Instructions For Form 2106 - Employee Business Expenses

Depreciation Method and Percentage Chart — Line 33

Date Placed in Service

(a)

(b)

(c)

Oct. 1 – Dec. 31, 2009

200 DB

5.0 %

150 DB

3.75%

2.5%

Jan. 1 – Sept. 30, 2009

200 DB

20.0

150 DB

15.0

10.0

Oct. 1 – Dec. 31, 2008

200 DB

38.0

150 DB

28.88

20.0

Jan. 1 – Sept. 30, 2008

200 DB

32.0

150 DB

25.5

20.0

Oct. 1 – Dec. 31, 2007

200 DB

22.8

150 DB

20.21

20.0

Jan. 1 – Sept. 30, 2007

200 DB

19.2

150 DB

17.85

20.0

Oct. 1 – Dec. 31, 2006

200 DB

13.68

150 DB

16.4

20.0

Jan. 1 – Sept. 30, 2006

200 DB

11.52

150 DB

16.66

20.0

Oct. 1 – Dec. 31, 2005

200 DB

10.94

150 DB

16.41

20.0

Jan. 1 – Sept. 30, 2005

200 DB

11.52

150 DB

16.66

20.0

Oct. 1 – Dec. 31, 2004

200 DB

9.58

150 DB

14.35

17.5

Jan. 1 – Sept. 30, 2004

200 DB

5.76

150 DB

8.33

10.0

Prior to 2004

You can use this column only if the business use of your car is more than 50%.

If your car was subject to the maximum limits for depreciation and you have unrecovered basis in the car, you can continue to claim depreciation.

See Pub. 463 for more information.

Line 32. To figure the basis for

percentage on line 14 is more than

and special depreciation allowance

depreciation, multiply line 30 by the

50%. Of the three depreciation

previously claimed may have to be

percentage on line 14. From that

added back to your income in the

methods, the 200% declining balance

result, subtract the total amount of

later year. Figure the amount to be

method may give you the largest

any section 179 deduction and

included in income in Part IV of Form

depreciation deduction for the first 3

special depreciation allowance

4797, Sales of Business Property.

years (after considering the

claimed.

depreciation limit for your vehicle).

See the depreciation limit tables on

More information. For more

Line 33. If you used the standard

page 8.

information on depreciating your

mileage rate in the first year the

vehicle, see Pub. 463.

vehicle was placed in service and

Column (b) —150% declining

now elect to use the actual expense

balance method. You can use

method, you must use the straight

If you placed other business

column (b) only if the business use

line method of depreciation for the

property in service in the

percentage on line 14 is more than

vehicle’s estimated useful life.

same year you placed your

CAUTION

50%. The 150% declining balance

Otherwise, use the Depreciation

vehicle in service or you used your

method may give you a smaller

Method and Percentage Chart above

vehicle mainly within an Indian

depreciation deduction than in

to find the depreciation method and

reservation, you may not be able to

percentage to enter on line 33.

column (a) for the first 3 years.

use the chart. See Pub. 946 to figure

However, you will not have a

your depreciation.

To use the chart, first find the date

“depreciation adjustment” on this

you placed the vehicle in service (line

vehicle for the alternative minimum

11). Then, select the depreciation

Line 34. If you sold or exchanged

tax. This may result in a smaller tax

method and percentage from column

your vehicle during the year, use the

liability if you must file Form 6251,

(a), (b), or (c). For example, if you

following instructions to figure the

Alternative Minimum

placed a car in service on July 1,

amount to enter on line 34.

Tax— Individuals.

2009, and you use the method in

column (a), enter “200 DB 20%” on

If your vehicle was placed in

Column (c) —straight line

line 33.

service:

method. You must use column (c) if

For vehicles placed in service

1. Before 2004, enter the result of

the business use percentage on line

before 2009, use the same method

multiplying line 32 by the percentage

14 is 50% or less. The method for

you used on last year’s return unless

on line 33;

these vehicles is the straight line

a decline in your business use

2. After 2003, from January 1

method over 5 years. The use of this

requires a change to the straight line

through September 30, enter the

column is optional for these vehicles

method. For vehicles placed in

amount figured by multiplying the

if the business use percentage on line

service during 2009, select the

result in (1) by 50%; or

14 is more than 50%.

depreciation method and percentage

3. After 2003, from October 1

after reading the explanation for each

Note. If your vehicle was used more

through December 31, enter the

column.

than 50% for business in the year it

amount figured by multiplying the

was placed in service and used 50%

Column (a) — 200% declining

result in (1) by the percentage shown

or less in a later year, part of the

balance method. You can use

below for the month you disposed of

column (a) only if the business use

depreciation, section 179 deduction

the vehicle.

-7-

Instructions For Form 2106 - Employee Business Expenses - 2009 Page 7

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