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2012 1040a Tax Forms

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2012 1040a Tax Forms

2012 1040a tax forms Publication 972 - Main Content Table of Contents Child Tax CreditQualifying Child Limits on the Credit Claiming the Credit Earned Income Additional Child Tax Credit How To Get Tax HelpLow Income Taxpayer Clinics Child Tax Credit This credit is for people who have a qualifying child as defined later. 2012 1040a tax forms It is in addition to the credit for child and dependent care expenses (on Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46) and the earned income credit (on Form 1040, line 64a; or Form 1040A, line 38a). 2012 1040a tax forms The maximum amount you can claim for the credit is $1,000 for each qualifying child. 2012 1040a tax forms Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you , later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. 2012 1040a tax forms S. 2012 1040a tax forms citizen, a U. 2012 1040a tax forms S. 2012 1040a tax forms national, or a U. 2012 1040a tax forms S. 2012 1040a tax forms resident alien. 2012 1040a tax forms For more information, see Publication 519, U. 2012 1040a tax forms S. 2012 1040a tax forms Tax Guide for Aliens. 2012 1040a tax forms If the child was adopted, see Adopted child , later. 2012 1040a tax forms For each qualifying child, you must either check the box on Form 1040 or Form 1040A, line 6c, column (4); or Form 1040NR, line 7c, column (4). 2012 1040a tax forms Example. 2012 1040a tax forms Your 10-year-old nephew lives in Mexico and qualifies as your dependent. 2012 1040a tax forms Because he is not a U. 2012 1040a tax forms S. 2012 1040a tax forms citizen, U. 2012 1040a tax forms S. 2012 1040a tax forms national, or U. 2012 1040a tax forms S. 2012 1040a tax forms resident alien, he is not a qualifying child for the child tax credit. 2012 1040a tax forms Filers who have certain child dependents with an IRS Individual Taxpayer Identification Number (ITIN). 2012 1040a tax forms   If you are claiming a child tax credit or additional child tax credit for a child identified on your tax return with an ITIN, you must complete Part I of Schedule 8812 (Form 1040A or 1040). 2012 1040a tax forms   Although a child may be your dependent, you may only claim a child tax credit or additional child tax credit for a dependent who is a citizen, national, or resident of the United States. 2012 1040a tax forms To be treated as a resident of the United States, a child generally will need to meet the requirements of the substantial presence test. 2012 1040a tax forms For more information about the substantial presence test, see Publication 519, U. 2012 1040a tax forms S. 2012 1040a tax forms Tax Guide for Aliens. 2012 1040a tax forms Adopted child. 2012 1040a tax forms   An adopted child is always treated as your own child. 2012 1040a tax forms An adopted child includes a child lawfully placed with you for legal adoption. 2012 1040a tax forms   If you are a U. 2012 1040a tax forms S. 2012 1040a tax forms citizen or U. 2012 1040a tax forms S. 2012 1040a tax forms national and your adopted child lived with you all year as a member of your household in 2013, that child meets condition (7) above to be a qualifying child for the child tax credit. 2012 1040a tax forms Exceptions to time lived with you. 2012 1040a tax forms    A child is considered to have lived with you for more than half of 2013 if the child was born or died in 2013 and your home was this child's home for more than half the time he or she was alive. 2012 1040a tax forms Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. 2012 1040a tax forms   There are also exceptions for kidnapped children and children of divorced or separated parents. 2012 1040a tax forms For details, see the instructions for line 6c in either the Form 1040 or Form 1040A instructions. 2012 1040a tax forms Qualifying child of more than one person. 2012 1040a tax forms   A special rule applies if your qualifying child is the qualifying child of more than one person. 2012 1040a tax forms For details, see the instructions for line 6c in either the Form 1040 or Form 1040A instructions. 2012 1040a tax forms Limits on the Credit You must reduce your child tax credit if either (1) or (2) applies. 2012 1040a tax forms The amount on Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44, is less than the credit. 2012 1040a tax forms If this amount is zero, you cannot take this credit because there is no tax to reduce. 2012 1040a tax forms But you may be able to take the additional child tax credit. 2012 1040a tax forms See Additional Child Tax Credit, later. 2012 1040a tax forms Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. 2012 1040a tax forms Married filing jointly – $110,000. 2012 1040a tax forms Single, head of household, or qualifying widow(er) – $75,000. 2012 1040a tax forms Married filing separately – $55,000. 2012 1040a tax forms Modified AGI. 2012 1040a tax forms   For purposes of the child tax credit, your modified AGI is your AGI plus the following amounts that may apply to you. 2012 1040a tax forms Any amount excluded from income because of the exclusion of income from Puerto Rico. 2012 1040a tax forms On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI. 2012 1040a tax forms ” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. 2012 1040a tax forms Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. 2012 1040a tax forms Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. 2012 1040a tax forms Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. 2012 1040a tax forms   If you do not have any of the above, your modified AGI is the same as your AGI. 2012 1040a tax forms AGI. 2012 1040a tax forms   Your AGI is the amount on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. 2012 1040a tax forms Claiming the Credit To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. 2012 1040a tax forms You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. 2012 1040a tax forms You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child. 2012 1040a tax forms Earned Income You will need to figure your earned income using one of the worksheets that appear later in this publication if you are completing the Line 11 Worksheet , later, or Schedule 8812. 2012 1040a tax forms Form 1040 or Form 1040NR filers, use the 1040 and 1040NR Filers — Earned Income Worksheet , later, to figure your earned income. 2012 1040a tax forms Form 1040A filers, use the 1040A Filers —- Earned Income Worksheet , later. 2012 1040a tax forms For this purpose, earned income includes only: Taxable earned income, and Nontaxable combat pay. 2012 1040a tax forms Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. 2012 1040a tax forms The additional child tax credit may give you a refund even if you do not owe any tax. 2012 1040a tax forms How to claim the additional child tax credit. 2012 1040a tax forms   To claim the additional child tax credit, follow the steps below. 2012 1040a tax forms Make sure you figured the amount, if any, of your child tax credit. 2012 1040a tax forms If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions (or on line 13 of the Child Tax Credit Worksheet in this publication), use Parts II through IV of Schedule 8812 to see if you can take the additional child tax credit. 2012 1040a tax forms If you have an additional child tax credit on line 13 of Schedule 8812, carry it to Form 1040, line 65; Form 1040A, line 39; or Form 1040NR, line 63. 2012 1040a tax forms Child Tax Credit Worksheet This image is too large to be displayed in the current screen. 2012 1040a tax forms Please click the link to view the image. 2012 1040a tax forms Child tax worksheet - page 1. 2012 1040a tax forms Child Tax Credit Worksheet—Continued This image is too large to be displayed in the current screen. 2012 1040a tax forms Please click the link to view the image. 2012 1040a tax forms Child tax worksheet - page 2. 2012 1040a tax forms Line 11 Worksheet This image is too large to be displayed in the current screen. 2012 1040a tax forms Please click the link to view the image. 2012 1040a tax forms Line 11 worksheet - page 1. 2012 1040a tax forms Line 11 Worksheet—Continued This image is too large to be displayed in the current screen. 2012 1040a tax forms Please click the link to view the image. 2012 1040a tax forms Line 11 worksheet - page 2. 2012 1040a tax forms 1040 and 1040NR Filers — Earned Income Worksheet (for line 2 of the Line 11 Worksheet or line 4a of Schedule 8812, Child Tax Credit) Before you begin:    ✓Use this worksheet only if you were sent here from the Line 11 Worksheet earlier in this publication or line  4a of Schedule 8812, Child Tax Credit. 2012 1040a tax forms  ✓Disregard community property laws when figuring the amounts to enter on this worksheet. 2012 1040a tax forms  ✓If married filing jointly, include your spouse's amounts with yours when completing this worksheet. 2012 1040a tax forms     1. 2012 1040a tax forms a. 2012 1040a tax forms Enter the amount from Form 1040, line 7, or Form 1040NR, line 8 1a. 2012 1040a tax forms     b. 2012 1040a tax forms Enter the amount of any nontaxable combat pay received. 2012 1040a tax forms Also enter this amount on Schedule 8812, line 4b. 2012 1040a tax forms This amount should be shown in Form(s) W-2, box 12, with code Q. 2012 1040a tax forms 1b. 2012 1040a tax forms       Next, if you are filing Schedule C, C-EZ, F, or SE, or you received a Schedule K-1 (Form 1065 or Form 1065-B), go to line 2a. 2012 1040a tax forms Otherwise, skip lines 2a through 2e and go to line 3. 2012 1040a tax forms     2. 2012 1040a tax forms a. 2012 1040a tax forms Enter any statutory employee income reported on line 1 of Schedule C or C-EZ 2a. 2012 1040a tax forms     b. 2012 1040a tax forms Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. 2012 1040a tax forms * Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. 2012 1040a tax forms Do not include on this line any statutory employee income or any other amounts exempt from self-employment tax. 2012 1040a tax forms Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property 2b. 2012 1040a tax forms     c. 2012 1040a tax forms Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A. 2012 1040a tax forms * Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. 2012 1040a tax forms Do not include on this line any amounts exempt from self-employment tax 2c. 2012 1040a tax forms         d. 2012 1040a tax forms If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, Section B, line 15. 2012 1040a tax forms Otherwise, skip this line and enter on line 2e the amount from line 2c 2d. 2012 1040a tax forms         e. 2012 1040a tax forms If line 2c is a profit, enter the smaller of line 2c or line 2d. 2012 1040a tax forms If line 2c is a (loss), enter the (loss) from line 2c. 2012 1040a tax forms 2e. 2012 1040a tax forms   3. 2012 1040a tax forms Combine lines 1a, 1b, 2a, 2b, and 2e. 2012 1040a tax forms If zero or less, stop. 2012 1040a tax forms Do not complete the rest of this worksheet. 2012 1040a tax forms Instead, enter -0- on line 2 of the Line 11 Worksheet or line 4a of Schedule 8812, whichever applies 3. 2012 1040a tax forms   4. 2012 1040a tax forms Enter any amount included on line 1a that is:               a. 2012 1040a tax forms A scholarship or fellowship grant not reported on Form W-2 4a. 2012 1040a tax forms         b. 2012 1040a tax forms For work done while an inmate in a penal institution (enter “PRI” and this amount on the dotted line next to line 7 of Form 1040 or line 8 of Form 1040NR) 4b. 2012 1040a tax forms         c. 2012 1040a tax forms A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount on the dotted line next to line 7 of Form 1040 or line 8 of Form 1040NR). 2012 1040a tax forms This amount may be shown in box 11 of your Form W-2. 2012 1040a tax forms If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. 2012 1040a tax forms 4c. 2012 1040a tax forms       5. 2012 1040a tax forms a. 2012 1040a tax forms Enter any amount included on line 3 that is also included on Form 2555, line 43, or Form 2555-EZ, line 18. 2012 1040a tax forms Do not include any amount that is also included on line 4a, 4b, or 4c above 5a. 2012 1040a tax forms             b. 2012 1040a tax forms Enter the portion, if any, of the amount from Form 2555, line 44 that you also included on Schedule E in partnership net income or (loss) or deducted on Form 1040, line 27, or Form 1040NR, line 27; Schedule C; Schedule C-EZ; or Schedule F. 2012 1040a tax forms 5b. 2012 1040a tax forms             c. 2012 1040a tax forms Subtract line 5b from line 5a 5c. 2012 1040a tax forms       6. 2012 1040a tax forms Enter the amount from Form 1040, line 27, or Form 1040NR, line 27 6. 2012 1040a tax forms       7. 2012 1040a tax forms Add lines 4a through 4c, 5c, and 6 7. 2012 1040a tax forms   8. 2012 1040a tax forms Subtract line 7 from line 3 8. 2012 1040a tax forms       If you were sent here from the Line 11 Worksheet, enter this amount on line 2 of that worksheet. 2012 1040a tax forms If you were sent here from Schedule 8812, enter this amount on line 4a of that form. 2012 1040a tax forms     *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE, Section A. 2012 1040a tax forms Put your name and social security number on Schedule SE and attach it to your return. 2012 1040a tax forms                     1040A Filers — Earned Income Worksheet (for line 2 of the Line 11 Worksheet) Before you begin:   ✓Use this worksheet only if you were sent here from the Line 11 Worksheet earlier in this publication. 2012 1040a tax forms  ✓Disregard community property laws when figuring the amounts to enter on this worksheet. 2012 1040a tax forms               1. 2012 1040a tax forms a. 2012 1040a tax forms Enter the amount from Form 1040A, line 7 1a. 2012 1040a tax forms         b. 2012 1040a tax forms Enter the amount of any nontaxable combat pay received. 2012 1040a tax forms Also enter this amount on Schedule 8812, line 4b. 2012 1040a tax forms This amount should be shown in Form(s) W-2, box 12, with code Q. 2012 1040a tax forms 1b. 2012 1040a tax forms         c. 2012 1040a tax forms Add lines 1a and 1b. 2012 1040a tax forms     1c. 2012 1040a tax forms   2. 2012 1040a tax forms Enter any amount included on line 1a that is:           a. 2012 1040a tax forms A scholarship or fellowship grant not reported on Form W-2 2a. 2012 1040a tax forms         b. 2012 1040a tax forms For work done while an inmate in a penal institution (enter “PRI” and this amount next to line 7 of Form 1040A) 2b. 2012 1040a tax forms         c. 2012 1040a tax forms A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount next to line 7 of Form 1040A). 2012 1040a tax forms This amount may be shown in box 11 of your Form W-2. 2012 1040a tax forms If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity 2c. 2012 1040a tax forms       3. 2012 1040a tax forms Add lines 2a through 2c 3. 2012 1040a tax forms   4. 2012 1040a tax forms Subtract line 3 from line 1c. 2012 1040a tax forms Enter the result here and on line 2 of the Line 11 Worksheet 4. 2012 1040a tax forms                 Additional Medicare Tax and RRTA Tax Worksheet (for line 6 of the Line 11 Worksheet) If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 6 of the Line 11 Worksheet. 2012 1040a tax forms Social security tax, Medicare tax, and Additional Medicare Tax on wages. 2012 1040a tax forms 1. 2012 1040a tax forms Enter the social security tax withheld (Form(s) W-2, box 4) 1. 2012 1040a tax forms   2. 2012 1040a tax forms Enter the Medicare tax withheld (Form(s) W-2, box 6). 2012 1040a tax forms Box 6 includes any Additional Medicare Tax 2. 2012 1040a tax forms   3. 2012 1040a tax forms Enter the Additional Medicare Tax, if any, on wages (Form 8959, line 7) 3. 2012 1040a tax forms   4. 2012 1040a tax forms Add lines 1, 2, and 3 4. 2012 1040a tax forms   5. 2012 1040a tax forms Enter the Additional Medicare Tax withheld (Form 8959, line 22) 5. 2012 1040a tax forms   6. 2012 1040a tax forms Subtract line 5 from line 4 6. 2012 1040a tax forms   Additional Medicare Tax on Self-Employment Income. 2012 1040a tax forms 7. 2012 1040a tax forms Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13) 7. 2012 1040a tax forms   Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). 2012 1040a tax forms Do not include amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. 2012 1040a tax forms Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or line 4 for Tier 2 tax. 2012 1040a tax forms 8. 2012 1040a tax forms Enter the Tier 1 tax (Form(s) W-2, box 14) 8. 2012 1040a tax forms   9. 2012 1040a tax forms Enter the Medicare tax (Form(s) W-2, box 14) 9. 2012 1040a tax forms   10. 2012 1040a tax forms Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). 2012 1040a tax forms Do not use the same amount from Form 8959, line 17, for both this line and line 14 10. 2012 1040a tax forms   11. 2012 1040a tax forms Add lines 8, 9, and 10 11. 2012 1040a tax forms   12. 2012 1040a tax forms Enter one-half of Tier 1 tax (one-half of Form(s) CT-2, line 1, for all 4 quarters of 2013) 12. 2012 1040a tax forms   13. 2012 1040a tax forms Enter one-half of Tier 1 Medicare tax (one-half of Form(s) CT-2, line 2, for all 4 quarters of 2013) 13. 2012 1040a tax forms   14. 2012 1040a tax forms Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17). 2012 1040a tax forms Do not use the same amount from Form 8959, line 17, for both this line and line 10 14. 2012 1040a tax forms   15. 2012 1040a tax forms Add lines 12, 13, and 14 15. 2012 1040a tax forms   Line 6 amount 16. 2012 1040a tax forms Add lines 6, 7, 11, and 15. 2012 1040a tax forms Enter here and on line 6 of the Line 11 Worksheet. 2012 1040a tax forms 16. 2012 1040a tax forms   Paperwork Reduction Act Notice. 2012 1040a tax forms   We ask for the information on the worksheets in this publication to carry out the Internal Revenue laws of the United States. 2012 1040a tax forms You are required to give us the information if requested. 2012 1040a tax forms We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. 2012 1040a tax forms   You are not required to provide the information requested on a form (or worksheet in this publication) that is subject to the Paperwork Reduction Act unless the form (or publication) displays a valid OMB control number. 2012 1040a tax forms Books or records relating to a form, its instructions, or this publication must be retained as long as their contents may become material in the administration of any Internal Revenue law. 2012 1040a tax forms Generally, tax returns and return information are confidential, as required by section 6103. 2012 1040a tax forms   The average time and expenses required to complete these worksheets will vary depending on individual circumstances. 2012 1040a tax forms For the estimated averages, see the instructions for your income tax return. 2012 1040a tax forms   If you have suggestions for making these worksheets simpler, we would be happy to hear from you. 2012 1040a tax forms See Comments and suggestions , earlier. 2012 1040a tax forms How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2012 1040a tax forms Free help with your tax return. 2012 1040a tax forms   You can get free help preparing your return nationwide from IRS-certified volunteers. 2012 1040a tax forms The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2012 1040a tax forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 1040a tax forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2012 1040a tax forms In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2012 1040a tax forms To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2012 1040a tax forms gov, download the IRS2Go app, or call 1-800-906-9887. 2012 1040a tax forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2012 1040a tax forms To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2012 1040a tax forms aarp. 2012 1040a tax forms org/money/taxaide or call 1-888-227-7669. 2012 1040a tax forms For more information on these programs, go to IRS. 2012 1040a tax forms gov and enter “VITA” in the search box. 2012 1040a tax forms Internet. 2012 1040a tax forms    IRS. 2012 1040a tax forms gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2012 1040a tax forms Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 1040a tax forms Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2012 1040a tax forms Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2012 1040a tax forms gov or download the IRS2Go app and select the Refund Status option. 2012 1040a tax forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 1040a tax forms Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2012 1040a tax forms You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 1040a tax forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 1040a tax forms Use the Interactive Tax Assistant (ITA) to research your tax questions. 2012 1040a tax forms No need to wait on the phone or stand in line. 2012 1040a tax forms The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2012 1040a tax forms When you reach the response screen, you can print the entire interview and the final response for your records. 2012 1040a tax forms New subject areas are added on a regular basis. 2012 1040a tax forms  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2012 1040a tax forms gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2012 1040a tax forms You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 2012 1040a tax forms The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2012 1040a tax forms When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2012 1040a tax forms Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2012 1040a tax forms You can also ask the IRS to mail a return or an account transcript to you. 2012 1040a tax forms Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2012 1040a tax forms gov or by calling 1-800-908-9946. 2012 1040a tax forms Tax return and tax account transcripts are generally available for the current year and the past three years. 2012 1040a tax forms Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2012 1040a tax forms Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2012 1040a tax forms If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2012 1040a tax forms Check the status of your amended return using Where's My Amended Return? Go to IRS. 2012 1040a tax forms gov and enter Where's My Amended Return? in the search box. 2012 1040a tax forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 1040a tax forms It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 1040a tax forms Make a payment using one of several safe and convenient electronic payment options available on IRS. 2012 1040a tax forms gov. 2012 1040a tax forms Select the Payment tab on the front page of IRS. 2012 1040a tax forms gov for more information. 2012 1040a tax forms Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2012 1040a tax forms Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2012 1040a tax forms gov. 2012 1040a tax forms Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2012 1040a tax forms Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2012 1040a tax forms gov. 2012 1040a tax forms Request an Electronic Filing PIN by going to IRS. 2012 1040a tax forms gov and entering Electronic Filing PIN in the search box. 2012 1040a tax forms Download forms, instructions and publications, including accessible versions for people with disabilities. 2012 1040a tax forms Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2012 1040a tax forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2012 1040a tax forms An employee can answer questions about your tax account or help you set up a payment plan. 2012 1040a tax forms Before you visit, check the Office Locator on IRS. 2012 1040a tax forms gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2012 1040a tax forms If you have a special need, such as a disability, you can request an appointment. 2012 1040a tax forms Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2012 1040a tax forms Apply for an Employer Identification Number (EIN). 2012 1040a tax forms Go to IRS. 2012 1040a tax forms gov and enter Apply for an EIN in the search box. 2012 1040a tax forms Read the Internal Revenue Code, regulations, or other official guidance. 2012 1040a tax forms Read Internal Revenue Bulletins. 2012 1040a tax forms Sign up to receive local and national tax news and more by email. 2012 1040a tax forms Just click on “subscriptions” above the search box on IRS. 2012 1040a tax forms gov and choose from a variety of options. 2012 1040a tax forms    Phone. 2012 1040a tax forms You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2012 1040a tax forms Download the free IRS2Go app from the iTunes app store or from Google Play. 2012 1040a tax forms Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2012 1040a tax forms gov, or download the IRS2Go app. 2012 1040a tax forms Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2012 1040a tax forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2012 1040a tax forms Most VITA and TCE sites offer free electronic filing. 2012 1040a tax forms Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2012 1040a tax forms Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2012 1040a tax forms Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2012 1040a tax forms If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2012 1040a tax forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 2012 1040a tax forms Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2012 1040a tax forms Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2012 1040a tax forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2012 1040a tax forms Note, the above information is for our automated hotline. 2012 1040a tax forms Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2012 1040a tax forms Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2012 1040a tax forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2012 1040a tax forms It can take up to 3 weeks from the date you mailed it to show up in our system. 2012 1040a tax forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2012 1040a tax forms You should receive your order within 10 business days. 2012 1040a tax forms Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2012 1040a tax forms If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2012 1040a tax forms Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2012 1040a tax forms The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2012 1040a tax forms These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2012 1040a tax forms    Walk-in. 2012 1040a tax forms You can find a selection of forms, publications and services — in-person. 2012 1040a tax forms Products. 2012 1040a tax forms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2012 1040a tax forms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2012 1040a tax forms Services. 2012 1040a tax forms You can walk in to your local TAC for face-to-face tax help. 2012 1040a tax forms An employee can answer questions about your tax account or help you set up a payment plan. 2012 1040a tax forms Before visiting, use the Office Locator tool on IRS. 2012 1040a tax forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2012 1040a tax forms    Mail. 2012 1040a tax forms You can send your order for forms, instructions, and publications to the address below. 2012 1040a tax forms You should receive a response within 10 business days after your request is received. 2012 1040a tax forms Internal Revenue Service 1201 N. 2012 1040a tax forms Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 2012 1040a tax forms The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2012 1040a tax forms Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2012 1040a tax forms   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2012 1040a tax forms We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2012 1040a tax forms You face (or your business is facing) an immediate threat of adverse action. 2012 1040a tax forms You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2012 1040a tax forms   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2012 1040a tax forms Here's why we can help: TAS is an independent organization within the IRS. 2012 1040a tax forms Our advocates know how to work with the IRS. 2012 1040a tax forms Our services are free and tailored to meet your needs. 2012 1040a tax forms We have offices in every state, the District of Columbia, and Puerto Rico. 2012 1040a tax forms   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2012 1040a tax forms   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2012 1040a tax forms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2012 1040a tax forms Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 2012 1040a tax forms Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2012 1040a tax forms Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2012 1040a tax forms Prev  Up  Next   Home   More Online Publications
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Estate and Gift Taxes

Estate Tax
The estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.

Frequently Asked Questions on Estate Taxes
Find some of the more common questions dealing with basic estate tax issues.

Gift Tax
If you give someone money or property during your life, you may be subject to federal gift tax.

Frequently Asked Questions on Gift Taxes
Find some of the more common questions dealing with gift tax issues as well as some examples of how different types of gifts are treated.

Filing Estate and Gift Tax Returns
Learn when to file estate and gift taxes, where to send your returns, and get contact information if you need help.

What's New - Estate and Gift Tax
Stay up to date with the tax law changes related to estate and gift taxes.

References/Related Topics

Page Last Reviewed or Updated: 29-Jan-2014

The 2012 1040a Tax Forms

2012 1040a tax forms 9. 2012 1040a tax forms   Depletion Table of Contents Introduction Topics - This chapter discusses: Who Can Claim Depletion? Mineral PropertyCost Depletion Percentage Depletion Oil and Gas Wells Mines and Geothermal Deposits Lessor's Gross Income TimberTimber units. 2012 1040a tax forms Depletion unit. 2012 1040a tax forms Introduction Depletion is the using up of natural resources by mining, drilling, quarrying stone, or cutting timber. 2012 1040a tax forms The depletion deduction allows an owner or operator to account for the reduction of a product's reserves. 2012 1040a tax forms There are two ways of figuring depletion: cost depletion and percentage depletion. 2012 1040a tax forms For mineral property, you generally must use the method that gives you the larger deduction. 2012 1040a tax forms For standing timber, you must use cost depletion. 2012 1040a tax forms Topics - This chapter discusses: Who can claim depletion Mineral property Timber Who Can Claim Depletion? If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. 2012 1040a tax forms More than one person can have an economic interest in the same mineral deposit or timber. 2012 1040a tax forms In the case of leased property, the depletion deduction is divided between the lessor and the lessee. 2012 1040a tax forms You have an economic interest if both the following apply. 2012 1040a tax forms You have acquired by investment any interest in mineral deposits or standing timber. 2012 1040a tax forms You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment. 2012 1040a tax forms A contractual relationship that allows you an economic or monetary advantage from products of the mineral deposit or standing timber is not, in itself, an economic interest. 2012 1040a tax forms A production payment carved out of, or retained on the sale of, mineral property is not an economic interest. 2012 1040a tax forms Individuals, corporations, estates, and trusts who claim depletion deductions may be liable for alternative minimum tax. 2012 1040a tax forms Basis adjustment for depletion. 2012 1040a tax forms   You must reduce the basis of your property by the depletion allowed or allowable, whichever is greater. 2012 1040a tax forms Mineral Property Mineral property includes oil and gas wells, mines, and other natural deposits (including geothermal deposits). 2012 1040a tax forms For this purpose, the term “property” means each separate interest you own in each mineral deposit in each separate tract or parcel of land. 2012 1040a tax forms You can treat two or more separate interests as one property or as separate properties. 2012 1040a tax forms See section 614 of the Internal Revenue Code and the related regulations for rules on how to treat separate mineral interests. 2012 1040a tax forms There are two ways of figuring depletion on mineral property. 2012 1040a tax forms Cost depletion. 2012 1040a tax forms Percentage depletion. 2012 1040a tax forms Generally, you must use the method that gives you the larger deduction. 2012 1040a tax forms However, unless you are an independent producer or royalty owner, you generally cannot use percentage depletion for oil and gas wells. 2012 1040a tax forms See Oil and Gas Wells , later. 2012 1040a tax forms Cost Depletion To figure cost depletion you must first determine the following. 2012 1040a tax forms The property's basis for depletion. 2012 1040a tax forms The total recoverable units of mineral in the property's natural deposit. 2012 1040a tax forms The number of units of mineral sold during the tax year. 2012 1040a tax forms Basis for depletion. 2012 1040a tax forms   To figure the property's basis for depletion, subtract all the following from the property's adjusted basis. 2012 1040a tax forms Amounts recoverable through: Depreciation deductions, Deferred expenses (including deferred exploration and development costs), and Deductions other than depletion. 2012 1040a tax forms The residual value of land and improvements at the end of operations. 2012 1040a tax forms The cost or value of land acquired for purposes other than mineral production. 2012 1040a tax forms Adjusted basis. 2012 1040a tax forms   The adjusted basis of your property is your original cost or other basis, plus certain additions and improvements, and minus certain deductions such as depletion allowed or allowable and casualty losses. 2012 1040a tax forms Your adjusted basis can never be less than zero. 2012 1040a tax forms See Publication 551, Basis of Assets, for more information on adjusted basis. 2012 1040a tax forms Total recoverable units. 2012 1040a tax forms   The total recoverable units is the sum of the following. 2012 1040a tax forms The number of units of mineral remaining at the end of the year (including units recovered but not sold). 2012 1040a tax forms The number of units of mineral sold during the tax year (determined under your method of accounting, as explained next). 2012 1040a tax forms   You must estimate or determine recoverable units (tons, pounds, ounces, barrels, thousands of cubic feet, or other measure) of mineral products using the current industry method and the most accurate and reliable information you can obtain. 2012 1040a tax forms You must include ores and minerals that are developed, in sight, blocked out, or assured. 2012 1040a tax forms You must also include probable or prospective ores or minerals that are believed to exist based on good evidence. 2012 1040a tax forms But see Elective safe harbor for owners of oil and gas property , later. 2012 1040a tax forms Number of units sold. 2012 1040a tax forms   You determine the number of units sold during the tax year based on your method of accounting. 2012 1040a tax forms Use the following table to make this determination. 2012 1040a tax forms    IF you  use . 2012 1040a tax forms . 2012 1040a tax forms . 2012 1040a tax forms THEN the units sold during the year are . 2012 1040a tax forms . 2012 1040a tax forms . 2012 1040a tax forms The cash method of accounting The units sold for which you receive payment during the tax year (regardless of the year of sale). 2012 1040a tax forms An accrual method of accounting The units sold based on your inventories and method of accounting for inventory. 2012 1040a tax forms   The number of units sold during the tax year does not include any for which depletion deductions were allowed or allowable in earlier years. 2012 1040a tax forms Figuring the cost depletion deduction. 2012 1040a tax forms   Once you have figured your property's basis for depletion, the total recoverable units, and the number of units sold during the tax year, you can figure your cost depletion deduction by taking the following steps. 2012 1040a tax forms Step Action Result 1 Divide your property's basis for depletion by total recoverable units. 2012 1040a tax forms Rate per unit. 2012 1040a tax forms 2 Multiply the rate per unit by units sold during the tax year. 2012 1040a tax forms Cost depletion deduction. 2012 1040a tax forms You must keep accounts for the depletion of each property and adjust these accounts each year for units sold and depletion claimed. 2012 1040a tax forms Elective safe harbor for owners of oil and gas property. 2012 1040a tax forms   Instead of using the method described earlier to determine the total recoverable units, you can use an elective safe harbor. 2012 1040a tax forms If you choose the elective safe harbor, the total recoverable units equal 105% of a property's proven reserves (both developed and undeveloped). 2012 1040a tax forms For details, see Revenue Procedure 2004-19 on page 563 of Internal Revenue Bulletin 2004-10, available at www. 2012 1040a tax forms irs. 2012 1040a tax forms gov/pub/irs-irbs/irb04-10. 2012 1040a tax forms pdf. 2012 1040a tax forms   To make the election, attach a statement to your timely filed (including extensions) original return for the first tax year for which the safe harbor is elected. 2012 1040a tax forms The statement must indicate that you are electing the safe harbor provided by Revenue Procedure 2004-19. 2012 1040a tax forms The election, if made, is effective for the tax year in which it is made and all later years. 2012 1040a tax forms It cannot be revoked for the tax year in which it is elected, but may be revoked in a later year. 2012 1040a tax forms Once revoked, it cannot be re-elected for the next 5 years. 2012 1040a tax forms Percentage Depletion To figure percentage depletion, you multiply a certain percentage, specified for each mineral, by your gross income from the property during the tax year. 2012 1040a tax forms The rates to be used and other rules for oil and gas wells are discussed later under Independent Producers and Royalty Owners and under Natural Gas Wells . 2012 1040a tax forms Rates and other rules for percentage depletion of other specific minerals are found later in Mines and Geothermal Deposits . 2012 1040a tax forms Gross income. 2012 1040a tax forms   When figuring percentage depletion, subtract from your gross income from the property the following amounts. 2012 1040a tax forms Any rents or royalties you paid or incurred for the property. 2012 1040a tax forms The part of any bonus you paid for a lease on the property allocable to the product sold (or that otherwise gives rise to gross income) for the tax year. 2012 1040a tax forms A bonus payment includes amounts you paid as a lessee to satisfy a production payment retained by the lessor. 2012 1040a tax forms   Use the following fraction to figure the part of the bonus you must subtract. 2012 1040a tax forms No. 2012 1040a tax forms of units sold in the tax year Recoverable units from the property × Bonus Payments For oil and gas wells and geothermal deposits, more information about the definition of gross income from the property is under Oil and Gas Wells , later. 2012 1040a tax forms For other property, more information about the definition of gross income from the property is under Mines and Geothermal Deposits , later. 2012 1040a tax forms Taxable income limit. 2012 1040a tax forms   The percentage depletion deduction generally cannot be more than 50% (100% for oil and gas property) of your taxable income from the property figured without the depletion deduction and the domestic production activities deduction. 2012 1040a tax forms   Taxable income from the property means gross income from the property minus all allowable deductions (except any deduction for depletion or domestic production activities) attributable to mining processes, including mining transportation. 2012 1040a tax forms These deductible items include, but are not limited to, the following. 2012 1040a tax forms Operating expenses. 2012 1040a tax forms Certain selling expenses. 2012 1040a tax forms Administrative and financial overhead. 2012 1040a tax forms Depreciation. 2012 1040a tax forms Intangible drilling and development costs. 2012 1040a tax forms Exploration and development expenditures. 2012 1040a tax forms Deductible taxes (see chapter 5), but not taxes that you capitalize or take as a credit. 2012 1040a tax forms Losses sustained. 2012 1040a tax forms   The following rules apply when figuring your taxable income from the property for purposes of the taxable income limit. 2012 1040a tax forms Do not deduct any net operating loss deduction from the gross income from the property. 2012 1040a tax forms Corporations do not deduct charitable contributions from the gross income from the property. 2012 1040a tax forms If, during the year, you dispose of an item of section 1245 property that was used in connection with mineral property, reduce any allowable deduction for mining expenses by the part of any gain you must report as ordinary income that is allocable to the mineral property. 2012 1040a tax forms See section 1. 2012 1040a tax forms 613-5(b)(1) of the regulations for information on how to figure the ordinary gain allocable to the property. 2012 1040a tax forms Oil and Gas Wells You cannot claim percentage depletion for an oil or gas well unless at least one of the following applies. 2012 1040a tax forms You are either an independent producer or a royalty owner. 2012 1040a tax forms The well produces natural gas that is either sold under a fixed contract or produced from geopressured brine. 2012 1040a tax forms If you are an independent producer or royalty owner, see Independent Producers and Royalty Owners , next. 2012 1040a tax forms For information on the depletion deduction for wells that produce natural gas that is either sold under a fixed contract or produced from geopressured brine, see Natural Gas Wells , later. 2012 1040a tax forms Independent Producers and Royalty Owners If you are an independent producer or royalty owner, you figure percentage depletion using a rate of 15% of the gross income from the property based on your average daily production of domestic crude oil or domestic natural gas up to your depletable oil or natural gas quantity. 2012 1040a tax forms However, certain refiners, as explained next, and certain retailers and transferees of proven oil and gas properties, as explained next, cannot claim percentage depletion. 2012 1040a tax forms For information on figuring the deduction, see Figuring percentage depletion , later. 2012 1040a tax forms Refiners who cannot claim percentage depletion. 2012 1040a tax forms   You cannot claim percentage depletion if you or a related person refine crude oil and you and the related person refined more than 75,000 barrels on any day during the tax year based on average (rather than actual) daily refinery runs for the tax year. 2012 1040a tax forms The average daily refinery run is computed by dividing total refinery runs for the tax year by the total number of days in the tax year. 2012 1040a tax forms Related person. 2012 1040a tax forms   You and another person are related persons if either of you holds a significant ownership interest in the other person or if a third person holds a significant ownership interest in both of you. 2012 1040a tax forms For example, a corporation, partnership, estate, or trust and anyone who holds a significant ownership interest in it are related persons. 2012 1040a tax forms A partnership and a trust are related persons if one person holds a significant ownership interest in each of them. 2012 1040a tax forms For purposes of the related person rules, significant ownership interest means direct or indirect ownership of 5% or more in any one of the following. 2012 1040a tax forms The value of the outstanding stock of a corporation. 2012 1040a tax forms The interest in the profits or capital of a partnership. 2012 1040a tax forms The beneficial interests in an estate or trust. 2012 1040a tax forms Any interest owned by or for a corporation, partnership, trust, or estate is considered to be owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries. 2012 1040a tax forms Retailers who cannot claim percentage depletion. 2012 1040a tax forms   You cannot claim percentage depletion if both the following apply. 2012 1040a tax forms You sell oil or natural gas or their by-products directly or through a related person in any of the following situations. 2012 1040a tax forms Through a retail outlet operated by you or a related person. 2012 1040a tax forms To any person who is required under an agreement with you or a related person to use a trademark, trade name, or service mark or name owned by you or a related person in marketing or distributing oil, natural gas, or their by-products. 2012 1040a tax forms To any person given authority under an agreement with you or a related person to occupy any retail outlet owned, leased, or controlled by you or a related person. 2012 1040a tax forms The combined gross receipts from sales (not counting resales) of oil, natural gas, or their by-products by all retail outlets taken into account in (1) are more than $5 million for the tax year. 2012 1040a tax forms   For the purpose of determining if this rule applies, do not count the following. 2012 1040a tax forms Bulk sales (sales in very large quantities) of oil or natural gas to commercial or industrial users. 2012 1040a tax forms Bulk sales of aviation fuels to the Department of Defense. 2012 1040a tax forms Sales of oil or natural gas or their by-products outside the United States if none of your domestic production or that of a related person is exported during the tax year or the prior tax year. 2012 1040a tax forms Related person. 2012 1040a tax forms   To determine if you and another person are related persons, see Related person under Refiners who cannot claim percentage depletion, earlier. 2012 1040a tax forms Sales through a related person. 2012 1040a tax forms   You are considered to be selling through a related person if any sale by the related person produces gross income from which you may benefit because of your direct or indirect ownership interest in the person. 2012 1040a tax forms   You are not considered to be selling through a related person who is a retailer if all the following apply. 2012 1040a tax forms You do not have a significant ownership interest in the retailer. 2012 1040a tax forms You sell your production to persons who are not related to either you or the retailer. 2012 1040a tax forms The retailer does not buy oil or natural gas from your customers or persons related to your customers. 2012 1040a tax forms There are no arrangements for the retailer to acquire oil or natural gas you produced for resale or made available for purchase by the retailer. 2012 1040a tax forms Neither you nor the retailer knows of or controls the final disposition of the oil or natural gas you sold or the original source of the petroleum products the retailer acquired for resale. 2012 1040a tax forms Transferees who cannot claim percentage depletion. 2012 1040a tax forms   You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. 2012 1040a tax forms For a definition of the term “transfer,” see section 1. 2012 1040a tax forms 613A-7(n) of the regulations. 2012 1040a tax forms For a definition of the term “interest in proven oil or gas property,” see section 1. 2012 1040a tax forms 613A-7(p) of the regulations. 2012 1040a tax forms Figuring percentage depletion. 2012 1040a tax forms   Generally, as an independent producer or royalty owner, you figure your percentage depletion by computing your average daily production of domestic oil or gas and comparing it to your depletable oil or gas quantity. 2012 1040a tax forms If your average daily production does not exceed your depletable oil or gas quantity, you figure your percentage depletion by multiplying the gross income from the oil or gas property (defined later) by 15%. 2012 1040a tax forms If your average daily production of domestic oil or gas exceeds your depletable oil or gas quantity, you must make an allocation as explained later under Average daily production. 2012 1040a tax forms   In addition, there is a limit on the percentage depletion deduction. 2012 1040a tax forms See Taxable income limit , later. 2012 1040a tax forms Average daily production. 2012 1040a tax forms   Figure your average daily production by dividing your total domestic production of oil or gas for the tax year by the number of days in your tax year. 2012 1040a tax forms Partial interest. 2012 1040a tax forms   If you have a partial interest in the production from a property, figure your share of the production by multiplying total production from the property by your percentage of interest in the revenues from the property. 2012 1040a tax forms   You have a partial interest in the production from a property if you have a net profits interest in the property. 2012 1040a tax forms To figure the share of production for your net profits interest, you must first determine your percentage participation (as measured by the net profits) in the gross revenue from the property. 2012 1040a tax forms To figure this percentage, you divide the income you receive for your net profits interest by the gross revenue from the property. 2012 1040a tax forms Then multiply the total production from the property by your percentage participation to figure your share of the production. 2012 1040a tax forms Example. 2012 1040a tax forms Javier Robles owns oil property in which Pablo Olmos owns a 20% net profits interest. 2012 1040a tax forms During the year, the property produced 10,000 barrels of oil, which Javier sold for $200,000. 2012 1040a tax forms Javier had expenses of $90,000 attributable to the property. 2012 1040a tax forms The property generated a net profit of $110,000 ($200,000 − $90,000). 2012 1040a tax forms Pablo received income of $22,000 ($110,000 × . 2012 1040a tax forms 20) for his net profits interest. 2012 1040a tax forms Pablo determined his percentage participation to be 11% by dividing $22,000 (the income he received) by $200,000 (the gross revenue from the property). 2012 1040a tax forms Pablo determined his share of the oil production to be 1,100 barrels (10,000 barrels × 11%). 2012 1040a tax forms Depletable oil or natural gas quantity. 2012 1040a tax forms   Generally, your depletable oil quantity is 1,000 barrels. 2012 1040a tax forms Your depletable natural gas quantity is 6,000 cubic feet multiplied by the number of barrels of your depletable oil quantity that you choose to apply. 2012 1040a tax forms If you claim depletion on both oil and natural gas, you must reduce your depletable oil quantity (1,000 barrels) by the number of barrels you use to figure your depletable natural gas quantity. 2012 1040a tax forms Example. 2012 1040a tax forms You have both oil and natural gas production. 2012 1040a tax forms To figure your depletable natural gas quantity, you choose to apply 360 barrels of your 1000-barrel depletable oil quantity. 2012 1040a tax forms Your depletable natural gas quantity is 2. 2012 1040a tax forms 16 million cubic feet of gas (360 × 6000). 2012 1040a tax forms You must reduce your depletable oil quantity to 640 barrels (1000 − 360). 2012 1040a tax forms If you have production from marginal wells, see section 613A(c)(6) of the Internal Revenue Code to figure your depletable oil or natural gas quantity. 2012 1040a tax forms Also, see Notice 2012-50, available at www. 2012 1040a tax forms irs. 2012 1040a tax forms gov/irb/2012–31_IRB/index. 2012 1040a tax forms html. 2012 1040a tax forms Business entities and family members. 2012 1040a tax forms   You must allocate the depletable oil or gas quantity among the following related persons in proportion to each entity's or family member's production of domestic oil or gas for the year. 2012 1040a tax forms Corporations, trusts, and estates if 50% or more of the beneficial interest is owned by the same or related persons (considering only persons that own at least 5% of the beneficial interest). 2012 1040a tax forms You and your spouse and minor children. 2012 1040a tax forms A related person is anyone mentioned in the related persons discussion under Nondeductible loss in chapter 2 of Publication 544, except that for purposes of this allocation, item (1) in that discussion includes only an individual, his or her spouse, and minor children. 2012 1040a tax forms Controlled group of corporations. 2012 1040a tax forms   Members of the same controlled group of corporations are treated as one taxpayer when figuring the depletable oil or natural gas quantity. 2012 1040a tax forms They share the depletable quantity. 2012 1040a tax forms A controlled group of corporations is defined in section 1563(a) of the Internal Revenue Code, except that, for this purpose, the stock ownership requirement in that definition is “more than 50%” rather than “at least 80%. 2012 1040a tax forms ” Gross income from the property. 2012 1040a tax forms   For purposes of percentage depletion, gross income from the property (in the case of oil and gas wells) is the amount you receive from the sale of the oil or gas in the immediate vicinity of the well. 2012 1040a tax forms If you do not sell the oil or gas on the property, but manufacture or convert it into a refined product before sale or transport it before sale, the gross income from the property is the representative market or field price (RMFP) of the oil or gas, before conversion or transportation. 2012 1040a tax forms   If you sold gas after you removed it from the premises for a price that is lower than the RMFP, determine gross income from the property for percentage depletion purposes without regard to the RMFP. 2012 1040a tax forms   Gross income from the property does not include lease bonuses, advance royalties, or other amounts payable without regard to production from the property. 2012 1040a tax forms Average daily production exceeds depletable quantities. 2012 1040a tax forms   If your average daily production for the year is more than your depletable oil or natural gas quantity, figure your allowance for depletion for each domestic oil or natural gas property as follows. 2012 1040a tax forms Figure your average daily production of oil or natural gas for the year. 2012 1040a tax forms Figure your depletable oil or natural gas quantity for the year. 2012 1040a tax forms Figure depletion for all oil or natural gas produced from the property using a percentage depletion rate of 15%. 2012 1040a tax forms Multiply the result figured in (3) by a fraction, the numerator of which is the result figured in (2) and the denominator of which is the result figured in (1). 2012 1040a tax forms This is your depletion allowance for that property for the year. 2012 1040a tax forms Taxable income limit. 2012 1040a tax forms   If you are an independent producer or royalty owner of oil and gas, your deduction for percentage depletion is limited to the smaller of the following. 2012 1040a tax forms 100% of your taxable income from the property figured without the deduction for depletion and the deduction for domestic production activities under section 199 of the Internal Revenue Code. 2012 1040a tax forms For a definition of taxable income from the property, see Taxable income limit , earlier, under Mineral Property. 2012 1040a tax forms 65% of your taxable income from all sources, figured without the depletion allowance, the deduction for domestic production activities, any net operating loss carryback, and any capital loss carryback. 2012 1040a tax forms You can carry over to the following year any amount you cannot deduct because of the 65%-of-taxable-income limit. 2012 1040a tax forms Add it to your depletion allowance (before applying any limits) for the following year. 2012 1040a tax forms Partnerships and S Corporations Generally, each partner or S corporation shareholder, and not the partnership or S corporation, figures the depletion allowance separately. 2012 1040a tax forms (However, see Electing large partnerships must figure depletion allowance , later. 2012 1040a tax forms ) Each partner or shareholder must decide whether to use cost or percentage depletion. 2012 1040a tax forms If a partner or shareholder uses percentage depletion, he or she must apply the 65%-of-taxable-income limit using his or her taxable income from all sources. 2012 1040a tax forms Partner's or shareholder's adjusted basis. 2012 1040a tax forms   The partnership or S corporation must allocate to each partner or shareholder his or her share of the adjusted basis of each oil or gas property held by the partnership or S corporation. 2012 1040a tax forms The partnership or S corporation makes the allocation as of the date it acquires the oil or gas property. 2012 1040a tax forms   Each partner's share of the adjusted basis of the oil or gas property generally is figured according to that partner's interest in partnership capital. 2012 1040a tax forms However, in some cases, it is figured according to the partner's interest in partnership income. 2012 1040a tax forms   The partnership or S corporation adjusts the partner's or shareholder's share of the adjusted basis of the oil and gas property for any capital expenditures made for the property and for any change in partnership or S corporation interests. 2012 1040a tax forms Recordkeeping. 2012 1040a tax forms Each partner or shareholder must separately keep records of his or her share of the adjusted basis in each oil and gas property of the partnership or S corporation. 2012 1040a tax forms The partner or shareholder must reduce his or her adjusted basis by the depletion allowed or allowable on the property each year. 2012 1040a tax forms The partner or shareholder must use that reduced adjusted basis to figure cost depletion or his or her gain or loss if the partnership or S corporation disposes of the property. 2012 1040a tax forms Reporting the deduction. 2012 1040a tax forms   Information that you, as a partner or shareholder, use to figure your depletion deduction on oil and gas properties is reported by the partnership or S corporation on Schedule K-1 (Form 1065) or on Schedule K-1 (Form 1120S). 2012 1040a tax forms Deduct oil and gas depletion for your partnership or S corporation interest on Schedule E (Form 1040). 2012 1040a tax forms The depletion deducted on Schedule E is included in figuring income or loss from rental real estate or royalty properties. 2012 1040a tax forms The instructions for Schedule E explain where to report this income or loss and whether you need to file either of the following forms. 2012 1040a tax forms Form 6198, At-Risk Limitations. 2012 1040a tax forms Form 8582, Passive Activity Loss Limitations. 2012 1040a tax forms Electing large partnerships must figure depletion allowance. 2012 1040a tax forms   An electing large partnership, rather than each partner, generally must figure the depletion allowance. 2012 1040a tax forms The partnership figures the depletion allowance without taking into account the 65-percent-of-taxable-income limit and the depletable oil or natural gas quantity. 2012 1040a tax forms Also, the adjusted basis of a partner's interest in the partnership is not affected by the depletion allowance. 2012 1040a tax forms   An electing large partnership is one that meets both the following requirements. 2012 1040a tax forms The partnership had 100 or more partners in the preceding year. 2012 1040a tax forms The partnership chooses to be an electing large partnership. 2012 1040a tax forms Disqualified persons. 2012 1040a tax forms   An electing large partnership does not figure the depletion allowance of its partners that are disqualified persons. 2012 1040a tax forms Disqualified persons must figure it themselves, as explained earlier. 2012 1040a tax forms   All the following are disqualified persons. 2012 1040a tax forms Refiners who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). 2012 1040a tax forms Retailers who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). 2012 1040a tax forms Any partner whose average daily production of domestic crude oil and natural gas is more than 500 barrels during the tax year in which the partnership tax year ends. 2012 1040a tax forms Average daily production is discussed earlier. 2012 1040a tax forms Natural Gas Wells You can use percentage depletion for a well that produces natural gas that is either Sold under a fixed contract, or Produced from geopressured brine. 2012 1040a tax forms Natural gas sold under a fixed contract. 2012 1040a tax forms   Natural gas sold under a fixed contract qualifies for a percentage depletion rate of 22%. 2012 1040a tax forms This is domestic natural gas sold by the producer under a contract that does not provide for a price increase to reflect any increase in the seller's tax liability because of the repeal of percentage depletion for gas. 2012 1040a tax forms The contract must have been in effect from February 1, 1975, until the date of sale of the gas. 2012 1040a tax forms Price increases after February 1, 1975, are presumed to take the increase in tax liability into account unless demonstrated otherwise by clear and convincing evidence. 2012 1040a tax forms Natural gas from geopressured brine. 2012 1040a tax forms   Qualified natural gas from geopressured brine is eligible for a percentage depletion rate of 10%. 2012 1040a tax forms This is natural gas that is both the following. 2012 1040a tax forms Produced from a well you began to drill after September 1978 and before 1984. 2012 1040a tax forms Determined in accordance with section 503 of the Natural Gas Policy Act of 1978 to be produced from geopressured brine. 2012 1040a tax forms Mines and Geothermal Deposits Certain mines, wells, and other natural deposits, including geothermal deposits, qualify for percentage depletion. 2012 1040a tax forms Mines and other natural deposits. 2012 1040a tax forms   For a natural deposit, the percentage of your gross income from the property that you can deduct as depletion depends on the type of deposit. 2012 1040a tax forms   The following is a list of the percentage depletion rates for the more common minerals. 2012 1040a tax forms DEPOSITS RATE Sulphur, uranium, and, if from deposits in the United States, asbestos, lead ore, zinc ore, nickel ore, and mica 22% Gold, silver, copper, iron ore, and certain oil shale, if from deposits in the United States 15% Borax, granite, limestone, marble, mollusk shells, potash, slate, soapstone, and carbon dioxide produced from a well 14% Coal, lignite, and sodium chloride 10% Clay and shale used or sold for use in making sewer pipe or bricks or used or sold for use as sintered or burned lightweight aggregates 7½% Clay used or sold for use in making drainage and roofing tile, flower pots, and kindred products, and gravel, sand, and stone (other than stone used or sold for use by a mine owner or operator as dimension or ornamental stone) 5%   You can find a complete list of minerals and their percentage depletion rates in section 613(b) of the Internal Revenue Code. 2012 1040a tax forms Corporate deduction for iron ore and coal. 2012 1040a tax forms   The percentage depletion deduction of a corporation for iron ore and coal (including lignite) is reduced by 20% of: The percentage depletion deduction for the tax year (figured without this reduction), minus The adjusted basis of the property at the close of the tax year (figured without the depletion deduction for the tax year). 2012 1040a tax forms Gross income from the property. 2012 1040a tax forms   For property other than a geothermal deposit or an oil or gas well, gross income from the property means the gross income from mining. 2012 1040a tax forms Mining includes all the following. 2012 1040a tax forms Extracting ores or minerals from the ground. 2012 1040a tax forms Applying certain treatment processes described later. 2012 1040a tax forms Transporting ores or minerals (generally, not more than 50 miles) from the point of extraction to the plants or mills in which the treatment processes are applied. 2012 1040a tax forms Excise tax. 2012 1040a tax forms   Gross income from mining includes the separately stated excise tax received by a mine operator from the sale of coal to compensate the operator for the excise tax the mine operator must pay to finance black lung benefits. 2012 1040a tax forms Extraction. 2012 1040a tax forms   Extracting ores or minerals from the ground includes extraction by mine owners or operators of ores or minerals from the waste or residue of prior mining. 2012 1040a tax forms This does not apply to extraction from waste or residue of prior mining by the purchaser of the waste or residue or the purchaser of the rights to extract ores or minerals from the waste or residue. 2012 1040a tax forms Treatment processes. 2012 1040a tax forms   The processes included as mining depend on the ore or mineral mined. 2012 1040a tax forms To qualify as mining, the treatment processes must be applied by the mine owner or operator. 2012 1040a tax forms For a listing of treatment processes considered as mining, see section 613(c)(4) of the Internal Revenue Code and the related regulations. 2012 1040a tax forms Transportation of more than 50 miles. 2012 1040a tax forms   If the IRS finds that the ore or mineral must be transported more than 50 miles to plants or mills to be treated because of physical and other requirements, the additional authorized transportation is considered mining and included in the computation of gross income from mining. 2012 1040a tax forms    If you wish to include transportation of more than 50 miles in the computation of gross income from mining, request an advance ruling from the IRS. 2012 1040a tax forms Include in the request the facts about the physical and other requirements that prevented the construction and operation of the plant within 50 miles of the point of extraction. 2012 1040a tax forms For more information about requesting an advance ruling, see Revenue Procedure 2013-1, available at www. 2012 1040a tax forms irs. 2012 1040a tax forms gov/irb/2013-01_IRB/ar11. 2012 1040a tax forms html. 2012 1040a tax forms Disposal of coal or iron ore. 2012 1040a tax forms   You cannot take a depletion deduction for coal (including lignite) or iron ore mined in the United States if both the following apply. 2012 1040a tax forms You disposed of it after holding it for more than 1 year. 2012 1040a tax forms You disposed of it under a contract under which you retain an economic interest in the coal or iron ore. 2012 1040a tax forms Treat any gain on the disposition as a capital gain. 2012 1040a tax forms Disposal to related person. 2012 1040a tax forms   This rule does not apply if you dispose of the coal or iron ore to one of the following persons. 2012 1040a tax forms A related person (as listed in chapter 2 of Publication 544). 2012 1040a tax forms A person owned or controlled by the same interests that own or control you. 2012 1040a tax forms Geothermal deposits. 2012 1040a tax forms   Geothermal deposits located in the United States or its possessions qualify for a percentage depletion rate of 15%. 2012 1040a tax forms A geothermal deposit is a geothermal reservoir of natural heat stored in rocks or in a watery liquid or vapor. 2012 1040a tax forms For percentage depletion purposes, a geothermal deposit is not considered a gas well. 2012 1040a tax forms   Figure gross income from the property for a geothermal steam well in the same way as for oil and gas wells. 2012 1040a tax forms See Gross income from the property , earlier, under Oil and Gas Wells. 2012 1040a tax forms Percentage depletion on a geothermal deposit cannot be more than 50% of your taxable income from the property. 2012 1040a tax forms Lessor's Gross Income In the case of leased property, the depletion deduction is divided between the lessor and the lessee. 2012 1040a tax forms A lessor's gross income from the property that qualifies for percentage depletion usually is the total of the royalties received from the lease. 2012 1040a tax forms Bonuses and advanced royalties. 2012 1040a tax forms   Bonuses and advanced royalties are payments a lessee makes before production to a lessor for the grant of rights in a lease or for minerals, gas, or oil to be extracted from leased property. 2012 1040a tax forms If you are the lessor, your income from bonuses and advanced royalties received is subject to an allowance for depletion, as explained in the next two paragraphs. 2012 1040a tax forms Figuring cost depletion. 2012 1040a tax forms   To figure cost depletion on a bonus, multiply your adjusted basis in the property by a fraction, the numerator of which is the bonus and the denominator of which is the total bonus and royalties expected to be received. 2012 1040a tax forms To figure cost depletion on advanced royalties, use the computation explained earlier under Cost Depletion , treating the number of units for which the advanced royalty is received as the number of units sold. 2012 1040a tax forms Figuring percentage depletion. 2012 1040a tax forms   In the case of mines, wells, and other natural deposits other than gas, oil, or geothermal property, you may use the percentage rates discussed earlier under Mines and Geothermal Deposits . 2012 1040a tax forms Any bonus or advanced royalty payments are generally part of the gross income from the property to which the rates are applied in making the calculation. 2012 1040a tax forms However, for oil, gas, or geothermal property, gross income does not include lease bonuses, advanced royalties, or other amounts payable without regard to production from the property. 2012 1040a tax forms Ending the lease. 2012 1040a tax forms   If you receive a bonus on a lease that ends or is abandoned before you derive any income from mineral extraction, include in income the depletion deduction you took. 2012 1040a tax forms Do this for the year the lease ends or is abandoned. 2012 1040a tax forms Also increase your adjusted basis in the property to restore the depletion deduction you previously subtracted. 2012 1040a tax forms   For advanced royalties, include in income the depletion claimed on minerals for which the advanced royalties were paid if the minerals were not produced before the lease ended. 2012 1040a tax forms Include this amount in income for the year the lease ends. 2012 1040a tax forms Increase your adjusted basis in the property by the amount you include in income. 2012 1040a tax forms Delay rentals. 2012 1040a tax forms   These are payments for deferring development of the property. 2012 1040a tax forms Since delay rentals are ordinary rent, they are ordinary income that is not subject to depletion. 2012 1040a tax forms These rentals can be avoided by either abandoning the lease, beginning development operations, or obtaining production. 2012 1040a tax forms Timber You can figure timber depletion only by the cost method. 2012 1040a tax forms Percentage depletion does not apply to timber. 2012 1040a tax forms Base your depletion on your cost or other basis in the timber. 2012 1040a tax forms Your cost does not include the cost of land or any amounts recoverable through depreciation. 2012 1040a tax forms Depletion takes place when you cut standing timber. 2012 1040a tax forms You can figure your depletion deduction when the quantity of cut timber is first accurately measured in the process of exploitation. 2012 1040a tax forms Figuring cost depletion. 2012 1040a tax forms   To figure your cost depletion allowance, you multiply the number of timber units cut by your depletion unit. 2012 1040a tax forms Timber units. 2012 1040a tax forms   When you acquire timber property, you must make an estimate of the quantity of marketable timber that exists on the property. 2012 1040a tax forms You measure the timber using board feet, log scale, cords, or other units. 2012 1040a tax forms If you later determine that you have more or less units of timber, you must adjust the original estimate. 2012 1040a tax forms   The term “timber property” means your economic interest in standing timber in each tract or block representing a separate timber account. 2012 1040a tax forms Depletion unit. 2012 1040a tax forms   You figure your depletion unit each year by taking the following steps. 2012 1040a tax forms Determine your cost or adjusted basis of the timber on hand at the beginning of the year. 2012 1040a tax forms Adjusted basis is defined under Cost Depletion in the discussion on Mineral Property. 2012 1040a tax forms Add to the amount determined in (1) the cost of any timber units acquired during the year and any additions to capital. 2012 1040a tax forms Figure the number of timber units to take into account by adding the number of timber units acquired during the year to the number of timber units on hand in the account at the beginning of the year and then adding (or subtracting) any correction to the estimate of the number of timber units remaining in the account. 2012 1040a tax forms Divide the result of (2) by the result of (3). 2012 1040a tax forms This is your depletion unit. 2012 1040a tax forms Example. 2012 1040a tax forms You bought a timber tract for $160,000 and the land was worth as much as the timber. 2012 1040a tax forms Your basis for the timber is $80,000. 2012 1040a tax forms Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 ÷ 1,000). 2012 1040a tax forms If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF × $80). 2012 1040a tax forms When to claim depletion. 2012 1040a tax forms   Claim your depletion allowance as a deduction in the year of sale or other disposition of the products cut from the timber, unless you choose to treat the cutting of timber as a sale or exchange (explained below). 2012 1040a tax forms Include allowable depletion for timber products not sold during the tax year the timber is cut as a cost item in the closing inventory of timber products for the year. 2012 1040a tax forms The inventory is your basis for determining gain or loss in the tax year you sell the timber products. 2012 1040a tax forms Example. 2012 1040a tax forms The facts are the same as in the previous example except that you sold only half of the timber products in the cutting year. 2012 1040a tax forms You would deduct $20,000 of the $40,000 depletion that year. 2012 1040a tax forms You would add the remaining $20,000 depletion to your closing inventory of timber products. 2012 1040a tax forms Electing to treat the cutting of timber as a sale or exchange. 2012 1040a tax forms   You can elect, under certain circumstances, to treat the cutting of timber held for more than 1 year as a sale or exchange. 2012 1040a tax forms You must make the election on your income tax return for the tax year to which it applies. 2012 1040a tax forms If you make this election, subtract the adjusted basis for depletion from the fair market value of the timber on the first day of the tax year in which you cut it to figure the gain or loss on the cutting. 2012 1040a tax forms You generally report the gain as long-term capital gain. 2012 1040a tax forms The fair market value then becomes your basis for figuring your ordinary gain or loss on the sale or other disposition of the products cut from the timber. 2012 1040a tax forms For more information, see Timber in chapter 2 of Publication 544, Sales and Other Dispositions of Assets. 2012 1040a tax forms   You may revoke an election to treat the cutting of timber as a sale or exchange without IRS's consent. 2012 1040a tax forms The prior election (and revocation) is disregarded for purposes of making a subsequent election. 2012 1040a tax forms See Form T (Timber), Forest Activities Schedule, for more information. 2012 1040a tax forms Form T. 2012 1040a tax forms   Complete and attach Form T (Timber) to your income tax return if you claim a deduction for timber depletion, choose to treat the cutting of timber as a sale or exchange, or make an outright sale of timber. 2012 1040a tax forms Prev  Up  Next   Home   More Online Publications