Instructions For Form 2106 (2015) Page 7


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
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
. . . . . . . . . .
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.
. . . . . . . . . . . . .
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
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)


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