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Myfreetaxes 2013

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Myfreetaxes 2013

Myfreetaxes 2013 4. Myfreetaxes 2013   Transportation Table of Contents Parking fees. Myfreetaxes 2013 Advertising display on car. Myfreetaxes 2013 Car pools. Myfreetaxes 2013 Hauling tools or instruments. Myfreetaxes 2013 Union members' trips from a union hall. Myfreetaxes 2013 Car ExpensesStandard Mileage Rate Actual Car Expenses Leasing a Car Disposition of a Car This chapter discusses expenses you can deduct for business transportation when you are not traveling away from home as defined in chapter 1. Myfreetaxes 2013 These expenses include the cost of transportation by air, rail, bus, taxi, etc. Myfreetaxes 2013 , and the cost of driving and maintaining your car. Myfreetaxes 2013 Transportation expenses include the ordinary and necessary costs of all of the following. Myfreetaxes 2013 Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Myfreetaxes 2013 Tax home is defined in chapter 1. Myfreetaxes 2013 Visiting clients or customers. Myfreetaxes 2013 Going to a business meeting away from your regular workplace. Myfreetaxes 2013 Getting from your home to a temporary workplace when you have one or more regular places of work. Myfreetaxes 2013 These temporary workplaces can be either within the area of your tax home or outside that area. Myfreetaxes 2013 Transportation expenses do not include expenses you have while traveling away from home overnight. Myfreetaxes 2013 Those expenses are travel expenses discussed in chapter 1 . Myfreetaxes 2013 However, if you use your car while traveling away from home overnight, use the rules in this chapter to figure your car expense deduction. Myfreetaxes 2013 See Car Expenses , later. Myfreetaxes 2013 Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Myfreetaxes 2013 However, there may be exceptions to this general rule. Myfreetaxes 2013 You can deduct daily transportation expenses incurred going between your residence and a temporary work station outside the metropolitan area where you live. Myfreetaxes 2013 Also, daily transportation expenses can be deducted if: (1) you have one or more regular work locations away from your residence or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance. Myfreetaxes 2013 Illustration of transportation expenses. Myfreetaxes 2013    Figure B , earlier, illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. Myfreetaxes 2013 You may want to refer to it when deciding whether you can deduct your transportation expenses. Myfreetaxes 2013 Temporary work location. Myfreetaxes 2013   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Myfreetaxes 2013   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Myfreetaxes 2013   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Myfreetaxes 2013   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Myfreetaxes 2013 It will not be treated as temporary after the date you determine it will last more than 1 year. Myfreetaxes 2013   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Myfreetaxes 2013 You may have deductible travel expenses as discussed in chapter 1 . Myfreetaxes 2013 No regular place of work. Myfreetaxes 2013   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Myfreetaxes 2013   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Myfreetaxes 2013   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Myfreetaxes 2013 These are nondeductible commuting expenses. Myfreetaxes 2013 Two places of work. Myfreetaxes 2013   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Myfreetaxes 2013 However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Myfreetaxes 2013   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Myfreetaxes 2013 You cannot deduct them. Myfreetaxes 2013 Armed Forces reservists. Myfreetaxes 2013   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Myfreetaxes 2013 You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work . Myfreetaxes 2013   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Myfreetaxes 2013 In this case, your transportation generally is a nondeductible commuting expense. Myfreetaxes 2013 However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Myfreetaxes 2013   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Myfreetaxes 2013   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Myfreetaxes 2013 These expenses are discussed in chapter 1 . Myfreetaxes 2013   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. Myfreetaxes 2013 For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules, in chapter 6. Myfreetaxes 2013 Commuting expenses. Myfreetaxes 2013   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Myfreetaxes 2013 These costs are personal commuting expenses. Myfreetaxes 2013 You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Myfreetaxes 2013 You cannot deduct commuting expenses even if you work during the commuting trip. Myfreetaxes 2013 Example. Myfreetaxes 2013 You sometimes use your cell phone to make business calls while commuting to and from work. Myfreetaxes 2013 Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Myfreetaxes 2013 These activities do not change the trip from personal to business. Myfreetaxes 2013 You cannot deduct your commuting expenses. Myfreetaxes 2013 Parking fees. Myfreetaxes 2013    Fees you pay to park your car at your place of business are nondeductible commuting expenses. Myfreetaxes 2013 You can, however, deduct business-related parking fees when visiting a customer or client. Myfreetaxes 2013 Advertising display on car. Myfreetaxes 2013   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Myfreetaxes 2013 If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Myfreetaxes 2013 Car pools. Myfreetaxes 2013   You cannot deduct the cost of using your car in a nonprofit car pool. Myfreetaxes 2013 Do not include payments you receive from the passengers in your income. Myfreetaxes 2013 These payments are considered reimbursements of your expenses. Myfreetaxes 2013 However, if you operate a car pool for a profit, you must include payments from passengers in your income. Myfreetaxes 2013 You can then deduct your car expenses (using the rules in this publication). Myfreetaxes 2013 Hauling tools or instruments. Myfreetaxes 2013   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Myfreetaxes 2013 However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Myfreetaxes 2013 Union members' trips from a union hall. Myfreetaxes 2013   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Myfreetaxes 2013 Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Myfreetaxes 2013 Office in the home. Myfreetaxes 2013   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Myfreetaxes 2013 (See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. Myfreetaxes 2013 ) Examples of deductible transportation. Myfreetaxes 2013   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Myfreetaxes 2013 Example 1. Myfreetaxes 2013 You regularly work in an office in the city where you live. Myfreetaxes 2013 Your employer sends you to a 1-week training session at a different office in the same city. Myfreetaxes 2013 You travel directly from your home to the training location and return each day. Myfreetaxes 2013 You can deduct the cost of your daily round-trip transportation between your home and the training location. Myfreetaxes 2013 Example 2. Myfreetaxes 2013 Your principal place of business is in your home. Myfreetaxes 2013 You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Myfreetaxes 2013 Example 3. Myfreetaxes 2013 You have no regular office, and you do not have an office in your home. Myfreetaxes 2013 In this case, the location of your first business contact inside the metropolitan area is considered your office. Myfreetaxes 2013 Transportation expenses between your home and this first contact are nondeductible commuting expenses. Myfreetaxes 2013 Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Myfreetaxes 2013 While you cannot deduct the costs of these trips, you can deduct the costs of going from one client or customer to another. Myfreetaxes 2013 Car Expenses If you use your car for business purposes, you ordinarily can deduct car expenses. Myfreetaxes 2013 You generally can use one of the two following methods to figure your deductible expenses. Myfreetaxes 2013 Standard mileage rate. Myfreetaxes 2013 Actual car expenses. Myfreetaxes 2013 If you use actual expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Myfreetaxes 2013 See Leasing a Car , later. Myfreetaxes 2013 In this publication, “car” includes a van, pickup, or panel truck. Myfreetaxes 2013 For the definition of “car” for depreciation purposes, see Car defined under Actual Car Expenses, later. Myfreetaxes 2013 Rural mail carriers. Myfreetaxes 2013   If you are a rural mail carrier, you may be able to treat the qualified reimbursement you received as your allowable expense. Myfreetaxes 2013 Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the reimbursement in your income. Myfreetaxes 2013   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Myfreetaxes 2013 You must complete Form 2106 and attach it to your Form 1040, U. Myfreetaxes 2013 S. Myfreetaxes 2013 Individual Income Tax Return. Myfreetaxes 2013   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Myfreetaxes 2013 It is given as an equipment maintenance allowance (EMA) to employees of the U. Myfreetaxes 2013 S. Myfreetaxes 2013 Postal Service. Myfreetaxes 2013 It is at the rate contained in the 1991 collective bargaining agreement. Myfreetaxes 2013 Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Myfreetaxes 2013 See your employer for information on your reimbursement. Myfreetaxes 2013    If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Myfreetaxes 2013 Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Myfreetaxes 2013 For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Myfreetaxes 2013 If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. Myfreetaxes 2013 You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. Myfreetaxes 2013 See Choosing the standard mileage rate and Standard mileage rate not allowed, later. Myfreetaxes 2013 You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Myfreetaxes 2013 See chapter 6 for more information on reimbursements . Myfreetaxes 2013 Choosing the standard mileage rate. Myfreetaxes 2013   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Myfreetaxes 2013 Then, in later years, you can choose to use either the standard mileage rate or actual expenses. Myfreetaxes 2013   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Myfreetaxes 2013 For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997. Myfreetaxes 2013   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Myfreetaxes 2013 You cannot revoke the choice. Myfreetaxes 2013 However, in later years, you can switch from the standard mileage rate to the actual expenses method. Myfreetaxes 2013 If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Myfreetaxes 2013 Example. Myfreetaxes 2013 Larry is an employee who occasionally uses his own car for business purposes. Myfreetaxes 2013 He purchased the car in 2011, but he did not claim any unreimbursed employee expenses on his 2011 tax return. Myfreetaxes 2013 Because Larry did not use the standard mileage rate the first year the car was available for business use, he cannot use the standard mileage rate in 2013 to claim unreimbursed employee business expenses. Myfreetaxes 2013   For more information about depreciation included in the standard mileage rate, see Exception under Methods of depreciation, later. Myfreetaxes 2013 Standard mileage rate not allowed. Myfreetaxes 2013   You cannot use the standard mileage rate if you: Use five or more cars at the same time (such as in fleet operations), Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction), Claimed a section 179 deduction (discussed later) on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses after 1997 for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Myfreetaxes 2013 (See Rural mail carriers , earlier. Myfreetaxes 2013 ) Note. Myfreetaxes 2013 You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above. Myfreetaxes 2013 Five or more cars. Myfreetaxes 2013   If you own or lease five or more cars that are used for business at the same time, you cannot use the standard mileage rate for the business use of any car. Myfreetaxes 2013 However, you may be able to deduct your actual expenses for operating each of the cars in your business. Myfreetaxes 2013 See Actual Car Expenses , later, for information on how to figure your deduction. Myfreetaxes 2013   You are not using five or more cars for business at the same time if you alternate using (use at different times) the cars for business. Myfreetaxes 2013   The following examples illustrate the rules for when you can and cannot use the standard mileage rate for five or more cars. Myfreetaxes 2013 Example 1. Myfreetaxes 2013 Marcia, a salesperson, owns three cars and two vans that she alternates using for calling on her customers. Myfreetaxes 2013 She can use the standard mileage rate for the business mileage of the three cars and the two vans because she does not use them at the same time. Myfreetaxes 2013 Example 2. Myfreetaxes 2013 Tony and his employees use his four pickup trucks in his landscaping business. Myfreetaxes 2013 During the year, he traded in two of his old trucks for two newer ones. Myfreetaxes 2013 Tony can use the standard mileage rate for the business mileage of all six of the trucks he owned during the year. Myfreetaxes 2013 Example 3. Myfreetaxes 2013 Chris owns a repair shop and an insurance business. Myfreetaxes 2013 He and his employees use his two pickup trucks and van for the repair shop. Myfreetaxes 2013 Chris alternates using his two cars for the insurance business. Myfreetaxes 2013 No one else uses the cars for business purposes. Myfreetaxes 2013 Chris can use the standard mileage rate for the business use of the pickup trucks, van, and the cars because he never has more than four vehicles used for business at the same time. Myfreetaxes 2013 Example 4. Myfreetaxes 2013 Maureen owns a car and four vans that are used in her housecleaning business. Myfreetaxes 2013 Her employees use the vans, and she uses the car to travel to various customers. Myfreetaxes 2013 Maureen cannot use the standard mileage rate for the car or the vans. Myfreetaxes 2013 This is because all five vehicles are used in Maureen's business at the same time. Myfreetaxes 2013 She must use actual expenses for all vehicles. Myfreetaxes 2013 Interest. Myfreetaxes 2013   If you are an employee, you cannot deduct any interest paid on a car loan. Myfreetaxes 2013 This applies even if you use the car 100% for business as an employee. Myfreetaxes 2013   However, if you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car. Myfreetaxes 2013 For example, if you use your car 60% for business, you can deduct 60% of the interest on Schedule C (Form 1040). Myfreetaxes 2013 You cannot deduct the part of the interest expense that represents your personal use of the car. Myfreetaxes 2013    If you use a home equity loan to purchase your car, you may be able to deduct the interest. Myfreetaxes 2013 See Publication 936, Home Mortgage Interest Deduction, for more information. Myfreetaxes 2013 Personal property taxes. Myfreetaxes 2013   If you itemize your deductions on Schedule A (Form 1040), you can deduct on line 7 state and local personal property taxes on motor vehicles. Myfreetaxes 2013 You can take this deduction even if you use the standard mileage rate or if you do not use the car for business. Myfreetaxes 2013   If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). Myfreetaxes 2013 If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040). Myfreetaxes 2013 Parking fees and tolls. Myfreetaxes 2013   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Myfreetaxes 2013 (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Myfreetaxes 2013 ) Sale, trade-in, or other disposition. Myfreetaxes 2013   If you sell, trade in, or otherwise dispose of your car, you may have a gain or loss on the transaction or an adjustment to the basis of your new car. Myfreetaxes 2013 See Disposition of a Car , later. Myfreetaxes 2013 Actual Car Expenses If you do not use the standard mileage rate, you may be able to deduct your actual car expenses. Myfreetaxes 2013 If you qualify to use both methods, you may want to figure your deduction both ways to see which gives you a larger deduction. Myfreetaxes 2013 Actual car expenses include: Depreciation Licenses Lease  payments Registration  fees Gas Insurance Repairs Oil Garage rent Tires Tolls Parking fees   If you have fully depreciated a car that you still use in your business, you can continue to claim your other actual car expenses. Myfreetaxes 2013 Continue to keep records, as explained later in chapter 5 . Myfreetaxes 2013 Business and personal use. Myfreetaxes 2013   If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. Myfreetaxes 2013 You can divide your expense based on the miles driven for each purpose. Myfreetaxes 2013 Example. Myfreetaxes 2013 You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. Myfreetaxes 2013 You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense. Myfreetaxes 2013 Employer-provided vehicle. Myfreetaxes 2013   If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses. Myfreetaxes 2013 You cannot use the standard mileage rate. Myfreetaxes 2013 See Vehicle Provided by Your Employer in chapter 6. Myfreetaxes 2013 Interest on car loans. Myfreetaxes 2013   If you are an employee, you cannot deduct any interest paid on a car loan. Myfreetaxes 2013 This interest is treated as personal interest and is not deductible. Myfreetaxes 2013 If you are self-employed and use your car in that business, see Interest , earlier, under Standard Mileage Rate. Myfreetaxes 2013 Taxes paid on your car. Myfreetaxes 2013   If you are an employee, you can deduct personal property taxes paid on your car if you itemize deductions. Myfreetaxes 2013 Enter the amount paid on line 7 of Schedule A (Form 1040). Myfreetaxes 2013 Sales taxes. Myfreetaxes 2013   Generally, sales taxes on your car are part of your car's basis and are recovered through depreciation, discussed later. Myfreetaxes 2013 Fines and collateral. Myfreetaxes 2013   You cannot deduct fines you pay or collateral you forfeit for traffic violations. Myfreetaxes 2013 Casualty and theft losses. Myfreetaxes 2013   If your car is damaged, destroyed, or stolen, you may be able to deduct part of the loss not covered by insurance. Myfreetaxes 2013 See Publication 547, Casualties, Disasters, and Thefts, for information on deducting a loss on your car. Myfreetaxes 2013 Depreciation and section 179 deductions. Myfreetaxes 2013   Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Myfreetaxes 2013 Because the benefits last longer than 1 year, you generally cannot deduct a capital expense. Myfreetaxes 2013 However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Myfreetaxes 2013 Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. Myfreetaxes 2013 The section 179 deduction , special depreciation allowance , and depreciation deductions are discussed later. Myfreetaxes 2013   Generally, there are limits on these deductions. Myfreetaxes 2013 Special rules apply if you use your car 50% or less in your work or business. Myfreetaxes 2013   You can claim a section 179 deduction and use a depreciation method other than straight line only if you do not use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service. Myfreetaxes 2013   If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you cannot use the standard mileage rate on that car in any future year. Myfreetaxes 2013 Car defined. Myfreetaxes 2013   For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Myfreetaxes 2013 Its unloaded gross vehicle weight must not be more than 6,000 pounds. Myfreetaxes 2013 A car includes any part, component, or other item physically attached to it or usually included in the purchase price. Myfreetaxes 2013   A car does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a business, A vehicle used directly in the business of transporting persons or property for pay or hire, or A truck or van that is a qualified nonpersonal use vehicle. Myfreetaxes 2013 Qualified nonpersonal use vehicles. Myfreetaxes 2013   These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Myfreetaxes 2013 They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Myfreetaxes 2013 Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles. Myfreetaxes 2013 More information. Myfreetaxes 2013   See Depreciation Deduction , later, for more information on how to depreciate your vehicle. Myfreetaxes 2013 Section 179 Deduction The section 179 deduction allows you to treat a portion or all of the cost of a car as a current expense. Myfreetaxes 2013 If you choose to deduct all or part of the cost as a current expense, you must reduce your depreciable basis in the car by the amount of the section 179 deduction. Myfreetaxes 2013 There is a limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars, trucks, and vans that may reduce or eliminate any benefit from claiming the section 179 deduction. Myfreetaxes 2013 See Depreciation Limits, later. Myfreetaxes 2013 You can claim the section 179 deduction only in the year you place the car in service. Myfreetaxes 2013 For this purpose, a car is placed in service when it is ready and available for a specifically assigned use, whether in a trade or business, a tax-exempt activity, a personal activity, or for the production of income. Myfreetaxes 2013 Even if you are not using the property, it is in service when it is ready and available for its specifically assigned use. Myfreetaxes 2013 A car first used for personal purposes cannot qualify for the deduction in a later year when its use changes to business. Myfreetaxes 2013 Example. Myfreetaxes 2013 In 2012, you bought a new car and used it for personal purposes. Myfreetaxes 2013 In 2013, you began to use it for business. Myfreetaxes 2013 Changing its use to business use does not qualify the cost of your car for a section 179 deduction in 2013. Myfreetaxes 2013 However, you can claim a depreciation deduction for the business use of the car starting in 2013. Myfreetaxes 2013 See Depreciation Deduction , later. Myfreetaxes 2013 More than 50% business use requirement. Myfreetaxes 2013   You must use the property more than 50% for business to claim any section 179 deduction. Myfreetaxes 2013 If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. Myfreetaxes 2013 The result is the cost of the property that can qualify for the section 179 deduction. Myfreetaxes 2013 Example. Myfreetaxes 2013 Peter purchased a car in April 2013 for $24,500 and used it 60% for business. Myfreetaxes 2013 Based on his business usage, the total cost of Peter's car that qualifies for the section 179 deduction is $14,700 ($24,500 cost × 60% business use). Myfreetaxes 2013 But see Limit on total section 179, special depreciation allowance, and depreciation deduction , discussed later. Myfreetaxes 2013 Limits. Myfreetaxes 2013   There are limits on: The amount of the section 179 deduction, The section 179 deduction for sport utility and certain other vehicles, and The total amount of the section 179 deduction, special depreciation allowance, and depreciation deduction (discussed later ) you can claim for a qualified property. Myfreetaxes 2013 Limit on the amount of the section 179 deduction. Myfreetaxes 2013   For 2013, the total amount you can choose to deduct under section 179 generally cannot be more than $500,000. Myfreetaxes 2013   If the cost of your section 179 property placed in service in 2013 is over $2,000,000, you must reduce the $500,000 dollar limit (but not below zero) by the amount of cost over $2,000,000. Myfreetaxes 2013 If the cost of your section 179 property placed in service during 2013 is $2,500,000 or more, you cannot take a section 179 deduction. Myfreetaxes 2013   The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year. Myfreetaxes 2013   If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service. Myfreetaxes 2013   If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit. Myfreetaxes 2013 You must allocate the dollar limit (after any reduction) between you. Myfreetaxes 2013   For more information on the above section 179 deduction limits, see Publication 946. Myfreetaxes 2013 Limit for sport utility and certain other vehicles. Myfreetaxes 2013   For sport utility and certain other vehicles placed in service in 2013, the portion of the vehicle's cost taken into account in figuring your section 179 deduction is limited to $25,000. Myfreetaxes 2013 This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is not subject to any of the passenger automobile limits explained under Depreciation Limits , later, and that is rated at no more than 14,000 pounds gross vehicle weight. Myfreetaxes 2013 However, the $25,000 limit does not apply to any vehicle: Designed to have a seating capacity of more than nine persons behind the driver's seat, Equipped with a cargo area of at least 6 feet in interior length that is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, or That has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield. Myfreetaxes 2013    Limit on total section 179, special depreciation allowance, and depreciation deduction. Myfreetaxes 2013   Generally, the total amount of section 179, special depreciation allowance, and depreciation deduction you can claim for a car that is qualified property and that you placed in service in 2013 is $11,160. Myfreetaxes 2013 The limit is reduced if your business use of the car is less than 100%. Myfreetaxes 2013 See Depreciation Limits , later, for more information. Myfreetaxes 2013 Example. Myfreetaxes 2013 In the earlier example under More than 50% business use requirement, Peter had a car with a cost (for purposes of the section 179 deduction) of $14,700. Myfreetaxes 2013 However, based on Peter's business usage of his car, the total of his section 179, special depreciation allowance, and depreciation deductions is limited to $6,696 ($11,160 limit x 60% business use). Myfreetaxes 2013 Cost of car. Myfreetaxes 2013   For purposes of the section 179 deduction, the cost of the car does not include any amount figured by reference to any other property held by you at any time. Myfreetaxes 2013 For example, if you buy (for cash and a trade-in) a new car to use in your business, your cost for purposes of the section 179 deduction does not include your adjusted basis in the car you trade in for the new car. Myfreetaxes 2013 Your cost includes only the cash you paid. Myfreetaxes 2013 Basis of car for depreciation. Myfreetaxes 2013   The amount of the section 179 deduction reduces your basis in your car. Myfreetaxes 2013 If you choose the section 179 deduction, you must subtract the amount of the deduction from the cost of your car. Myfreetaxes 2013 The resulting amount is the basis in your car you use to figure your depreciation deduction. Myfreetaxes 2013 When to choose. Myfreetaxes 2013   If you want to take the section 179 deduction, you must make the choice in the tax year you place the car in service for business or work. Myfreetaxes 2013 How to choose. Myfreetaxes 2013    Employees use Form 2106 to make this choice and report the section 179 deduction. Myfreetaxes 2013 All others use Form 4562. Myfreetaxes 2013   File the appropriate form with either of the following. Myfreetaxes 2013 Your original tax return filed for the year the property was placed in service (whether or not you file it timely). Myfreetaxes 2013 An amended return filed within the time prescribed by law. Myfreetaxes 2013 An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. Myfreetaxes 2013 The amended return must also include any resulting adjustments to taxable income. Myfreetaxes 2013    You must keep records that show the specific identification of each piece of qualifying section 179 property. Myfreetaxes 2013 These records must show how you acquired the property, the person you acquired it from, and when you placed it in service. Myfreetaxes 2013 Revoking an election. Myfreetaxes 2013   An election (or any specification made in the election) to take a section 179 deduction for 2013 can only be revoked with the Commissioner's approval. Myfreetaxes 2013 Recapture of section 179 deduction. Myfreetaxes 2013   To be eligible to claim the section 179 deduction, you must use your car more than 50% for business or work in the year you acquired it. Myfreetaxes 2013 If your business use of the car is 50% or less in a later tax year during the recovery period, you have to recapture (include in income) in that later year any excess depreciation. Myfreetaxes 2013 Any section 179 deduction claimed on the car is included in calculating the excess depreciation. Myfreetaxes 2013 For information on this calculation, see Excess depreciation , later in this chapter under Car Used 50% or Less for Business. Myfreetaxes 2013 Dispositions. Myfreetaxes 2013   If you dispose of a car on which you had claimed the section 179 deduction, the amount of that deduction is treated as a depreciation deduction for recapture purposes. Myfreetaxes 2013 You treat any gain on the disposition of the property as ordinary income up to the amount of the section 179 deduction and any allowable depreciation (unless you establish the amount actually allowed). Myfreetaxes 2013 For information on the disposition of a car, see Disposition of a Car , later. Myfreetaxes 2013 Special Depreciation Allowance You may be able to claim the special depreciation allowance for your car, truck, or van, if it is qualified property and was placed in service in 2013. Myfreetaxes 2013 The allowance is an additional depreciation deduction of 50% of the car's depreciable basis (after any section 179 deduction, but before figuring your regular depreciation deduction under MACRS). Myfreetaxes 2013 The special depreciation allowance applies only for the first year the car is placed in service. Myfreetaxes 2013 To qualify for the allowance more than 50% of the use of the car must be in a qualified business use (as defined under Depreciation Deduction, later). Myfreetaxes 2013 Combined depreciation. Myfreetaxes 2013   Your combined section 179 deduction, special depreciation allowance, and regular MACRS depreciation deduction is limited to the maximum allowable depreciation deduction for cars of $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Myfreetaxes 2013 For trucks and vans, the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Myfreetaxes 2013 See Depreciation Limits , later in this chapter. Myfreetaxes 2013 Qualified car. Myfreetaxes 2013   To be a qualified car (including trucks and vans), the car must meet all of the following tests. Myfreetaxes 2013 You purchased the car new on or after January 1, 2008, but only if no binding written contract to acquire the car existed before January 1, 2008, You placed the car in service in your trade or business before January 1, 2014, You used the car more than 50% in a qualified business use. Myfreetaxes 2013 Election not to claim the special depreciation allowance. Myfreetaxes 2013   You can elect not to claim the special depreciation allowance for your car, truck, or van, that is qualified property. Myfreetaxes 2013 If you make this election, it applies to all 5-year property placed in service during the year. Myfreetaxes 2013   To make the election, attach a statement to your timely filed return (including extensions) indicating the class of property (5-year for cars) for which you are making the election and that you are electing not to claim the special depreciation allowance for qualified property acquired on or after January 1, 2008. Myfreetaxes 2013    Unless you elect not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. Myfreetaxes 2013 Depreciation Deduction If you use actual car expenses to figure your deduction for a car you own and use in your business, you can claim a depreciation deduction. Myfreetaxes 2013 This means you can deduct a certain amount each year as a recovery of your cost or other basis in your car. Myfreetaxes 2013 You generally need to know the following things about the car you intend to depreciate. Myfreetaxes 2013 Your basis in the car. Myfreetaxes 2013 The date you place the car in service. Myfreetaxes 2013 The method of depreciation and recovery period you will use. Myfreetaxes 2013 Basis. Myfreetaxes 2013   Your basis in a car for figuring depreciation is generally its cost. Myfreetaxes 2013 This includes any amount you borrow or pay in cash, other property, or services. Myfreetaxes 2013   Generally, you figure depreciation on your car, truck, or van using your unadjusted basis (see Unadjusted basis , later). Myfreetaxes 2013 However, in some situations you will use your adjusted basis (your basis reduced by depreciation allowed or allowable in earlier years). Myfreetaxes 2013 For one of these situations see Exception under Methods of depreciation, later. Myfreetaxes 2013   If you change the use of a car from personal to business, your basis for depreciation is the lesser of the fair market value or your adjusted basis in the car on the date of conversion. Myfreetaxes 2013 Additional rules concerning basis are discussed later in this chapter under Unadjusted basis . Myfreetaxes 2013 Placed in service. Myfreetaxes 2013   You generally place a car in service when it is available for use in your work or business, in an income-producing activity, or in a personal activity. Myfreetaxes 2013 Depreciation begins when the car is placed in service for use in your work or business or for the production of income. Myfreetaxes 2013   For purposes of computing depreciation, if you first start using the car only for personal use and later convert it to business use, you place the car in service on the date of conversion. Myfreetaxes 2013 Car placed in service and disposed of in the same year. Myfreetaxes 2013   If you place a car in service and dispose of it in the same tax year, you cannot claim any depreciation deduction for that car. Myfreetaxes 2013 Methods of depreciation. Myfreetaxes 2013   Generally, you figure depreciation on cars using the Modified Accelerated Cost Recovery System (MACRS). Myfreetaxes 2013 MACRS is discussed later in this chapter. Myfreetaxes 2013 Exception. Myfreetaxes 2013   If you used the standard mileage rate in the first year of business use and change to the actual expenses method in a later year, you cannot depreciate your car under the MACRS rules. Myfreetaxes 2013 You must use straight line depreciation over the estimated remaining useful life of the car. Myfreetaxes 2013   To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate. Myfreetaxes 2013 The rate per mile varies depending on the year(s) you used the standard mileage rate. Myfreetaxes 2013 For the rate(s) to use, see Depreciation adjustment when you used the standard mileage rate under Disposition of a Car, later. Myfreetaxes 2013   This reduction of basis is in addition to those basis adjustments described later under Unadjusted basis . Myfreetaxes 2013 You must use your adjusted basis in your car to figure your depreciation deduction. Myfreetaxes 2013 For additional information on the straight line method of depreciation, see Publication 946. Myfreetaxes 2013 More-than-50%-use test. Myfreetaxes 2013   Generally, you must use your car more than 50% for qualified business use (defined next) during the year to use MACRS. Myfreetaxes 2013 You must meet this more-than-50%-use test each year of the recovery period (6 years under MACRS) for your car. Myfreetaxes 2013   If your business use is 50% or less, you must use the straight line method to depreciate your car. Myfreetaxes 2013 This is explained later under Car Used 50% or Less for Business . Myfreetaxes 2013 Qualified business use. Myfreetaxes 2013   A qualified business use is any use in your trade or business. Myfreetaxes 2013 It does not include use for the production of income (investment use). Myfreetaxes 2013 However, you do combine your business and investment use to compute your depreciation deduction for the tax year. Myfreetaxes 2013 Use of your car by another person. Myfreetaxes 2013   Do not treat any use of your car by another person as use in your trade or business unless that use meets one of the following conditions. Myfreetaxes 2013 It is directly connected with your business. Myfreetaxes 2013 It is properly reported by you as income to the other person (and, if you have to, you withhold tax on the income). Myfreetaxes 2013 It results in a payment of fair market rent. Myfreetaxes 2013 This includes any payment to you for the use of your car. Myfreetaxes 2013 Business use changes. Myfreetaxes 2013   If you used your car more than 50% in qualified business use in the year you placed it in service, but 50% or less in a later year (including the year of disposition), you have to change to the straight line method of depreciation. Myfreetaxes 2013 See Qualified business use 50% or less in a later year under Car Used 50% or Less for Business, later. Myfreetaxes 2013    Property does not cease to be used more than 50% in qualified business use by reason of a transfer at death. Myfreetaxes 2013 Use for more than one purpose. Myfreetaxes 2013   If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. Myfreetaxes 2013 You do this on the basis of mileage. Myfreetaxes 2013 Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose. Myfreetaxes 2013 Change from personal to business use. Myfreetaxes 2013   If you change the use of a car from 100% personal use to business use during the tax year, you may not have mileage records for the time before the change to business use. Myfreetaxes 2013 In this case, you figure the percentage of business use for the year as follows. Myfreetaxes 2013 Determine the percentage of business use for the period following the change. Myfreetaxes 2013 Do this by dividing business miles by total miles driven during that period. Myfreetaxes 2013 Multiply the percentage in (1) by a fraction. Myfreetaxes 2013 The numerator (top number) is the number of months the car is used for business and the denominator (bottom number) is 12. Myfreetaxes 2013 Example. Myfreetaxes 2013 You use a car only for personal purposes during the first 6 months of the year. Myfreetaxes 2013 During the last 6 months of the year, you drive the car a total of 15,000 miles of which 12,000 miles are for business. Myfreetaxes 2013 This gives you a business use percentage of 80% (12,000 ÷ 15,000) for that period. Myfreetaxes 2013 Your business use for the year is 40% (80% × 6/12). Myfreetaxes 2013 Limits. Myfreetaxes 2013   The amount you can claim for section 179, special depreciation allowance, and depreciation deductions may be limited. Myfreetaxes 2013 The maximum amount you can claim depends on the year in which you placed your car in service. Myfreetaxes 2013 You have to reduce the maximum amount if you did not use the car exclusively for business. Myfreetaxes 2013 See Depreciation Limits , later. Myfreetaxes 2013 Unadjusted basis. Myfreetaxes 2013   You use your unadjusted basis (often referred to as your basis or your basis for depreciation) to figure your depreciation using the MACRS depreciation chart, explained later under Modified Accelerated Cost Recovery System (MACRS) . Myfreetaxes 2013 Your unadjusted basis for figuring depreciation is your original basis increased or decreased by certain amounts. Myfreetaxes 2013   To figure your unadjusted basis, begin with your car's original basis, which generally is its cost. Myfreetaxes 2013 Cost includes sales taxes (see Sales taxes , earlier), destination charges, and dealer preparation. Myfreetaxes 2013 Increase your basis by any substantial improvements you make to your car, such as adding air conditioning or a new engine. Myfreetaxes 2013 Decrease your basis by any section 179 deduction, special depreciation allowance, gas guzzler tax, clean-fuel vehicle deduction (for vehicles placed in service before Jan. Myfreetaxes 2013 1, 2006), and alternative motor vehicle credit. Myfreetaxes 2013   See Form 8910 for information on the alternative motor vehicle credit. Myfreetaxes 2013 If your business use later falls to 50% or less, you may have to recapture (include in your income) any excess depreciation. Myfreetaxes 2013 See Car Used 50% or Less for Business, later, for more information. Myfreetaxes 2013 If you acquired the car by gift or inheritance, see Publication 551, Basis of Assets, for information on your basis in the car. Myfreetaxes 2013 Improvements. Myfreetaxes 2013   A major improvement to a car is treated as a new item of 5-year recovery property. Myfreetaxes 2013 It is treated as placed in service in the year the improvement is made. Myfreetaxes 2013 It does not matter how old the car is when the improvement is added. Myfreetaxes 2013 Follow the same steps for depreciating the improvement as you would for depreciating the original cost of the car. Myfreetaxes 2013 However, you must treat the improvement and the car as a whole when applying the limits on the depreciation deductions. Myfreetaxes 2013 Your car's depreciation deduction for the year (plus any section 179 deduction, special depreciation allowance, and depreciation on any improvements) cannot be more than the depreciation limit that applies for that year. Myfreetaxes 2013 See Depreciation Limits , later. Myfreetaxes 2013 Car trade-in. Myfreetaxes 2013   If you traded one car (the “old car”) for another car (the “new car”) in 2013, there are two ways you can treat the transaction. Myfreetaxes 2013 You can elect to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Myfreetaxes 2013 If you make this election, you treat the old car as disposed of at the time of the trade-in. Myfreetaxes 2013 The depreciable basis of the new car is the adjusted basis of the old car (figured as if 100% of the car's use had been for business purposes) plus any additional amount you paid for the new car. Myfreetaxes 2013 You then figure your depreciation deduction for the new car beginning with the date you placed it in service. Myfreetaxes 2013 You make this election by completing Form 2106, Part II, Section D. Myfreetaxes 2013 This method is explained later, beginning at Effect of trade-in on basis . Myfreetaxes 2013 If you do not make the election described in (1), you must figure depreciation separately for the remaining basis of the old car and for any additional amount you paid for the new car. Myfreetaxes 2013 You must apply two depreciation limits (see Depreciation Limits , later). Myfreetaxes 2013 The limit that applies to the remaining basis of the old car generally is the amount that would have been allowed had you not traded in the old car. Myfreetaxes 2013 The limit that applies to the additional amount you paid for the new car generally is the limit that applies for the tax year, reduced by the depreciation allowance for the remaining basis of the old car. Myfreetaxes 2013 You must use Form 4562 to compute your depreciation deduction. Myfreetaxes 2013 You cannot use Form 2106, Part II, Section D. Myfreetaxes 2013 This method is explained in Publication 946. Myfreetaxes 2013   If you elect to use the method described in (1), you must do so on a timely filed tax return (including extensions). Myfreetaxes 2013 Otherwise, you must use the method described in (2). Myfreetaxes 2013 Effect of trade-in on basis. Myfreetaxes 2013   The discussion that follows applies to trade-ins of cars in 2013, where the election was made to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Myfreetaxes 2013 For information on how to figure depreciation for cars involved in a like-kind exchange (trade-in) in 2013, for which the election was not made, see Publication 946 and Regulations section 1. Myfreetaxes 2013 168(i)-6(d)(3). Myfreetaxes 2013 Traded car used only for business. Myfreetaxes 2013   If you trade in a car you used only in your business for another car that will be used only in your business, your original basis in the new car is your adjusted basis in the old car, plus any additional amount you pay for the new car. Myfreetaxes 2013 Example. Myfreetaxes 2013 Paul trades in a car that has an adjusted basis of $5,000 for a new car. Myfreetaxes 2013 In addition, he pays cash of $20,000 for the new car. Myfreetaxes 2013 His original basis of the new car is $25,000 (his $5,000 adjusted basis in the old car plus the $20,000 cash paid). Myfreetaxes 2013 Paul's unadjusted basis is $25,000 unless he claims the section 179 deduction, special depreciation allowance, or has other increases or decreases to his original basis, discussed under Unadjusted basis , earlier. Myfreetaxes 2013 Traded car used partly in business. Myfreetaxes 2013   If you trade in a car you used partly in your business for a new car you will use in your business, you must make a “trade-in” adjustment for the personal use of the old car. Myfreetaxes 2013 This adjustment has the effect of reducing your basis in your old car, but not below zero, for purposes of figuring your depreciation deduction for the new car. Myfreetaxes 2013 (This adjustment is not used, however, when you determine the gain or loss on the later disposition of the new car. Myfreetaxes 2013 See Publication 544, Sales and Other Dispositions of Assets, for information on how to report the disposition of your car. Myfreetaxes 2013 )   To figure the unadjusted basis of your new car for depreciation, first add to your adjusted basis in the old car any additional amount you pay for the new car. Myfreetaxes 2013 Then subtract from that total the excess, if any, of: The total of the amounts that would have been allowable as depreciation during the tax years before the trade if 100% of the use of the car had been business and investment use, over The total of the amounts actually allowed as depreciation during those years. Myfreetaxes 2013 For information about figuring depreciation, see Modified Accelerated Cost Recovery System (MACRS) , which follows Example 2, later. Myfreetaxes 2013 Modified Accelerated Cost Recovery System (MACRS). Myfreetaxes 2013   The Modified Accelerated Cost Recovery System (MACRS) is the name given to the tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Myfreetaxes 2013   The maximum amount you can deduct is limited, depending on the year you placed your car in service. Myfreetaxes 2013 See Depreciation Limits , later. Myfreetaxes 2013 Recovery period. Myfreetaxes 2013   Under MACRS, cars are classified as 5-year property. Myfreetaxes 2013 You actually depreciate the cost of a car, truck, or van over a period of 6 calendar years. Myfreetaxes 2013 This is because your car is generally treated as placed in service in the middle of the year, and you claim depreciation for one-half of both the first year and the sixth year. Myfreetaxes 2013 Depreciation deduction for certain Indian reservation property. Myfreetaxes 2013   Shorter recovery periods are provided under MACRS for qualified Indian reservation property placed in service on Indian reservations after 1993 and before 2014. Myfreetaxes 2013 The recovery that applies for a business-use car is 3 years instead of 5 years. Myfreetaxes 2013 However, the depreciation limits, discussed later, will still apply. Myfreetaxes 2013   For more information on the qualifications for this shorter recovery period and the percentages to use in figuring the depreciation deduction, see chapter 4 of Publication 946. Myfreetaxes 2013 Depreciation methods. Myfreetaxes 2013   You can use one of the following methods to depreciate your car. Myfreetaxes 2013 The 200% declining balance method (200% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Myfreetaxes 2013 The 150% declining balance method (150% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Myfreetaxes 2013 The straight line method (SL) over a 5-year recovery period. Myfreetaxes 2013    If you use Table 4-1 (discussed later under MACRS depreciation chart) to determine your depreciation rate for 2013, you do not need to determine in what year using the straight line method provides an equal or greater deduction. Myfreetaxes 2013 This is because the chart has the switch to the straight line method built into its rates. Myfreetaxes 2013   Before choosing a method, you may wish to consider the following facts. Myfreetaxes 2013 Using the straight line method provides equal yearly deductions throughout the recovery period. Myfreetaxes 2013 Using the declining balance methods provides greater deductions during the earlier recovery years with the deductions generally getting smaller each year. Myfreetaxes 2013 MACRS depreciation chart. Myfreetaxes 2013   A 2013 MACRS Depreciation Chart and instructions are included in this chapter as Table 4-1 . Myfreetaxes 2013 Using this table will make it easy for you to figure the 2013 depreciation deduction for your car. Myfreetaxes 2013 A similar chart appears in the Instructions for Form 2106. Myfreetaxes 2013    You may have to use the tables in Publication 946 instead of using this MACRS Depreciation Chart. Myfreetaxes 2013   You must use the Depreciation Tables in Publication 946 rather than the 2013 MACRS Depreciation Chart in this publication if any one of the following four conditions applies to you. Myfreetaxes 2013 You file your return on a fiscal year basis. Myfreetaxes 2013 You file your return for a short tax year (less than 12 months). Myfreetaxes 2013 During the year, all of the following conditions apply. Myfreetaxes 2013 You placed some property in service from January through September. Myfreetaxes 2013 You placed some property in service from October through December. Myfreetaxes 2013 Your basis in the property you placed in service from October through December (excluding nonresidential real property, residential rental property, and property placed in service and disposed of in the same year) was more than 40% of your total bases in all property you placed in service during the year. Myfreetaxes 2013   You placed qualified property in service on an Indian reservation. Myfreetaxes 2013 Depreciation in future years. Myfreetaxes 2013   If you use the percentages from the chart, you generally must continue to use them for the entire recovery period of your car. Myfreetaxes 2013 However, you cannot continue to use the chart if your basis in your car is adjusted because of a casualty. Myfreetaxes 2013 In that case, for the year of the adjustment and the remaining recovery period, figure the depreciation without the chart using your adjusted basis in the car at the end of the year of the adjustment and over the remaining recovery period. Myfreetaxes 2013 See Figuring the Deduction Without Using the Tables in chapter 4 of Publication 946. Myfreetaxes 2013    In future years, do not use the chart in this edition of the publication. Myfreetaxes 2013 Instead, use the chart in the publication or the form instructions for those future years. Myfreetaxes 2013 Disposition of car during recovery period. Myfreetaxes 2013   If you dispose of the car before the end of the recovery period, you are generally allowed a half year of depreciation in the year of disposition unless you purchased the car during the last quarter of a year. Myfreetaxes 2013 See Depreciation deduction for the year of disposition under Disposition of a Car, later, for information on how to figure the depreciation allowed in the year of disposition. Myfreetaxes 2013 How to use the 2013 chart. Myfreetaxes 2013   To figure your depreciation deduction for 2013, find the percentage in the column of Table 4-1 based on the date that you first placed the car in service and the depreciation method that you are using. Myfreetaxes 2013 Multiply the unadjusted basis of your car (defined earlier) by that percentage to determine the amount of your depreciation deduction. Myfreetaxes 2013 If you prefer to figure your depreciation deduction without the help of the chart, see Publication 946. Myfreetaxes 2013    Your deduction cannot be more than the maximum depreciation limit for cars. Myfreetaxes 2013 See Depreciation Limits, later. Myfreetaxes 2013 Example. Myfreetaxes 2013 Phil bought a used truck in February 2012 to use exclusively in his landscape business. Myfreetaxes 2013 He paid $9,200 for the truck with no trade-in. Myfreetaxes 2013 Phil did not claim any section 179 deduction, the truck did not qualify for the special depreciation allowance, and he chose to use the 200% DB method to get the largest depreciation deduction in the early years. Myfreetaxes 2013 Phil used the MACRS depreciation chart in 2012 to find his percentage. Myfreetaxes 2013 The unadjusted basis of his truck equals its cost because Phil used it exclusively for business. Myfreetaxes 2013 He multiplied the unadjusted basis of his truck, $9,200, by the percentage that applied, 20%, to figure his 2012 depreciation deduction of $1,840. Myfreetaxes 2013 In 2013, Phil used the truck for personal purposes when he repaired his father's cabin. Myfreetaxes 2013 His records show that the business use of his truck was 90% in 2013. Myfreetaxes 2013 Phil used Table 4-1 to find his percentage. Myfreetaxes 2013 Reading down the first column for the date placed in service and across to the 200% DB column, he locates his percentage, 32%. Myfreetaxes 2013 He multiplies the unadjusted basis of his truck, $8,280 ($9,200 cost × 90% business use), by 32% to figure his 2013 depreciation deduction of $2,650. Myfreetaxes 2013 Depreciation Limits There are limits on the amount you can deduct for depreciation of your car, truck, or van. Myfreetaxes 2013 The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits. Myfreetaxes 2013 The maximum amount you can deduct each year depends on the year you place the car in service. Myfreetaxes 2013 These limits are shown in the following tables. Myfreetaxes 2013   Maximum Depreciation Deduction for Cars Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2012–2013 $11,1601 $5,100 $3,050 $1,875 2010–2011 11,0602 4,900 2,950 1,775 2008–2009 10,9603 4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6103 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7104 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6605 4,900 2,950 1,775 2001–2002 7,6605 4,900 2,950 1,775 2000 3,060 4,900 2,950 1,775 1$3,160 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Myfreetaxes 2013 2$3,060 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Myfreetaxes 2013 3$2,960 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Myfreetaxes 2013 4$7,660 if you acquired the car before 5/6/2003. Myfreetaxes 2013 $3,060 if the car is not qualified property or if you elect not to claim any special depreciation allowance. Myfreetaxes 2013 5$3,060 if you acquired the car before 9/11/2001, the car is not qualified property, or you elect not to claim the special depreciation allowance. Myfreetaxes 2013 Trucks and vans. Myfreetaxes 2013   For 2013, the maximum depreciation deductions for trucks and vans are generally higher than those for cars. Myfreetaxes 2013 A truck or van is a passenger automobile that is classified by the manufacturer as a truck or van and rated at 6,000 pounds gross vehicle weight or less. Myfreetaxes 2013 For trucks and vans placed in service before 2003, use the Maximum Depreciation Deduction for Cars table. Myfreetaxes 2013 Maximum Depreciation Deduction for Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 $11,3601 $5,300 $3,150 $1,875 2011 11,2601 5,200 3,150 1,875 2010 11,1601 5,100 3,050 1,875 2009 11,0601 4,900 2,950 1,775 2008 11,1601 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2005–2006 3,260 5,200 3,150 1,875 2004 10,9101 5,300 3,150 1,875 2003 11,0101,2 5,400 3,250 1,975 1If the special depreciation allowance does not apply or you make the election not to claim the special depreciation allowance, the first-year limit is $3,360 for 2012 and 2013, $3,260 for 2011, $3,160 for 2010, $3,060 for 2009, $3,160 for 2008, $3,260 for 2004, and $3,360 for 2003. Myfreetaxes 2013 2If the truck or van was acquired before 5/06/2003, the truck or van is qualified property, and you claim the special depreciation allowance for the truck or van, the maximum deduction is $7,960. Myfreetaxes 2013 Car used less than full year. Myfreetaxes 2013   The depreciation limits are not reduced if you use a car for less than a full year. Myfreetaxes 2013 This means that you do not reduce the limit when you either place a car in service or dispose of a car during the year. Myfreetaxes 2013 However, the depreciation limits are reduced if you do not use the car exclusively for business and investment purposes. Myfreetaxes 2013 See Reduction for personal use , next. Myfreetaxes 2013 Reduction for personal use. Myfreetaxes 2013   The depreciation limits are reduced based on your percentage of personal use. Myfreetaxes 2013 If you use a car less than 100% in your business or work, you must determine the depreciation deduction limit by multiplying the limit amount by the percentage of business and investment use during the tax year. Myfreetaxes 2013 Section 179 deduction. Myfreetaxes 2013   The section 179 deduction is treated as a depreciation deduction. Myfreetaxes 2013 If you place a car that is not a truck or van in service in 2013, use it only for business, and choose the section 179 deduction, the special depreciation allowance, and the depreciation deduction for that car for 2013 is limited to $11,160. Myfreetaxes 2013 Example. Myfreetaxes 2013 On September 4, 2013, Jack bought a used car for $10,000 and placed it in service. Myfreetaxes 2013 He used it 80% for his business, and he chooses to take a section 179 deduction for the car. Myfreetaxes 2013 The car is not qualified property for purposes of the special depreciation allowance. Myfreetaxes 2013 Before applying the limit, Jack figures his maximum section 179 deduction to be $8,000. Myfreetaxes 2013 This is the cost of his qualifying property (up to the maximum $500,000 amount) multiplied by his business use ($10,000 × 80%). Myfreetaxes 2013 Jack then figures that his section 179 deduction for 2013 is limited to $2,528 (80% of $3,160). Myfreetaxes 2013 He then figures his unadjusted basis of $5,472 (($10,000 × 80%) − $2,528) for determining his depreciation deduction. Myfreetaxes 2013 Jack has reached his maximum depreciation deduction for 2013. Myfreetaxes 2013 For 2014, Jack will use his unadjusted basis of $5,472 to figure his depreciation deduction. Myfreetaxes 2013 Deductions in years after the recovery period. Myfreetaxes 2013   If the depreciation deductions for your car are reduced under the passenger automobile limits (discussed earlier), you will have unrecovered basis in your car at the end of the recovery period. Myfreetaxes 2013 If you continue to use your car for business, you can deduct that unrecovered basis (subject to depreciation limits) after the recovery period ends. Myfreetaxes 2013 Unrecovered basis. Myfreetaxes 2013   This is your cost or other basis in the car reduced by any clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), alternative motor vehicle credit, electric vehicle credit, gas guzzler tax, and depreciation (including any special depreciation allowance , discussed earlier, unless you elect not to claim it) and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use. Myfreetaxes 2013 The recovery period. Myfreetaxes 2013   For 5-year property, your recovery period is 6 calendar years. Myfreetaxes 2013 A part year's depreciation is allowed in the first calendar year, a full year's depreciation is allowed in each of the next 4 calendar years, and a part year's depreciation is allowed in the 6th calendar year. Myfreetaxes 2013   Under MACRS, your recovery period is the same whether you use declining balance or straight line depreciation. Myfreetaxes 2013 You determine your unrecovered basis in the 7th year after you placed the car in service. Myfreetaxes 2013 How to treat unrecovered basis. Myfreetaxes 2013   If you continue to use your car for business after the recovery period, you can claim a depreciation deduction in each succeeding tax year until you recover your basis in the car. Myfreetaxes 2013 The maximum amount you can deduct each year is determined by the date you placed the car in service and your business-use percentage. Myfreetaxes 2013 For example, no deduction is allowed for a year you use your car 100% for personal purposes. Myfreetaxes 2013 Example. Myfreetaxes 2013 In April 2007, Bob bought and placed in service a car he used exclusively in his business. Myfreetaxes 2013 The car cost $31,500. Myfreetaxes 2013 Bob did not claim a section 179 deduction or the special depreciation allowance for the car. Myfreetaxes 2013 He continued to use the car 100% in his business throughout the recovery period (2007 through 2012). Myfreetaxes 2013 For those years, Bob used the MACRS Depreciation Chart (200% declining balance method) and the Maximum Depreciation Deduction for Cars table, earlier, for the applicable tax year to compute his depreciation deductions during the recovery period. Myfreetaxes 2013 Bob's depreciation deductions were subject to the depreciation limits so he will have unrecovered basis at the end of the recovery period as shown in the following table. Myfreetaxes 2013      MACRS     Deprec. Myfreetaxes 2013 Year % Amount Limit Allowed 2007 20. Myfreetaxes 2013 00 $6,300 $3,060 $ 3,060 2008 32. Myfreetaxes 2013 00 10,080 4,900 4,900 2009 19. Myfreetaxes 2013 20 6,048 2,850 2,850 2010 11. Myfreetaxes 2013 52 3,629 1,775 1,775 2011 11. Myfreetaxes 2013 52 3,629 1,775 1,775 2012 5. Myfreetaxes 2013 76 1,814 1,775 1,775 Total $31,500   16,135 For the correct limit, see Maximum Depreciation Deduction for Cars under “Depreciation Limits,” earlier, for the maximum amount of depreciation allowed each year. Myfreetaxes 2013   At the end of 2012, Bob had an unrecovered basis in the car of $15,365 ($31,500 – $16,135). Myfreetaxes 2013 If Bob continued to use the car 100% for business in 2013 and later years, he can claim a depreciation deduction equal to the lesser of $1,775 or his remaining unrecovered basis. Myfreetaxes 2013   If Bob's business use of the car was less than 100% during any year, his depreciation deduction would be less than the maximum amount allowable for that year. Myfreetaxes 2013 However, in determining his unrecovered basis in the car, he would still reduce his original basis by the maximum amount allowable as if the business use had been 100%. Myfreetaxes 2013 For example, if Bob had used his car 60% for business instead of 100%, his allowable depreciation deductions would have been $9,681 ($16,135 × 60%), but he still would have to reduce his basis by $16,135 to determine his unrecovered basis. Myfreetaxes 2013 Table 4-1. Myfreetaxes 2013 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Myfreetaxes 2013 ) If you claim actual expenses for your car, use the chart below to find the depreciation method and percentage to use for your 2013 return for cars placed in service in 2013. Myfreetaxes 2013   First, using the left column, find the date you first placed the car in service in 2013. Myfreetaxes 2013 Then select the depreciation method and percentage from column (a), (b), or (c) following the rules explained in this chapter. Myfreetaxes 2013 For cars placed in service before 2013, you must use the same method you used on last year's return unless a decline in your business use requires you to change to the straight line method. Myfreetaxes 2013 Refer back to the MACRS Depreciation Chart for the year you placed the car in service. Myfreetaxes 2013 (See Car Used 50% or Less for Business . Myfreetaxes 2013 )  Multiply the unadjusted basis of your car by your business use percentage. Myfreetaxes 2013 Multiply the result by the percentage you found in the chart to find the amount of your depreciation deduction for 2013. Myfreetaxes 2013 (Also see Depreciation Limits . Myfreetaxes 2013 )   If you placed your car in service after September of any year and you placed other business property in service during the same year, you may have to use the Jan. Myfreetaxes 2013 1—Sept. Myfreetaxes 2013 30 percentage instead of the Oct. Myfreetaxes 2013 1—Dec. Myfreetaxes 2013 31 percentage for your car. Myfreetaxes 2013               To find out if this applies to you, determine: 1) the basis of all business property you placed in service after September of that year and 2) the basis of all business property you placed in service during that entire year. Myfreetaxes 2013 If the basis of the property placed in service after September is not more than 40% of the basis of all property (certain property is excluded) placed in service for the entire year, use the percentage for Jan. Myfreetaxes 2013 1—Sept. Myfreetaxes 2013 30 for figuring depreciation for your car. Myfreetaxes 2013 See Which Convention Applies? in chapter 4 of Publication 946 for more details. Myfreetaxes 2013               Example. Myfreetaxes 2013 You buy machinery (basis of $32,000) in May 2013 and a new van (basis of $20,000) in October 2013, both used 100% in your business. Myfreetaxes 2013 You
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Myfreetaxes 2013 Publication 584-B - Main Content Table of Contents How To Use This Workbook Comments and SuggestionsOrdering forms and publications. Myfreetaxes 2013 Tax questions. Myfreetaxes 2013 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Myfreetaxes 2013 How To Use This Workbook You can use this workbook by following these five steps. Myfreetaxes 2013 Read Publication 547 to learn about the tax rules for casualties, disasters, and thefts. Myfreetaxes 2013 Know the definitions of adjusted basis and fair market value, discussed below. Myfreetaxes 2013 Fill out Schedules 1 through 6. Myfreetaxes 2013 Read the Instructions for Form 4684. Myfreetaxes 2013 Fill out Form 4684 using the information you entered in Schedules 1 through 6. Myfreetaxes 2013 Use the chart below to find out how to use Schedules 1 through 6 to fill out Form 4684. Myfreetaxes 2013 Take what's in each row of. Myfreetaxes 2013 . Myfreetaxes 2013 . Myfreetaxes 2013 And enter it on Form 4684. Myfreetaxes 2013 . Myfreetaxes 2013 . Myfreetaxes 2013 Column 1 Line 19 Column 2 Line 20 Column 3 Line 21 Column 4 Line 22 Column 5 Line 23 Column 6 Line 24 Column 7 Line 25 Column 8 Line 26 Column 9 Line 27 Adjusted basis. Myfreetaxes 2013   Adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. Myfreetaxes 2013 If you did not acquire the property by purchasing it, your basis is determined as discussed in Publication 551, Basis of Assets. Myfreetaxes 2013 If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. Myfreetaxes 2013 Fair market value. Myfreetaxes 2013   Fair market value is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. Myfreetaxes 2013 When filling out Schedules 1 through 6, you need to know the fair market value of the property immediately before and immediately after the disaster or casualty. Myfreetaxes 2013 Deduction limits. Myfreetaxes 2013   If your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. Myfreetaxes 2013 See the Instructions for Form 4684, Section B. Myfreetaxes 2013 If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. Myfreetaxes 2013   The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040), must be reduced by 2% of your adjusted gross income. Myfreetaxes 2013 Employee property is property used in performing services as an employee. Myfreetaxes 2013 Comments and Suggestions We welcome your comments about this publication and your suggestions for future editions. Myfreetaxes 2013 You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Myfreetaxes 2013 NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Myfreetaxes 2013 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Myfreetaxes 2013 You can email us at taxforms@irs. Myfreetaxes 2013 gov. Myfreetaxes 2013 Please put “Publications Comment” on the subject line. Myfreetaxes 2013 You can also send us comments from www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/formspubs/. Myfreetaxes 2013 Select “Comment on Tax Forms and Publications” under “Information about. Myfreetaxes 2013 ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Myfreetaxes 2013 Ordering forms and publications. Myfreetaxes 2013   Visit www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Myfreetaxes 2013 Internal Revenue Service 1201 N. Myfreetaxes 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Myfreetaxes 2013   If you have a tax question, check the information available on IRS. Myfreetaxes 2013 gov or call 1-800-829-1040. Myfreetaxes 2013 We cannot answer tax questions sent to either of the above addresses. Myfreetaxes 2013 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Myfreetaxes 2013 By selecting the method that is best for you, you will have quick and easy access to tax help. Myfreetaxes 2013 Free help with your return. Myfreetaxes 2013   Free help in preparing your return is available nationwide from IRS-certified volunteers. Myfreetaxes 2013 The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Myfreetaxes 2013 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Myfreetaxes 2013 To find the nearest VITA or TCE site, visit IRS. Myfreetaxes 2013 gov or call 1-800-906-9887 or 1-800-829-1040. Myfreetaxes 2013   As part of the TCE program, AARP offers the Tax-Aide counseling program. Myfreetaxes 2013 To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Myfreetaxes 2013 aarp. Myfreetaxes 2013 org/money/taxaide. Myfreetaxes 2013   For more information on these programs, go to IRS. Myfreetaxes 2013 gov and enter keyword “VITA” in the upper right-hand corner. Myfreetaxes 2013 Internet. Myfreetaxes 2013 You can access the IRS website at IRS. Myfreetaxes 2013 gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Myfreetaxes 2013 Go to IRS. Myfreetaxes 2013 gov and click on Where's My Refund. Myfreetaxes 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Myfreetaxes 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Myfreetaxes 2013 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Myfreetaxes 2013 E-file your return. Myfreetaxes 2013 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Myfreetaxes 2013 Download forms, including talking tax forms, instructions, and publications. Myfreetaxes 2013 Order IRS products online. Myfreetaxes 2013 Research your tax questions online. Myfreetaxes 2013 Search publications online by topic or keyword. Myfreetaxes 2013 Use the online Internal Revenue Code, regulations, or other official guidance. Myfreetaxes 2013 View Internal Revenue Bulletins (IRBs) published in the last few years. Myfreetaxes 2013 Figure your withholding allowances using the withholding calculator online at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/individuals. Myfreetaxes 2013 Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/individuals. Myfreetaxes 2013 Sign up to receive local and national tax news by email. Myfreetaxes 2013 Get information on starting and operating a small business. Myfreetaxes 2013 Phone. Myfreetaxes 2013 Many services are available by phone. Myfreetaxes 2013   Ordering forms, instructions, and publications. Myfreetaxes 2013 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Myfreetaxes 2013 You should receive your order within 10 days. Myfreetaxes 2013 Asking tax questions. Myfreetaxes 2013 Call the IRS with your tax questions at 1-800-829-1040. Myfreetaxes 2013 Solving problems. Myfreetaxes 2013 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Myfreetaxes 2013 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Myfreetaxes 2013 Call your local Taxpayer Assistance Center for an appointment. Myfreetaxes 2013 To find the number, go to www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Myfreetaxes 2013 TTY/TDD equipment. Myfreetaxes 2013 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Myfreetaxes 2013 TeleTax topics. Myfreetaxes 2013 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Myfreetaxes 2013 Refund information. Myfreetaxes 2013 You can check the status of your refund on the new IRS phone app. Myfreetaxes 2013 Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Myfreetaxes 2013 IRS2Go is a new way to provide you with information and tools. Myfreetaxes 2013 To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Myfreetaxes 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Myfreetaxes 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Myfreetaxes 2013 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Myfreetaxes 2013 If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Myfreetaxes 2013 Other refund information. Myfreetaxes 2013 To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Myfreetaxes 2013 Evaluating the quality of our telephone services. Myfreetaxes 2013 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Myfreetaxes 2013 One method is for a second IRS representative to listen in on or record random telephone calls. Myfreetaxes 2013 Another is to ask some callers to complete a short survey at the end of the call. Myfreetaxes 2013 Walk-in. Myfreetaxes 2013 Many products and services are available on a walk-in basis. Myfreetaxes 2013   Products. Myfreetaxes 2013 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Myfreetaxes 2013 Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Myfreetaxes 2013 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Myfreetaxes 2013 Services. Myfreetaxes 2013 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Myfreetaxes 2013 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Myfreetaxes 2013 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Myfreetaxes 2013 No appointment is necessary—just walk in. Myfreetaxes 2013 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Myfreetaxes 2013 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Myfreetaxes 2013 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Myfreetaxes 2013 All other issues will be handled without an appointment. Myfreetaxes 2013 To find the number of your local office, go to  www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Myfreetaxes 2013 Mail. Myfreetaxes 2013 You can send your order for forms, instructions, and publications to the address below. Myfreetaxes 2013 You should receive a response within 10 days after your request is received. Myfreetaxes 2013  Internal Revenue Service 1201 N. Myfreetaxes 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Myfreetaxes 2013   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Myfreetaxes 2013 Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Myfreetaxes 2013 We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Myfreetaxes 2013 Remember, the worst thing you can do is nothing at all. Myfreetaxes 2013   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Myfreetaxes 2013 You face (or your business is facing) an immediate threat of adverse action. Myfreetaxes 2013 You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Myfreetaxes 2013   If you qualify for our help, we’ll do everything we can to get your problem resolved. Myfreetaxes 2013 You will be assigned to one advocate who will be with you at every turn. Myfreetaxes 2013 We have offices in every state, the District of Columbia, and Puerto Rico. Myfreetaxes 2013 Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Myfreetaxes 2013 And our services are always free. Myfreetaxes 2013   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Myfreetaxes 2013 Our tax toolkit at www. Myfreetaxes 2013 TaxpayerAdvocate. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov can help you understand these rights. Myfreetaxes 2013   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/advocate. Myfreetaxes 2013 You can also call our toll-free number at 1-877-777-4778. Myfreetaxes 2013   TAS also handles large-scale or systemic problems that affect many taxpayers. Myfreetaxes 2013 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/advocate. Myfreetaxes 2013 Low Income Taxpayer Clinics (LITCs). Myfreetaxes 2013   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Myfreetaxes 2013 Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Myfreetaxes 2013 These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Myfreetaxes 2013 Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Myfreetaxes 2013 For more information and to find a clinic near you, see the LITC page at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Myfreetaxes 2013 This publication is also available by calling 1-800-829-3676 or at your local IRS office. Myfreetaxes 2013 Free tax services. Myfreetaxes 2013   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Myfreetaxes 2013 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Myfreetaxes 2013 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Myfreetaxes 2013 The majority of the information and services listed in this publication are available to you free of charge. Myfreetaxes 2013 If there is a fee associated with a resource or service, it is listed in the publication. Myfreetaxes 2013   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Myfreetaxes 2013 DVD for tax products. Myfreetaxes 2013 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Myfreetaxes 2013 Prior-year forms, instructions, and publications. Myfreetaxes 2013 Tax Map: an electronic research tool and finding aid. Myfreetaxes 2013 Tax law frequently asked questions. Myfreetaxes 2013 Tax Topics from the IRS telephone response system. Myfreetaxes 2013 Internal Revenue Code—Title 26 of the U. Myfreetaxes 2013 S. Myfreetaxes 2013 Code. Myfreetaxes 2013 Links to other Internet based Tax Research Materials. Myfreetaxes 2013 Fill-in, print, and save features for most tax forms. Myfreetaxes 2013 Internal Revenue Bulletins. Myfreetaxes 2013 Toll-free and email technical support. Myfreetaxes 2013 Two releases during the year. Myfreetaxes 2013  – The first release will ship the beginning of January 2012. Myfreetaxes 2013  – The final release will ship the beginning of March 2012. Myfreetaxes 2013 Purchase the DVD from National Technical Information Service (NTIS) at www. Myfreetaxes 2013 irs. Myfreetaxes 2013 gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Myfreetaxes 2013 Prev  Up  Next   Home   More Online Publications