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 Preparation Software

How Can I Amend My Tax ReturnTax Ez FormTax Return Forms 2012Army One Source Taxes1040ez Online Filing FreeFile 1040ez Free2012 Free Taxes OnlineFiling State Income Taxes OnlineIrs E File Extension1042 Ez1040 Forms And InstructionsFile My 1040x ElectronicallyFile Taxes 20121040nr Efile 2012Turbotax 2011 Tax PreparationFree Online Tax Filing 2012Electronic 1040ezHarold Washington College Free Tax ServiceAmended Federal Tax FormHr Block Free E File2010 Amended ReturnTaxact 2006 Free DownloadHow To File Tax Extention2012 State Tax FormFree State Return OnlyHrblock FreeFree Irs Tax PreparationFree Online State And Federal Tax Filing2010 EfileAmended 1040xFiling And Amended Tax ReturnHow To File 2011 TaxesIrs Forms 1040 EzFree 1040x FilingHow To Amend A Tax Return Already FiledTax Form 1040 EzFree Tax Software2010 Tax ActFile Tax Extension ElectronicallyBlank Printable 1040ez Form

Free State Tax Preparation Software

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

Federal Emergency Management Agency (FEMA)

FEMA supports citizens and emergency personnel to build, sustain, and improve the nations capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

The Free State Tax Preparation Software

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