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H&r Block Online Tax Filing

H&r block online tax filing 5. H&r block online tax filing   Recordkeeping Table of Contents How To Prove ExpensesWhat Are Adequate Records? What If I Have Incomplete Records? Separating and Combining Expenses How Long To Keep Records and Receipts Examples of Records If you deduct travel, entertainment, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. H&r block online tax filing This chapter discusses the records you need to keep to prove these expenses. H&r block online tax filing If you keep timely and accurate records, you will have support to show the IRS if your tax return is ever examined. H&r block online tax filing You will also have proof of expenses that your employer may require if you are reimbursed under an accountable plan. H&r block online tax filing These plans are discussed in chapter 6 under Reimbursements . H&r block online tax filing How To Prove Expenses Table 5-1 is a summary of records you need to prove each expense discussed in this publication. H&r block online tax filing You must be able to prove the elements listed across the top portion of the chart. H&r block online tax filing You prove them by having the information and receipts (where needed) for the expenses listed in the first column. H&r block online tax filing You cannot deduct amounts that you approximate or estimate. H&r block online tax filing You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. H&r block online tax filing You must generally prepare a written record for it to be considered adequate. H&r block online tax filing This is because written evidence is more reliable than oral evidence alone. H&r block online tax filing However, if you prepare a record on a computer, it is considered an adequate record. H&r block online tax filing What Are Adequate Records? You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. H&r block online tax filing You should also keep documentary evidence that, together with your record, will support each element of an expense. H&r block online tax filing Documentary evidence. H&r block online tax filing   You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. H&r block online tax filing Exception. H&r block online tax filing   Documentary evidence is not needed if any of the following conditions apply. H&r block online tax filing You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. H&r block online tax filing ( Accountable plans and per diem allowances are discussed in chapter 6. H&r block online tax filing ) Your expense, other than lodging, is less than $75. H&r block online tax filing You have a transportation expense for which a receipt is not readily available. H&r block online tax filing Adequate evidence. H&r block online tax filing   Documentary evidence ordinarily will be considered adequate if it shows the amount, date, place, and essential character of the expense. H&r block online tax filing   For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information. H&r block online tax filing The name and location of the hotel. H&r block online tax filing The dates you stayed there. H&r block online tax filing Separate amounts for charges such as lodging, meals, and telephone calls. H&r block online tax filing   A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information. H&r block online tax filing The name and location of the restaurant. H&r block online tax filing The number of people served. H&r block online tax filing The date and amount of the expense. H&r block online tax filing If a charge is made for items other than food and beverages, the receipt must show that this is the case. H&r block online tax filing Canceled check. H&r block online tax filing   A canceled check, together with a bill from the payee, ordinarily establishes the cost. H&r block online tax filing However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose. H&r block online tax filing Duplicate information. H&r block online tax filing   You do not have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner. H&r block online tax filing   You do not have to record amounts your employer pays directly for any ticket or other travel item. H&r block online tax filing However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend. H&r block online tax filing Timely-kept records. H&r block online tax filing   You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. H&r block online tax filing A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall. H&r block online tax filing   You do not need to write down the elements of every expense on the day of the expense. H&r block online tax filing If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely-kept record. H&r block online tax filing   If you give your employer, client, or customer an expense account statement, it can also be considered a timely-kept record. H&r block online tax filing This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record. H&r block online tax filing Proving business purpose. H&r block online tax filing   You must generally provide a written statement of the business purpose of an expense. H&r block online tax filing However, the degree of proof varies according to the circumstances in each case. H&r block online tax filing If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation. H&r block online tax filing Example. H&r block online tax filing If you are a sales representative who calls on customers on an established sales route, you do not have to give a written explanation of the business purpose for traveling that route. H&r block online tax filing You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. H&r block online tax filing You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence. H&r block online tax filing Confidential information. H&r block online tax filing   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. H&r block online tax filing However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. H&r block online tax filing What If I Have Incomplete Records? If you do not have complete records to prove an element of an expense, then you must prove the element with: Your own written or oral statement containing specific information about the element, and Other supporting evidence that is sufficient to establish the element. H&r block online tax filing If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. H&r block online tax filing Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. H&r block online tax filing Documentary evidence can be receipts, paid bills, or similar evidence. H&r block online tax filing If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. H&r block online tax filing For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. H&r block online tax filing Invoices of deliveries establish when you used the car for business. H&r block online tax filing Table 5-1. H&r block online tax filing How To Prove Certain Business Expenses IF you have expenses for . H&r block online tax filing . H&r block online tax filing THEN you must keep records that show details of the following elements . H&r block online tax filing . H&r block online tax filing . H&r block online tax filing   Amount Time Place or  Description Business Purpose Business Relationship Travel Cost of each separate expense for travel, lodging, and meals. H&r block online tax filing Incidental expenses may be totaled in reasonable categories such as taxis, fees and tips, etc. H&r block online tax filing Dates you left and returned for each trip and number of days spent on business. H&r block online tax filing Destination or area of your travel (name of city, town, or other designation). H&r block online tax filing Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. H&r block online tax filing    Relationship: N/A Entertainment Cost of each separate expense. H&r block online tax filing Incidental expenses such as taxis, telephones, etc. H&r block online tax filing , may be totaled on a daily basis. H&r block online tax filing Date of entertainment. H&r block online tax filing (Also see Business Purpose. H&r block online tax filing ) Name and address or location of place of entertainment. H&r block online tax filing Type of entertainment if not otherwise apparent. H&r block online tax filing (Also see Business Purpose. H&r block online tax filing ) Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. H&r block online tax filing  For entertainment, the nature of the business discussion or activity. H&r block online tax filing If the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion, and the identities of the persons who took part in both the business discussion and the entertainment activity. H&r block online tax filing    Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you. H&r block online tax filing  For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal. H&r block online tax filing Gifts Cost of the gift. H&r block online tax filing Date of the gift. H&r block online tax filing Description of the gift. H&r block online tax filing   Transportation Cost of each separate expense. H&r block online tax filing For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. H&r block online tax filing Date of the expense. H&r block online tax filing For car expenses, the date of the use of the car. H&r block online tax filing Your business destination. H&r block online tax filing Purpose: Business purpose for the expense. H&r block online tax filing    Relationship: N/A Sampling. H&r block online tax filing   You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. H&r block online tax filing You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year. H&r block online tax filing Example. H&r block online tax filing You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. H&r block online tax filing There is no other business use of the car, but you and your family use the car for personal purposes. H&r block online tax filing You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. H&r block online tax filing Invoices and bills show that your business use continues at the same rate during the later weeks of each month. H&r block online tax filing Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year. H&r block online tax filing Exceptional circumstances. H&r block online tax filing   You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you cannot get a receipt. H&r block online tax filing This applies if all the following are true. H&r block online tax filing You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records . H&r block online tax filing You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What If I Have Incomplete Records . H&r block online tax filing You have presented other evidence for the element that is the best proof possible under the circumstances. H&r block online tax filing Destroyed records. H&r block online tax filing   If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. H&r block online tax filing Reasons beyond your control include fire, flood, and other casualties. H&r block online tax filing    Table 5-2. H&r block online tax filing Daily Business Mileage and Expense Log Name:       Odometer Readings Expenses Date Destination  (City, Town, or Area) Business Purpose Start Stop Miles  this trip Type  (Gas, oil, tolls, etc. H&r block online tax filing ) Amount                                                                                                                   Weekly  Total             Total Year-to-Date             Separating and Combining Expenses This section explains when expenses must be kept separate and when expenses can be combined. H&r block online tax filing Separating expenses. H&r block online tax filing   Each separate payment is generally considered a separate expense. H&r block online tax filing For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. H&r block online tax filing You must record them separately in your records. H&r block online tax filing Season or series tickets. H&r block online tax filing   If you buy season or series tickets for business use, you must treat each ticket in the series as a separate item. H&r block online tax filing To determine the cost of individual tickets, divide the total cost (but not more than face value) by the number of games or performances in the series. H&r block online tax filing You must keep records to show whether you use each ticket as a gift or entertainment. H&r block online tax filing Also, you must be able to prove the cost of nonluxury box seat tickets if you rent a skybox or other private luxury box for more than one event. H&r block online tax filing See Entertainment tickets in chapter 2. H&r block online tax filing Combining items. H&r block online tax filing   You can make one daily entry in your record for reasonable categories of expenses. H&r block online tax filing Examples are taxi fares, telephone calls, or other incidental travel costs. H&r block online tax filing Meals should be in a separate category. H&r block online tax filing You can include tips for meal-related services with the costs of the meals. H&r block online tax filing   Expenses of a similar nature occurring during the course of a single event are considered a single expense. H&r block online tax filing For example, if during entertainment at a cocktail lounge, you pay separately for each serving of refreshments, the total expense for the refreshments is treated as a single expense. H&r block online tax filing Car expenses. H&r block online tax filing   You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. H&r block online tax filing Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use. H&r block online tax filing Example. H&r block online tax filing You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. H&r block online tax filing You can account for these using a single record of miles driven. H&r block online tax filing Gift expenses. H&r block online tax filing   You do not always have to record the name of each recipient of a gift. H&r block online tax filing A general listing will be enough if it is evident that you are not trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. H&r block online tax filing For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients. H&r block online tax filing Allocating total cost. H&r block online tax filing   If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. H&r block online tax filing To do so, you must establish the number of persons who participated in the event. H&r block online tax filing   An allocation would be needed, for example, if you did not have a business relationship with all of your guests. H&r block online tax filing See Allocating between business and nonbusiness in chapter 2. H&r block online tax filing If your return is examined. H&r block online tax filing    If your return is examined, you may have to provide additional information to the IRS. H&r block online tax filing This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed. H&r block online tax filing    THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Table 5-3. H&r block online tax filing Weekly Traveling Expense and Entertainment Record From: To: Name: Expenses Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 1. H&r block online tax filing Travel Expenses: Airlines                                 Excess Baggage                                 Bus – Train                                 Cab and Limousine                                 Tips                                 Porter                                 2. H&r block online tax filing Meals and Lodging:  Breakfast                                 Lunch                                 Dinner                                 Hotel and Motel  (Detail in Schedule B)                                 3. H&r block online tax filing Entertainment  (Detail in Schedule C)                                 4. H&r block online tax filing Other Expenses:  Postage                                 Telephone & Telegraph                                 Stationery & Printing                                 Stenographer                                 Sample Room                                 Advertising                                 Assistant(s)                                 Trade Shows                                 5. H&r block online tax filing Car Expenses: (List all car expenses - the division between business and personal expenses may be made at the end of the year. H&r block online tax filing ) (Detail mileage in Schedule A. H&r block online tax filing ) Gas, oil, lube, wash                                 Repairs, parts                                 Tires, supplies                                 Parking fees, tolls                                 6. H&r block online tax filing Other (Identify)                                 Total                                 Note: Attach receipted bills for (1) ALL lodging and (2) any other expenses of $75. H&r block online tax filing 00 or more. H&r block online tax filing Schedule A – Car Mileage: End                 Start                 Total                 Business Mileage                 Schedule B – Lodging Hotel or Motel Name                 City                 Schedule C – Entertainment Date Item Place Amount Business Purpose Business Relationship                                             WEEKLY REIMBURSEMENTS:     Travel and transportation expenses     Other reimbursements     TOTAL   How Long To Keep Records and Receipts You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. H&r block online tax filing Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. H&r block online tax filing A return filed early is considered filed on the due date. H&r block online tax filing For a more complete explanation of how long to keep records, see Publication 583, Starting a Business and Keeping Records. H&r block online tax filing You must keep records of the business use of your car for each year of the recovery period. H&r block online tax filing See More-than-50%-use test in chapter 4 under Depreciation Deduction. H&r block online tax filing Reimbursed for expenses. H&r block online tax filing   Employees who give their records and documentation to their employers and are reimbursed for their expenses generally do not have to keep copies of this information. H&r block online tax filing However, you may have to prove your expenses if any of the following conditions apply. H&r block online tax filing You claim deductions for expenses that are more than reimbursements. H&r block online tax filing Your expenses are reimbursed under a nonaccountable plan. H&r block online tax filing Your employer does not use adequate accounting procedures to verify expense accounts. H&r block online tax filing You are related to your employer as defined under Per Diem and Car Allowances , in chapter 6. H&r block online tax filing Reimbursements , adequate accounting , and nonaccountable plans are discussed in chapter 6. H&r block online tax filing Examples of Records Table 5-2 and Table 5-3 are examples of worksheets which can be used for tracking business expenses. H&r block online tax filing Prev  Up  Next   Home   More Online Publications
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IRS Non-Retaliation Policy

Section 1203 of the IRS Restructuring and Reform Act of 1998 (RRA ’98), created a statutory provision requiring termination of IRS employment for misconduct.  Section 1203(a) provides that the Commissioner of the Internal Revenue shall terminate the employment of any employee of the Internal Revenue Service if there is a final administrative or judicial determination that such employee committed any act or omission described under subsection (b) in the performance of the employee’s official duties. One of the acts described in subsection (b) is retaliation.

Section 1203 (b)(6) provides that:

Violations of the Internal Revenue Code of 1986, Department of Treasury regulations, or policies of the Internal Revenue Service (including the Internal Revenue Manual) for the purpose of retaliating against, or harassing, a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service.

is an act or omission requiring termination.

IRM Section 6.751.1.1 addresses administrative disciplinary matters.  Exhibit 6.751.1-1 is the Internal Revenue Service Guide for Penalty Determinations. Violations of RRA ’98, Section 1203 (b)(6) is included  in the Guide for Penalty Determinations.  This Exhibit shows that the penalty for a First Offense for an RRA ‘98 1203 (b)(6) offense is removal.

Page Last Reviewed or Updated: 05-Nov-2013

The H&r Block Online Tax Filing

H&r block online tax filing Internal Revenue Bulletin:  2013-12  March 18, 2013  Rev. H&r block online tax filing Proc. H&r block online tax filing 2013-21 Table of Contents SECTION 1. H&r block online tax filing PURPOSE SECTION 2. H&r block online tax filing BACKGROUND SECTION 3. H&r block online tax filing SCOPE SECTION 4. H&r block online tax filing APPLICATION. H&r block online tax filing 01 Limitations on Depreciation Deductions for Certain Automobiles. H&r block online tax filing . H&r block online tax filing 02 Inclusions in Income of Lessees of Passenger Automobiles. H&r block online tax filing SECTION 5. H&r block online tax filing EFFECTIVE DATE SECTION 6. H&r block online tax filing DRAFTING INFORMATION SECTION 1. H&r block online tax filing PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. H&r block online tax filing The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. H&r block online tax filing SECTION 2. H&r block online tax filing BACKGROUND . H&r block online tax filing 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. H&r block online tax filing For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. H&r block online tax filing The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. H&r block online tax filing This change reflects the higher rate of price inflation for trucks and vans since 1988. H&r block online tax filing . H&r block online tax filing 02 Section 331(a) of the American Taxpayer Relief Act of 2012, Pub. H&r block online tax filing L. H&r block online tax filing No. H&r block online tax filing 112-240, 126 Stat. H&r block online tax filing 2313 (Jan. H&r block online tax filing 2, 2013) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2014, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2014. H&r block online tax filing Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. H&r block online tax filing . H&r block online tax filing 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). H&r block online tax filing Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. H&r block online tax filing Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2012, that is round 3 extension property (as defined in § 168(k)(4)(J)(iv)). H&r block online tax filing Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. H&r block online tax filing This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer: (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2013 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. H&r block online tax filing . H&r block online tax filing 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. H&r block online tax filing The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. H&r block online tax filing Under § 1. H&r block online tax filing 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. H&r block online tax filing One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. H&r block online tax filing Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. H&r block online tax filing SECTION 3. H&r block online tax filing SCOPE . H&r block online tax filing 01 The limitations on depreciation deductions in section 4. H&r block online tax filing 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2013, and continue to apply for each taxable year that the passenger automobile remains in service. H&r block online tax filing . H&r block online tax filing 02 The tables in section 4. H&r block online tax filing 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2013. H&r block online tax filing Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. H&r block online tax filing See Rev. H&r block online tax filing Proc. H&r block online tax filing 2008-22, 2008-1 C. H&r block online tax filing B. H&r block online tax filing 658, for passenger automobiles first leased during calendar year 2008; Rev. H&r block online tax filing Proc. H&r block online tax filing 2009-24, 2009-17 I. H&r block online tax filing R. H&r block online tax filing B. H&r block online tax filing 885, for passenger automobiles first leased during calendar year 2009; Rev. H&r block online tax filing Proc. H&r block online tax filing 2010-18, 2010-09 I. H&r block online tax filing R. H&r block online tax filing B. H&r block online tax filing 427, as amplified and modified by section 4. H&r block online tax filing 03 of Rev. H&r block online tax filing Proc. H&r block online tax filing 2011-21, 2011-12 I. H&r block online tax filing R. H&r block online tax filing B. H&r block online tax filing 560, for passenger automobiles first leased during calendar year 2010; Rev. H&r block online tax filing Proc. H&r block online tax filing 2011-21, for passenger automobiles first leased during calendar year 2011; and Rev. H&r block online tax filing Proc. H&r block online tax filing 2012-23, 2012-14 I. H&r block online tax filing R. H&r block online tax filing B. H&r block online tax filing 712, for passenger automobiles first leased during calendar year 2012. H&r block online tax filing SECTION 4. H&r block online tax filing APPLICATION . H&r block online tax filing 01 Limitations on Depreciation Deductions for Certain Automobiles. H&r block online tax filing (1) Amount of the inflation adjustment. H&r block online tax filing (a) Passenger automobiles (other than trucks or vans). H&r block online tax filing Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. H&r block online tax filing Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. H&r block online tax filing The new car component of the CPI was 115. H&r block online tax filing 2 for October 1987 and 143. H&r block online tax filing 787 for October 2012. H&r block online tax filing The October 2012 index exceeded the October 1987 index by 28. H&r block online tax filing 587. H&r block online tax filing Therefore, the automobile price inflation adjustment for 2013 for passenger automobiles (other than trucks and vans) is 24. H&r block online tax filing 8 percent (28. H&r block online tax filing 587/115. H&r block online tax filing 2 x 100%). H&r block online tax filing The dollar limitations in § 280F(a) are multiplied by a factor of 0. H&r block online tax filing 248, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2013. H&r block online tax filing This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2013. H&r block online tax filing (b) Trucks and vans. H&r block online tax filing To determine the dollar limitations for trucks and vans first placed in service during calendar year 2013, the Service uses the new truck component of the CPI instead of the new car component. H&r block online tax filing The new truck component of the CPI was 112. H&r block online tax filing 4 for October 1987 and 149. H&r block online tax filing 386 for October 2012. H&r block online tax filing The October 2012 index exceeded the October 1987 index by 36. H&r block online tax filing 986. H&r block online tax filing Therefore, the automobile price inflation adjustment for 2013 for trucks and vans is 32. H&r block online tax filing 9 percent (36. H&r block online tax filing 986/112. H&r block online tax filing 4 x 100%). H&r block online tax filing The dollar limitations in § 280F(a) are multiplied by a factor of 0. H&r block online tax filing 329, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. H&r block online tax filing This adjustment applies to all trucks and vans that are first placed in service in calendar year 2013. H&r block online tax filing (2) Amount of the limitation. H&r block online tax filing Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2013. H&r block online tax filing Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction applies. H&r block online tax filing Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction does not apply. H&r block online tax filing REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 . H&r block online tax filing 02 Inclusions in Income of Lessees of Passenger Automobiles. H&r block online tax filing A taxpayer must follow the procedures in § 1. H&r block online tax filing 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2013. H&r block online tax filing In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. H&r block online tax filing REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 2 4 6 7 8 19,500 20,000 2 5 6 9 9 20,000 20,500 2 5 8 9 11 20,500 21,000 3 6 8 10 12 21,000 21,500 3 6 10 11 13 21,500 22,000 3 7 10 13 14 22,000 23,000 4 8 11 14 16 23,000 24,000 4 9 14 16 18 24,000 25,000 5 10 15 18 21 25,000 26,000 5 12 16 21 23 26,000 27,000 6 12 19 23 25 27,000 28,000 6 14 20 25 28 28,000 29,000 7 15 22 27 30 29,000 30,000 7 16 24 29 33 30,000 31,000 8 17 26 31 35 31,000 32,000 8 19 27 33 38 32,000 33,000 9 20 29 35 40 33,000 34,000 10 21 31 37 43 34,000 35,000 10 22 33 39 45 35,000 36,000 11 23 35 41 48 36,000 37,000 11 25 36 43 50 37,000 38,000 12 26 38 45 53 38,000 39,000 12 27 40 47 55 39,000 40,000 13 28 42 49 58 40,000 41,000 13 29 44 52 59 41,000 42,000 14 30 45 54 63 42,000 43,000 14 32 47 56 64 43,000 44,000 15 33 48 59 67 44,000 45,000 15 34 51 60 69 45,000 46,000 16 35 52 63 72 46,000 47,000 17 36 54 65 74 47,000 48,000 17 38 55 67 77 48,000 49,000 18 39 57 69 79 49,000 50,000 18 40 59 71 82 50,000 51,000 19 41 61 73 84 51,000 52,000 19 42 63 75 87 52,000 53,000 20 43 65 77 89 53,000 54,000 20 45 66 79 92 54,000 55,000 21 46 68 81 94 55,000 56,000 21 47 70 84 96 56,000 57,000 22 48 72 85 99 57,000 58,000 22 50 73 88 101 58,000 59,000 23 51 75 90 103 59,000 60,000 24 52 76 92 106 60,000 62,000 24 54 79 95 110 62,000 64,000 25 56 83 99 115 64,000 66,000 27 58 87 103 120 66,000 68,000 28 60 90 108 125 68,000 70,000 29 63 93 112 130 70,000 72,000 30 65 97 117 134 72,000 74,000 31 68 100 121 139 74,000 76,000 32 70 104 125 144 76,000 78,000 33 73 107 129 149 78,000 80,000 34 75 111 133 154 80,000 85,000 36 79 117 141 162 85,000 90,000 39 85 126 151 174 90,000 95,000 41 91 135 162 186 95,000 100,000 44 97 144 172 199 100,000 110,000 48 106 157 188 217 110,000 120,000 53 118 174 210 241 120,000 130,000 59 129 193 230 266 130,000 140,000 64 141 210 252 290 140,000 150,000 70 153 227 273 315 150,000 160,000 75 165 245 294 339 160,000 170,000 80 177 263 315 363 170,000 180,000 86 189 280 336 388 180,000 190,000 91 201 298 357 412 190,000 200,000 97 212 316 378 436 200,000 210,000 102 224 333 400 461 210,000 220,000 107 236 351 420 486 220,000 230,000 113 248 368 442 509 230,000 240,000 118 260 386 463 534 240,000 And up 124 272 403 484 558 REV. H&r block online tax filing PROC. H&r block online tax filing 2013-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 1 3 4 5 6 19,500 20,000 2 3 5 6 7 20,000 20,500 2 4 6 7 8 20,500 21,000 2 5 7 8 9 21,000 21,500 2 5 8 9 11 21,500 22,000 3 6 8 10 12 22,000 23,000 3 7 10 11 14 23,000 24,000 4 8 11 14 16 24,000 25,000 4 9 14 16 18 25,000 26,000 5 10 15 18 21 26,000 27,000 5 12 17 20 23 27,000 28,000 6 13 18 23 25 28,000 29,000 6 14 20 25 28 29,000 30,000 7 15 22 27 30 30,000 31,000 7 16 24 29 33 31,000 32,000 8 17 26 31 35 32,000 33,000 8 19 27 33 38 33,000 34,000 9 20 29 35 41 34,000 35,000 10 21 31 37 43 35,000 36,000 10 22 33 39 46 36,000 37,000 11 23 35 41 48 37,000 38,000 11 25 36 43 51 38,000 39,000 12 26 38 45 53 39,000 40,000 12 27 40 48 55 40,000 41,000 13 28 42 49 58 41,000 42,000 13 29 44 52 60 42,000 43,000 14 30 46 54 62 43,000 44,000 14 32 47 56 65 44,000 45,000 15 33 48 59 67 45,000 46,000 15 34 51 60 70 46,000 47,000 16 35 52 63 72 47,000 48,000 17 36 54 65 74 48,000 49,000 17 38 55 67 77 49,000 50,000 18 39 57 69 79 50,000 51,000 18 40 59 71 82 51,000 52,000 19 41 61 73 84 52,000 53,000 19 42 63 75 87 53,000 54,000 20 43 65 77 89 54,000 55,000 20 45 66 80 91 55,000 56,000 21 46 68 81 94 56,000 57,000 21 47 70 84 96 57,000 58,000 22 48 72 86 98 58,000 59,000 22 50 73 88 101 59,000 60,000 23 51 75 90 103 60,000 62,000 24 52 78 93 108 62,000 64,000 25 55 81 97 113 64,000 66,000 26 57 85 101 118 66,000 68,000 27 60 88 106 122 68,000 70,000 28 62 92 110 127 70,000 72,000 29 64 96 114 132 72,000 74,000 30 67 99 118 137 74,000 76,000 31 69 103 122 142 76,000 78,000 32 72 105 127 147 78,000 80,000 34 73 110 131 151 80,000 85,000 35 78 116 138 160 85,000 90,000 38 84 124 149 172 90,000 95,000 41 90 133 160 184 95,000 100,000 44 95 142 171 196 100,000 110,000 48 104 156 186 214 110,000 120,000 53 116 173 207 240 120,000 130,000 58 128 191 228 264 130,000 140,000 64 140 208 249 288 140,000 150,000 69 152 226 270 313 150,000 160,000 75 164 243 292 336 160,000 170,000 80 176 261 312 361 170,000 180,000 85 188 278 334 386 180,000 190,000 91 199 296 355 410 190,000 200,000 96 211 314 376 434 200,000 210,000 101 223 332 397 459 210,000 220,000 107 235 349 418 483 220,000 230,000 112 247 367 439 507 230,000 240,000 118 259 384 460 532 240,000 And up 123 271 401 482 556 SECTION 5. H&r block online tax filing EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2013. H&r block online tax filing SECTION 6. H&r block online tax filing DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. H&r block online tax filing Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). H&r block online tax filing For further information regarding this revenue procedure, contact Mr. H&r block online tax filing Harvey at (202) 622-4930 (not a toll-free call). H&r block online tax filing Prev  Up  Next   Home   More Internal Revenue Bulletins