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Irs 2011 Tax Forms

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Irs 2011 Tax Forms

Irs 2011 tax forms Index , Hardest Hit Fund and Emergency Homeowners' Loan Programs. Irs 2011 tax forms , Form 1098. Irs 2011 tax forms , How To Report, Form 1098. Irs 2011 tax forms A Acquisition debt, Fully deductible interest. Irs 2011 tax forms , Home Acquisition Debt, Part of home not a qualified home. Irs 2011 tax forms Alimony, Divorced or separated individuals. Irs 2011 tax forms Amortization Points, General Rule Appraisal fees, Amounts charged for services. Irs 2011 tax forms Armed forces Housing allowance, Ministers' and military housing allowance. Irs 2011 tax forms Assistance (see Tax help) Average mortgage balance, Average Mortgage Balance B Borrowers More than one, More than one borrower. Irs 2011 tax forms Seller-paid points, treatment by buyer, Treatment by buyer. Irs 2011 tax forms Business Average mortgage balance, total amount of interest otherwise allowable to each activity, Line 13 Mortgage proceeds used for, Mortgage proceeds used for business or investment. Irs 2011 tax forms C Clergy Ministers' and military housing allowance, Ministers' and military housing allowance. Irs 2011 tax forms Cooperative housing, Cooperative apartment owner. Irs 2011 tax forms , Cooperative apartment owner. Irs 2011 tax forms , Special Rule for Tenant-Stockholders in Cooperative Housing Corporations, Form 1098. Irs 2011 tax forms Cost of home or improvements, Cost of home or improvements. Irs 2011 tax forms Credits, Mortgage interest credit. Irs 2011 tax forms D Date of mortgage, Date of the mortgage. Irs 2011 tax forms Debt Choice to treat as not secured by home, Choice to treat the debt as not secured by your home. Irs 2011 tax forms Grandfathered, Fully deductible interest. Irs 2011 tax forms , Grandfathered Debt, Line-of-credit mortgage. Irs 2011 tax forms Home acquisition, Fully deductible interest. Irs 2011 tax forms , Home Acquisition Debt Home equity, Fully deductible interest. Irs 2011 tax forms , Home Equity Debt Home equity only (Table 1), Home equity debt only. Irs 2011 tax forms Not secured by home, Debt not secured by home. Irs 2011 tax forms Secured, Secured Debt Deductions, Part I. Irs 2011 tax forms Home Mortgage Interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Irs 2011 tax forms Home office, Office in home. Irs 2011 tax forms Mortgage insurance premiums, Claiming your deductible mortgage insurance premiums. Irs 2011 tax forms Points, General Rule, Claiming your deductible points. Irs 2011 tax forms Deed preparation costs, Amounts charged for services. Irs 2011 tax forms Divorced taxpayers, Divorced or separated individuals. Irs 2011 tax forms , Acquiring an interest in a home because of a divorce. Irs 2011 tax forms E Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Irs 2011 tax forms Equity debt, Fully deductible interest. Irs 2011 tax forms , Home Equity Debt, Fair market value (FMV). Irs 2011 tax forms Equity debt only (Table 1), Home equity debt only. Irs 2011 tax forms F Fair market value (FMV), Fair market value (FMV). Irs 2011 tax forms Fees Appraisal, Amounts charged for services. Irs 2011 tax forms Notaries, Amounts charged for services. Irs 2011 tax forms Points (see Points) Figures (see Tables and figures) Form 1040, Schedule A, How To Report, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Form 1040, Schedule C or C-EZ, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Form 1040, Schedule E, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Form 1040, Schedule F, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Form 1098, Form 1098, Mortgage Interest Statement Mortgage insurance premiums, Form 1098. Irs 2011 tax forms Form 8396, Mortgage interest credit. Irs 2011 tax forms Free tax services, Free help with your tax return. Irs 2011 tax forms G Grandfathered debt, Fully deductible interest. Irs 2011 tax forms , Grandfathered Debt, Line-of-credit mortgage. Irs 2011 tax forms Ground rents, Redeemable ground rents. Irs 2011 tax forms H Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Irs 2011 tax forms Help (see Tax help) Home, Publication 936 - Introductory Material Acquisition debt, Fully deductible interest. Irs 2011 tax forms , Home Acquisition Debt Construction, Home under construction. Irs 2011 tax forms Cost of, Cost of home or improvements. Irs 2011 tax forms Destroyed, Home destroyed. Irs 2011 tax forms Divided use, Divided use of your home. Irs 2011 tax forms , Part of home not a qualified home. Irs 2011 tax forms , Part of home not a qualified home. Irs 2011 tax forms Equity debt, Fully deductible interest. Irs 2011 tax forms , Home Equity Debt Equity debt only (Table 1), Home equity debt only. Irs 2011 tax forms Fair market value, Fair market value (FMV). Irs 2011 tax forms Grandfathered debt, Fully deductible interest. Irs 2011 tax forms , Grandfathered Debt, Line-of-credit mortgage. Irs 2011 tax forms Improvement loan, points, Home improvement loan. Irs 2011 tax forms Main, Main home. Irs 2011 tax forms Office in, Office in home. Irs 2011 tax forms Qualified, Qualified Home Renting out part of, Renting out part of home. Irs 2011 tax forms Sale of, Sale of home. Irs 2011 tax forms Second, Second home. Irs 2011 tax forms Time-sharing arrangements, Time-sharing arrangements. Irs 2011 tax forms Housing allowance Ministers and military, Ministers' and military housing allowance. Irs 2011 tax forms I Improvements Cost of, Cost of home or improvements. Irs 2011 tax forms Home acquisition debt, Mortgage treated as used to buy, build, or improve home. Irs 2011 tax forms Points, Home improvement loan. Irs 2011 tax forms Substantial, Substantial improvement. Irs 2011 tax forms Interest, Part I. Irs 2011 tax forms Home Mortgage Interest (see also Mortgage interest) Interest rate method, Interest paid divided by interest rate method. Irs 2011 tax forms Refunded, Refunds of interest. Irs 2011 tax forms , Refunded interest. Irs 2011 tax forms Where to deduct, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Investments Average mortgage balance and total amount of interest allowable, Line 13 Mortgage proceeds used for, Mortgage proceeds invested in tax-exempt securities. Irs 2011 tax forms , Mortgage proceeds used for business or investment. Irs 2011 tax forms J Joint returns, Married taxpayers. Irs 2011 tax forms L Lender mortgage statements, Statements provided by your lender. Irs 2011 tax forms Limits Cooperative housing, mortgage interest deduction, Limits on deduction. Irs 2011 tax forms Deductibility of mortgage insurance premiums, Limit on deduction. Irs 2011 tax forms Deductibility of points, Limits on deduction. Irs 2011 tax forms Home acquisition debt, Home acquisition debt limit. Irs 2011 tax forms Home equity debt, Home equity debt limit. Irs 2011 tax forms Home mortgage interest deduction, Form 1098. Irs 2011 tax forms Qualified loan limit, Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms , Average Mortgage Balance Line-of-credit mortgage, Line-of-credit mortgage. Irs 2011 tax forms Loans, Mortgage proceeds used for business or investment. Irs 2011 tax forms , Mortgage treated as used to buy, build, or improve home. Irs 2011 tax forms (see also Mortgages) Home improvement, points, Home improvement loan. Irs 2011 tax forms Qualified loan limit, Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms M Main home, Main home. Irs 2011 tax forms Married taxpayers, Married taxpayers. Irs 2011 tax forms Military housing allowance, Ministers' and military housing allowance. Irs 2011 tax forms Ministers' housing allowance, Ministers' and military housing allowance. Irs 2011 tax forms Missing children, photographs of, Reminders Mixed-use mortgages, Mixed-use mortgages. Irs 2011 tax forms Mortgage insurance premiums Claiming deductible, Claiming your deductible mortgage insurance premiums. Irs 2011 tax forms Mortgage interest, Publication 936 - Introductory Material, Part I. Irs 2011 tax forms Home Mortgage Interest Cooperative housing, Figuring deductible home mortgage interest. Irs 2011 tax forms Credit, Mortgage interest credit. Irs 2011 tax forms Fully deductible interest, Fully deductible interest. Irs 2011 tax forms Home mortgage interest, Part I. Irs 2011 tax forms Home Mortgage Interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Irs 2011 tax forms How to report, How To Report Late payment charges, Late payment charge on mortgage payment. Irs 2011 tax forms Limits on deduction, Part II. Irs 2011 tax forms Limits on Home Mortgage Interest Deduction Ministers' and military housing allowance, Ministers' and military housing allowance. Irs 2011 tax forms Prepaid interest, Prepaid interest. Irs 2011 tax forms , Prepaid interest on Form 1098. Irs 2011 tax forms Prepayment penalty, Mortgage prepayment penalty. Irs 2011 tax forms Refunds, Refunds of interest. Irs 2011 tax forms , Refunded interest. Irs 2011 tax forms Sale of home, Sale of home. Irs 2011 tax forms Special situations, Special Situations Statement, Form 1098, Mortgage Interest Statement Where to deduct, Table 2. Irs 2011 tax forms Where To Deduct Your Interest Expense Worksheet to figure (Table 1), Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms Mortgages Assistance payments (under sec. Irs 2011 tax forms 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. Irs 2011 tax forms Average balance, Average Mortgage Balance Date of, Date of the mortgage. Irs 2011 tax forms Ending early, Mortgage ending early. Irs 2011 tax forms Late qualifying, Mortgage that qualifies later. Irs 2011 tax forms Line-of-credit, Line-of-credit mortgage. Irs 2011 tax forms Mixed-use, Mixed-use mortgages. Irs 2011 tax forms Preparation costs for note or deed of trust, Amounts charged for services. Irs 2011 tax forms Proceeds invested in tax-exempt securities, Mortgage proceeds invested in tax-exempt securities. Irs 2011 tax forms Proceeds used for business, Mortgage proceeds used for business or investment. Irs 2011 tax forms Proceeds used for investment, Mortgage proceeds used for business or investment. Irs 2011 tax forms Qualified loan limit, Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms , Average Mortgage Balance Refinanced, Refinancing. Irs 2011 tax forms , Refinanced home acquisition debt. Irs 2011 tax forms , Refinanced grandfathered debt. Irs 2011 tax forms Reverse, Reverse mortgages. Irs 2011 tax forms Statements provided by lender, Statements provided by your lender. Irs 2011 tax forms To buy, build, or improve, Mortgage treated as used to buy, build, or improve home. Irs 2011 tax forms Wraparound, Wraparound mortgage. Irs 2011 tax forms N Nonredeemable ground rents, Nonredeemable ground rents. Irs 2011 tax forms Notary fees, Amounts charged for services. Irs 2011 tax forms O Office in home, Office in home. Irs 2011 tax forms P Penalties Mortgage prepayment, Mortgage prepayment penalty. Irs 2011 tax forms Points, Points, Deduction Allowed in Year Paid, Form 1098. Irs 2011 tax forms Claiming deductible, Claiming your deductible points. Irs 2011 tax forms Exception to general rule, Deduction Allowed in Year Paid Excess, Excess points. Irs 2011 tax forms Funds provided less than, Funds provided are less than points. Irs 2011 tax forms General rule, General Rule Home improvement loans, Home improvement loan. Irs 2011 tax forms Seller paid, Points paid by the seller. Irs 2011 tax forms Prepaid interest, Prepaid interest. Irs 2011 tax forms , Prepaid interest on Form 1098. Irs 2011 tax forms Prepayment penalties, Mortgage prepayment penalty. Irs 2011 tax forms Publications (see Tax help) Q Qualified homes, Qualified Home Qualified loan limit Average mortgage balance, Average Mortgage Balance Worksheet to figure (Table 1), Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms R Redeemable ground rents, Redeemable ground rents. Irs 2011 tax forms Refinancing, Refinancing. Irs 2011 tax forms Grandfathered debt, Refinanced grandfathered debt. Irs 2011 tax forms Home acquisition debt, Refinanced home acquisition debt. Irs 2011 tax forms Refunds, Refunds of interest. Irs 2011 tax forms , Refunded interest. Irs 2011 tax forms Rent Nonredeemable ground rents, Nonredeemable ground rents. Irs 2011 tax forms Redeemable ground rents, Redeemable ground rents. Irs 2011 tax forms Rental payments, Rental payments. Irs 2011 tax forms Renting of home Part of, Renting out part of home. Irs 2011 tax forms Time-sharing arrangements, Rental of time-share. Irs 2011 tax forms Repairs, Substantial improvement. Irs 2011 tax forms Reverse Mortgages, Reverse mortgages. Irs 2011 tax forms S Sale of home, Sale of home. Irs 2011 tax forms Second home, Second home. Irs 2011 tax forms , Deduction Allowed in Year Paid Secured debt, Secured Debt Seller-paid points, Points paid by the seller. Irs 2011 tax forms Separate returns, Separate returns. Irs 2011 tax forms Separated taxpayers, Divorced or separated individuals. Irs 2011 tax forms Spouses, Married taxpayers. Irs 2011 tax forms Statements provided by lender, Statements provided by your lender. Irs 2011 tax forms Stock Cooperative housing, Stock used to secure debt. Irs 2011 tax forms T Tables and figures Deductible home mortgage interest Fully deductible, determination of (Figure A), Fully deductible interest. Irs 2011 tax forms How to figure (Table 1), Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms Mortgage to buy, build, or improve home (Figure C), Mortgage treated as used to buy, build, or improve home. Irs 2011 tax forms Points (Figure B), Points Qualified loan limit worksheet (Table 1), Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms Tax credits, Mortgage interest credit. Irs 2011 tax forms Tax help, How To Get Tax Help Tax-exempt securities Mortgage proceeds invested in, Mortgage proceeds invested in tax-exempt securities. Irs 2011 tax forms Time-sharing arrangements, Time-sharing arrangements. Irs 2011 tax forms V Valuation Fair market value, Fair market value (FMV). Irs 2011 tax forms W Worksheets Deductible home mortgage interest, Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms Qualified loan limit, Table 1. Irs 2011 tax forms Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Irs 2011 tax forms Wraparound mortgages, Wraparound mortgage. Irs 2011 tax forms Prev  Up     Home   More Online Publications
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The Irs 2011 Tax Forms

Irs 2011 tax forms Accelerated Cost Recovery System (ACRS) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: ACRS Defined What Can and Cannot Be Depreciated Under ACRSRecovery Property Nonrecovery Property How To Figure the DeductionUnadjusted Basis Classes of Recovery Property Recovery Periods Alternate ACRS Method (Modified Straight Line Method) ACRS Deduction in Short Tax Year DispositionsEarly dispositions of ACRS property other than 15-, 18-, or 19-year real property. Irs 2011 tax forms Dispositions — mass asset accounts. Irs 2011 tax forms Early dispositions — 15-year real property. Irs 2011 tax forms Early dispositions — 18- and 19-year real property. Irs 2011 tax forms Depreciation Recapture Topics - This chapter discusses: The definition of ACRS What can and cannot be depreciated under ACRS How to figure the deduction Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization The Accelerated Cost Recovery System (ACRS) applies to property first used before 1987. Irs 2011 tax forms It is the name given to tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Irs 2011 tax forms These rules are mandatory and generally apply to tangible property placed in service after 1980 and before 1987. Irs 2011 tax forms If you placed property in service during this period, you must continue to figure your depreciation under ACRS. Irs 2011 tax forms If you used listed property placed in service after June 18, 1984, less than 50% for business in 1995, see Predominant Use Test in chapter 3. Irs 2011 tax forms Listed property includes cars, other means of transportation, and certain computers. Irs 2011 tax forms Any additions or improvements placed in service after 1986, including any components of a building (such as plumbing, wiring, storm windows, etc. Irs 2011 tax forms ), are depreciated using MACRS, discussed in chapter 3 of Publication 946. Irs 2011 tax forms It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Irs 2011 tax forms ACRS Defined ACRS consists of accelerated depreciation methods and an alternate ACRS method that could have been elected. Irs 2011 tax forms The alternate ACRS method used a recovery percentage based on a modified straight line method. Irs 2011 tax forms The law prescribes fixed percentages to be uses for each class of property. Irs 2011 tax forms Property depreciable under ACRS is called recovery property. Irs 2011 tax forms The recovery class of property determines the recovery period. Irs 2011 tax forms Generally, the class life of property places it in a 3-year, 5-year, 10-year, 15-year, 18-year, or 19-year recovery class. Irs 2011 tax forms Under ACRS, the prescribed percentages are used to recover the unadjusted basis of recovery property. Irs 2011 tax forms To figure a depreciation deduction, you multiply the prescribed percentage for the recovery class by the unadjusted basis of the recovery property. Irs 2011 tax forms You must continue to figure your depreciation under ACRS for property placed in service after 1980 and before 1987. Irs 2011 tax forms For property you placed in service after 1986, you must use MACRS, discussed in chapter 3 of Publication 946. Irs 2011 tax forms What Can and Cannot Be Depreciated Under ACRS ACRS applies to most depreciable tangible property placed in service after 1980 and before 1987. Irs 2011 tax forms It includes new or used and real or personal property. Irs 2011 tax forms The property must be for use in a trade or business or for the production of income. Irs 2011 tax forms Property you acquired before 1981 or after 1986 is not ACRS recovery property. Irs 2011 tax forms For information on depreciating property acquired before 1981, see chapter 2. Irs 2011 tax forms For information on depreciating property acquired after 1986, see chapter 3 of Publication 946. Irs 2011 tax forms Recovery Property Recovery property under ACRS is tangible depreciable property placed in service after 1980 and before 1987. Irs 2011 tax forms It generally includes new or used property that you acquired after 1980 and before 1987 for use in your trade or business or for the production of income. Irs 2011 tax forms Nonrecovery Property You cannot use ACRS for property you placed in service before 1981 or after 1986. Irs 2011 tax forms Nonrecovery property also includes: Intangible property, Property you elected to exclude from ACRS that is properly depreciated under a method of depreciation that is not based on a term of years, Certain public utility property, and Certain property acquired and excluded from ACRS because of the antichurning rules. Irs 2011 tax forms Intangible property. Irs 2011 tax forms   Intangible property is not depreciated under ACRS. Irs 2011 tax forms Property depreciated under methods not expressed in a term of years. Irs 2011 tax forms   Certain property depreciated under a method not expressed in a term of years is not depreciated under ACRS. Irs 2011 tax forms This included any property: If you made an irrevocable election to exclude such property, and In the first year that you could have claimed depreciation, you properly used the unit-of-production method or any method of depreciation not expressed in a term of years (not including the retirement-replacement-betterment method). Irs 2011 tax forms Public utility property. Irs 2011 tax forms   Public utility property for which the taxpayer does not use a normalization method of accounting is excluded from ACRS and is subject to depreciation under a special rule. Irs 2011 tax forms Additions or improvements to ACRS property after 1986. Irs 2011 tax forms   Any additions or improvements placed in service after 1986, including any components of a building (plumbing, wiring, storm windows, etc. Irs 2011 tax forms ) are depreciated using MACRS, discussed in chapter 3 of Publication 946. Irs 2011 tax forms It does not matter that the underlying property is depreciated under ACRS or one of the other methods. Irs 2011 tax forms How To Figure the Deduction After you determine that your property can be depreciated under ACRS, you are ready to figure your deduction. Irs 2011 tax forms Because the conventions are built into the percentage table rates, you only need to know the following: The unadjusted basis of your recovery property, The classes of recovery property, The recovery periods, and Whether to use the prescribed percentages based on accelerated methods or percentages based on using the alternate ACRS method. Irs 2011 tax forms Unadjusted Basis To figure your ACRS deduction, you multiply the unadjusted basis in your recovery property by its applicable percentage for the year. Irs 2011 tax forms Unadjusted basis is the same amount you would use to figure gain on a sale, but it is figured without taking into account any depreciation taken in earlier years. Irs 2011 tax forms However, reduce your original basis by the amount of amortization taken on the property and by any section 179 deduction claimed as discussed in chapter 2 of Publication 946. Irs 2011 tax forms If you buy property, your unadjusted basis is usually its cost minus any amortized amount and minus any section 179 deduction elected. Irs 2011 tax forms If you acquire property in some other way, such as by inheriting it, getting it as a gift, or building it yourself, you figure your unadjusted basis under other rules. Irs 2011 tax forms See Publication 551. Irs 2011 tax forms Classes of Recovery Property All recovery property under ACRS is in one of the following classes. Irs 2011 tax forms The class for your property was determined when you began to depreciate it. Irs 2011 tax forms 3-Year Property 3-year property includes automobiles, light-duty trucks (actual unloaded weight less than 13,000 pounds), and tractor units for use over-the-road. Irs 2011 tax forms Race horses over 2 years old when placed in service are 3-year property. Irs 2011 tax forms Any other horses over 12 years old when you placed them in service are also included in the 3-year property class. Irs 2011 tax forms The ACRS percentages for 3-year recovery property are: Recovery Period Percentage 1st year 25% 2nd year 38% 3rd year 37% If you used the percentages above to depreciate your 3-year recovery property, your property, except for certain passenger automobiles, is fully depreciated. Irs 2011 tax forms You cannot claim depreciation for this property after 1988. Irs 2011 tax forms 5-Year Property 5-year property includes computers, copiers, and equipment, such as office furniture and fixtures. Irs 2011 tax forms It also includes single purpose agricultural or horticultural structures and petroleum storage facilities (other than buildings and their structural components). Irs 2011 tax forms The ACRS percentages for 5-year recovery property are: Recovery period Percentage 1st year 15% 2nd year 22% 3rd through 5th year 21% If you used the percentages above to depreciate your 5-year recovery property, it is fully depreciated. Irs 2011 tax forms You cannot claim depreciation for this property after 1990. Irs 2011 tax forms 10-Year Property 10-year property includes certain real property such as theme-park structures and certain public utility property. Irs 2011 tax forms Manufactured homes (including mobile homes) and railroad tank cars are also 10-year property. Irs 2011 tax forms You do not treat a building, and its structural components, as 10-year property by reason of a change in use after you placed the property in service. Irs 2011 tax forms For example, a building (15-year real property) that was placed in service in 1981 and was converted to a theme-park structure in 1986 remains 15-year real property. Irs 2011 tax forms The ACRS percentages for 10-year recovery property are: Recovery Period Percentage 1st year 8% 2nd year 14% 3rd year 12% 4th through 6th year 10% 7th through 10th year 9% If you used the percentages above, you cannot claim depreciation for this property after 1995. Irs 2011 tax forms Example. Irs 2011 tax forms On April 21, 1986, you bought and placed in service a new mobile home for $26,000 to be used as rental property. Irs 2011 tax forms You paid $10,000 cash and signed a note for $16,000 giving you an unadjusted basis of $26,000. Irs 2011 tax forms On June 8, 1986, you bought and placed in service a used mobile home for use as rental property at a total cost of $11,500. Irs 2011 tax forms The total unadjusted basis of your 10-year recovery property placed in service in 1986 was $37,500 ($26,000 + $11,500). Irs 2011 tax forms Your ACRS deduction was $3,000 (8% × $37,500). Irs 2011 tax forms In 1987, your ACRS deduction was $5,250 (14% × $37,500). Irs 2011 tax forms In 1988, your ACRS deduction was $4,500 (12% × $37,500). Irs 2011 tax forms In 1989, 1990, and 1991, your ACRS deduction was $3,750 (10% × $37,500). Irs 2011 tax forms In 1992, 1993, 1994, and 1995 your deduction for each year is $3,375 (9% × $37,500). Irs 2011 tax forms 15-Year Real Property 15-year real property is real property that is recovery property placed in service before March 16, 1984. Irs 2011 tax forms It includes all real property, such as buildings, other than that designated as 5-year or 10-year property. Irs 2011 tax forms Unlike the 3-, 5-, or 10-year classes of property, the percentages for 15-year real property depend on when you placed the property in service during your tax year. Irs 2011 tax forms You could group 15-year real property by month and year placed in service. Irs 2011 tax forms In Table 1, at the end of this publication in the Appendix, find the month in your tax year that you placed the property in service in your trade or business or for the production of income. Irs 2011 tax forms You use the percentages listed under that month for each year of the recovery period to determine your depreciation deduction each year. Irs 2011 tax forms Example. Irs 2011 tax forms On March 5, 1984, you placed an apartment building in service in your business. Irs 2011 tax forms It is 15-year real property. Irs 2011 tax forms After subtracting the value of the land, your unadjusted basis in the building is $250,000. Irs 2011 tax forms You use the calendar year as your tax year. Irs 2011 tax forms March is the third month of your tax year. Irs 2011 tax forms Your ACRS deduction for 1984 was $25,000 (10% × $250,000). Irs 2011 tax forms For 1985, the percentage for the third month of the second year of the recovery period is 11%. Irs 2011 tax forms Your deduction was $27,500 (11% × $250,000). Irs 2011 tax forms For the third, fourth, and fifth years of the recovery period (1986, 1987, and 1988), the percentages are 9%, 8%, and 7%. Irs 2011 tax forms For 1989 through 1992, the percentage for the third month is 6%. Irs 2011 tax forms Your deduction each year is $15,000 (6% × $250,000). Irs 2011 tax forms For 1993, 1994, and 1995, the percentage for the third month is 5%. Irs 2011 tax forms Your depreciation deduction is $12,500 (5% × $250,000) for 1993, 1994, and 1995. Irs 2011 tax forms Low-Income Housing Low-income housing that was assigned a 15-year recovery period under ACRS includes the following types of property: Federally assisted housing projects where the mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, or housing financed or assisted by direct loan or tax abatement under similar provisions of state or local laws. Irs 2011 tax forms Low-income rental housing for which a depreciation deduction for rehabilitation expenditures is allowed. Irs 2011 tax forms Low-income rental housing held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of state or local laws that authorize similar subsidies for low-income families. Irs 2011 tax forms Housing financed or assisted by direct loan or insured under Title V of the Housing Act of 1949. Irs 2011 tax forms The ACRS percentages for low-income housing real property, like the regular 15-year real property percentages, depend on when you placed the property in service. Irs 2011 tax forms Find the month in your tax year in Table 2 or 3 at the end of this publication in the Appendix that you first placed the property in service as rental housing. Irs 2011 tax forms Use the percentages listed under that month for each year of the recovery period. Irs 2011 tax forms Table 2 shows percentages for low-income housing placed in service before May 9, 1985. Irs 2011 tax forms Table 3 shows percentages for low-income housing placed in service after May 8, 1985, and before 1987. Irs 2011 tax forms Example. Irs 2011 tax forms In May 1986, you acquired and placed in service a house that qualified as low-income rental housing under item 3) of the above listing. Irs 2011 tax forms You use the calendar year as your tax year. Irs 2011 tax forms You use Table C–3 because the property was placed in service after May 8, 1985. Irs 2011 tax forms Your unadjusted basis for the property, not including the land, was $59,000. Irs 2011 tax forms Your deduction for 1986 through 2001 is shown in the following table. Irs 2011 tax forms Year Rate Deduction 1986 8. Irs 2011 tax forms 9% $5,251 1987 12. Irs 2011 tax forms 1% 7,139 1988 10. Irs 2011 tax forms 5% 6,195 1989 9. Irs 2011 tax forms 1% 5,369 1990 7. Irs 2011 tax forms 9% 4,661 1991 6. Irs 2011 tax forms 9% 4,071 1992 5. Irs 2011 tax forms 9% 3,481 1993 5. Irs 2011 tax forms 2% 3,068 1994 4. Irs 2011 tax forms 6% 2,714 1995 4. Irs 2011 tax forms 6% 2,714 1996 4. Irs 2011 tax forms 6% 2,714 1997 4. Irs 2011 tax forms 6% 2,714 1998 4. Irs 2011 tax forms 6% 2,714 1999 4. Irs 2011 tax forms 5% 2,655 2000 4. Irs 2011 tax forms 5% 2,655 2001 1. Irs 2011 tax forms 5% 885 18-Year Real Property 18-year real property is real property that is recovery property placed in service after March 15, 1984, and before May 9, 1985. Irs 2011 tax forms It includes real property, such as buildings, other than that designated as 5-year, 10-year, 15-year real property, or low-income housing. Irs 2011 tax forms The ACRS percentages for 18-year real property depend on when you placed the property in service in your trade or business or for the production of income during your tax year. Irs 2011 tax forms There are also tables for 18-year real property in the Appendix. Irs 2011 tax forms Table 4 shows the percentages for 18-year real property you placed in service after June 22, 1984, and before May 9, 1985. Irs 2011 tax forms Table 5 is for 18-year real property placed in service after March 15, 1984, and before June 23, 1984. Irs 2011 tax forms Find the month in your tax year that you placed the property in service in a trade or business or for the production of income. Irs 2011 tax forms Use the percentages listed under that month for each year of the recovery period. Irs 2011 tax forms Example. Irs 2011 tax forms On April 28, 1985, you bought and placed in service a rental house. Irs 2011 tax forms The house, not including the land, cost $95,000. Irs 2011 tax forms This is your unadjusted basis for the house. Irs 2011 tax forms You use the calendar year as your tax year. Irs 2011 tax forms Because the house was placed in service after June 22, 1984, and before May 9, 1985, it is 18-year real property. Irs 2011 tax forms You use Table 4 to figure your deduction for the house. Irs 2011 tax forms April is the fourth month of your tax year. Irs 2011 tax forms Your deduction for 1985 through 2003 is shown in the following table. Irs 2011 tax forms Year Rate Deduction 1985 7. Irs 2011 tax forms 0% $6,650 1986 9. Irs 2011 tax forms 0% 8,550 1987 8. Irs 2011 tax forms 0% 7,600 1988 7. Irs 2011 tax forms 0% 6,650 1989 7. Irs 2011 tax forms 0% 6,650 1990 6. Irs 2011 tax forms 0% 5,700 1991 5. Irs 2011 tax forms 0% 4,750 1992 5. Irs 2011 tax forms 0% 4,750 1993 5. Irs 2011 tax forms 0% 4,750 1994 5. Irs 2011 tax forms 0% 4,750 1995 5. Irs 2011 tax forms 0% 4,750 1996 5. Irs 2011 tax forms 0% 4,750 1997 5. Irs 2011 tax forms 0% 4,750 1998 4. Irs 2011 tax forms 0% 3,800 1999 4. Irs 2011 tax forms 0% 3,800 2000 4. Irs 2011 tax forms 0% 3,800 2001 4. Irs 2011 tax forms 0% 3,800 2002 4. Irs 2011 tax forms 0% 3,800 2003 1. Irs 2011 tax forms 0% 950 19-Year Real Property 19-year real property is real property that is recovery property placed in service after May 8, 1985, and before 1987. Irs 2011 tax forms It includes all real property, other than that designated as 5-year, 10-year, 15-year, or 18-year real property, or low-income housing. Irs 2011 tax forms The ACRS percentages for 19-year real property depend on when you placed the property in service in a trade or business or for the production of income during your tax year. Irs 2011 tax forms Table 6 shows the percentages for 19-year real property. Irs 2011 tax forms You find the month in your tax year that you placed the property in service. Irs 2011 tax forms You use the percentages listed under that month for each year of the recovery period. Irs 2011 tax forms Recovery Periods Each item of recovery property is assigned to a class of property. Irs 2011 tax forms The classes of recovery property establish the recovery periods over which the unadjusted basis of items in a class is recovered. Irs 2011 tax forms The classes of property are: 3-Year property 5-Year property 10-Year property 15-Year real property Low-income housing 18-Year real property 19-Year real property Alternate ACRS Method (Modified Straight Line Method) ACRS provides an alternate ACRS method that could be elected. Irs 2011 tax forms This alternate ACRS method uses a recovery percentage based on a modified straight line method. Irs 2011 tax forms This alternate ACRS method generally uses percentages other than those from the tables. Irs 2011 tax forms If you elected the alternate ACRS method, you determine the recovery period by using the following schedule. Irs 2011 tax forms This schedule is for other than 18- and 19-year real property and low-income housing: In the case of: You could have elected a recovery period of: 3-year property 3, 5, or 12 years 5-year property 5, 12, or 25 years 15-year real property 15, 35, or 45 years Percentages. Irs 2011 tax forms   The straight-line percentages for the alternate ACRS method are: Recovery Period Percentage 5 years 20. Irs 2011 tax forms 00% 10 years 10. Irs 2011 tax forms 00% 12 years 8. Irs 2011 tax forms 333% 15 years 6. Irs 2011 tax forms 667% 25 years 4. Irs 2011 tax forms 00% 35 years 2. Irs 2011 tax forms 857%   You apply the percentage to the unadjusted basis(defined earlier) of the property to figure your ACRS deduction. Irs 2011 tax forms There are tables for 18- and 19-year real property later in this publication in the Appendix. Irs 2011 tax forms For 15-year real property, see 15-year real property, later. Irs 2011 tax forms 3-, 5-, and 10-year property. Irs 2011 tax forms   If you elected to use an alternate recovery percentage, you have to use the same recovery percentage for all property in that class that you placed in service in that tax year. Irs 2011 tax forms This applies throughout the recovery period you selected. Irs 2011 tax forms Half-year convention. Irs 2011 tax forms   If you elected the alternate method, only a half-year of depreciation was deducted for the year you placed the property in service. Irs 2011 tax forms This applied regardless of when in the tax year you placed the property in service. Irs 2011 tax forms For each of the remaining years in the recovery period, you take a full year's deduction. Irs 2011 tax forms If you hold the property for the entire recovery period, a half-year of depreciation is allowable for the year following the end of the recovery period. Irs 2011 tax forms Example. Irs 2011 tax forms You operate a small upholstery business. Irs 2011 tax forms On March 19, 1986, you bought and placed in service a $13,000 light-duty panel truck to be used in your business and a $500 electric saw. Irs 2011 tax forms You elected to use the alternate ACRS method. Irs 2011 tax forms You did not elect to take a section 179 deduction. Irs 2011 tax forms You decided to recover the cost of the truck, which is 3-year recovery property, over 5 years. Irs 2011 tax forms The saw is 5-year property, but you decided to recover its cost over 12 years. Irs 2011 tax forms For 1986, your ACRS deduction reflected the half-year convention. Irs 2011 tax forms In the first year, you deducted half of the amount determined for a full year. Irs 2011 tax forms Your ACRS deduction for 1986 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Irs 2011 tax forms 00     Electric saw   12 years straight line = 8. Irs 2011 tax forms 333% 8. Irs 2011 tax forms 333% ÷ $500 = $41. Irs 2011 tax forms 67 Half-year convention -½ of $41. Irs 2011 tax forms 67= 20. Irs 2011 tax forms 84 Total ACRS deduction for 1986 $1,320. Irs 2011 tax forms 84       You take a full year of depreciation for both the truck and the saw for the years 1987 through 1990. Irs 2011 tax forms Your ACRS deduction for each of those years is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600     Electric saw     12 years straight line = 8. Irs 2011 tax forms 333% 8. Irs 2011 tax forms 333% ÷ $500 = $41. Irs 2011 tax forms 67 Total annual ACRS deduction for 1987 through 1990 $2,641. Irs 2011 tax forms 67       In 1991, you take a half-year of depreciation for the truck and a full year of depreciation for the saw. Irs 2011 tax forms Your ACRS deduction for 1991 is as follows: Light-duty truck   5 years straight line = 20% 20% ÷ $13,000 = $2,600 Half-year convention -½ of $2,600= $1,300. Irs 2011 tax forms 00     Electric saw   12 years straight line = 8. Irs 2011 tax forms 333% 8. Irs 2011 tax forms 333% ÷ $500 = $41. Irs 2011 tax forms 67 Total ACRS deduction for 1991 $1,341. Irs 2011 tax forms 67       The truck is fully depreciated after 1991. Irs 2011 tax forms You take a full year of depreciation for the saw for the years 1992 through 1997. Irs 2011 tax forms Your ACRS deduction for each of those years is as follows: Electric saw     12 years straight line = 8. Irs 2011 tax forms 333% 8. Irs 2011 tax forms 333% ÷ $500 = $41. Irs 2011 tax forms 67 Total annual ACRS deduction for 1992 through 1997 $41. Irs 2011 tax forms 67       You take a half-year of depreciation for the saw for 1998. Irs 2011 tax forms Your ACRS deduction for 1998 is as follows: Electric saw   12 years straight line = 8. Irs 2011 tax forms 333% 8. Irs 2011 tax forms 333% ÷ $500 = $41. Irs 2011 tax forms 67 Half-year convention -½ of $41. Irs 2011 tax forms 67= 20. Irs 2011 tax forms 84 Total ACRS deduction for 1998 $20. Irs 2011 tax forms 84       The saw is fully depreciated after 1998. Irs 2011 tax forms 15-year real property. Irs 2011 tax forms   Under ACRS, you could also elect to use the alternate ACRS method for 15-year real property. Irs 2011 tax forms The alternate ACRS method allows you to depreciate your 15-year real property using the straight line ACRS method over the alternate recovery periods of 15, 35, or 45 years. Irs 2011 tax forms If you selected a 15-year recovery period, you use the percentage (6. Irs 2011 tax forms 667%) from the schedule above. Irs 2011 tax forms You prorate this percentage for the number of months the property was in service in the first year. Irs 2011 tax forms If you selected a 35- or 45-year recovery period, you use either Table 11 or 15. Irs 2011 tax forms Alternate periods for 18-year real property. Irs 2011 tax forms   For 18-year real property, the alternate recovery periods are 18, 35, or 45 years. Irs 2011 tax forms The percentages for 18-year real property under the alternate method are in Tables 7, 8, 10, 11, 14, and 15 in the Appendix. Irs 2011 tax forms There are two tables for each alternate recovery period. Irs 2011 tax forms One table shows the percentage for property placed in service after June 22, 1984. Irs 2011 tax forms The other table has the percentages for property placed in service after March 15, 1984, and before June 23, 1984. Irs 2011 tax forms Alternate periods for 19-year real property. Irs 2011 tax forms   For 19-year real property, the alternate recovery periods are 19, 35, or 45 years. Irs 2011 tax forms If you selected a 19-year recovery period, use Table 9 to determine your deduction. Irs 2011 tax forms If you select a 35- or 45-year recovery period, use either Table 13 or 14. Irs 2011 tax forms Example. Irs 2011 tax forms You placed in service an apartment building on August 3, 1986. Irs 2011 tax forms The building is 19-year real property. Irs 2011 tax forms The sales contract allocated $300,000 to the building and $100,000 to the land. Irs 2011 tax forms You use the calendar year as your tax year. Irs 2011 tax forms You chose the alternate ACRS method over a recovery period of 35 years. Irs 2011 tax forms For 1986, you figure your ACRS deduction usingTable 13. Irs 2011 tax forms August is the eighth month of your tax year. Irs 2011 tax forms The percentage from Table 13 for the eighth month is 1. Irs 2011 tax forms 1%. Irs 2011 tax forms Your deduction was $3,300 ($300,000 ÷ 1. Irs 2011 tax forms 1%). Irs 2011 tax forms The deduction rate from ACRS Table 13 for years 2 through 20 is 2. Irs 2011 tax forms 9% so that your deduction in 1987 through 2005 is $8,700 ($300,000 ÷ 2. Irs 2011 tax forms 9%). Irs 2011 tax forms Alternate periods for low-income housing. Irs 2011 tax forms   For low-income housing, the alternate recovery periods are 15, 35, or 45 years. Irs 2011 tax forms If you selected a 15-year period for this property, use 6. Irs 2011 tax forms 667% as the percentage. Irs 2011 tax forms If you selected a 35- or 45-year period, use either Table 11, 12, or 15. Irs 2011 tax forms Election. Irs 2011 tax forms   You had to make the election to use the alternate ACRS method by the return due date (including extensions) for the tax year you placed the property in service. Irs 2011 tax forms Revocation of election. Irs 2011 tax forms   Your election to use an alternate ACRS method, once made, can be changed only with the consent of the Commissioner. Irs 2011 tax forms The Commissioner grants consent only in extraordinary circumstances. Irs 2011 tax forms Any request for a revocation will be considered a request for a ruling. Irs 2011 tax forms ACRS Deduction in Short Tax Year For a tax year that is less than 12 months, the ACRS deduction is prorated on a 12-month basis. Irs 2011 tax forms Figure the amount of the ACRS deduction for a short tax year as follows: First, you figure the ACRS deduction for a full year. Irs 2011 tax forms You figure this by multiplying the unadjusted basis by the recovery percentage. Irs 2011 tax forms You then multiply the ACRS deduction determined for a full tax year by a fraction. Irs 2011 tax forms The numerator (top number) of the fraction is the number of months in the short tax year and the denominator (bottom number) is 12. Irs 2011 tax forms For example, a corporation placed in service in June 1986 an item of 3-year property with an unadjusted basis of $10,000. Irs 2011 tax forms The corporation files a tax return, because of a change in its accounting period, for the 6-month short tax year ending June 30, 1986. Irs 2011 tax forms The full year's ACRS deduction for this item is $2,500 ($10,000 ÷ 25%), the first year percentage from the 3-year table. Irs 2011 tax forms The ACRS deduction for the short tax year is $1,250 ($2,500 ÷ 6/12). Irs 2011 tax forms You use the full ACRS percentages during the remaining years of the recovery period. Irs 2011 tax forms For the first tax year after the recovery period, the unrecovered basis will be deductible. Irs 2011 tax forms Exception. Irs 2011 tax forms   For the tax year in which you placed 15-, 18-, or 19-year real property in service or in the tax year you dispose of it, you compute the ACRS deduction for the number of months that the property is in service during that tax year. Irs 2011 tax forms You compute the number of months using either a full month or mid-month convention. Irs 2011 tax forms This is true regardless of the number of months in the tax year and the recovery period and method used. Irs 2011 tax forms Dispositions A disposition is the permanent withdrawal of property from use in your trade or business or in the production of income. Irs 2011 tax forms You can make a withdrawal by sale, exchange, retirement, abandonment, or destruction. Irs 2011 tax forms You generally recognize gain or loss on the disposition of an asset by sale. Irs 2011 tax forms However, nonrecognition rules can allow you to postpone some gain. Irs 2011 tax forms See Publication 544. Irs 2011 tax forms If you physically abandon property, you can deduct as a loss the adjusted basis of the asset at the time of its abandonment. Irs 2011 tax forms Your intent must be to discard the asset so that you will not use it again or retrieve it for sale, exchange, or other disposition. Irs 2011 tax forms Early dispositions. Irs 2011 tax forms   The disposal of an asset before the end of its specified recovery period, is referred to as an early disposition. Irs 2011 tax forms When an early disposition occurs, the depreciation deduction in the year of disposition depends on the class of property involved. Irs 2011 tax forms Early dispositions of ACRS property other than 15-, 18-, or 19-year real property. Irs 2011 tax forms   Generally, you get no ACRS deduction for the tax year in which you dispose of or retire recovery property, except for 15-, 18-, and 19-year real property. Irs 2011 tax forms This means there is no depreciation deduction under ACRS in the year you dispose of or retire any of your 3-, 5-, or 10-year recovery property. Irs 2011 tax forms Dispositions — mass asset accounts. Irs 2011 tax forms   The law provides a special rule to avoid the calculation of gain on the disposition of assets from mass asset accounts. Irs 2011 tax forms A mass asset account includes items usually minor in value in relation to the group, numerous in quantity, impractical to separately identify, and not usually accounted for on a separate basis, but on a total dollar value. Irs 2011 tax forms Examples of mass assets include minor items of office, plant, and store furniture and fixtures. Irs 2011 tax forms   Under the special rule, if you elected to use a mass asset account, you recognize gain to the extent of the proceeds from the disposition of the asset. Irs 2011 tax forms You leave the unadjusted basis of the property in the account until recovered in future years. Irs 2011 tax forms If you did this, include the total proceeds realized from the disposition in income on the tax return for the year of disposition. Irs 2011 tax forms Early dispositions — 15-year real property. Irs 2011 tax forms   If you dispose of 15-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Irs 2011 tax forms You use a full-month convention. Irs 2011 tax forms For a disposition at any time during a particular month before the end of the recovery period, no deduction is allowed for the month of disposition. Irs 2011 tax forms This applies whether you use the regular ACRS method or elected the alternate ACRS method. Irs 2011 tax forms Example. Irs 2011 tax forms You purchased and placed in service a rental house on March 2, 1984, for $98,000 (not including the cost of land). Irs 2011 tax forms You file your return based on a calendar year. Irs 2011 tax forms Your rate from Table 1 for the third month is 10%. Irs 2011 tax forms Your ACRS deduction for 1984 was $9,800 ($98. Irs 2011 tax forms 000 ÷ 10%). Irs 2011 tax forms For 1985 through 1988, you figured your ACRS deductions using 11%, 9%, 8%, and 7% ÷ $98,000. Irs 2011 tax forms For 1989 through 1992, you figured your ACRS deductions using 6% for each year. Irs 2011 tax forms The deduction each year was $98,000 ÷ 6%. Irs 2011 tax forms For 1993 and 1994, the ACRS deduction is ($98,000 ÷ 5%) $4,900 for each year. Irs 2011 tax forms You sell the house on June 1, 1995. Irs 2011 tax forms You figure your ACRS deduction for 1995 for the full year and then prorate that amount for the months of use. Irs 2011 tax forms The full ACRS deduction for 1995 is $4,900 ($98,000 ÷ 5%). Irs 2011 tax forms You then prorate this amount to the 5 months in 1995 during which it was rented. Irs 2011 tax forms Your ACRS deduction for 1995 is $2,042 ($4,900 ÷ 5/12). Irs 2011 tax forms Early dispositions — 18- and 19-year real property. Irs 2011 tax forms   If you dispose of 18- or 19-year real property, you base your ACRS deduction for the year of disposition on the number of months in use. Irs 2011 tax forms For 18-year property placed in service before June 23, 1984, use a full-month convention on a disposition. Irs 2011 tax forms For 18-year property placed in service after June 22, 1984, and for 19-year property, determine the number of months in use by using the mid-month convention. Irs 2011 tax forms Under the mid-month convention,treat real property disposed of any time during a month as disposed of in the middle of that month. Irs 2011 tax forms Count the month of disposition as half a month of use. Irs 2011 tax forms Example. Irs 2011 tax forms You purchased and placed in service a rental house on July 2, 1984, for $100,000 (not including the cost of land). Irs 2011 tax forms You file your return based on a calendar year. Irs 2011 tax forms Your rate from Table 4 for the seventh month is 4%. Irs 2011 tax forms You figured your ACRS deduction for 1984 was $4,000 ($100,000 ÷ 4%). Irs 2011 tax forms In 1985 through 1994, your ACRS deductions were 9%, 8%, 8%, 7%, 6%, 6%, 5%, 5%, and 5% ÷ $100,000. Irs 2011 tax forms You sell the house on September 24, 1995. Irs 2011 tax forms Figure your ACRS deduction for 1995 for the months of use. Irs 2011 tax forms The full ACRS deduction for 1995 is $5,000 ($100,000 ÷ 5%). Irs 2011 tax forms Prorate this amount for the 8. Irs 2011 tax forms 5 months in 1995 that you held the property. Irs 2011 tax forms Under the mid-month convention, you count September as half a month. Irs 2011 tax forms Your ACRS deduction for 1995 is $3,542 ($5,000 ÷ 8. Irs 2011 tax forms 5/12). Irs 2011 tax forms Depreciation Recapture If you dispose of property depreciated under ACRS that is section 1245 recovery property, you will generally recognize gain or loss. Irs 2011 tax forms Gain recognized on a disposition is ordinary income to the extent of prior depreciation deductions taken. Irs 2011 tax forms This recapture rule applies to all personal property in the 3-year, 5-year, and 10-year classes. Irs 2011 tax forms You recapture gain on manufactured homes and theme park structures in the 10-year class as section 1245 property. Irs 2011 tax forms Section 1245 property generally includes all personal property. Irs 2011 tax forms See Section 1245 property in chapter 4 of Publication 544 for more information. Irs 2011 tax forms You treat dispositions of section 1250 real property on which you have a gain as section 1245 recovery property. Irs 2011 tax forms You recognize gain on this property as ordinary income to the extent of prior depreciation deductions taken. Irs 2011 tax forms Section 1250 property includes most real property. Irs 2011 tax forms See Section 1250 property in chapter 4 of Publication 544 for more information. Irs 2011 tax forms This rule applies to all section 1250 real property except the following property: Any 15-, 18-, or 19-year real property that is residential rental property. Irs 2011 tax forms Any 15-, 18-, or 19-year real property that you elected to depreciate using the alternate ACRS method. Irs 2011 tax forms Any 15-, 18-, or 19-year real property that is subsidized low-income housing. Irs 2011 tax forms For these recapture rules, you treat the section 179 deduction and 50% of the investment credit that reduced your basis as depreciation. Irs 2011 tax forms See Publication 544 for further discussion of dispositions of section 1245 and 1250 property. 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