Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

H And R Block File Free

Form Ez 10402011 Amended ReturnCt 1040xTaxcut 2011Where Can I Get A State Tax FormHow Can I File My 2012 Taxes Online For FreeHow To File A 2011 Tax Return LateFile Free Tax ReturnI Didn T File My 2012 TaxesIrs 1040ez Form 2014Need To File My 2011 TaxesCan Unemployed People File TaxesIrs Tax Form 940 For 20122012 Federal Tax Form 1040ezHow To File 2012 Taxes NowFree Federal And State TaxesI Want To File My 2011 TaxesFiling A 1040xI Need To Amend My 2011 TaxesPrintable Irs Tax Forms 2011Free Tax Preparation SoftwareIrs Free State FilingHow To Fill Out 1040xE File State Tax FreeForm 1040-xHow To File Tax ReturnForm1040xTurbo State Tax FreeFiling 2011 Taxes In 2013Military Filing State TaxesIrs Form 48681040ez.comFree 1040ez Tax FilingIrs Forms For 2011Can I File 1040x OnlineFree 2012 TaxesFile Taxes 2006Where Can I File My State Taxes Online For FreeBlank Printable 1040ez FormFiling A 1040x Online

H And R Block File Free

H and r block file free 1. H and r block file free   Overview of Depreciation Table of Contents Introduction Useful Items - You may want to see: What Property Can Be Depreciated?Property You Own Property Used in Your Business or Income-Producing Activity Property Having a Determinable Useful Life Property Lasting More Than One Year What Property Cannot Be Depreciated?Land Excepted Property When Does Depreciation Begin and End?Placed in Service Idle Property Cost or Other Basis Fully Recovered Retired From Service What Method Can You Use To Depreciate Your Property?Property You Placed in Service Before 1987 Property Owned or Used in 1986 Intangible Property Corporate or Partnership Property Acquired in a Nontaxable Transfer Election To Exclude Property From MACRS What Is the Basis of Your Depreciable Property?Cost as Basis Other Basis Adjusted Basis How Do You Treat Repairs and Improvements? Do You Have To File Form 4562? How Do You Correct Depreciation Deductions?Filing an Amended Return Changing Your Accounting Method Introduction Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. H and r block file free It is an allowance for the wear and tear, deterioration, or obsolescence of the property. H and r block file free This chapter discusses the general rules for depreciating property and answers the following questions. H and r block file free What property can be depreciated? What property cannot be depreciated? When does depreciation begin and end? What method can you use to depreciate your property? What is the basis of your depreciable property? How do you treat repairs and improvements? Do you have to file Form 4562? How do you correct depreciation deductions? Useful Items - You may want to see: Publication 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization See chapter 6 for information about getting publications and forms. H and r block file free What Property Can Be Depreciated? You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment. H and r block file free You also can depreciate certain intangible property, such as patents, copyrights, and computer software. H and r block file free To be depreciable, the property must meet all the following requirements. H and r block file free It must be property you own. H and r block file free It must be used in your business or income-producing activity. H and r block file free It must have a determinable useful life. H and r block file free It must be expected to last more than one year. H and r block file free The following discussions provide information about these requirements. H and r block file free Property You Own To claim depreciation, you usually must be the owner of the property. H and r block file free You are considered as owning property even if it is subject to a debt. H and r block file free Example 1. H and r block file free You made a down payment to purchase rental property and assumed the previous owner's mortgage. H and r block file free You own the property and you can depreciate it. H and r block file free Example 2. H and r block file free You bought a new van that you will use only for your courier business. H and r block file free You will be making payments on the van over the next 5 years. H and r block file free You own the van and you can depreciate it. H and r block file free Leased property. H and r block file free   You can depreciate leased property only if you retain the incidents of ownership in the property (explained below). H and r block file free This means you bear the burden of exhaustion of the capital investment in the property. H and r block file free Therefore, if you lease property from someone to use in your trade or business or for the production of income, you generally cannot depreciate its cost because you do not retain the incidents of ownership. H and r block file free You can, however, depreciate any capital improvements you make to the property. H and r block file free See How Do You Treat Repairs and Improvements later in this chapter and Additions and Improvements under Which Recovery Period Applies in chapter 4. H and r block file free   If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. H and r block file free However, if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased, you cannot depreciate the cost of the property. H and r block file free Incidents of ownership. H and r block file free   Incidents of ownership in property include the following. H and r block file free The legal title to the property. H and r block file free The legal obligation to pay for the property. H and r block file free The responsibility to pay maintenance and operating expenses. H and r block file free The duty to pay any taxes on the property. H and r block file free The risk of loss if the property is destroyed, condemned, or diminished in value through obsolescence or exhaustion. H and r block file free Life tenant. H and r block file free   Generally, if you hold business or investment property as a life tenant, you can depreciate it as if you were the absolute owner of the property. H and r block file free However, see Certain term interests in property under Excepted Property, later. H and r block file free Cooperative apartments. H and r block file free   If you are a tenant-stockholder in a cooperative housing corporation and use your cooperative apartment in your business or for the production of income, you can depreciate your stock in the corporation, even though the corporation owns the apartment. H and r block file free   Figure your depreciation deduction as follows. H and r block file free Figure the depreciation for all the depreciable real property owned by the corporation in which you have a proprietary lease or right of tenancy. H and r block file free If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. H and r block file free Multiply your cost per share by the total number of outstanding shares, including any shares held by the corporation. H and r block file free Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. H and r block file free Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. H and r block file free Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. H and r block file free Divide the number of your shares of stock by the total number of outstanding shares, including any shares held by the corporation. H and r block file free Multiply the result of (2) by the percentage you figured in (3). H and r block file free This is your depreciation on the stock. H and r block file free   Your depreciation deduction for the year cannot be more than the part of your adjusted basis in the stock of the corporation that is allocable to your business or income-producing property. H and r block file free You must also reduce your depreciation deduction if only a portion of the property is used in a business or for the production of income. H and r block file free Example. H and r block file free You figure your share of the cooperative housing corporation's depreciation to be $30,000. H and r block file free Your adjusted basis in the stock of the corporation is $50,000. H and r block file free You use one half of your apartment solely for business purposes. H and r block file free Your depreciation deduction for the stock for the year cannot be more than $25,000 (½ of $50,000). H and r block file free Change to business use. H and r block file free   If you change your cooperative apartment to business use, figure your allowable depreciation as explained earlier. H and r block file free The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. H and r block file free The fair market value of the property on the date you change your apartment to business use. H and r block file free This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. H and r block file free The corporation's adjusted basis in the property on that date. H and r block file free Do not subtract depreciation when figuring the corporation's adjusted basis. H and r block file free   If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1), above. H and r block file free The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. H and r block file free   For a discussion of fair market value and adjusted basis, see Publication 551. H and r block file free Property Used in Your Business or Income-Producing Activity To claim depreciation on property, you must use it in your business or income-producing activity. H and r block file free If you use property to produce income (investment use), the income must be taxable. H and r block file free You cannot depreciate property that you use solely for personal activities. H and r block file free Partial business or investment use. H and r block file free   If you use property for business or investment purposes and for personal purposes, you can deduct depreciation based only on the business or investment use. H and r block file free For example, you cannot deduct depreciation on a car used only for commuting, personal shopping trips, family vacations, driving children to and from school, or similar activities. H and r block file free    You must keep records showing the business, investment, and personal use of your property. H and r block file free For more information on the records you must keep for listed property, such as a car, see What Records Must Be Kept in chapter 5. H and r block file free    Although you can combine business and investment use of property when figuring depreciation deductions, do not treat investment use as qualified business use when determining whether the business-use requirement for listed property is met. H and r block file free For information about qualified business use of listed property, see What Is the Business-Use Requirement in chapter 5. H and r block file free Office in the home. H and r block file free   If you use part of your home as an office, you may be able to deduct depreciation on that part based on its business use. H and r block file free For information about depreciating your home office, see Publication 587. H and r block file free Inventory. H and r block file free   You cannot depreciate inventory because it is not held for use in your business. H and r block file free Inventory is any property you hold primarily for sale to customers in the ordinary course of your business. H and r block file free   If you are a rent-to-own dealer, you may be able to treat certain property held in your business as depreciable property rather than as inventory. H and r block file free See Rent-to-own dealer under Which Property Class Applies Under GDS in chapter 4. H and r block file free   In some cases, it is not clear whether property is held for sale (inventory) or for use in your business. H and r block file free If it is unclear, examine carefully all the facts in the operation of the particular business. H and r block file free The following example shows how a careful examination of the facts in two similar situations results in different conclusions. H and r block file free Example. H and r block file free Maple Corporation is in the business of leasing cars. H and r block file free At the end of their useful lives, when the cars are no longer profitable to lease, Maple sells them. H and r block file free Maple does not have a showroom, used car lot, or individuals to sell the cars. H and r block file free Instead, it sells them through wholesalers or by similar arrangements in which a dealer's profit is not intended or considered. H and r block file free Maple can depreciate the leased cars because the cars are not held primarily for sale to customers in the ordinary course of business, but are leased. H and r block file free If Maple buys cars at wholesale prices, leases them for a short time, and then sells them at retail prices or in sales in which a dealer's profit is intended, the cars are treated as inventory and are not depreciable property. H and r block file free In this situation, the cars are held primarily for sale to customers in the ordinary course of business. H and r block file free Containers. H and r block file free   Generally, containers for the products you sell are part of inventory and you cannot depreciate them. H and r block file free However, you can depreciate containers used to ship your products if they have a life longer than one year and meet the following requirements. H and r block file free They qualify as property used in your business. H and r block file free Title to the containers does not pass to the buyer. H and r block file free   To determine if these requirements are met, consider the following questions. H and r block file free Does your sales contract, sales invoice, or other type of order acknowledgment indicate whether you have retained title? Does your invoice treat the containers as separate items? Do any of your records state your basis in the containers? Property Having a Determinable Useful Life To be depreciable, your property must have a determinable useful life. H and r block file free This means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. H and r block file free Property Lasting More Than One Year To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service. H and r block file free Example. H and r block file free You maintain a library for use in your profession. H and r block file free You can depreciate it. H and r block file free However, if you buy technical books, journals, or information services for use in your business that have a useful life of one year or less, you cannot depreciate them. H and r block file free Instead, you deduct their cost as a business expense. H and r block file free What Property Cannot Be Depreciated? Certain property cannot be depreciated. H and r block file free This includes land and certain excepted property. H and r block file free Land You cannot depreciate the cost of land because land does not wear out, become obsolete, or get used up. H and r block file free The cost of land generally includes the cost of clearing, grading, planting, and landscaping. H and r block file free Although you cannot depreciate land, you can depreciate certain land preparation costs, such as landscaping costs, incurred in preparing land for business use. H and r block file free These costs must be so closely associated with other depreciable property that you can determine a life for them along with the life of the associated property. H and r block file free Example. H and r block file free You constructed a new building for use in your business and paid for grading, clearing, seeding, and planting bushes and trees. H and r block file free Some of the bushes and trees were planted right next to the building, while others were planted around the outer border of the lot. H and r block file free If you replace the building, you would have to destroy the bushes and trees right next to it. H and r block file free These bushes and trees are closely associated with the building, so they have a determinable useful life. H and r block file free Therefore, you can depreciate them. H and r block file free Add your other land preparation costs to the basis of your land because they have no determinable life and you cannot depreciate them. H and r block file free Excepted Property Even if the requirements explained in the preceding discussions are met, you cannot depreciate the following property. H and r block file free Property placed in service and disposed of in the same year. H and r block file free Determining when property is placed in service is explained later. H and r block file free Equipment used to build capital improvements. H and r block file free You must add otherwise allowable depreciation on the equipment during the period of construction to the basis of your improvements. H and r block file free See Uniform Capitalization Rules in Publication 551. H and r block file free Section 197 intangibles. H and r block file free You must amortize these costs. H and r block file free Section 197 intangibles are discussed in detail in Chapter 8 of Publication 535. H and r block file free Intangible property, such as certain computer software, that is not section 197 intangible property, can be depreciated if it meets certain requirements. H and r block file free See Intangible Property , later. H and r block file free Certain term interests. H and r block file free Certain term interests in property. H and r block file free   You cannot depreciate a term interest in property created or acquired after July 27, 1989, for any period during which the remainder interest is held, directly or indirectly, by a person related to you. H and r block file free A term interest in property means a life interest in property, an interest in property for a term of years, or an income interest in a trust. H and r block file free Related persons. H and r block file free   For a description of related persons, see Related Persons, later. H and r block file free For this purpose, however, treat as related persons only the relationships listed in items (1) through (10) of that discussion and substitute “50%” for “10%” each place it appears. H and r block file free Basis adjustments. H and r block file free   If you would be allowed a depreciation deduction for a term interest in property except that the holder of the remainder interest is related to you, you generally must reduce your basis in the term interest by any depreciation or amortization not allowed. H and r block file free   If you hold the remainder interest, you generally must increase your basis in that interest by the depreciation not allowed to the term interest holder. H and r block file free However, do not increase your basis for depreciation not allowed for periods during which either of the following situations applies. H and r block file free The term interest is held by an organization exempt from tax. H and r block file free The term interest is held by a nonresident alien individual or foreign corporation, and the income from the term interest is not effectively connected with the conduct of a trade or business in the United States. H and r block file free Exceptions. H and r block file free   The above rules do not apply to the holder of a term interest in property acquired by gift, bequest, or inheritance. H and r block file free They also do not apply to the holder of dividend rights that were separated from any stripped preferred stock if the rights were purchased after April 30, 1993, or to a person whose basis in the stock is determined by reference to the basis in the hands of the purchaser. H and r block file free When Does Depreciation Begin and End? You begin to depreciate your property when you place it in service for use in your trade or business or for the production of income. H and r block file free You stop depreciating property either when you have fully recovered your cost or other basis or when you retire it from service, whichever happens first. H and r block file free Placed in Service You place property in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. H and r block file free Even if you are not using the property, it is in service when it is ready and available for its specific use. H and r block file free Example 1. H and r block file free Donald Steep bought a machine for his business. H and r block file free The machine was delivered last year. H and r block file free However, it was not installed and operational until this year. H and r block file free It is considered placed in service this year. H and r block file free If the machine had been ready and available for use when it was delivered, it would be considered placed in service last year even if it was not actually used until this year. H and r block file free Example 2. H and r block file free On April 6, Sue Thorn bought a house to use as residential rental property. H and r block file free She made several repairs and had it ready for rent on July 5. H and r block file free At that time, she began to advertise it for rent in the local newspaper. H and r block file free The house is considered placed in service in July when it was ready and available for rent. H and r block file free She can begin to depreciate it in July. H and r block file free Example 3. H and r block file free James Elm is a building contractor who specializes in constructing office buildings. H and r block file free He bought a truck last year that had to be modified to lift materials to second-story levels. H and r block file free The installation of the lifting equipment was completed and James accepted delivery of the modified truck on January 10 of this year. H and r block file free The truck was placed in service on January 10, the date it was ready and available to perform the function for which it was bought. H and r block file free Conversion to business use. H and r block file free   If you place property in service in a personal activity, you cannot claim depreciation. H and r block file free However, if you change the property's use to use in a business or income-producing activity, then you can begin to depreciate it at the time of the change. H and r block file free You place the property in service in the business or income-producing activity on the date of the change. H and r block file free Example. H and r block file free You bought a home and used it as your personal home several years before you converted it to rental property. H and r block file free Although its specific use was personal and no depreciation was allowable, you placed the home in service when you began using it as your home. H and r block file free You can begin to claim depreciation in the year you converted it to rental property because its use changed to an income-producing use at that time. H and r block file free Idle Property Continue to claim a deduction for depreciation on property used in your business or for the production of income even if it is temporarily idle (not in use). H and r block file free For example, if you stop using a machine because there is a temporary lack of a market for a product made with that machine, continue to deduct depreciation on the machine. H and r block file free Cost or Other Basis Fully Recovered You stop depreciating property when you have fully recovered your cost or other basis. H and r block file free You recover your basis when your section 179 and allowed or allowable depreciation deductions equal your cost or investment in the property. H and r block file free See What Is the Basis of Your Depreciable Property , later. H and r block file free Retired From Service You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. H and r block file free You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events. H and r block file free You sell or exchange the property. H and r block file free You convert the property to personal use. H and r block file free You abandon the property. H and r block file free You transfer the property to a supplies or scrap account. H and r block file free The property is destroyed. H and r block file free If you included the property in a general asset account, see How Do You Use General Asset Accounts in chapter 4 for the rules that apply when you dispose of that property. H and r block file free What Method Can You Use To Depreciate Your Property? You must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate most property. H and r block file free MACRS is discussed in chapter 4. H and r block file free You cannot use MACRS to depreciate the following property. H and r block file free Property you placed in service before 1987. H and r block file free Certain property owned or used in 1986. H and r block file free Intangible property. H and r block file free Films, video tapes, and recordings. H and r block file free Certain corporate or partnership property acquired in a nontaxable transfer. H and r block file free Property you elected to exclude from MACRS. H and r block file free The following discussions describe the property listed above and explain what depreciation method should be used. H and r block file free Property You Placed in Service Before 1987 You cannot use MACRS for property you placed in service before 1987 (except property you placed in service after July 31, 1986, if MACRS was elected). H and r block file free Property placed in service before 1987 must be depreciated under the methods discussed in Publication 534. H and r block file free For a discussion of when property is placed in service, see When Does Depreciation Begin and End , earlier. H and r block file free Use of real property changed. H and r block file free   You generally must use MACRS to depreciate real property that you acquired for personal use before 1987 and changed to business or income-producing use after 1986. H and r block file free Improvements made after 1986. H and r block file free   You must treat an improvement made after 1986 to property you placed in service before 1987 as separate depreciable property. H and r block file free Therefore, you can depreciate that improvement as separate property under MACRS if it is the type of property that otherwise qualifies for MACRS depreciation. H and r block file free For more information about improvements, see How Do You Treat Repairs and Improvements , later and Additions and Improvements under Which Recovery Period Applies in chapter 4. H and r block file free Property Owned or Used in 1986 You may not be able to use MACRS for property you acquired and placed in service after 1986 if any of the situations described below apply. H and r block file free If you cannot use MACRS, the property must be depreciated under the methods discussed in Publication 534. H and r block file free For the following discussions, do not treat property as owned before you placed it in service. H and r block file free If you owned property in 1986 but did not place it in service until 1987, you do not treat it as owned in 1986. H and r block file free Personal property. H and r block file free   You cannot use MACRS for personal property (section 1245 property) in any of the following situations. H and r block file free You or someone related to you owned or used the property in 1986. H and r block file free You acquired the property from a person who owned it in 1986 and as part of the transaction the user of the property did not change. H and r block file free You lease the property to a person (or someone related to this person) who owned or used the property in 1986. H and r block file free You acquired the property in a transaction in which: The user of the property did not change, and The property was not MACRS property in the hands of the person from whom you acquired it because of (2) or (3) above. H and r block file free Real property. H and r block file free   You generally cannot use MACRS for real property (section 1250 property) in any of the following situations. H and r block file free You or someone related to you owned the property in 1986. H and r block file free You lease the property to a person who owned the property in 1986 (or someone related to that person). H and r block file free You acquired the property in a like-kind exchange, involuntary conversion, or repossession of property you or someone related to you owned in 1986. H and r block file free MACRS applies only to that part of your basis in the acquired property that represents cash paid or unlike property given up. H and r block file free It does not apply to the carried-over part of the basis. H and r block file free Exceptions. H and r block file free   The rules above do not apply to the following. H and r block file free Residential rental property or nonresidential real property. H and r block file free Any property if, in the first tax year it is placed in service, the deduction under the Accelerated Cost Recovery System (ACRS) is more than the deduction under MACRS using the half-year convention. H and r block file free For information on how to figure depreciation under ACRS, see Publication 534. H and r block file free Property that was MACRS property in the hands of the person from whom you acquired it because of (2) above. H and r block file free Related persons. H and r block file free   For this purpose, the following are related persons. H and r block file free An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. H and r block file free A corporation and an individual who directly or indirectly owns more than 10% of the value of the outstanding stock of that corporation. H and r block file free Two corporations that are members of the same controlled group. H and r block file free A trust fiduciary and a corporation if more than 10% of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. H and r block file free The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. H and r block file free The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. H and r block file free A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. H and r block file free Two S corporations, and an S corporation and a regular corporation, if the same persons own more than 10% of the value of the outstanding stock of each corporation. H and r block file free A corporation and a partnership if the same persons own both of the following. H and r block file free More than 10% of the value of the outstanding stock of the corporation. H and r block file free More than 10% of the capital or profits interest in the partnership. H and r block file free The executor and beneficiary of any estate. H and r block file free A partnership and a person who directly or indirectly owns more than 10% of the capital or profits interest in the partnership. H and r block file free Two partnerships, if the same persons directly or indirectly own more than 10% of the capital or profits interest in each. H and r block file free The related person and a person who is engaged in trades or businesses under common control. H and r block file free See section 52(a) and 52(b) of the Internal Revenue Code. H and r block file free When to determine relationship. H and r block file free   You must determine whether you are related to another person at the time you acquire the property. H and r block file free   A partnership acquiring property from a terminating partnership must determine whether it is related to the terminating partnership immediately before the event causing the termination. H and r block file free For this rule, a terminating partnership is one that sells or exchanges, within 12 months, 50% or more of its total interest in partnership capital or profits. H and r block file free Constructive ownership of stock or partnership interest. H and r block file free   To determine whether a person directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership, apply the following rules. H and r block file free Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. H and r block file free However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more of the value of the stock of the corporation. H and r block file free An individual is considered to own the stock or partnership interest directly or indirectly owned by or for the individual's family. H and r block file free An individual who owns, except by applying rule (2), any stock in a corporation is considered to own the stock directly or indirectly owned by or for the individual's partner. H and r block file free For purposes of rules (1), (2), or (3), stock or a partnership interest considered to be owned by a person under rule (1) is treated as actually owned by that person. H and r block file free However, stock or a partnership interest considered to be owned by an individual under rule (2) or (3) is not treated as owned by that individual for reapplying either rule (2) or (3) to make another person considered to be the owner of the same stock or partnership interest. H and r block file free Intangible Property Generally, if you can depreciate intangible property, you usually use the straight line method of depreciation. H and r block file free However, you can choose to depreciate certain intangible property under the income forecast method (discussed later). H and r block file free You cannot depreciate intangible property that is a section 197 intangible or that otherwise does not meet all the requirements discussed earlier under What Property Can Be Depreciated. H and r block file free Straight Line Method This method lets you deduct the same amount of depreciation each year over the useful life of the property. H and r block file free To figure your deduction, first determine the adjusted basis, salvage value, and estimated useful life of your property. H and r block file free Subtract the salvage value, if any, from the adjusted basis. H and r block file free The balance is the total depreciation you can take over the useful life of the property. H and r block file free Divide the balance by the number of years in the useful life. H and r block file free This gives you your yearly depreciation deduction. H and r block file free Unless there is a big change in adjusted basis or useful life, this amount will stay the same throughout the time you depreciate the property. H and r block file free If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. H and r block file free Example. H and r block file free In April, Frank bought a patent for $5,100 that is not a section 197 intangible. H and r block file free He depreciates the patent under the straight line method, using a 17-year useful life and no salvage value. H and r block file free He divides the $5,100 basis by 17 years to get his $300 yearly depreciation deduction. H and r block file free He only used the patent for 9 months during the first year, so he multiplies $300 by 9/12 to get his deduction of $225 for the first year. H and r block file free Next year, Frank can deduct $300 for the full year. H and r block file free Patents and copyrights. H and r block file free   If you can depreciate the cost of a patent or copyright, use the straight line method over the useful life. H and r block file free The useful life of a patent or copyright is the lesser of the life granted to it by the government or the remaining life when you acquire it. H and r block file free However, if the patent or copyright becomes valueless before the end of its useful life, you can deduct in that year any of its remaining cost or other basis. H and r block file free Computer software. H and r block file free   Computer software is generally a section 197 intangible and cannot be depreciated if you acquired it in connection with the acquisition of assets constituting a business or a substantial part of a business. H and r block file free   However, computer software is not a section 197 intangible and can be depreciated, even if acquired in connection with the acquisition of a business, if it meets all of the following tests. H and r block file free It is readily available for purchase by the general public. H and r block file free It is subject to a nonexclusive license. H and r block file free It has not been substantially modified. H and r block file free   If the software meets the tests above, it may also qualify for the section 179 deduction and the special depreciation allowance, discussed later. H and r block file free If you can depreciate the cost of computer software, use the straight line method over a useful life of 36 months. H and r block file free    Tax-exempt use property subject to a lease. H and r block file free   The useful life of computer software leased under a lease agreement entered into after March 12, 2004, to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership), cannot be less than 125% of the lease term. H and r block file free Certain created intangibles. H and r block file free   You can amortize certain intangibles created on or after December 31, 2003, over a 15-year period using the straight line method and no salvage value, even though they have a useful life that cannot be estimated with reasonable accuracy. H and r block file free For example, amounts paid to acquire memberships or privileges of indefinite duration, such as a trade association membership, are eligible costs. H and r block file free   The following are not eligible. H and r block file free Any intangible asset acquired from another person. H and r block file free Created financial interests. H and r block file free Any intangible asset that has a useful life that can be estimated with reasonable accuracy. H and r block file free Any intangible asset that has an amortization period or limited useful life that is specifically prescribed or prohibited by the Code, regulations, or other published IRS guidance. H and r block file free Any amount paid to facilitate an acquisition of a trade or business, a change in the capital structure of a business entity, and certain other transactions. H and r block file free   You must also increase the 15-year safe harbor amortization period to a 25-year period for certain intangibles related to benefits arising from the provision, production, or improvement of real property. H and r block file free For this purpose, real property includes property that will remain attached to the real property for an indefinite period of time, such as roads, bridges, tunnels, pavements, and pollution control facilities. H and r block file free Income Forecast Method You can choose to use the income forecast method instead of the straight line method to depreciate the following depreciable intangibles. H and r block file free Motion picture films or video tapes. H and r block file free Sound recordings. H and r block file free Copyrights. H and r block file free Books. H and r block file free Patents. H and r block file free Under the income forecast method, each year's depreciation deduction is equal to the cost of the property, multiplied by a fraction. H and r block file free The numerator of the fraction is the current year's net income from the property, and the denominator is the total income anticipated from the property through the end of the 10th taxable year following the taxable year the property is placed in service. H and r block file free For more information, see section 167(g) of the Internal Revenue Code. H and r block file free Films, video tapes, and recordings. H and r block file free   You cannot use MACRS for motion picture films, video tapes, and sound recordings. H and r block file free For this purpose, sound recordings are discs, tapes, or other phonorecordings resulting from the fixation of a series of sounds. H and r block file free You can depreciate this property using either the straight line method or the income forecast method. H and r block file free Participations and residuals. H and r block file free   You can include participations and residuals in the adjusted basis of the property for purposes of computing your depreciation deduction under the income forecast method. H and r block file free The participations and residuals must relate to income to be derived from the property before the end of the 10th taxable year after the property is placed in service. H and r block file free For this purpose, participations and residuals are defined as costs which by contract vary with the amount of income earned in connection with the property. H and r block file free   Instead of including these amounts in the adjusted basis of the property, you can deduct the costs in the taxable year that they are paid. H and r block file free Videocassettes. H and r block file free   If you are in the business of renting videocassettes, you can depreciate only those videocassettes bought for rental. H and r block file free If the videocassette has a useful life of one year or less, you can currently deduct the cost as a business expense. H and r block file free Corporate or Partnership Property Acquired in a Nontaxable Transfer MACRS does not apply to property used before 1987 and transferred after 1986 to a corporation or partnership (except property the transferor placed in service after July 31, 1986, if MACRS was elected) to the extent its basis is carried over from the property's adjusted basis in the transferor's hands. H and r block file free You must continue to use the same depreciation method as the transferor and figure depreciation as if the transfer had not occurred. H and r block file free However, if MACRS would otherwise apply, you can use it to depreciate the part of the property's basis that exceeds the carried-over basis. H and r block file free The nontaxable transfers covered by this rule include the following. H and r block file free A distribution in complete liquidation of a subsidiary. H and r block file free A transfer to a corporation controlled by the transferor. H and r block file free An exchange of property solely for corporate stock or securities in a reorganization. H and r block file free A contribution of property to a partnership in exchange for a partnership interest. H and r block file free A partnership distribution of property to a partner. H and r block file free Election To Exclude Property From MACRS If you can properly depreciate any property under a method not based on a term of years, such as the unit-of-production method, you can elect to exclude that property from MACRS. H and r block file free You make the election by reporting your depreciation for the property on line 15 in Part II of Form 4562 and attaching a statement as described in the instructions for Form 4562. H and r block file free You must make this election by the return due date (including extensions) for the tax year you place your property in service. H and r block file free However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within six months of the due date of the return (excluding extensions). H and r block file free Attach the election to the amended return and write “Filed pursuant to section 301. H and r block file free 9100-2” on the election statement. H and r block file free File the amended return at the same address you filed the original return. H and r block file free Use of standard mileage rate. H and r block file free   If you use the standard mileage rate to figure your tax deduction for your business automobile, you are treated as having made an election to exclude the automobile from MACRS. H and r block file free See Publication 463 for a discussion of the standard mileage rate. H and r block file free What Is the Basis of Your Depreciable Property? To figure your depreciation deduction, you must determine the basis of your property. H and r block file free To determine basis, you need to know the cost or other basis of your property. H and r block file free Cost as Basis The basis of property you buy is its cost plus amounts you paid for items such as sales tax (see Exception , below), freight charges, and installation and testing fees. H and r block file free The cost includes the amount you pay in cash, debt obligations, other property, or services. H and r block file free Exception. H and r block file free   You can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). H and r block file free If you make that choice, you cannot include those sales taxes as part of your cost basis. H and r block file free Assumed debt. H and r block file free   If you buy property and assume (or buy subject to) an existing mortgage or other debt on the property, your basis includes the amount you pay for the property plus the amount of the assumed debt. H and r block file free Example. H and r block file free You make a $20,000 down payment on property and assume the seller's mortgage of $120,000. H and r block file free Your total cost is $140,000, the cash you paid plus the mortgage you assumed. H and r block file free Settlement costs. H and r block file free   The basis of real property also includes certain fees and charges you pay in addition to the purchase price. H and r block file free These generally are shown on your settlement statement and include the following. H and r block file free Legal and recording fees. H and r block file free Abstract fees. H and r block file free Survey charges. H and r block file free Owner's title insurance. H and r block file free Amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. H and r block file free   For fees and charges you cannot include in the basis of property, see Real Property in Publication 551. H and r block file free Property you construct or build. H and r block file free   If you construct, build, or otherwise produce property for use in your business, you may have to use the uniform capitalization rules to determine the basis of your property. H and r block file free For information about the uniform capitalization rules, see Publication 551 and the regulations under section 263A of the Internal Revenue Code. H and r block file free Other Basis Other basis usually refers to basis that is determined by the way you received the property. H and r block file free For example, your basis is other than cost if you acquired the property in exchange for other property, as payment for services you performed, as a gift, or as an inheritance. H and r block file free If you acquired property in this or some other way, see Publication 551 to determine your basis. H and r block file free Property changed from personal use. H and r block file free   If you held property for personal use and later use it in your business or income-producing activity, your depreciable basis is the lesser of the following. H and r block file free The fair market value (FMV) of the property on the date of the change in use. H and r block file free Your original cost or other basis adjusted as follows. H and r block file free Increased by the cost of any permanent improvements or additions and other costs that must be added to basis. H and r block file free Decreased by any deductions you claimed for casualty and theft losses and other items that reduced your basis. H and r block file free Example. H and r block file free Several years ago, Nia paid $160,000 to have her home built on a lot that cost her $25,000. H and r block file free Before changing the property to rental use last year, she paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house. H and r block file free Land is not depreciable, so she includes only the cost of the house when figuring the basis for depreciation. H and r block file free Nia's adjusted basis in the house when she changed its use was $178,000 ($160,000 + $20,000 − $2,000). H and r block file free On the same date, her property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. H and r block file free The basis for depreciation on the house is the FMV on the date of change ($165,000), because it is less than her adjusted basis ($178,000). H and r block file free Property acquired in a nontaxable transaction. H and r block file free   Generally, if you receive property in a nontaxable exchange, the basis of the property you receive is the same as the adjusted basis of the property you gave up. H and r block file free Special rules apply in determining the basis and figuring the MACRS depreciation deduction and special depreciation allowance for property acquired in a like-kind exchange or involuntary conversion. H and r block file free See Like-kind exchanges and involuntary conversions. H and r block file free under How Much Can You Deduct? in chapter 3 and Figuring the Deduction for Property Acquired in a Nontaxable Exchange in chapter 4. H and r block file free   There are also special rules for determining the basis of MACRS property involved in a like-kind exchange or involuntary conversion when the property is contained in a general asset account. H and r block file free See How Do You Use General Asset Accounts in chapter 4. H and r block file free Adjusted Basis To find your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service. H and r block file free These events could include the following. H and r block file free Installing utility lines. H and r block file free Paying legal fees for perfecting the title. H and r block file free Settling zoning issues. H and r block file free Receiving rebates. H and r block file free Incurring a casualty or theft loss. H and r block file free For a discussion of adjustments to the basis of your property, see Adjusted Basis in Publication 551. H and r block file free If you depreciate your property under MACRS, you also may have to reduce your basis by certain deductions and credits with respect to the property. H and r block file free For more information, see What Is the Basis for Depreciation in chapter 4. H and r block file free . H and r block file free Basis adjustment for depreciation allowed or allowable. H and r block file free   You must reduce the basis of property by the depreciation allowed or allowable, whichever is greater. H and r block file free Depreciation allowed is depreciation you actually deducted (from which you received a tax benefit). H and r block file free Depreciation allowable is depreciation you are entitled to deduct. H and r block file free   If you do not claim depreciation you are entitled to deduct, you must still reduce the basis of the property by the full amount of depreciation allowable. H and r block file free   If you deduct more depreciation than you should, you must reduce your basis by any amount deducted from which you received a tax benefit (the depreciation allowed). H and r block file free How Do You Treat Repairs and Improvements? If you improve depreciable property, you must treat the improvement as separate depreciable property. H and r block file free Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use. H and r block file free You generally deduct the cost of repairing business property in the same way as any other business expense. H and r block file free However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it. H and r block file free Example. H and r block file free You repair a small section on one corner of the roof of a rental house. H and r block file free You deduct the cost of the repair as a rental expense. H and r block file free However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. H and r block file free You depreciate the cost of the new roof. H and r block file free Improvements to rented property. H and r block file free   You can depreciate permanent improvements you make to business property you rent from someone else. H and r block file free Do You Have To File Form 4562? Use Form 4562 to figure your deduction for depreciation and amortization. H and r block file free Attach Form 4562 to your tax return for the current tax year if you are claiming any of the following items. H and r block file free A section 179 deduction for the current year or a section 179 carryover from a prior year. H and r block file free See chapter 2 for information on the section 179 deduction. H and r block file free Depreciation for property placed in service during the current year. H and r block file free Depreciation on any vehicle or other listed property, regardless of when it was placed in service. H and r block file free See chapter 5 for information on listed property. H and r block file free A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040). H and r block file free Amortization of costs if the current year is the first year of the amortization period. H and r block file free Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U. H and r block file free S. H and r block file free Income Tax Return for an S Corporation) regardless of when it was placed in service. H and r block file free You must submit a separate Form 4562 for each business or activity on your return for which a Form 4562 is required. H and r block file free Table 1-1 presents an overview of the purpose of the various parts of Form 4562. H and r block file free Employee. H and r block file free   Do not use Form 4562 if you are an employee and you deduct job-related vehicle expenses using either actual expenses (including depreciation) or the standard mileage rate. H and r block file free Instead, use either Form 2106 or Form 2106-EZ. H and r block file free Use Form 2106-EZ if you are claiming the standard mileage rate and you are not reimbursed by your employer for any expenses. H and r block file free How Do You Correct Depreciation Deductions? If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. H and r block file free See Filing an Amended Return , next. H and r block file free If you are not allowed to make the correction on an amended return, you may be able to change your accounting method to claim the correct amount of depreciation. H and r block file free See Changing Your Accounting Method , later. H and r block file free Filing an Amended Return You can file an amended return to correct the amount of depreciation claimed for any property in any of the following situations. H and r block file free You claimed the incorrect amount because of a mathematical error made in any year. H and r block file free You claimed the incorrect amount because of a posting error made in any year. H and r block file free You have not adopted a method of accounting for property placed in service by you in tax years ending after December 29, 2003. H and r block file free You claimed the incorrect amount on property placed in service by you in tax years ending before December 30, 2003. H and r block file free Adoption of accounting method defined. H and r block file free   Generally, you adopt a method of accounting for depreciation by using a permissible method of determining depreciation when you file your first tax return, or by using the same impermissible method of determining depreciation in two or more consecutively filed tax returns. H and r block file free   For an exception to this 2-year rule, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb11-04. H and r block file free pdf. H and r block file free (Note. H and r block file free Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. H and r block file free For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb12-14. H and r block file free pdf. H and r block file free )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets and procedures to obtain automatic consent to change to the safe harbor method of accounting, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb07-29. H and r block file free pdf. H and r block file free When to file. H and r block file free   If an amended return is allowed, you must file it by the later of the following. H and r block file free 3 years from the date you filed your original return for the year in which you did not deduct the correct amount. H and r block file free A return filed before an unextended due date is considered filed on that due date. H and r block file free 2 years from the time you paid your tax for that year. H and r block file free Changing Your Accounting Method Generally, you must get IRS approval to change your method of accounting. H and r block file free You generally must file Form 3115, Application for Change in Accounting Method, to request a change in your method of accounting for depreciation. H and r block file free The following are examples of a change in method of accounting for depreciation. H and r block file free A change from an impermissible method of determining depreciation for depreciable property, if the impermissible method was used in two or more consecutively filed tax returns. H and r block file free A change in the treatment of an asset from nondepreciable to depreciable or vice versa. H and r block file free A change in the depreciation method, period of recovery, or convention of a depreciable asset. H and r block file free A change from not claiming to claiming the special depreciation allowance if you did not make the election to not claim any special allowance. H and r block file free A change from claiming a 50% special depreciation allowance to claiming a 30% special depreciation allowance for qualified property (including property that is included in a class of property for which you elected a 30% special allowance instead of a 50% special allowance). H and r block file free Changes in depreciation that are not a change in method of accounting (and may only be made on an amended return) include the following. H and r block file free An adjustment in the useful life of a depreciable asset for which depreciation is determined under section 167. H and r block file free A change in use of an asset in the hands of the same taxpayer. H and r block file free Making a late depreciation election or revoking a timely valid depreciation election (including the election not to deduct the special depreciation allowance). H and r block file free If you elected not to claim any special allowance, a change from not claiming to claiming the special allowance is a revocation of the election and is not an accounting method change. H and r block file free Generally, you must get IRS approval to make a late depreciation election or revoke a depreciation election. H and r block file free You must submit a request for a letter ruling to make a late election or revoke an election. H and r block file free Any change in the placed in service date of a depreciable asset. H and r block file free See section 1. H and r block file free 446-1(e)(2)(ii)(d) of the regulations for more information and examples. H and r block file free IRS approval. H and r block file free   In some instances, you may be able to get approval from the IRS to change your method of accounting for depreciation under the automatic change request procedures generally covered in Revenue Procedure 2011-14. H and r block file free If you do not qualify to use the automatic procedures to get approval, you must use the advance consent request procedures generally covered in Revenue Procedure 97-27, 1997-1 C. H and r block file free B. H and r block file free 680. H and r block file free Also see the Instructions for Form 3115 for more information on getting approval, including lists of scope limitations and automatic accounting method changes. H and r block file free Additional guidance. H and r block file free    For additional guidance and special procedures for changing your accounting method, automatic change procedures, amending your return, and filing Form 3115, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb11-04. H and r block file free pdf. H and r block file free (Note. H and r block file free Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. H and r block file free For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb12-14. H and r block file free pdf. H and r block file free )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. H and r block file free irs. H and r block file free gov/pub/irs-irbs/irb07-29. H and r block file free pdf. H and r block file free Table 1-1. H and r block file free Purpose of Form 4562 This table describes the purpose of the various parts of Form 4562. H and r block file free For more information, see Form 4562 and its instructions. H and r block file free Part Purpose I • Electing the section 179 deduction • Figuring the maximum section 179 deduction for the current year • Figuring any section 179 deduction carryover to the next year II • Reporting the special depreciation allowance for property (other than listed property) placed in service during the tax year • Reporting depreciation deductions on property being depreciated under any method other than Modified Accelerated Cost Recovery System (MACRS) III • Reporting MACRS depreciation deductions for property placed in service before this year • Reporting MACRS depreciation deductions for property (other than listed property) placed in service during the current year IV • Summarizing other parts V • Reporting the special depreciation allowance for automobiles and other listed property • Reporting MACRS depreciation on automobiles and other listed property • Reporting the section 179 cost elected for automobiles and other listed property • Reporting information on the use of automobiles and other transportation vehicles VI • Reporting amortization deductions Section 481(a) adjustment. H and r block file free   If you file Form 3115 and change from an impermissible method to a permissible method of accounting for depreciation, you can make a section 481(a) adjustment for any unclaimed or excess amount of allowable depreciation. H and r block file free The adjustment is the difference between the total depreciation actually deducted for the property and the total amount allowable prior to the year of change. H and r block file free If no depreciation was deducted, the adjustment is the total depreciation allowable prior to the year of change. H and r block file free A negative section 481(a) adjustment results in a decrease in taxable income. H and r block file free It is taken into account in the year of change and is reported on your business tax returns as “other expenses. H and r block file free ” A positive section 481(a) adjustment results in an increase in taxable income. H and r block file free It is generally taken into account over 4 tax years and is reported on your business tax returns as “other income. H and r block file free ” However, you can elect to use a one-year adjustment period and report the adjustment in the year of change if the total adjustment is less than $25,000. H and r block file free Make the election by completing the appropriate line on Form 3115. H and r block file free   If you file a Form 3115 and change from one permissible method to another permissible method, the section 481(a) adjustment is zero. H and r block file free Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Statistical Information on IRS.gov

In order to improve service on our website, we automatically collect and maintain statistical information in our site's data logs that show network traffic flow and volume. These logs do not identify individuals who visit our website. This information is:

  • The name of the domain from which the visitor accesses the Internet (for example, 'xcompany.com' if you use a private Internet access account; 'yourschool.edu' if you connect from an educational domain; or, 'agency.gov' if you connect from a U.S. government domain).
  • The Internet Protocol (IP) Address from which you access our website.
  • The date and time (with time zone) that you access our website.
  • The type of browser and operating system used to access our website.
  • The Internet address of the website from which you linked directly to our website.
  • The Web pages on www.irs.gov that you visit. This helps to determine which information on our site the public finds most useful and enables us to make it easier to access.
  • Transmission Control Protocol/Internet Protocol (TCP/IP) packet data. This information is used to detect malicious activity on our Web site.
  • Session cookie ID. This helps us determine which sequences of pages users typically view. We use this information to make the site easier to use.
  • Other cookies used to validate voluntary customer survey results.  These are of limited duration and cannot be used to identify survey participants or track their page or web site visits.
  • Visitor Display Color Depth (e.g., 32 bits, 24 bits, etc.) and Visitor Screen Resolution (e.g., 1024 x 768 pixels, 800 x 600 pixels, etc.). This information helps determine the colors and sizes of graphics and other design elements that work best on our site.
  • Number of bytes received helps determine the computer and network capacity required to make the site available to the public.

All of this data is retained for a minimum of 90 days to comply with federal record-keeping requirements, and then deleted. Collection and analysis of this information in the aggregate will enable us to enhance site performance, improve informational materials available on our website, and improve overall customer service.

Return to Privacy Policy page
Page Last Reviewed or Updated: 22-Apr-2013

The H And R Block File Free

H and r block file free 34. H and r block file free   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. H and r block file free El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. H and r block file free Este capítulo le explica lo siguiente: Quién es un hijo calificado. H and r block file free La cantidad del crédito. H and r block file free Cómo se puede reclamar el crédito. H and r block file free El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. H and r block file free Si no está sujeto al pago de impuestos. H and r block file free   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. H and r block file free Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. H and r block file free Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). H and r block file free Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. H and r block file free Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. H and r block file free Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. H and r block file free Ejemplo 1. H and r block file free Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. H and r block file free Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. H and r block file free Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. H and r block file free Ejemplo 2. H and r block file free Su hija cumplió 8 años en el año 2013. H and r block file free Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. H and r block file free Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. H and r block file free Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). H and r block file free   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). H and r block file free   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. H and r block file free Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. H and r block file free Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. H and r block file free S. H and r block file free Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. H and r block file free Hijo adoptivo. H and r block file free   A un hijo adoptivo siempre se le trata como si fuera su hijo. H and r block file free Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. H and r block file free   Si usted es ciudadano o nacional de los EE. H and r block file free UU. H and r block file free y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. H and r block file free Excepciones al tiempo vivido con usted. H and r block file free   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. H and r block file free Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. H and r block file free   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. H and r block file free Para detalles, vea Requisito de Residencia , en el capítulo 3. H and r block file free Hijo calificado de más de una persona. H and r block file free   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. H and r block file free Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. H and r block file free Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. H and r block file free Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. H and r block file free Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. H and r block file free Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. H and r block file free Vea Crédito Tributario Adicional por Hijos , más adelante. H and r block file free Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. H and r block file free Casados que presentan una declaración conjunta: $110,000. H and r block file free Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. H and r block file free Casados que presentan la declaración por separado: $55,000. H and r block file free Ingresos brutos ajustados modificados. H and r block file free   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. H and r block file free En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. H and r block file free ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. H and r block file free Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. H and r block file free Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. H and r block file free Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. H and r block file free   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. H and r block file free Ingreso bruto ajustado. H and r block file free   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. H and r block file free Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. H and r block file free No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. H and r block file free Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. H and r block file free Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. H and r block file free Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. H and r block file free Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. H and r block file free Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. H and r block file free Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. H and r block file free El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. H and r block file free Cómo se reclama el crédito tributario adicional por hijos. H and r block file free   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. H and r block file free Vea anteriormente el tema titulado Cómo Reclamar el Crédito . H and r block file free Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. H and r block file free Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. H and r block file free Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. H and r block file free La Parte I es independiente de las Partes II a la IV. H and r block file free Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. H and r block file free Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). H and r block file free Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. H and r block file free Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. H and r block file free Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. H and r block file free Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. H and r block file free Prev  Up  Next   Home   More Online Publications