Instructions For Form 2106 (2015) (Page 7 of 9) in pdf

service in 2015, the portion of the

Worksheet for the Special

method of depreciation for the

vehicle's cost taken into account in

Depreciation Allowance

vehicle's estimated useful life.

figuring your section 179 deduction is

(keep for your records)

Otherwise, use the following

limited to $25,000. This rule applies to

Depreciation Method and Percentage

any 4-wheeled vehicle primarily

1. Enter the total amount from

Chart to find the depreciation method

Form 2106, line 30

designed or used to carry passengers

and percentage to enter on line 33.

. . . .

over public streets, roads, or

To use the chart, first find the date

2. Multiply line 1 by the

highways that is not subject to any of

percentage on Form 2106,

you placed the vehicle in service

the passenger automobile limits

line 14, and enter the

(line 11). Then, select the

explained in the

line 36

instructions

result

depreciation method and percentage

. . . . . . . . . . . . .

and is rated at no more than 14,000

from column (a), (b), or (c). For

3. Enter any section 179

pounds gross vehicle weight.

example, if you placed a car in service

deduction

. . . . . . . . . .

However, the $25,000 limit does not

on July 1, 2015, and you use the

4. Subtract line 3 from

apply to any vehicle:

method in column (a), enter “200 DB

line 2

. . . . . . . . . . . . .

Designed to have a seating

20%” on line 33.

capacity of more than nine persons

5. Multiply the applicable limit

For vehicles placed in service

behind the driver's seat,

explained in the line 36

before 2015, use the same method

Equipped with a cargo area of at

instructions by the

you used on last year's return unless a

percentage on Form 2106,

least 6 feet in interior length that is an

decline in your business use requires

line 14, and enter the

open area or is designed for use as an

a change to the straight line method.

result

. . . . . . . . . . . . .

open area but is enclosed by a cap

For vehicles placed in service during

and is not readily accessible directly

6. Subtract line 3 from

2015, select the depreciation method

from the passenger compartment, or

line 5

. . . . . . . . . . . . .

and percentage after reading the

That has an integral enclosure, fully

explanation for each column.

7. Enter the smaller of line 4

enclosing the driver compartment and

or line 6. Add the result to

Column (a)—200% declining

load carrying device, does not have

any section 179 deduction

balance method. You can use

seating rearward of the driver's seat,

(line 3 above) and enter the

column (a) only if the business use

and has no body section protruding

total on Form 2106,

percentage on line 14 is more than

more than 30 inches ahead of the

line 31

. . . . . . . . . . . .

50%. Of the three depreciation

leading edge of the windshield.

methods, the 200% declining balance

Special depreciation allowance.

Election out. You can elect not to

method may give you the largest

The special depreciation allowance

claim the special depreciation

depreciation deduction for the first 3

applies only for the first year a new

allowance for your vehicle. If you

years (after considering the

vehicle is placed in service. To qualify

make this election, it applies to all

depreciation limit for your vehicle).

for the special depreciation

property in the same class placed in

See the depreciation limit tables, later.

allowance, the new vehicle must be

service during the year.

Column (b)—150% declining

qualified property (see Pub. 463,

To make the election, attach a

balance method. You can use

chapter 4, for more information). The

statement to your timely filed return

column (b) only if the business use

special allowance is an additional first

(including extensions) indicating that

percentage on line 14 is more than

year depreciation deduction of 50%.

you are electing not to claim the

50%. The 150% declining balance

Your total section 179 deduction,

special depreciation allowance and

method may give you a smaller

special depreciation allowance, and

the class of property for which you are

depreciation deduction than in column

regular depreciation deduction cannot

making the election.

(a) for the first 3 years. However, you

be more than $11,160 for cars and

will not have a “depreciation

More information. See Pub. 463,

$11,460 for trucks and vans,

adjustment” on this vehicle for the

chapter 4, for more information on the

multiplied by your business use

alternative minimum tax. This may

special depreciation allowance.

percentage on line 14. See the line 36

result in a smaller tax liability if you

instructions for depreciation limits.

Line 32. To figure the basis for

must file Form 6251, Alternative

You cannot recover the amount by

depreciation, multiply line 30 by the

Minimum Tax—Individuals.

which your depreciation deduction

percentage on line 14. From that

exceeds the depreciation limits for the

result, subtract the total amount of any

Column (c)—straight line

year placed in service until after the

section 179 deduction and special

method. You must use column (c) if

end of the recovery period for your

depreciation allowance claimed this

the business use percentage on

vehicle.

year (see line 31) or any section 179

line 14 is 50% or less. The method for

deduction and special depreciation

these vehicles is the straight line

Use the following worksheet to

allowance claimed in any previous

method over 5 years. The use of this

figure the amount of the special

year for this vehicle.

column is optional for these vehicles if

depreciation allowance.

the business use percentage on

Line 33. If you used the standard

line 14 is more than 50%.

mileage rate in the first year the

vehicle was placed in service and now

Note. If your vehicle was used more

elect to use the actual expense

than 50% for business in the year it

method, you must use the straight line

Instructions for Form 2106 (2015)

-7-

Instructions For Form 2106 (2015) Page 7

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