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I Need To File My 2011 Federal Taxes

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I Need To File My 2011 Federal Taxes

I need to file my 2011 federal taxes Index A Assistance (see Tax help) B Base amount, Base amount. I need to file my 2011 federal taxes C Canadian social security benefits, Canadian or German social security benefits paid to U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes residents. I need to file my 2011 federal taxes Children's benefits, Children's benefits. I need to file my 2011 federal taxes Comments on publication, Comments and suggestions. I need to file my 2011 federal taxes D Deductions related to benefits, Deductions Related to Your Benefits $3,000 or less, Deduction $3,000 or less. I need to file my 2011 federal taxes $3,000. I need to file my 2011 federal taxes 01 or more, Deduction more than $3,000. I need to file my 2011 federal taxes Disability benefits repaid, Disability payments. I need to file my 2011 federal taxes E Estimated tax, Tax withholding and estimated tax. I need to file my 2011 federal taxes F Form 1040, Reporting on Form 1040. I need to file my 2011 federal taxes Form 1040A, Reporting on Form 1040A. I need to file my 2011 federal taxes Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form RRB-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. I need to file my 2011 federal taxes , Form RRB-1099, Payments by the Railroad Retirement Board 2013 Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Form SSA-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. I need to file my 2011 federal taxes , Appendix Form W-4V, Tax withholding and estimated tax. I need to file my 2011 federal taxes Free tax services, Free help with your tax return. I need to file my 2011 federal taxes Future developments Product page, Reminders G German social security benefits, Canadian or German social security benefits paid to U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes residents. I need to file my 2011 federal taxes H Help (see Tax help) J Joint returns, Joint return. I need to file my 2011 federal taxes L Legal expenses, Legal expenses. I need to file my 2011 federal taxes Lump-sum election, Lump-Sum Election Example, Example M Missing children, photographs of, Reminders N Nonresident aliens, Nonresident aliens. I need to file my 2011 federal taxes Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Nontaxable benefits, Benefits not taxable. I need to file my 2011 federal taxes P Permanent resident aliens, Lawful permanent residents. I need to file my 2011 federal taxes Publications (see Tax help) R Railroad retirement benefits, Introduction Repayments Benefits received in earlier year, Repayment of benefits. I need to file my 2011 federal taxes , Repayment of benefits received in an earlier year. I need to file my 2011 federal taxes Disability benefits, Disability payments. I need to file my 2011 federal taxes Gross benefits, Repayment of benefits. I need to file my 2011 federal taxes , Repayments More Than Gross Benefits Reporting requirements, How To Report Your Benefits Lump-sum payment, Lump-sum payment reported on Form SSA-1099 or RRB-1099. I need to file my 2011 federal taxes S Social Security benefits, Introduction Suggestions for publication, Comments and suggestions. I need to file my 2011 federal taxes T Tax help, How To Get Tax Help Taxable benefits Determination of, Are Any of Your Benefits Taxable?, How Much Is Taxable? Maximum taxable part, Maximum taxable part. I need to file my 2011 federal taxes Person receiving benefits determines, Who is taxed. I need to file my 2011 federal taxes Worksheets, Worksheet A. I need to file my 2011 federal taxes Examples, Examples, Worksheets Which to use, Which worksheet to use. I need to file my 2011 federal taxes Total income, figuring, Figuring total income. I need to file my 2011 federal taxes TTY/TDD information, How To Get Tax Help U U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes citizens residing abroad, U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes citizens residing abroad. I need to file my 2011 federal taxes U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes residents Canadian or German social security benefits paid to, Canadian or German social security benefits paid to U. I need to file my 2011 federal taxes S. I need to file my 2011 federal taxes residents. I need to file my 2011 federal taxes W Withholding, Tax withholding and estimated tax. I need to file my 2011 federal taxes Exemption from, Exemption from withholding. I need to file my 2011 federal taxes Form W-4V, Tax withholding and estimated tax. I need to file my 2011 federal taxes Voluntary, Tax withholding and estimated tax. I need to file my 2011 federal taxes Worksheets Taxable benefits Blank Worksheet 1, Worksheets Filled-in Worksheet 1, Filled-in Worksheet 1. I need to file my 2011 federal taxes Figuring Your Taxable Benefits, Filled-in Worksheet 1. I need to file my 2011 federal taxes Figuring Your Taxable Benefits, Filled-in Worksheet 1. I need to file my 2011 federal taxes Figuring Your Taxable Benefits, Filled-in Worksheet 1. I need to file my 2011 federal taxes Figuring Your Taxable Benefits Quick calculation, sample, Worksheet A. I need to file my 2011 federal taxes Prev  Up     Home   More Online Publications
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The I Need To File My 2011 Federal Taxes

I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Publication 946, How To Depreciate Property, contains information on depreciation. I need to file my 2011 federal taxes However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. I need to file my 2011 federal taxes The new provisions are in the Supplement to Publication 946, which is reprinted below. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes The new law made several changes in the tax rules explained in the publication. I need to file my 2011 federal taxes Some of the changes apply to property placed in service during 2001. I need to file my 2011 federal taxes This supplemental publication describes those changes and explains what you should do if you are affected by them. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes The new law contains the following provisions. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. I need to file my 2011 federal taxes A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. I need to file my 2011 federal taxes An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. I need to file my 2011 federal taxes The allowance is an additional deduction of 30% of the property's depreciable basis. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. I need to file my 2011 federal taxes The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. I need to file my 2011 federal taxes There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Example 1. I need to file my 2011 federal taxes On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. I need to file my 2011 federal taxes You did not elect to claim a section 179 deduction. I need to file my 2011 federal taxes You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. I need to file my 2011 federal taxes You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. I need to file my 2011 federal taxes Example 2. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). I need to file my 2011 federal taxes You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. I need to file my 2011 federal taxes Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. I need to file my 2011 federal taxes It is new property of one of the following types. I need to file my 2011 federal taxes Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. I need to file my 2011 federal taxes See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. I need to file my 2011 federal taxes Water utility property. I need to file my 2011 federal taxes See 25-year property on page 22 in Publication 946. I need to file my 2011 federal taxes Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. I need to file my 2011 federal taxes (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. I need to file my 2011 federal taxes ) Qualified leasehold improvement property (defined later). I need to file my 2011 federal taxes It meets the following tests (explained later under Tests To Be Met). I need to file my 2011 federal taxes Acquisition date test. I need to file my 2011 federal taxes Placed in service date test. I need to file my 2011 federal taxes Original use test. I need to file my 2011 federal taxes It is not excepted property (explained later under Excepted Property). I need to file my 2011 federal taxes Qualified leasehold improvement property. I need to file my 2011 federal taxes    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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. I need to file my 2011 federal taxes The improvement is placed in service more than 3 years after the date the building was first placed in service. I need to file my 2011 federal taxes   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. I need to file my 2011 federal taxes The enlargement of the building. I need to file my 2011 federal taxes Any elevator or escalator. I need to file my 2011 federal taxes Any structural component benefiting a common area. I need to file my 2011 federal taxes The internal structural framework of the building. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes However, a binding commitment between related persons is not treated as a lease. I need to file my 2011 federal taxes Related persons. I need to file my 2011 federal taxes   For this purpose, the following are related persons. I need to file my 2011 federal taxes Members of an affiliated group. I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes An executor and a beneficiary of the same estate. I need to file my 2011 federal taxes Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. I need to file my 2011 federal taxes Acquisition date test. I need to file my 2011 federal taxes    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. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Placed in service date test. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Original use test. I need to file my 2011 federal taxes   The original use of the property must have begun with you after September 10, 2001. I need to file my 2011 federal taxes “Original use” means the first use to which the property is put, whether or not by you. I need to file my 2011 federal taxes Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. I need to file my 2011 federal taxes Excepted Property The following property does not qualify for the special depreciation allowance. I need to file my 2011 federal taxes Property used by any person before September 11, 2001. I need to file my 2011 federal taxes Property required to be depreciated using ADS. I need to file my 2011 federal taxes This includes listed property used 50% or less in a qualified business use. I need to file my 2011 federal taxes Qualified New York Liberty Zone leasehold improvement property (defined next). I need to file my 2011 federal taxes Qualified New York Liberty Zone leasehold improvement property. I need to file my 2011 federal taxes   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. I need to file my 2011 federal taxes The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). I need to file my 2011 federal taxes The improvement is placed in service after September 10, 2001, and before January 1, 2007. I need to file my 2011 federal taxes No written binding contract for the improvement was in effect before September 11, 2001. I need to file my 2011 federal taxes Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. I need to file my 2011 federal taxes If you make this election for any property, it applies to all property in the same property class placed in service during the year. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes When to make election. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes   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). I need to file my 2011 federal taxes Attach the election statement to the amended return. I need to file my 2011 federal taxes At the top of the election statement, write “Filed pursuant to section 301. I need to file my 2011 federal taxes 9100–2. I need to file my 2011 federal taxes ” Revoking an election. I need to file my 2011 federal taxes   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. I need to file my 2011 federal taxes A request to revoke the election is subject to a user fee. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes The rules apply to returns for the following years. I need to file my 2011 federal taxes 2000 fiscal years that end after September 10, 2001. I need to file my 2011 federal taxes 2001 calendar and fiscal years. I need to file my 2011 federal taxes Claiming the allowance. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Write “Filed Pursuant to Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33” at the top of the amended return. I need to file my 2011 federal taxes File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. I need to file my 2011 federal taxes Your return must be filed by the due date (including extensions). I need to file my 2011 federal taxes Write “Automatic Change Filed Under Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33” on the appropriate line of Form 3115. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Example 1. I need to file my 2011 federal taxes You are an individual and you use the calendar year. I need to file my 2011 federal taxes You placed qualified property in service for your business in December 2001. I need to file my 2011 federal taxes You filed your 2001 income tax return before April 15, 2002. I need to file my 2011 federal taxes You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. I need to file my 2011 federal taxes You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33” at the top of the amended return. I need to file my 2011 federal taxes You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. I need to file my 2011 federal taxes Example 2. I need to file my 2011 federal taxes The facts concerning your 2001 return are the same as in Example 1. I need to file my 2011 federal taxes In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. I need to file my 2011 federal taxes You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. I need to file my 2011 federal taxes You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. I need to file my 2011 federal taxes Electing not to claim the allowance. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. I need to file my 2011 federal taxes The statement can be either attached to or written on the return. I need to file my 2011 federal taxes You can, for example, write “not deducting 30%” on Form 4562. I need to file my 2011 federal taxes Deemed election. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes You will be treated as making the election if you meet both of the following conditions. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. I need to file my 2011 federal taxes See Claiming the allowance, earlier. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Generally, the limit is increased from $3,060 to $7,660. I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes Table 1 shows the maximum deduction amounts for 2001. I need to file my 2011 federal taxes Table 1. I need to file my 2011 federal taxes Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. I need to file my 2011 federal taxes 11 Placed in Service After Sept. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Election not to claim the allowance. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Area defined. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes The allowance is an additional deduction of 30% of the property's depreciable basis. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. I need to file my 2011 federal taxes The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. I need to file my 2011 federal taxes There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Qualified property is eligible for only one special depreciation allowance. I need to file my 2011 federal taxes Example 1. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes You did not elect to claim a section 179 deduction. I need to file my 2011 federal taxes You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. I need to file my 2011 federal taxes You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. I need to file my 2011 federal taxes Example 2. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). I need to file my 2011 federal taxes You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). I need to file my 2011 federal taxes You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes It is one of the following types of property. I need to file my 2011 federal taxes Used property depreciated under MACRS with a recovery period of 20 years or less. I need to file my 2011 federal taxes See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. I need to file my 2011 federal taxes Used water utility property. I need to file my 2011 federal taxes See 25-year property on page 22 in Publication 946. I need to file my 2011 federal taxes Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. I need to file my 2011 federal taxes (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. I need to file my 2011 federal taxes ) Certain nonresidential real property and residential rental property (defined later). I need to file my 2011 federal taxes It meets the following tests (explained later under Tests to be met). I need to file my 2011 federal taxes Acquisition date test. I need to file my 2011 federal taxes Placed in service date test. I need to file my 2011 federal taxes Substantial use test. I need to file my 2011 federal taxes Original use test. I need to file my 2011 federal taxes It is not excepted property (explained later under Excepted property). I need to file my 2011 federal taxes Nonresidential real property and residential rental property. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Otherwise, the property is considered damaged real property. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Tests to be met. I need to file my 2011 federal taxes   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. I need to file my 2011 federal taxes Acquisition date test. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Placed in service date test. I need to file my 2011 federal taxes   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). I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Substantial use test. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Original use test. I need to file my 2011 federal taxes   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. I need to file my 2011 federal taxes   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Excepted property. I need to file my 2011 federal taxes   The following property does not qualify for the special Liberty Zone depreciation allowance. I need to file my 2011 federal taxes Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. I need to file my 2011 federal taxes Property required to be depreciated using ADS. I need to file my 2011 federal taxes This includes listed property used 50% or less in a qualified business use. I need to file my 2011 federal taxes Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). I need to file my 2011 federal taxes Example. I need to file my 2011 federal taxes In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. I need to file my 2011 federal taxes New office furniture with a MACRS recovery period of 7 years. I need to file my 2011 federal taxes A used computer with a MACRS recovery period of 5 years. I need to file my 2011 federal taxes The computer had not previously been used within the Liberty Zone. I need to file my 2011 federal taxes Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. I need to file my 2011 federal taxes If you make this election for any property, it applies to all property in the same property class placed in service during the year. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes When to make the election. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes   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). I need to file my 2011 federal taxes Attach the election statement to the amended return. I need to file my 2011 federal taxes At the top of the election statement, write “Filed pursuant to section 301. I need to file my 2011 federal taxes 9100–2. I need to file my 2011 federal taxes ” Revoking an election. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes A request to revoke the election is subject to a user fee. I need to file my 2011 federal taxes Returns filed before June 1, 2002. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes For tax years beginning in 2000, that limit was $20,000. I need to file my 2011 federal taxes For tax years beginning in 2001 and 2002, that limit is generally $24,000. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. I need to file my 2011 federal taxes The increase is the smaller of the following amounts. I need to file my 2011 federal taxes $35,000. I need to file my 2011 federal taxes The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Qualified property. I need to file my 2011 federal taxes   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. I need to file my 2011 federal taxes Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. I need to file my 2011 federal taxes Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Example 1. I need to file my 2011 federal taxes In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes Example 2. I need to file my 2011 federal taxes In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Example. I need to file my 2011 federal taxes In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. I need to file my 2011 federal taxes Your increased dollar limit is $59,000 ($35,000 + $24,000). I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes This rule applies to returns for the following years. I need to file my 2011 federal taxes 2000 fiscal years that end after September 10, 2001. I need to file my 2011 federal taxes 2001 calendar and fiscal years. I need to file my 2011 federal taxes On the amended return, write “Filed Pursuant to Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33. I need to file my 2011 federal taxes ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. I need to file my 2011 federal taxes This means that it is depreciated over a recovery period of 5 years. I need to file my 2011 federal taxes For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. I need to file my 2011 federal taxes The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. I need to file my 2011 federal taxes Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). I need to file my 2011 federal taxes Your 2001 calendar or fiscal year return. I need to file my 2011 federal taxes On the amended return, write “Filed Pursuant to Rev. I need to file my 2011 federal taxes Proc. I need to file my 2011 federal taxes 2002–33. I need to file my 2011 federal taxes ” Table 2. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes See the text for definitions and examples. I need to file my 2011 federal taxes Do not rely on this chart alone. I need to file my 2011 federal taxes IF you want to. I need to file my 2011 federal taxes . I need to file my 2011 federal taxes . I need to file my 2011 federal taxes THEN you. I need to file my 2011 federal taxes . I need to file my 2011 federal taxes . I need to file my 2011 federal taxes BY. I need to file my 2011 federal taxes . I need to file my 2011 federal taxes . I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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). I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 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. I need to file my 2011 federal taxes 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. I need to file my 2011 federal taxes Prev  Up  Next   Home   More Online Publications