Instructions For Form 2106 - 2016 (Page 7 of 9) in pdf

open area but is enclosed by a cap

Worksheet for the Special

method of depreciation for the

and isn't readily accessible directly

Depreciation Allowance

vehicle's estimated useful life.

from the passenger compartment, or

(keep for your records)

Otherwise, use the following

That has an integral enclosure, fully

Depreciation Method and Percentage

enclosing the driver compartment and

1. Enter the total amount from

Chart to find the depreciation method

Form 2106, line 30

load carrying device, doesn't have

and percentage to enter on line 33.

. . . .

seating rearward of the driver's seat,

To use the chart, first find the date

2. Multiply line 1 by the

and has no body section protruding

percentage on Form 2106,

you placed the vehicle in service

more than 30 inches ahead of the

line 14, and enter the

(line 11). Then, select the

leading edge of the windshield.

result

depreciation method and percentage

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

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

Special depreciation allowance.

3. Enter any section 179

example, if you placed a car in service

deduction

The special depreciation allowance

. . . . . . . . . .

on July 1, 2016, and you use the

applies only for the first year a new

4. Subtract line 3 from

method in column (a), enter “200 DB

vehicle is placed in service. To qualify

line 2

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

20%” on line 33.

for the special depreciation

5. Multiply the applicable limit

allowance, the new vehicle must be

For vehicles placed in service

explained in the line 36

qualified property (see Pub. 463,

before 2016, use the same method

instructions by the

chapter 4, for more information). The

you used on last year's return unless a

percentage on Form 2106,

special allowance is an additional first

decline in your business use requires

line 14, and enter the

year depreciation deduction of 50%.

a change to the straight line method.

result

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

Your total section 179 deduction,

For vehicles placed in service during

6. Subtract line 3 from

special depreciation allowance, and

2016, select the depreciation method

line 5

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

regular depreciation deduction can't

and percentage after reading the

be more than $11,160 for cars and

explanation for each column.

7. Enter the smaller of line 4

$11,560 for trucks and vans,

or line 6. Add the result to

Column (a)—200% declining

any section 179 deduction

multiplied by your business use

balance method. You can use

(line 3 above) and enter the

percentage on line 14. See the line 36

column (a) only if the business use

total on Form 2106,

instructions for depreciation limits.

percentage on line 14 is more than

line 31

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

You can't recover the amount by

50%. Of the three depreciation

which your depreciation deduction

methods, the 200% declining balance

exceeds the depreciation limits for the

Election out. You can elect not to

method may give you the largest

year placed in service until after the

claim the special depreciation

depreciation deduction for the first 3

end of the recovery period for your

allowance for your vehicle. If you

years (after considering the

vehicle.

make this election, it applies to all

depreciation limit for your vehicle).

property in the same class placed in

Use the following worksheet to

See the depreciation limit tables, later.

service during the year.

figure the amount of the special

Column (b)—150% declining

depreciation allowance.

To make the election, attach a

balance method. You can use

statement to your timely filed return

column (b) only if the business use

(including extensions) indicating that

percentage on line 14 is more than

you are electing not to claim the

50%. The 150% declining balance

special depreciation allowance and

method may give you a smaller

the class of property for which you are

depreciation deduction than in column

making the election.

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

won't have a “depreciation

More information. See Pub. 463,

adjustment” on this vehicle for the

chapter 4, for more information on the

alternative minimum tax. This may

special depreciation allowance.

result in a smaller tax liability if you

Line 32. To figure the basis for

must file Form 6251, Alternative

depreciation, multiply line 30 by the

Minimum Tax—Individuals.

percentage on line 14. From that

result, subtract the total amount of any

Column (c)—straight line

section 179 deduction and special

method. You must use column (c) if

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

allowance claimed in any previous

method over 5 years. The use of this

year for this vehicle.

column is optional for these vehicles if

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 (2016)

-7-

Instructions For Form 2106 - 2016 Page 7

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