Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Free State Tax Forms Online

2005 Tax Return OnlineAmendment Tax ReturnHow Do You Do An Amendment To Your Tax Return2012 Federal Income Tax Forms 1040File Federal And State Taxes Online FreeIrs Gov 2012 Tax Forms1040ez On LineAmend My 2012 Tax ReturnIrs Ez Form 2011Forms 1040 EsFile Back TaxesHow To File A Tax Amendment OnlineFile State Tax FreeState Taxes Free E FileCan I Efile My State Taxes For FreeWww Myfreetaxes Com PhillyFile Income Taxes OnlineE File 1040nr2009 Tax Return FormFiling Taxes 2014Do I Have To File A State Tax ReturnHrblockonlineTax Preparation FormsFree Tax SoftwareFree State Tax E FilingFree File 2012 Tax Return2008 Tax ReturnTaxact20112011 Federal Tax Form 1040ezForm 1040-ez 2013Free Tax EstimatorHow To Fill Out A 1040x Step By Step2012 Federal 1040ez FormE File Tax PreparationH&r Block Tax ReturnsFree State Tax FilingsIrs Electronic FilingH And R Block 1040ezTurbotax Premier 2012How To Make A Tax Amendment

Free State Tax Forms Online

Free state tax forms online Publication 526 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Free state tax forms online Tax questions. Free state tax forms online Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 526 (such as legislation enacted after we release it), go to www. Free state tax forms online irs. Free state tax forms online gov/pub526. Free state tax forms online What's New Limit on itemized deductions. Free state tax forms online  For 2013, you may have to reduce the total amount of certain itemized deductions, including charitable contributions, if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if married filing jointly or qualifying widow(er). Free state tax forms online For more information and a worksheet, see the instructions for Schedule A (Form 1040). Free state tax forms online Reminders Disaster relief. Free state tax forms online  You can deduct contributions for flood relief, hurricane relief, or other disaster relief to a qualified organization (defined under Organizations That Qualify To Receive Deductible Contributions ). Free state tax forms online However, you cannot deduct contributions earmarked for relief of a particular individual or family. Free state tax forms online Publication 3833, Disaster Relief: Providing Assistance through Charitable Organizations, has more information about disaster relief, including how to establish a new charitable organization. Free state tax forms online You can also find more information on IRS. Free state tax forms online gov. Free state tax forms online Enter “disaster relief” in the search box. Free state tax forms online Photographs of missing children. Free state tax forms online  The IRS is a proud partner with the National Center for Missing and Exploited Children. Free state tax forms online Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free state tax forms online 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. Free state tax forms online Introduction This publication explains how to claim a deduction for your charitable contributions. Free state tax forms online It discusses the types of organizations to which you can make deductible charitable contributions and the types of contributions you can deduct. Free state tax forms online It also discusses how much you can deduct, what records you must keep, and how to report charitable contributions. Free state tax forms online A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Free state tax forms online It is voluntary and is made without getting, or expecting to get, anything of equal value. Free state tax forms online Qualified organizations. Free state tax forms online   Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. Free state tax forms online You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions . Free state tax forms online Form 1040 required. Free state tax forms online   To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A (Form 1040). Free state tax forms online The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you. Free state tax forms online Comments and suggestions. Free state tax forms online   We welcome your comments about this publication and your suggestions for future editions. Free state tax forms online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free state tax forms online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free state tax forms online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free state tax forms online   You can send your comments from www. Free state tax forms online irs. Free state tax forms online gov/formspubs/. Free state tax forms online Click on “More Information” and then on “Comment on Tax Forms and Publications. Free state tax forms online ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free state tax forms online Ordering forms and publications. Free state tax forms online   Visit www. Free state tax forms online irs. Free state tax forms online gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free state tax forms online Internal Revenue Service 1201 N. Free state tax forms online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free state tax forms online   If you have a tax question, check the information available on IRS. Free state tax forms online gov or call 1-800-829-1040. Free state tax forms online We cannot answer tax questions sent to either of the above addresses. Free state tax forms online Useful Items - You may want to see: Publication 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions  See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Free state tax forms online Table 1. Free state tax forms online Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Free state tax forms online See the rest of this publication for more information and additional rules and limits that may apply. Free state tax forms online Deductible As Charitable Contributions Not Deductible As Charitable Contributions Money or property you give to: Money or property you give to: Churches, synagogues, temples, mosques, and other religious organizations  Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park)  Nonprofit schools and hospitals  The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Free state tax forms online   War veterans' groups    Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Civic leagues, social and sports clubs, labor unions, and chambers of commerce  Foreign organizations (except certain Canadian, Israeli, and Mexican charities)  Groups that are run for personal profit  Groups whose purpose is to lobby for law changes  Homeowners' associations  Individuals  Political groups or candidates for public office    Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank   Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Justification for an Exception to Fair Opportunity

Title  
Justification for an Exception to Fair Opportunity - Redacted pdf
Notice of Intent to Sole Source NG_Awarded pdf

 

Page Last Reviewed or Updated: 09-Sep-2013

The Free State Tax Forms Online

Free state tax forms 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. Free state tax forms online Publication 946, How To Depreciate Property, contains information on depreciation. Free state tax forms online However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. Free state tax forms online The new provisions are in the Supplement to Publication 946, which is reprinted below. Free state tax forms 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. Free state tax forms online The new law made several changes in the tax rules explained in the publication. Free state tax forms online Some of the changes apply to property placed in service during 2001. Free state tax forms online This supplemental publication describes those changes and explains what you should do if you are affected by them. Free state tax forms 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. Free state tax forms online The new law contains the following provisions. Free state tax forms 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. Free state tax forms online An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. Free state tax forms online A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. Free state tax forms online An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. Free state tax forms 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. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. Free state tax forms online The allowance is an additional deduction of 30% of the property's depreciable basis. Free state tax forms 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. Free state tax forms online See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Free state tax forms online The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Free state tax forms online There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Free state tax forms 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. Free state tax forms online Example 1. Free state tax forms online On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. Free state tax forms online You did not elect to claim a section 179 deduction. Free state tax forms online You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. Free state tax forms online You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. Free state tax forms online Example 2. Free state tax forms 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. Free state tax forms online You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). Free state tax forms online You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. Free state tax forms online Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. Free state tax forms online It is new property of one of the following types. Free state tax forms online Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Free state tax forms online See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Free state tax forms online Water utility property. Free state tax forms online See 25-year property on page 22 in Publication 946. Free state tax forms online Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Free state tax forms online (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Free state tax forms online ) Qualified leasehold improvement property (defined later). Free state tax forms online It meets the following tests (explained later under Tests To Be Met). Free state tax forms online Acquisition date test. Free state tax forms online Placed in service date test. Free state tax forms online Original use test. Free state tax forms online It is not excepted property (explained later under Excepted Property). Free state tax forms online Qualified leasehold improvement property. Free state tax forms 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. Free state tax forms 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. Free state tax forms online That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Free state tax forms online The improvement is placed in service more than 3 years after the date the building was first placed in service. Free state tax forms online   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Free state tax forms online The enlargement of the building. Free state tax forms online Any elevator or escalator. Free state tax forms online Any structural component benefiting a common area. Free state tax forms online The internal structural framework of the building. Free state tax forms 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. Free state tax forms online However, a binding commitment between related persons is not treated as a lease. Free state tax forms online Related persons. Free state tax forms online   For this purpose, the following are related persons. Free state tax forms online Members of an affiliated group. Free state tax forms 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). Free state tax forms online An executor and a beneficiary of the same estate. Free state tax forms online Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. Free state tax forms online Acquisition date test. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Placed in service date test. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Original use test. Free state tax forms online   The original use of the property must have begun with you after September 10, 2001. Free state tax forms online “Original use” means the first use to which the property is put, whether or not by you. Free state tax forms online Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. Free state tax forms online Excepted Property The following property does not qualify for the special depreciation allowance. Free state tax forms online Property used by any person before September 11, 2001. Free state tax forms online Property required to be depreciated using ADS. Free state tax forms online This includes listed property used 50% or less in a qualified business use. Free state tax forms online Qualified New York Liberty Zone leasehold improvement property (defined next). Free state tax forms online Qualified New York Liberty Zone leasehold improvement property. Free state tax forms online   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. Free state tax forms online The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). Free state tax forms online The improvement is placed in service after September 10, 2001, and before January 1, 2007. Free state tax forms online No written binding contract for the improvement was in effect before September 11, 2001. Free state tax forms online Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. Free state tax forms 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. Free state tax forms 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. Free state tax forms online When to make election. Free state tax forms 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. Free state tax forms 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). Free state tax forms online Attach the election statement to the amended return. Free state tax forms online At the top of the election statement, write “Filed pursuant to section 301. Free state tax forms online 9100–2. Free state tax forms online ” Revoking an election. Free state tax forms online   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Free state tax forms online A request to revoke the election is subject to a user fee. Free state tax forms 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. Free state tax forms online The rules apply to returns for the following years. Free state tax forms online 2000 fiscal years that end after September 10, 2001. Free state tax forms online 2001 calendar and fiscal years. Free state tax forms online Claiming the allowance. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Write “Filed Pursuant to Rev. Free state tax forms online Proc. Free state tax forms online 2002–33” at the top of the amended return. Free state tax forms 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. Free state tax forms online Your return must be filed by the due date (including extensions). Free state tax forms online Write “Automatic Change Filed Under Rev. Free state tax forms online Proc. Free state tax forms online 2002–33” on the appropriate line of Form 3115. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Example 1. Free state tax forms online You are an individual and you use the calendar year. Free state tax forms online You placed qualified property in service for your business in December 2001. Free state tax forms online You filed your 2001 income tax return before April 15, 2002. Free state tax forms online You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. Free state tax forms online You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. Free state tax forms online Proc. Free state tax forms online 2002–33” at the top of the amended return. Free state tax forms 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. Free state tax forms online Example 2. Free state tax forms online The facts concerning your 2001 return are the same as in Example 1. Free state tax forms online In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. Free state tax forms online You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. Free state tax forms online Proc. Free state tax forms online 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. Free state tax forms 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. Free state tax forms online Electing not to claim the allowance. Free state tax forms 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. Free state tax forms online The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. Free state tax forms online The statement can be either attached to or written on the return. Free state tax forms online You can, for example, write “not deducting 30%” on Form 4562. Free state tax forms online Deemed election. Free state tax forms 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. Free state tax forms online You will be treated as making the election if you meet both of the following conditions. Free state tax forms 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. Free state tax forms online You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. Free state tax forms online See Claiming the allowance, earlier. Free state tax forms 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. Free state tax forms online Generally, the limit is increased from $3,060 to $7,660. Free state tax forms 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). Free state tax forms online Table 1 shows the maximum deduction amounts for 2001. Free state tax forms online Table 1. Free state tax forms online Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. Free state tax forms online 11 Placed in Service After Sept. Free state tax forms 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. Free state tax forms online Election not to claim the allowance. Free state tax forms 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. Free state tax forms online New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). Free state tax forms 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. Free state tax forms online Area defined. Free state tax forms 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. Free state tax forms 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. Free state tax forms online The allowance is an additional deduction of 30% of the property's depreciable basis. Free state tax forms 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. Free state tax forms online See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Free state tax forms online The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Free state tax forms online There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Qualified property is eligible for only one special depreciation allowance. Free state tax forms online Example 1. Free state tax forms 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. Free state tax forms online You did not elect to claim a section 179 deduction. Free state tax forms online You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. Free state tax forms online You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. Free state tax forms online Example 2. Free state tax forms 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. Free state tax forms online (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). Free state tax forms online You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). Free state tax forms online You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. Free state tax forms 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. Free state tax forms online It is one of the following types of property. Free state tax forms online Used property depreciated under MACRS with a recovery period of 20 years or less. Free state tax forms online See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Free state tax forms online Used water utility property. Free state tax forms online See 25-year property on page 22 in Publication 946. Free state tax forms online Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Free state tax forms online (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Free state tax forms online ) Certain nonresidential real property and residential rental property (defined later). Free state tax forms online It meets the following tests (explained later under Tests to be met). Free state tax forms online Acquisition date test. Free state tax forms online Placed in service date test. Free state tax forms online Substantial use test. Free state tax forms online Original use test. Free state tax forms online It is not excepted property (explained later under Excepted property). Free state tax forms online Nonresidential real property and residential rental property. Free state tax forms 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. Free state tax forms 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. Free state tax forms 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. Free state tax forms online Otherwise, the property is considered damaged real property. Free state tax forms 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. Free state tax forms online Tests to be met. Free state tax forms online   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. Free state tax forms online Acquisition date test. Free state tax forms 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. Free state tax forms online   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. Free state tax forms 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. Free state tax forms online Placed in service date test. Free state tax forms 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). Free state tax forms 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. Free state tax forms online Substantial use test. Free state tax forms 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. Free state tax forms online Original use test. Free state tax forms online   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. Free state tax forms online   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. Free state tax forms 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. Free state tax forms online Excepted property. Free state tax forms online   The following property does not qualify for the special Liberty Zone depreciation allowance. Free state tax forms online Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Free state tax forms online Property required to be depreciated using ADS. Free state tax forms online This includes listed property used 50% or less in a qualified business use. Free state tax forms online Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). Free state tax forms online Example. Free state tax forms online In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. Free state tax forms online New office furniture with a MACRS recovery period of 7 years. Free state tax forms online A used computer with a MACRS recovery period of 5 years. Free state tax forms online The computer had not previously been used within the Liberty Zone. Free state tax forms online Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. Free state tax forms 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. Free state tax forms online Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. Free state tax forms 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. Free state tax forms 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. Free state tax forms online When to make the election. Free state tax forms 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. Free state tax forms 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). Free state tax forms online Attach the election statement to the amended return. Free state tax forms online At the top of the election statement, write “Filed pursuant to section 301. Free state tax forms online 9100–2. Free state tax forms online ” Revoking an election. Free state tax forms 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. Free state tax forms online A request to revoke the election is subject to a user fee. Free state tax forms online Returns filed before June 1, 2002. Free state tax forms 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. Free state tax forms 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. Free state tax forms online For tax years beginning in 2000, that limit was $20,000. Free state tax forms online For tax years beginning in 2001 and 2002, that limit is generally $24,000. Free state tax forms 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. Free state tax forms online Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. Free state tax forms online The increase is the smaller of the following amounts. Free state tax forms online $35,000. Free state tax forms online The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. Free state tax forms 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. Free state tax forms online Qualified property. Free state tax forms 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. Free state tax forms online Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. Free state tax forms online Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. Free state tax forms 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. Free state tax forms online Example 1. Free state tax forms online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. Free state tax forms 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). Free state tax forms online Example 2. Free state tax forms online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. Free state tax forms 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). Free state tax forms 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. Free state tax forms 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. Free state tax forms online Example. Free state tax forms online In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. Free state tax forms online Your increased dollar limit is $59,000 ($35,000 + $24,000). Free state tax forms 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). Free state tax forms 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. Free state tax forms 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. Free state tax forms online This rule applies to returns for the following years. Free state tax forms online 2000 fiscal years that end after September 10, 2001. Free state tax forms online 2001 calendar and fiscal years. Free state tax forms online On the amended return, write “Filed Pursuant to Rev. Free state tax forms online Proc. Free state tax forms online 2002–33. Free state tax forms 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. Free state tax forms online This means that it is depreciated over a recovery period of 5 years. Free state tax forms online For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. Free state tax forms online The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. Free state tax forms online Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. Free state tax forms 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. Free state tax forms online Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). Free state tax forms online Your 2001 calendar or fiscal year return. Free state tax forms online On the amended return, write “Filed Pursuant to Rev. Free state tax forms online Proc. Free state tax forms online 2002–33. Free state tax forms online ” Table 2. Free state tax forms 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. Free state tax forms online See the text for definitions and examples. Free state tax forms online Do not rely on this chart alone. Free state tax forms online IF you want to. Free state tax forms online . Free state tax forms online . Free state tax forms online THEN you. Free state tax forms online . Free state tax forms online . Free state tax forms online BY. Free state tax forms online . Free state tax forms online . Free state tax forms 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. Free state tax forms 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). Free state tax forms 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. Free state tax forms 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. Free state tax forms online 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. Free state tax forms online Prev  Up  Next   Home   More Online Publications