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2010 Tax Deadline

Federal Income Tax ExtensionH&r Block Efile FreeWhere Can I File Just My State TaxesFile Taxes Online 1040ez FreeFiling State Taxes For FreeIrs GovFederal Tax Tables 2011Need To File 2012 Tax ReturnsFile State Taxes Only OnlineState Tax Form 2013Filing 1040ez FormHow To File An Amended Return2014 Federal Tax Forms 1040ez2012 Tax FileFile 2005 Tax Return Free1040ez Online Filing FreeState TaxesTax Credits For UnemployedFree Tax PrepHandrblockFile 2006 Federal Taxes FreeFree Federal And State Tax FilingFile Only State Taxes FreeFillable Form 1040ezH And R Block Free For MilitaryTax ActFile 1040x ElectronicallyPrint Free 1040ez Tax Form2011 Taxact Deluxe Unlock CodeHow To Do Amended Tax ReturnIrs EfileFile 1040ezFiling Tax Return1040ez Form 2013How To File My 2011 TaxesH And R Block For MilitaryAmended Tax Returns More:label_amended_20tax_20returns More:taxesFile Taxes Free OnlineIrs Amendment2011 Tax Instructions

2010 Tax Deadline

2010 tax deadline Publication 559 - Introductory Material Table of Contents Future Developments Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments affecting Publication 559, such as legislation enacted after we release it, go to www. 2010 tax deadline irs. 2010 tax deadline gov/pub559. 2010 tax deadline Reminders Throughout this publication, section references are to the Internal Revenue Code unless otherwise noted. 2010 tax deadline Consistent treatment of estate and trust items. 2010 tax deadline  Beneficiaries must generally treat estate items the same way on their individual returns as they are treated on the estate's return. 2010 tax deadline Photographs of missing children. 2010 tax deadline  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2010 tax deadline Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 tax deadline You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2010 tax deadline Introduction This publication is designed to help those in charge (personal representatives) of the property (estate) of an individual who has died (decedent). 2010 tax deadline It shows them how to complete and file federal income tax returns and explains their responsibility to pay any taxes due on behalf of the decedent. 2010 tax deadline A comprehensive example of the decedent's final tax return, Form 1040, and estate's income tax return, Form 1041, are included in this publication. 2010 tax deadline The publication also explains how much money or property a taxpayer can give away during their lifetime or leave to their heirs at their death before any tax will be owed. 2010 tax deadline A discussion of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is included. 2010 tax deadline Also included in this publication are the following items: A checklist of the forms you may need and their due dates. 2010 tax deadline A worksheet to reconcile amounts reported in the decedent's name on information returns including Forms W-2, 1099-INT, 1099-DIV, etc. 2010 tax deadline The worksheet will help you correctly determine the income to report on the decedent's final return and on the return for either the estate or a beneficiary. 2010 tax deadline Comments and suggestions. 2010 tax deadline   We welcome your comments about this publication and your suggestions for future editions. 2010 tax deadline   You can send us comments from http://www. 2010 tax deadline irs. 2010 tax deadline gov/formspubs. 2010 tax deadline Click on “More Information” and then on “Give us Feedback. 2010 tax deadline ” Or you can also send your comments to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. 2010 tax deadline NW, IR-6526, Washington, DC 20224. 2010 tax deadline Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide Form (and Instructions) SS-4 Application for Employer Identification Number 56 Notice Concerning Fiduciary Relationship 1040 U. 2010 tax deadline S. 2010 tax deadline Individual Income Tax Return 1041 U. 2010 tax deadline S. 2010 tax deadline Income Tax Return for Estates and Trusts 706 United States Estate (and Generation-Skipping Transfer) Tax Return 709 United States Gift (and Generation-Skipping Transfer) Tax Return 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer  See How To Get Tax Help near the end of this publication for information about getting publications and forms. 2010 tax deadline Also near the end of this publication is Table A, a checklist of forms and their due dates for the executor, administrator, or personal representative. 2010 tax deadline Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Wisconsin

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Appleton  1901B East Capitol Dr.
Appleton, WI 54911 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(920) 996-4860 
Eau Claire  2403 Folsom St.
Eau Claire, WI  54703

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will open at 1:00 p.m. on 3/31**

 

**This office will close at 12:00 noon on 4/4**

 

Services Provided

(715) 836-8750 
Green Bay  440 Security  Boulevard
Green Bay, WI 54313 

Tuesday and Thursday-8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(920) 662-5999 
LaCrosse  425 State St.
LaCrosse, WI 54601 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be closed on 3/31**

 

    Services Provided

(608) 785-0246 
Madison  1242 Fourier Drive  
Suite 200
Madison, WI 53717 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(608) 829-5827 
Milwaukee  211 W. Wisconsin Ave.
Milwaukee, WI 53203 

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(414) 231-2100 
Rothschild  10208 Park Plaza
Rothschild, WI 54474 

Monday-Friday 8:30 a.m.- 3:30 p.m.

 

Services Provided

(715) 355-4447 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (414) 231-2390 in Milwaukee or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see  Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
211 W. Wisconsin Ave.
Stop 4312 
Milwaukee, WI  53203

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 31-Mar-2014

The 2010 Tax Deadline

2010 tax deadline Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. 2010 tax deadline For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. 2010 tax deadline If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. 2010 tax deadline Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. 2010 tax deadline A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. 2010 tax deadline Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. 2010 tax deadline Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). 2010 tax deadline It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. 2010 tax deadline A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. 2010 tax deadline Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. 2010 tax deadline It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. 2010 tax deadline Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. 2010 tax deadline Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. 2010 tax deadline Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. 2010 tax deadline Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. 2010 tax deadline Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. 2010 tax deadline Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. 2010 tax deadline Listed property placed in service before 1987. 2010 tax deadline   For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. 2010 tax deadline Listed property placed in service after 1986. 2010 tax deadline   For information on listed property placed in service after 1986, see Publication 946. 2010 tax deadline Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. 2010 tax deadline You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. 2010 tax deadline The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. 2010 tax deadline However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. 2010 tax deadline Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. 2010 tax deadline Example. 2010 tax deadline Sarah Bradley uses a home computer 50% of the time to manage her investments. 2010 tax deadline She also uses the computer 40% of the time in her part-time consumer research business. 2010 tax deadline Sarah's home computer is listed property because it is not used at a regular business establishment. 2010 tax deadline Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. 2010 tax deadline Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. 2010 tax deadline Her combined rate of business/investment use for determining her depreciation deduction is 90%. 2010 tax deadline Qualified Business Use A qualified business use is any use in your trade or business. 2010 tax deadline However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. 2010 tax deadline See Employees, later. 2010 tax deadline 5% owner. 2010 tax deadline   A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. 2010 tax deadline   A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. 2010 tax deadline Related person. 2010 tax deadline   A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. 2010 tax deadline Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. 2010 tax deadline See Publication 463. 2010 tax deadline Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. 2010 tax deadline Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. 2010 tax deadline Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. 2010 tax deadline Any payment to you for the use of the automobile is treated as a rent payment for 3). 2010 tax deadline Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. 2010 tax deadline Use for the employer's convenience. 2010 tax deadline   Whether the use of listed property is for the employer's convenience must be determined from all the facts. 2010 tax deadline The use is for the employer's convenience if it is for a substantial business reason of the employer. 2010 tax deadline The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. 2010 tax deadline Use required as a condition of employment. 2010 tax deadline   Whether the use of listed property is a condition of employment depends on all the facts and circumstances. 2010 tax deadline The use of property must be required for the employee to perform duties properly. 2010 tax deadline The employer need not explicitly require the employee to use the property. 2010 tax deadline A mere statement by the employer that the use of the property is a condition of employment is not sufficient. 2010 tax deadline Example 1. 2010 tax deadline Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. 2010 tax deadline She owns and uses a motorcycle to deliver packages to downtown offices. 2010 tax deadline We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. 2010 tax deadline The company reimburses delivery persons for their costs. 2010 tax deadline Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. 2010 tax deadline Example 2. 2010 tax deadline Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. 2010 tax deadline He must travel to these sites on a regular basis. 2010 tax deadline Uplift does not furnish an automobile or explicitly require him to use his own automobile. 2010 tax deadline However, it reimburses him for any costs he incurs in traveling to the various sites. 2010 tax deadline The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. 2010 tax deadline Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. 2010 tax deadline You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. 2010 tax deadline For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. 2010 tax deadline For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. 2010 tax deadline Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. 2010 tax deadline First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. 2010 tax deadline Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. 2010 tax deadline 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. 2010 tax deadline Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. 2010 tax deadline Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. 2010 tax deadline See Recapture of excess depreciation, next. 2010 tax deadline Recapture of excess depreciation. 2010 tax deadline   You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. 2010 tax deadline Any excess depreciation must also be added to the adjusted basis of your property. 2010 tax deadline Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. 2010 tax deadline This means you figure your depreciation using the percentages fromTable 16 or 17. 2010 tax deadline For information on investment credit recapture, see the instructions for Form 4255. 2010 tax deadline Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. 2010 tax deadline In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. 2010 tax deadline To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. 2010 tax deadline See Car Used 50% or Less for Business in Publication 917. 2010 tax deadline Leased Property The limitations on cost recovery deductions apply to the rental of listed property. 2010 tax deadline The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). 2010 tax deadline SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. 2010 tax deadline Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. 2010 tax deadline A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. 2010 tax deadline This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. 2010 tax deadline Occasional or incidental leasing activity is insufficient. 2010 tax deadline For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. 2010 tax deadline 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. 2010 tax deadline Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. 2010 tax deadline Inclusion amount for property leased before 1987. 2010 tax deadline   You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. 2010 tax deadline You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. 2010 tax deadline   The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. 2010 tax deadline For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. 2010 tax deadline You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. 2010 tax deadline Special rules. 2010 tax deadline   The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. 2010 tax deadline The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. 2010 tax deadline   If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. 2010 tax deadline Maximum inclusion amount. 2010 tax deadline   The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. 2010 tax deadline What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. 2010 tax deadline How long to keep records. 2010 tax deadline   For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). 2010 tax deadline 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. 2010 tax deadline It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. 2010 tax deadline However, your records should back up your receipts in an orderly manner. 2010 tax deadline Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. 2010 tax deadline Written documents of your expenditure or use are generally better evidence than oral statements alone. 2010 tax deadline A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. 2010 tax deadline A daily log is not required. 2010 tax deadline However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. 2010 tax deadline Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. 2010 tax deadline An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. 2010 tax deadline For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. 2010 tax deadline Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. 2010 tax deadline However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. 2010 tax deadline A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. 2010 tax deadline 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. 2010 tax deadline Business Use Supported An adequate record contains enough information on each element of every business or investment use. 2010 tax deadline The amount of detail required to support the use depends on the facts and circumstances. 2010 tax deadline For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. 2010 tax deadline Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. 2010 tax deadline Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. 2010 tax deadline However, repeated uses can be combined as a single item. 2010 tax deadline Each expenditure is recorded as a separate item and not combined with other expenditures. 2010 tax deadline If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. 2010 tax deadline If these expenses are combined, you do not need to support the business purpose of each expense. 2010 tax deadline Instead, you can divide the expenses based on the total business use of the listed property. 2010 tax deadline Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. 2010 tax deadline For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. 2010 tax deadline Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. 2010 tax deadline Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. 2010 tax deadline Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. 2010 tax deadline It must be kept elsewhere and made available as support to the district director on request. 2010 tax deadline Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. 2010 tax deadline If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. 2010 tax deadline If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. 2010 tax deadline If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. 2010 tax deadline Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. 2010 tax deadline Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. 2010 tax deadline Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. 2010 tax deadline If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. 2010 tax deadline Employees. 2010 tax deadline   Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. 2010 tax deadline Employees claiming the standard mileage rate may be able to use Form 2106–EZ. 2010 tax deadline Employer who provides vehicles to employees. 2010 tax deadline   An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. 2010 tax deadline   An employer who provides more than five vehicles to employees need not include any information on his or her tax return. 2010 tax deadline Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. 2010 tax deadline   You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. 2010 tax deadline See the instructions for Form 4562. 2010 tax deadline Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. 2010 tax deadline In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. 2010 tax deadline In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. 2010 tax deadline For more information about deductions after the recovery period for automobiles, see Publication 917. 2010 tax deadline Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. 2010 tax deadline Table 1. 2010 tax deadline 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. 2010 tax deadline Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev  Up  Next   Home   More Online Publications