $19,000 8 17 25 30 35 19,000 19,500 9 19 29 35 40 19,500 20,000 10 22 33 38 45 20,000 20,500 11 25 36 43 50 20,500 21,000 12 27 40 48 55 21,000 21,500 13 30 43 52 60 21,500 22,000 15 32 47 56 66 22,000 23,000 16 36 52 64 72 23,000 24,000 18 41 60 72 83 24,000 25,000 21 45 68 81 93 25,000 26,000 23 50 75 90 103 26,000 27,000 25 56 82 98 114 27,000 28,000 27 61 89 107 124 28,000 29,000 30 65 97 116 134 29,000 30,000 32 70 104 125 144 30,000 31,000 34 75 112 134 154 31,000 32,000 36 80 119 143 164 32,000 33,000 39 85 126 151 175 33,000 34,000 41 90 134 160 184 34,000 35,000 43 95 141 169 195 35,000 36,000 45 100 148 178 205 36,000 37,000 48 105 155 187 215 37,000 38,000 50 110 163 195 226 38,000 39,000 52 115 170 204 236 39,000 40,000 55 120 177 213 246 40,000 41,000 57 125 185 221 256 41,000 42,000 59 130 192 231 266 42,000 43,000 61 135 199 240 276 43,000 44,000 64 139 207 249 286 44,000 45,000 66 144 215 257 296 45,000 46,000 68 149 222 266 307 46,000 47,000 70 155 229 274 317 47,000 48,000 73 159 237 283 327 48,000 49,000 75 164 244 292 338 49,000 50,000 77 169 251 301 348 50,000 51,000 79 174 259 310 357 51,000 52,000 82 179 266 318 368 52,000 53,000 84 184 273 328 378 53,000 54,000 86 189 281 336 388 54,000 55,000 88 194 288 345 399 55,000 56,000 91 199 295 354 408 56,000 57,000 93 204 302 363 419 57,000 58,000 95 209 310 371 429 58,000 59,000 97 214 317 381 439 59,000 60,000 100 219 324 389 450 60,000 62,000 103 226 336 402 465 62,000 64,000 107 236 351 420 485 64,000 66,000 112 246 365 438 505 66,000 68,000 116 256 380 455 526 68,000 70,000 121 266 394 473 546 70,000 72,000 125 276 409 491 566 72,000 74,000 130 286 423 509 586 74,000 76,000 134 296 438 526 607 76,000 78,000 139 305 454 543 627 78,000 80,000 143 316 467 561 648 80,000 85,000 151 333 493 592 684 85,000 90,000 163 357 531 635 735 90,000 95,000 174 382 567 680 785 95,000 100,000 185 407 604 724 836 100,000 110,000 202 444 659 790 912 110,000 120,000 225 493 733 878 1,014 120,000 130,000 247 543 806 966 1,116 130,000 140,000 270 592 880 1,054 1,218 140,000 150,000 292 642 953 1,143 1,319 150,000 160,000 315 691 1,027 1,230 1,421 160,000 170,000 337 741 1,100 1,319 1,522 170,000 180,000 360 790 1,174 1,407 1,624 180,000 190,000 382 840 1,247 1,495 1,726 190,000 200,000 405 889 1,321 1,583 1,828 200,000 210,000 427 939 1,394 1,671 1,930 210,000 220,000 450 988 1,468 1,759 2,031 220,000 230,000 472 1,038 1,541 1,847 2,134 230,000 240,000 495 1,087 1,615 1,935 2,235 240,000 and up 517 1,137 1,688 2,024 2,336 SECTION 5. Income tax forms 2010 EFFECTIVE DATE This revenue procedure applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by a taxpayer during calendar year 2009, and to leased passenger automobiles that are first leased by a taxpayer during calendar year 2009. Income tax forms 2010 SECTION 6. Income tax forms 2010 DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Income tax forms 2010 Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Income tax forms 2010 For further information regarding this revenue procedure, contact Mr. Income tax forms 2010 Harvey at (202) 622-4930 (not a toll-free call). Income tax forms 2010 Prev  Up  Next   Home   More Internal Revenue Bulletins