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File 1040 ez online Depreciation Table of Contents Introduction Special Depreciation AllowanceQualified Property Election Not To Claim the Allowance Rules for Returns Filed Before June 1, 2002 Passenger Automobiles New York Liberty Zone BenefitsSpecial Liberty Zone Depreciation Allowance Increased Section 179 Deduction Liberty Zone Leasehold Improvement Property If you depreciate business property that you acquired and placed in service after September 10, 2001, new law contains provisions that may affect your depreciation deduction for that property. File 1040 ez online Publication 946, How To Depreciate Property, contains information on depreciation. File 1040 ez online However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. File 1040 ez online The new provisions are in the Supplement to Publication 946, which is reprinted below. File 1040 ez online Supplement to Publication 946 How To Depreciate Property   Introduction After Publication 946 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. File 1040 ez online The new law made several changes in the tax rules explained in the publication. File 1040 ez online Some of the changes apply to property placed in service during 2001. File 1040 ez online This supplemental publication describes those changes and explains what you should do if you are affected by them. File 1040 ez online The situations and examples in Publication 946 do not reflect any of the changes made by the Job Creation and Worker Assistance Act of 2002. File 1040 ez online The new law contains the following provisions. File 1040 ez online 30% depreciation deductions (special depreciation allowance and special New York Liberty Zone (Liberty Zone) depreciation allowance) for the year qualified property is placed in service after September 10, 2001. File 1040 ez online An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. File 1040 ez online A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. File 1040 ez online An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. File 1040 ez online If you believe you qualify for an increased deduction under any of these new rules, you must file the revised 2001 Form 4562 (dated March 2002) for 2001 calendar or fiscal years and 2000 fiscal years ending after September 10, 2001. File 1040 ez online If you have already filed a tax return, this supplemental publication explains how to claim these benefits and how to elect not to claim the special depreciation allowance or special Liberty Zone depreciation allowance. File 1040 ez online See Table 2 at the end of the supplement for an overview of the rules that apply if you filed your return before June 1, 2002. File 1040 ez online Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. File 1040 ez online The allowance is an additional deduction of 30% of the property's depreciable basis. File 1040 ez online To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. File 1040 ez online See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. File 1040 ez online The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. File 1040 ez online There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. File 1040 ez online In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. File 1040 ez online Example 1. File 1040 ez online On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. File 1040 ez online You did not elect to claim a section 179 deduction. File 1040 ez online You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. File 1040 ez online You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. File 1040 ez online Example 2. File 1040 ez online The facts are the same as in Example 1, except that you choose to deduct $24,000 of the property's cost as a section 179 deduction. File 1040 ez online You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). File 1040 ez online You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. File 1040 ez online Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. File 1040 ez online It is new property of one of the following types. File 1040 ez online Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. File 1040 ez online See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. File 1040 ez online Water utility property. File 1040 ez online See 25-year property on page 22 in Publication 946. File 1040 ez online Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. File 1040 ez online (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. File 1040 ez online ) Qualified leasehold improvement property (defined later). File 1040 ez online It meets the following tests (explained later under Tests To Be Met). File 1040 ez online Acquisition date test. File 1040 ez online Placed in service date test. File 1040 ez online Original use test. File 1040 ez online It is not excepted property (explained later under Excepted Property). File 1040 ez online Qualified leasehold improvement property. File 1040 ez online    Generally, this is any improvement to an interior part of a building that is nonresidential real property, provided all of the following requirements are met. File 1040 ez online The improvement is made under or pursuant to a lease by the lessee (or any sublessee) or the lessor of that part of the building. File 1040 ez online That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. File 1040 ez online The improvement is placed in service more than 3 years after the date the building was first placed in service. File 1040 ez online   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. File 1040 ez online The enlargement of the building. File 1040 ez online Any elevator or escalator. File 1040 ez online Any structural component benefiting a common area. File 1040 ez online The internal structural framework of the building. File 1040 ez online   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. File 1040 ez online However, a binding commitment between related persons is not treated as a lease. File 1040 ez online Related persons. File 1040 ez online   For this purpose, the following are related persons. File 1040 ez online Members of an affiliated group. File 1040 ez online The persons listed in items (1) through (9) under Related persons on page 8 of Publication 946 (except that “80% or more” should be substituted for “more than 10%” each place it appears). File 1040 ez online An executor and a beneficiary of the same estate. File 1040 ez online Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. File 1040 ez online Acquisition date test. File 1040 ez online    Generally, you must have acquired the property either: After September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or Pursuant to a written binding contract entered into after September 10, 2001, and before September 11, 2004. File 1040 ez online   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001, and before September 11, 2004. File 1040 ez online Placed in service date test. File 1040 ez online   Generally, the property must be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. File 1040 ez online   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. File 1040 ez online Original use test. File 1040 ez online   The original use of the property must have begun with you after September 10, 2001. File 1040 ez online “Original use” means the first use to which the property is put, whether or not by you. File 1040 ez online Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. File 1040 ez online Excepted Property The following property does not qualify for the special depreciation allowance. File 1040 ez online Property used by any person before September 11, 2001. File 1040 ez online Property required to be depreciated using ADS. File 1040 ez online This includes listed property used 50% or less in a qualified business use. File 1040 ez online Qualified New York Liberty Zone leasehold improvement property (defined next). File 1040 ez online Qualified New York Liberty Zone leasehold improvement property. File 1040 ez online   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. File 1040 ez online The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). File 1040 ez online The improvement is placed in service after September 10, 2001, and before January 1, 2007. File 1040 ez online No written binding contract for the improvement was in effect before September 11, 2001. File 1040 ez online Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. File 1040 ez online If you make this election for any property, it applies to all property in the same property class placed in service during the year. File 1040 ez online To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. File 1040 ez online When to make election. File 1040 ez online   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. File 1040 ez online   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). File 1040 ez online Attach the election statement to the amended return. File 1040 ez online At the top of the election statement, write “Filed pursuant to section 301. File 1040 ez online 9100–2. File 1040 ez online ” Revoking an election. File 1040 ez online   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. File 1040 ez online A request to revoke the election is subject to a user fee. File 1040 ez online Rules for Returns Filed Before June 1, 2002 The following rules apply if you placed qualified property in service after September 10, 2001, and filed your return before June 1, 2002. File 1040 ez online The rules apply to returns for the following years. File 1040 ez online 2000 fiscal years that end after September 10, 2001. File 1040 ez online 2001 calendar and fiscal years. File 1040 ez online Claiming the allowance. File 1040 ez online   If you did not claim the allowance on your return and did not make the election not to claim the allowance, you can do either of the following to claim the allowance. File 1040 ez online File an amended return by the due date (not including extensions) of your return for the year following the year the property was placed in service. File 1040 ez online Write “Filed Pursuant to Rev. File 1040 ez online Proc. File 1040 ez online 2002–33” at the top of the amended return. File 1040 ez online File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. File 1040 ez online Your return must be filed by the due date (including extensions). File 1040 ez online Write “Automatic Change Filed Under Rev. File 1040 ez online Proc. File 1040 ez online 2002–33” on the appropriate line of Form 3115. File 1040 ez online You must also file a copy (with signature) of the completed Form 3115 with the IRS National Office no later than when you file the original with your return. File 1040 ez online For more information about filing Form 3115, including the address to send it to, see Revenue Procedure 2002–9, Revenue Procedure 2002–19, and Revenue Procedure 2002–33. File 1040 ez online Example 1. File 1040 ez online You are an individual and you use the calendar year. File 1040 ez online You placed qualified property in service for your business in December 2001. File 1040 ez online You filed your 2001 income tax return before April 15, 2002. File 1040 ez online You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. File 1040 ez online You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. File 1040 ez online Proc. File 1040 ez online 2002–33” at the top of the amended return. File 1040 ez online You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. File 1040 ez online Example 2. File 1040 ez online The facts concerning your 2001 return are the same as in Example 1. File 1040 ez online In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. File 1040 ez online You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. File 1040 ez online Proc. File 1040 ez online 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. File 1040 ez online You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. File 1040 ez online Electing not to claim the allowance. File 1040 ez online   Generally, you have elected not to claim the special depreciation allowance for a class of property if you: Filed your return timely (including extensions) for the year you placed qualified property in service and indicated on a statement with the return that you are not claiming the allowance, or Filed your return timely and filed an amended return within 6 months of the due date of the original return (not including extensions) and indicated on a statement with the amended return that you are not claiming the allowance. File 1040 ez online The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. File 1040 ez online The statement can be either attached to or written on the return. File 1040 ez online You can, for example, write “not deducting 30%” on Form 4562. File 1040 ez online Deemed election. File 1040 ez online   If you have not followed either of the procedures described above to elect not to claim the allowance, you may still be treated as making the election. File 1040 ez online You will be treated as making the election if you meet both of the following conditions. File 1040 ez online You filed your return for the year you placed the property in service and claimed depreciation, but not the special allowance, for any class of property. File 1040 ez online You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. File 1040 ez online See Claiming the allowance, earlier. File 1040 ez online Passenger Automobiles The limit on your depreciation deduction (including any section 179 deduction) for any passenger automobile that is qualified property (defined earlier) placed in service after September 10, 2001, and for which you claim the special depreciation allowance is increased. File 1040 ez online Generally, the limit is increased from $3,060 to $7,660. File 1040 ez online However, if the automobile is a qualified electric car, the limit is increased from $9,280 to $23,080 ($22,980 if placed in service in 2002). File 1040 ez online Table 1 shows the maximum deduction amounts for 2001. File 1040 ez online Table 1. File 1040 ez online Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. File 1040 ez online 11 Placed in Service After Sept. File 1040 ez online 10 Passenger automobile $3,060 $7,660 Electric car 9,280 23,080 1 1$22,980 if you place an electric car in service in 2002. File 1040 ez online Election not to claim the allowance. File 1040 ez online   The increased maximum depreciation deduction does not apply if you elected not to claim the special depreciation allowance as explained earlier under Election Not To Claim the Allowance and Rules for Returns Filed Before June 1, 2002. File 1040 ez online New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). File 1040 ez online They include a special depreciation allowance for the year you place the property in service, an increased section 179 deduction, and the classification of certain leasehold improvement property as 5-year property. File 1040 ez online Area defined. File 1040 ez online   The New York Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. File 1040 ez online Special Liberty Zone Depreciation Allowance You can take a special depreciation allowance for qualified Liberty Zone property you place in service after September 10, 2001. File 1040 ez online The allowance is an additional deduction of 30% of the property's depreciable basis. File 1040 ez online To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. File 1040 ez online See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. File 1040 ez online The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. File 1040 ez online There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. File 1040 ez online In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. File 1040 ez online You cannot claim the special Liberty Zone depreciation allowance for property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. File 1040 ez online Qualified property is eligible for only one special depreciation allowance. File 1040 ez online Example 1. File 1040 ez online On November 1, 2001, you bought and placed in service in your business, which is in the Liberty Zone, qualified Liberty Zone property that cost $200,000. File 1040 ez online You did not elect to claim a section 179 deduction. File 1040 ez online You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. File 1040 ez online You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. File 1040 ez online Example 2. File 1040 ez online The facts are the same as in Example 1, except that you choose to deduct $59,000 of the property's cost as a section 179 deduction. File 1040 ez online (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). File 1040 ez online You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). File 1040 ez online You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. File 1040 ez online Qualified Liberty Zone Property For a 2001 calendar or fiscal year and a 2000 fiscal year that ends after September 10, 2001, property qualifies for the special Liberty Zone depreciation allowance if it meets the following requirements. File 1040 ez online It is one of the following types of property. File 1040 ez online Used property depreciated under MACRS with a recovery period of 20 years or less. File 1040 ez online See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. File 1040 ez online Used water utility property. File 1040 ez online See 25-year property on page 22 in Publication 946. File 1040 ez online Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. File 1040 ez online (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. File 1040 ez online ) Certain nonresidential real property and residential rental property (defined later). File 1040 ez online It meets the following tests (explained later under Tests to be met). File 1040 ez online Acquisition date test. File 1040 ez online Placed in service date test. File 1040 ez online Substantial use test. File 1040 ez online Original use test. File 1040 ez online It is not excepted property (explained later under Excepted property). File 1040 ez online Nonresidential real property and residential rental property. File 1040 ez online   This property is qualifying property only to the extent it rehabilitates real property damaged, or replaces real property destroyed or condemned, as a result of the terrorist attack of September 11, 2001. File 1040 ez online Property is treated as replacing destroyed or condemned property if, as part of an integrated plan, such property replaces real property included in a continuous area that includes real property destroyed or condemned. File 1040 ez online   For these purposes, real property is considered destroyed (or condemned) only if an entire building or structure was destroyed (or condemned) as a result of the terrorist attack. File 1040 ez online Otherwise, the property is considered damaged real property. File 1040 ez online For example, if certain structural components of a building (such as walls, floors, or plumbing fixtures) are damaged or destroyed as a result of the terrorist attack, but the building is not destroyed (or condemned), then only costs related to replacing the damaged or destroyed structural components qualify for the special Liberty Zone depreciation allowance. File 1040 ez online Tests to be met. File 1040 ez online   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. File 1040 ez online Acquisition date test. File 1040 ez online   You must have acquired the property by purchase after September 10, 2001, and there must not have been a binding written contract for the acquisition in effect before September 11, 2001. File 1040 ez online   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. File 1040 ez online   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001. File 1040 ez online Placed in service date test. File 1040 ez online   Generally, the property must be placed in service for use in your trade or business or for the production of income before January 1, 2007 (January 1, 2010, in the case of qualifying nonresidential real property and residential rental property). File 1040 ez online   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. File 1040 ez online Substantial use test. File 1040 ez online   Substantially all use of the property must be in the Liberty Zone and in the active conduct of your trade or business in the Liberty Zone. File 1040 ez online Original use test. File 1040 ez online   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. File 1040 ez online   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. File 1040 ez online Also, additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test if the original use of the property in the Liberty Zone began with you. File 1040 ez online Excepted property. File 1040 ez online   The following property does not qualify for the special Liberty Zone depreciation allowance. File 1040 ez online Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. File 1040 ez online Property required to be depreciated using ADS. File 1040 ez online This includes listed property used 50% or less in a qualified business use. File 1040 ez online Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). File 1040 ez online Example. File 1040 ez online In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. File 1040 ez online New office furniture with a MACRS recovery period of 7 years. File 1040 ez online A used computer with a MACRS recovery period of 5 years. File 1040 ez online The computer had not previously been used within the Liberty Zone. File 1040 ez online Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. File 1040 ez online Because the computer is used property that had not previously been used in the Liberty Zone, it qualifies for the special Liberty Zone depreciation allowance, but not the special depreciation allowance. File 1040 ez online Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. File 1040 ez online If you make this election for any property, it applies to all property in the same property class placed in service during the year. File 1040 ez online To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. File 1040 ez online When to make the election. File 1040 ez online   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. File 1040 ez online   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). File 1040 ez online Attach the election statement to the amended return. File 1040 ez online At the top of the election statement, write “Filed pursuant to section 301. File 1040 ez online 9100–2. File 1040 ez online ” Revoking an election. File 1040 ez online   Once you elect not to deduct the special Liberty Zone depreciation allowance for a class of property, you cannot revoke the election without IRS consent. File 1040 ez online A request to revoke the election is subject to a user fee. File 1040 ez online Returns filed before June 1, 2002. File 1040 ez online   The rules that apply to the special depreciation allowance discussed earlier in Rules for Returns Filed Before June 1, 2002 under Special Depreciation Allowance also apply to the special Liberty Zone depreciation allowance. File 1040 ez online Increased Section 179 Deduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. File 1040 ez online For tax years beginning in 2000, that limit was $20,000. File 1040 ez online For tax years beginning in 2001 and 2002, that limit is generally $24,000. File 1040 ez online If the cost of qualifying section 179 property placed in service in a year is over $200,000, you must reduce the dollar limit (but not below zero) by the amount of the cost over $200,000. File 1040 ez online Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. File 1040 ez online The increase is the smaller of the following amounts. File 1040 ez online $35,000. File 1040 ez online The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. File 1040 ez online If you use the revised 2001 Form 4562 (dated March 2002) for a tax year beginning in 2000, you must reduce the section 179 dollar limit to $20,000 before adding the additional amount for qualified property. File 1040 ez online Qualified property. File 1040 ez online   To qualify for the increased section 179 deduction, your property must be section 179 property that is either: Qualified Liberty Zone property, or Property that would be qualified Liberty Zone property except that it is eligible for the special depreciation allowance. File 1040 ez online Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. File 1040 ez online Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. File 1040 ez online For information on the requirements that must be met for property to qualify for the section 179 deduction, see What Property Qualifies? on page 14 of Publication 946. File 1040 ez online Example 1. File 1040 ez online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. File 1040 ez online Because this cost is less than $35,000, the dollar limit on the section 179 deduction is increased by $25,000 to $49,000 ($24,000 + $25,000). File 1040 ez online Example 2. File 1040 ez online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. File 1040 ez online Because $35,000 is less than the cost of the property you place in service, the dollar limit on the section 179 deduction you can claim is increased by $35,000 to $59,000 ($24,000 + $35,000). File 1040 ez online Reduced Dollar Limit Generally, you must reduce the dollar limit for a year by the cost of qualifying section 179 property placed in service in the year that is more than $200,000. File 1040 ez online However, if the cost of your Liberty Zone property exceeds $200,000, you take into account only 50% (instead of 100%) of the cost of qualified property placed in service in a year. File 1040 ez online Example. File 1040 ez online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. File 1040 ez online Your increased dollar limit is $59,000 ($35,000 + $24,000). File 1040 ez online Because 50% of the cost of the property you place in service ($230,000) is $30,000 more than $200,000, you must reduce your $59,000 dollar limit to $29,000 ($59,000 - $30,000). File 1040 ez online Recapture Rules Rules similar to those explained on page 20 of Publication 946 under When Must You Recapture the Deduction? apply with respect to any qualified property you stop using in the Liberty Zone. File 1040 ez online Returns Filed Before June 1, 2002 If you filed a return before June 1, 2002, and did not deduct the increased section 179 amount for qualified property placed in service after September 10, 2001, you can deduct the increased amount by filing an amended return by the due date (not including extensions) of the return for the year after the year the property was placed in service. File 1040 ez online This rule applies to returns for the following years. File 1040 ez online 2000 fiscal years that end after September 10, 2001. File 1040 ez online 2001 calendar and fiscal years. File 1040 ez online On the amended return, write “Filed Pursuant to Rev. File 1040 ez online Proc. File 1040 ez online 2002–33. File 1040 ez online ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. File 1040 ez online This means that it is depreciated over a recovery period of 5 years. File 1040 ez online For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. File 1040 ez online The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. File 1040 ez online Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. File 1040 ez online Returns Filed Before June 1, 2002 If you filed either of the following returns before June 1, 2002, and did not depreciate qualified Liberty Zone leasehold improvement property placed in service during the tax year as 5-year property using the straight line method, you should file an amended return before you file your return for the year after the year the property was placed in service. File 1040 ez online Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). File 1040 ez online Your 2001 calendar or fiscal year return. File 1040 ez online On the amended return, write “Filed Pursuant to Rev. File 1040 ez online Proc. File 1040 ez online 2002–33. File 1040 ez online ” Table 2. File 1040 ez online Rules for Returns Filed Before June 1, 2002 Note:This chart highlights the rules for returns affected by the Job Creation and Worker Assistance Act of 2002 that were filed before June 1, 2002, without accounting for any of the new benefits under the law. File 1040 ez online See the text for definitions and examples. File 1040 ez online Do not rely on this chart alone. File 1040 ez online IF you want to. File 1040 ez online . File 1040 ez online . File 1040 ez online THEN you. File 1040 ez online . File 1040 ez online . File 1040 ez online BY. File 1040 ez online . File 1040 ez online . File 1040 ez online claim the special depreciation allowance or special Liberty Zone depreciation allowance • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service, or • must file Form 3115, Application for Change in Accounting Method, with your return for the year after the year the property was placed in service • the due date (including extensions) of your return for the year after the year the property was placed in service, and • must file a copy of your completed Form 3115 with the IRS National Office • the date you file the original Form 3115 with your return for the year after the year the property was placed in service. File 1040 ez online elect not to claim the special depreciation allowance or the special Liberty Zone depreciation allowance 1 • must have filed your return timely for the year the property was placed in service, and   • must file an amended return stating you are not claiming the allowance • the date that is 6 months after the due date of the original return (not including extensions). File 1040 ez online deduct the increased section 179 amount • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service. File 1040 ez online use a 5-year recovery period for depreciating qualified Liberty Zone leasehold improvement property • should file an amended return • the date you file your return for the year after the year the property was placed in service. File 1040 ez online 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. 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The Large Business and International (LB&I) Division serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million.

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The Internal Revenue Service has a comprehensive strategy in place to combat abusive tax shelters and transactions.

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Effective January 21, 2014, all LB&I coordinated issue papers are decoordinated.  See 1/21/14 Directive from LB&I Commissioner Maloy for details.

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For tax years ending on or after December 31, 2006, corporations that have assets of $10 Million or more are required to electronically file their 1120/1102S income tax returns.  For tax years ending on or after December 31, 2007, foreign corporations with assets of $10 Million or more are required to electronically file their 1120-F income tax returns.

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The Industry Issue Resolution (IIR) Program resolves frequently disputed or burdensome tax issues. IRS solicits suggestions for issues for the program from taxpayers, representatives and associations.

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The Pre-Filing Agreement Program is expected to reduce taxpayer burden and make more effective use of IRS resources by resolving or eliminating tax controversy earlier in the examination process.

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The Treasury Department and IRS are implementing Schedule M-3, “Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More”.
 

Page Last Reviewed or Updated: 18-Mar-2014

The File 1040 Ez Online

File 1040 ez online Internal Revenue Bulletin:  2009-17  April 27, 2009  Rev. File 1040 ez online Proc. File 1040 ez online 2009-24 Table of Contents SECTION 1. File 1040 ez online PURPOSE SECTION 2. File 1040 ez online BACKGROUND SECTION 3. File 1040 ez online SCOPE SECTION 4. File 1040 ez online APPLICATION. File 1040 ez online 01 In General. File 1040 ez online . File 1040 ez online 02 Limitations on Depreciation Deductions for Certain Automobiles. File 1040 ez online . File 1040 ez online 03 Inclusions in Income of Lessees of Passenger Automobiles. File 1040 ez online SECTION 5. File 1040 ez online EFFECTIVE DATE SECTION 6. File 1040 ez online DRAFTING INFORMATION SECTION 1. File 1040 ez online PURPOSE . File 1040 ez online 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. File 1040 ez online . File 1040 ez online 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. File 1040 ez online SECTION 2. File 1040 ez online BACKGROUND . File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. File 1040 ez online . File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online . File 1040 ez online 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). File 1040 ez online 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. File 1040 ez online 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). File 1040 ez online 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. File 1040 ez online . File 1040 ez online 04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. File 1040 ez online The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. File 1040 ez online Under § 1. File 1040 ez online 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. File 1040 ez online One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. File 1040 ez online Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. File 1040 ez online SECTION 3. File 1040 ez online SCOPE . File 1040 ez online 01 The limitations on depreciation deductions in section 4. File 1040 ez online 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. File 1040 ez online . File 1040 ez online 02 The tables in section 4. File 1040 ez online 03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2009. File 1040 ez online 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. File 1040 ez online See Rev. File 1040 ez online Proc. File 1040 ez online 2002-14, 2002-1 C. File 1040 ez online B. File 1040 ez online 450, for passenger automobiles first leased before January 1, 2003, Rev. File 1040 ez online Proc. File 1040 ez online 2003-75, 2003-2 C. File 1040 ez online B. File 1040 ez online 1018, for passenger automobiles first leased during calendar year 2003, Rev. File 1040 ez online Proc. File 1040 ez online 2004-20, 2004-1 C. File 1040 ez online B. File 1040 ez online 642, for passenger automobiles first leased during calendar year 2004, Rev. File 1040 ez online Proc. File 1040 ez online 2005-13, 2005-1 C. File 1040 ez online B. File 1040 ez online 759, for passenger automobiles first leased during calendar year 2005, Rev. File 1040 ez online Proc. File 1040 ez online 2006-18, 2006-1 C. File 1040 ez online B. File 1040 ez online 645, for passenger automobiles first leased during calendar year 2006, Rev. File 1040 ez online Proc. File 1040 ez online 2007-30, 2007-1 C. File 1040 ez online B. File 1040 ez online 1104, for passenger automobiles first leased during calendar year 2007, and Rev. File 1040 ez online Proc. File 1040 ez online 2008-22, 2008-12 I. File 1040 ez online R. File 1040 ez online B. File 1040 ez online 658, for passenger automobiles first leased during calendar year 2008. File 1040 ez online SECTION 4. File 1040 ez online APPLICATION . File 1040 ez online 01 In General. File 1040 ez online (1) Limitations on depreciation deductions for certain automobiles. File 1040 ez online 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. File 1040 ez online 02(2) of this revenue procedure. File 1040 ez online (2) Inclusions in income of lessees of passenger automobiles. File 1040 ez online 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. File 1040 ez online 03 of this revenue procedure. File 1040 ez online In addition, the taxpayer must follow the procedures of § 1. File 1040 ez online 280F-7(a). File 1040 ez online . File 1040 ez online 02 Limitations on Depreciation Deductions for Certain Automobiles. File 1040 ez online (1) Amount of the inflation adjustment. File 1040 ez online (a) Passenger automobiles (other than trucks or vans). File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online The new car component of the CPI was 115. File 1040 ez online 2 for October 1987 and 134. File 1040 ez online 837 for October 2008. File 1040 ez online The October 2008 index exceeded the October 1987 index by 19. File 1040 ez online 637. File 1040 ez online 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. File 1040 ez online 05 percent (19. File 1040 ez online 637/115. File 1040 ez online 2 x 100%). File 1040 ez online This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2009. File 1040 ez online The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. File 1040 ez online 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. File 1040 ez online (b) Trucks and vans. File 1040 ez online 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. File 1040 ez online The new truck component of the CPI was 112. File 1040 ez online 4 for October 1987 and 133. File 1040 ez online 640 for October 2008. File 1040 ez online The October 2008 index exceeded the October 1987 index by 21. File 1040 ez online 24. File 1040 ez online The Service has, therefore, determined that the automobile price inflation adjustment for 2009 for trucks and vans is 18. File 1040 ez online 90 percent (21. File 1040 ez online 24/112. File 1040 ez online 4 x 100%). File 1040 ez online This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2009. File 1040 ez online The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. File 1040 ez online 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. File 1040 ez online (2) Amount of the limitation. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online REV. File 1040 ez online PROC. File 1040 ez online 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. File 1040 ez online PROC. File 1040 ez online 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. File 1040 ez online PROC. File 1040 ez online 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. File 1040 ez online PROC. File 1040 ez online 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 . File 1040 ez online 03 Inclusions in Income of Lessees of Passenger Automobiles. File 1040 ez online The inclusion amounts for passenger automobiles first leased in calendar year 2009 are calculated under the procedures described in § 1. File 1040 ez online 280F-7(a). File 1040 ez online 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. File 1040 ez online REV. File 1040 ez online PROC. File 1040 ez online 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. File 1040 ez online PROC. File 1040 ez online 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. File 1040 ez online 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. File 1040 ez online SECTION 6. File 1040 ez online DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. File 1040 ez online Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). File 1040 ez online For further information regarding this revenue procedure, contact Mr. File 1040 ez online Harvey at (202) 622-4930 (not a toll-free call). File 1040 ez online Prev  Up  Next   Home   More Internal Revenue Bulletins