Instructions For Form 2106 - Employee Business Expenses - 2010 Page 7
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8Depreciation Method and Percentage Chart — Line 33
Date Placed in Service
(a)
(b)
(c)
1
1
Oct. 1 – Dec. 31, 2010
200 DB
5.0 %
150 DB
3.75%
SL
2.5%
Jan. 1 – Sept. 30, 2010
200 DB
20.0
150 DB
15.0
SL
10.0
Oct. 1 – Dec. 31, 2009
200 DB
38.0
150 DB
28.88
SL
20.0
Jan. 1 – Sept. 30, 2009
200 DB
32.0
150 DB
25.5
SL
20.0
Oct. 1 – Dec. 31, 2008
200 DB
22.8
150 DB
20.21
SL
20.0
Jan. 1 – Sept. 30, 2008
200 DB
19.2
150 DB
17.85
SL
20.0
Oct. 1 – Dec. 31, 2007
200 DB
13.68
150 DB
16.4
SL
20.0
Jan. 1 – Sept. 30, 2007
200 DB
11.52
150 DB
16.66
SL
20.0
Oct. 1 – Dec. 31, 2006
200 DB
10.94
150 DB
16.41
SL
20.0
Jan. 1 – Sept. 30, 2006
200 DB
11.52
150 DB
16.66
SL
20.0
Oct. 1 – Dec. 31, 2005
200 DB
9.58
150 DB
14.35
SL
17.5
Jan. 1 – Sept. 30, 2005
200 DB
5.76
150 DB
8.33
SL
10.0
Prior to 2005
2
You can use this column only if the business use of your car is more than 50%.
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2
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.
Use the worksheet below to figure
make this election, it applies to all
column (a), enter “200 DB 20%” on
the amount of the special
property in the same class placed in
line 33.
depreciation allowance.
service during the year.
For vehicles placed in service
To make the election, attach a
before 2010, use the same method
Worksheet for the Special
statement to your timely filed return
you used on last year’s return unless
Depreciation Allowance
(including extensions) indicating that
a decline in your business use
(keep for your records)
you are electing not to claim the
requires a change to the straight line
special depreciation allowance and
method. For vehicles placed in
the class of property for which you
1. Enter the total amount from
service during 2010, select the
are making the election.
line 30 . . . . . . . . . . . . . . . . .
depreciation method and percentage
after reading the explanation for each
2. Multiply line 1 by the
More information. See Pub. 463,
column.
percentage on Form 2106, line
chapter 4, for more information on the
14, and enter the result . . . . .
special depreciation allowance.
Column (a)—200% declining
3. Enter any section 179
Line 32. To figure the basis for
balance method. You can use
deduction . . . . . . . . . . . . . . .
depreciation, multiply line 30 by the
column (a) only if the business use
percentage on line 14. From that
4. Subtract line 3 from line 2. If
percentage on line 14 is more than
result, subtract the total amount of
the vehicle was acquired new
50%. Of the three depreciation
after Sept. 8, enter this amount
any section 179 deduction and
methods, the 200% declining balance
on line 5 and go to line 6. . . . .
special depreciation allowance
method may give you the largest
claimed this year (see line 31) or in
depreciation deduction for the first 3
5. Multiply line 4 by 50% (.50)
any previous year for this vehicle.
and enter the result . . . . . . . .
years (after considering the
depreciation limit for your vehicle).
Line 33. If you used the standard
6. Multiply the applicable limit
See the depreciation limit tables on
mileage rate in the first year the
explained in the line 36
page 8.
instructions by the percentage
vehicle was placed in service and
on Form 2106, line 14, and
now elect to use the actual expense
Column (b)—150% declining
enter the result. If line 36 limits
method, you must use the straight
balance method. You can use
do not apply, skip lines 6 and
line method of depreciation for the
column (b) only if the business use
7, and enter the amount from
vehicle’s estimated useful life.
percentage on line 14 is more than
line 5 on line 8 . . . . . . . . . . .
Otherwise, use the Depreciation
50%. The 150% declining balance
7. Subtract line 3 from line 6 . . .
Method and Percentage Chart above
method may give you a smaller
to find the depreciation method and
8. Enter the smaller of line 5 or
depreciation deduction than in
percentage to enter on line 33.
line 7. Add the result to any
column (a) for the first 3 years.
section 179 deduction (line 3
To use the chart, first find the date
However, you will not have a
above) and enter the total on
“depreciation adjustment” on this
you placed the vehicle in service (line
Form 2106, line 31 . . . . . . . .
vehicle for the alternative minimum
11). Then, select the depreciation
tax. This may result in a smaller tax
method and percentage from column
Election out. You can elect not to
(a), (b), or (c). For example, if you
liability if you must file Form 6251,
claim the special depreciation
placed a car in service on July 1,
Alternative Minimum
Tax —Individuals.
allowance for your vehicle. If you
2010, and you use the method in
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