File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Ez 40 Tax Form

Turbo Tax 1040xH And R Block 1040x2010 TaxFree State Tax Return EfileFile 2011 Federal Tax Return1040ez OnlineTurbotax 1040nrFile 1040nr Ez Online FreeHow To File Only State Taxes For FreeHow Do I Amend My Tax ReturnEfile Tax Return Online Free Federal And StateAlabama 40 Tax Forms 2012How To File Taxes Online For Free 2011Ez Forms 2013Irs 1040 Ez 2012File State Income Tax OnlyState Income TaxFree File State Tax ReturnOnline Tax Forms 1040ezFree 1040x FilingInternational Student Tax ReturnNeed Amend My 2009 TaxesFile 1040nr Online Free1040 Tax FormWww Mypay GovH&r Block Taxes Online FreeEz 1040 Form 2014Income Tax Preparation2011 Federal Income Tax FormsSelf Employed TaxesIrs Free File Fillable FormsIncome Tax 2012 FormsHow Do You Do State TaxesHow To File A 1040x AmendmentHow Do I File My Taxes From 2012How Do You Amend A Tax ReturnAmend 2008 TaxesE File 2009 Taxes FreeFree State Tax PreparationTurbotax Free State Filing

Ez 40 Tax Form

Ez 40 tax form Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. Ez 40 tax form Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Ez 40 tax form Definitions The following definitions are used throughout this publication. Ez 40 tax form Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. Ez 40 tax form See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. Ez 40 tax form Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. Ez 40 tax form You will need to know this date when using this publication for the various tax provisions. Ez 40 tax form Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. Ez 40 tax form Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. Ez 40 tax form 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. Ez 40 tax form 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. Ez 40 tax form 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. Ez 40 tax form 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. Ez 40 tax form 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Ez 40 tax form Charles, Stone, Taney, Vernon, and Webster. Ez 40 tax form 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. Ez 40 tax form 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. Ez 40 tax form *For more details, go to www. Ez 40 tax form fema. Ez 40 tax form gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. Ez 40 tax form Charitable Giving Incentives. Ez 40 tax form Net Operating Losses. Ez 40 tax form Education Credits. Ez 40 tax form Recapture of Federal Mortgage Subsidy. Ez 40 tax form Tax Relief for Temporary Relocation. Ez 40 tax form Employee Retention Credit. Ez 40 tax form Employer Housing Credit and Exclusion. Ez 40 tax form Demolition and Clean-up Costs. Ez 40 tax form Increase in Rehabilitation Credit. Ez 40 tax form Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. Ez 40 tax form Clair, and Scott. Ez 40 tax form 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. Ez 40 tax form 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. Ez 40 tax form 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. Ez 40 tax form 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. Ez 40 tax form 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. Ez 40 tax form 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. Ez 40 tax form Genevieve, St. Ez 40 tax form Louis, the Independent City of St. Ez 40 tax form Louis, Scott, Sullivan, and Worth. Ez 40 tax form 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. Ez 40 tax form 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. Ez 40 tax form 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. Ez 40 tax form 06/05/2008through07/25/2008 Wisconsin Lafayette. Ez 40 tax form * For more details, go to www. Ez 40 tax form fema. Ez 40 tax form gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. Ez 40 tax form Individuals. Ez 40 tax form   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. Ez 40 tax form A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. Ez 40 tax form   A qualified contribution must also meet all of the following requirements. Ez 40 tax form Be paid after May 1, 2008, and before January 1, 2009. Ez 40 tax form The contribution must be for relief efforts in one or more Midwestern disaster areas. Ez 40 tax form Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Ez 40 tax form   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Ez 40 tax form You can carry over any contributions you are not able to deduct for 2008 because of this limit. Ez 40 tax form In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. Ez 40 tax form Exception. Ez 40 tax form   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. Ez 40 tax form Corporations. Ez 40 tax form   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. Ez 40 tax form Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Ez 40 tax form The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Ez 40 tax form Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. Ez 40 tax form Partners and shareholders. Ez 40 tax form   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. Ez 40 tax form More information. Ez 40 tax form   For more information, see Publication 526 or Publication 542, Corporations. Ez 40 tax form Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Ez 40 tax form Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. Ez 40 tax form The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. Ez 40 tax form 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Ez 40 tax form 41 cents per mile for the period July 1 through December 31, 2008. Ez 40 tax form Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. Ez 40 tax form You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. Ez 40 tax form You cannot claim a deduction or credit for amounts you exclude. Ez 40 tax form You must keep records of miles driven, time, place (or use), and purpose of the mileage. Ez 40 tax form The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Ez 40 tax form 50. Ez 40 tax form 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Ez 40 tax form 58. Ez 40 tax form 5 cents per mile for the period July 1 through December 31, 2008. Ez 40 tax form Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Ez 40 tax form For more information, see Publication 547. Ez 40 tax form Limits on personal casualty or theft losses. Ez 40 tax form   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. Ez 40 tax form Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. Ez 40 tax form When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. Ez 40 tax form A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. Ez 40 tax form When to deduct the loss. Ez 40 tax form   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. Ez 40 tax form However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. Ez 40 tax form Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. Ez 40 tax form   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. Ez 40 tax form Cross out “2008” and enter “2007” at the top of Form 4684. Ez 40 tax form Time limit for making election. Ez 40 tax form   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. Ez 40 tax form The due date (without extensions) for filing your 2008 income tax return. Ez 40 tax form The due date (with extensions) for filing your 2007 income tax return. Ez 40 tax form Example. Ez 40 tax form If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. Ez 40 tax form Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Ez 40 tax form Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). Ez 40 tax form However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. Ez 40 tax form For more information, see the Instructions for Form 4684. Ez 40 tax form Net Operating Losses This benefit applies only to the counties in Table 1. Ez 40 tax form Qualified disaster recovery assistance loss. Ez 40 tax form   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Ez 40 tax form However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. Ez 40 tax form In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Ez 40 tax form   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. Ez 40 tax form Qualified disaster recovery assistance casualty loss. Ez 40 tax form   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. Ez 40 tax form For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. Ez 40 tax form Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. Ez 40 tax form More information. Ez 40 tax form   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Ez 40 tax form IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. Ez 40 tax form Definitions Qualified disaster recovery assistance distribution. Ez 40 tax form   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. Ez 40 tax form The distribution was made on or after the applicable disaster date and before January 1, 2010. Ez 40 tax form Your main home was located in a Midwestern disaster area on the applicable disaster date. Ez 40 tax form You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. Ez 40 tax form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Ez 40 tax form   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. Ez 40 tax form Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. Ez 40 tax form   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. Ez 40 tax form If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. Ez 40 tax form   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. Ez 40 tax form Eligible retirement plan. Ez 40 tax form   An eligible retirement plan can be any of the following. Ez 40 tax form A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Ez 40 tax form A qualified annuity plan. Ez 40 tax form A tax-sheltered annuity contract. Ez 40 tax form A governmental section 457 deferred compensation plan. Ez 40 tax form A traditional, SEP, SIMPLE, or Roth IRA. Ez 40 tax form Main home. Ez 40 tax form   Generally, your main home is the home where you live most of the time. Ez 40 tax form A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Ez 40 tax form Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. Ez 40 tax form However, if you elect, you can include the entire distribution in your income in the year it was received. Ez 40 tax form Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Ez 40 tax form However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. Ez 40 tax form For more information, see Form 8930. Ez 40 tax form Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Ez 40 tax form Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. Ez 40 tax form However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. Ez 40 tax form You have three years from the day after the date you received the distribution to make a repayment. Ez 40 tax form Amounts that are repaid are treated as a qualified rollover and are not included in income. Ez 40 tax form Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Ez 40 tax form See Form 8930 for more information on how to report repayments. Ez 40 tax form Exceptions. Ez 40 tax form   You cannot repay the following types of distributions. Ez 40 tax form Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). Ez 40 tax form Required minimum distributions. Ez 40 tax form Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Ez 40 tax form Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. Ez 40 tax form For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Ez 40 tax form To be a qualified distribution, the distribution must meet all of the following requirements. Ez 40 tax form The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Ez 40 tax form The distribution was received after the date that was 6 months before the day after the applicable disaster date. Ez 40 tax form The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. Ez 40 tax form Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. Ez 40 tax form Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Ez 40 tax form A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Ez 40 tax form You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. Ez 40 tax form Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form The following benefits are available to qualified individuals. Ez 40 tax form Increases to the limits for distributions treated as loans from employer plans. Ez 40 tax form A 1-year suspension for payments due on plan loans. Ez 40 tax form Qualified individual. Ez 40 tax form   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. Ez 40 tax form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Ez 40 tax form Limits on plan loans. Ez 40 tax form   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Ez 40 tax form In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Ez 40 tax form If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. Ez 40 tax form One-year suspension of loan payments. Ez 40 tax form   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. Ez 40 tax form To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. Ez 40 tax form Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. Ez 40 tax form Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. Ez 40 tax form Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. Ez 40 tax form Earned income. Ez 40 tax form    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Ez 40 tax form If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Ez 40 tax form Joint returns. Ez 40 tax form   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Ez 40 tax form If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. Ez 40 tax form Making the election. Ez 40 tax form   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. Ez 40 tax form However, you can make the election for the additional child tax credit even if you do not take the EIC. Ez 40 tax form   Electing to use your 2007 earned income can increase or decrease your EIC. Ez 40 tax form Take the following steps to decide whether to make the election. Ez 40 tax form Figure your 2008 EIC using your 2007 earned income. Ez 40 tax form Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. Ez 40 tax form Add the results of (1) and (2). Ez 40 tax form Figure your 2008 EIC using your 2008 earned income. Ez 40 tax form Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. Ez 40 tax form Add the results of (4) and (5). Ez 40 tax form Compare the results of (3) and (6). Ez 40 tax form If (3) is larger than (6), it is to your benefit to make the election. Ez 40 tax form If (3) is equal to or smaller than (6), making the election will not help you. Ez 40 tax form   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Ez 40 tax form   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Ez 40 tax form Getting your 2007 tax return information. Ez 40 tax form   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. Ez 40 tax form You can also get this information by visiting the IRS website at www. Ez 40 tax form irs. Ez 40 tax form gov. Ez 40 tax form   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Ez 40 tax form See Request for Copy or Transcript of Tax Return on page 11. Ez 40 tax form Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. Ez 40 tax form The additional exemption amount is claimed on Form 8914. Ez 40 tax form You can claim an additional exemption amount only one time for a specific individual. Ez 40 tax form If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. Ez 40 tax form The maximum additional exemption amount you can claim for all displaced individuals is $2,000. Ez 40 tax form Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. Ez 40 tax form The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. Ez 40 tax form If married filing separately, the $2,000 can be divided in $500 increments between the spouses. Ez 40 tax form For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. Ez 40 tax form If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Ez 40 tax form In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Ez 40 tax form To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. Ez 40 tax form If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Ez 40 tax form You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Ez 40 tax form You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Ez 40 tax form Food, clothing, or personal items consumed or used by the displaced individual. Ez 40 tax form Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Ez 40 tax form Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Ez 40 tax form However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Ez 40 tax form Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Ez 40 tax form For more information, see Form 8914. Ez 40 tax form Education Credits This benefit applies only to the counties in Table 1. Ez 40 tax form The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. Ez 40 tax form The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. Ez 40 tax form The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. Ez 40 tax form The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. Ez 40 tax form This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. Ez 40 tax form In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. Ez 40 tax form Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Ez 40 tax form For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Ez 40 tax form For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Ez 40 tax form The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Ez 40 tax form The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Ez 40 tax form You will need to contact the eligible educational institution for qualified room and board costs. Ez 40 tax form For more information, see Form 8863. Ez 40 tax form See Form 8917 for the tuition and fees deduction. Ez 40 tax form Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. Ez 40 tax form Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Ez 40 tax form However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Ez 40 tax form This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. Ez 40 tax form Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Ez 40 tax form Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. Ez 40 tax form If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. Ez 40 tax form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Ez 40 tax form This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. Ez 40 tax form You may also have to reduce certain tax attributes by the amount excluded. Ez 40 tax form For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Ez 40 tax form Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. Ez 40 tax form The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. Ez 40 tax form However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Ez 40 tax form The IRS has exercised this authority as follows. Ez 40 tax form In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Ez 40 tax form In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Ez 40 tax form You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. Ez 40 tax form Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. Ez 40 tax form An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. Ez 40 tax form The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Ez 40 tax form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Ez 40 tax form Use Form 5884-A to claim the credit. Ez 40 tax form Employers affected by the severe storms, tornadoes, or flooding. Ez 40 tax form   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. Ez 40 tax form Eligible employer. Ez 40 tax form   For this purpose, an eligible employer is any employer who meets all of the following. Ez 40 tax form Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. Ez 40 tax form Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. Ez 40 tax form Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. Ez 40 tax form Eligible employee. Ez 40 tax form   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. Ez 40 tax form An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. Ez 40 tax form Qualified wages. Ez 40 tax form   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. Ez 40 tax form In addition, the wages must have been paid or incurred after the applicable disaster date. Ez 40 tax form    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Ez 40 tax form    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Ez 40 tax form Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Ez 40 tax form Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Ez 40 tax form   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Ez 40 tax form For a special rule that applies to railroad employees, see section 51(h)(1)(B). Ez 40 tax form   Qualified wages do not include the following. Ez 40 tax form Wages paid to your dependent or a related individual. Ez 40 tax form See section 51(i)(1). Ez 40 tax form Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Ez 40 tax form Wages for services of replacement workers during a strike or lockout. Ez 40 tax form   For more information, see Form 5884-A. Ez 40 tax form Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. Ez 40 tax form An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. Ez 40 tax form The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. Ez 40 tax form The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Ez 40 tax form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Ez 40 tax form The employer must use Form 5884-A to claim the credit. Ez 40 tax form A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. Ez 40 tax form The employee cannot be your dependent or a related individual. Ez 40 tax form See section 51(i)(1). Ez 40 tax form For more information, see Form 5884-A. Ez 40 tax form Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. Ez 40 tax form You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Ez 40 tax form Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Ez 40 tax form Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Ez 40 tax form Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. Ez 40 tax form The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. Ez 40 tax form For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Ez 40 tax form For certified historic structures, the credit percentage is increased from 20% to 26%. Ez 40 tax form For more information, see Form 3468, Investment Credit. Ez 40 tax form Request for Copy or Transcript of Tax Return Request for copy of tax return. Ez 40 tax form   You can use Form 4506 to order a copy of your tax return. Ez 40 tax form Generally, there is a $57 fee for requesting each copy of a tax return. Ez 40 tax form If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. Ez 40 tax form Request for transcript of tax return. Ez 40 tax form   You can use Form 4506-T to order a free transcript of your tax return. Ez 40 tax form A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Ez 40 tax form You can also call 1-800-829-1040 to order a transcript. Ez 40 tax form How To Get Tax Help Special IRS assistance. Ez 40 tax form   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. Ez 40 tax form We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. Ez 40 tax form Call 1-866-562-5227 Monday through FridayIn English–7 a. Ez 40 tax form m. Ez 40 tax form to 10 p. Ez 40 tax form m. Ez 40 tax form local timeIn Spanish–8 a. Ez 40 tax form m. Ez 40 tax form to 9:30 p. Ez 40 tax form m. Ez 40 tax form local time   The IRS website at www. Ez 40 tax form irs. Ez 40 tax form gov has notices and other tax relief information. Ez 40 tax form Check it periodically for any new guidance. Ez 40 tax form You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Ez 40 tax form By selecting the method that is best for you, you will have quick and easy access to tax help. Ez 40 tax form Contacting your Taxpayer Advocate. Ez 40 tax form   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Ez 40 tax form Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. Ez 40 tax form Our service is free, confidential, and tailored to meet your needs. Ez 40 tax form You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. Ez 40 tax form TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. Ez 40 tax form This includes businesses as well as individuals. Ez 40 tax form TAS employees know the IRS and how to navigate it. Ez 40 tax form We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. Ez 40 tax form TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. Ez 40 tax form You can call your local advocate, whose number is in your phone book, in Pub. Ez 40 tax form 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. Ez 40 tax form irs. Ez 40 tax form gov/advocate. Ez 40 tax form You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Ez 40 tax form You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. Ez 40 tax form taxtoolkit. Ez 40 tax form irs. Ez 40 tax form gov. Ez 40 tax form Low Income Taxpayer Clinics (LITCs). Ez 40 tax form   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. Ez 40 tax form LITCs are independent from the IRS. Ez 40 tax form Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. Ez 40 tax form If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. Ez 40 tax form For more information, see Publication 4134, Low Income Taxpayer Clinic List. Ez 40 tax form This publication is available at www. Ez 40 tax form irs. Ez 40 tax form gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Ez 40 tax form Free tax services. Ez 40 tax form   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Ez 40 tax form It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. Ez 40 tax form It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. Ez 40 tax form   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Ez 40 tax form Free help with your return. Ez 40 tax form   Free help in preparing your return is available nationwide from IRS-trained volunteers. Ez 40 tax form The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Ez 40 tax form Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Ez 40 tax form To find the nearest VITA or TCE site, call 1-800-829-1040. Ez 40 tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ez 40 tax form To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. Ez 40 tax form aarp. Ez 40 tax form org/money/taxaide. Ez 40 tax form   For more information on these programs, go to www. Ez 40 tax form irs. Ez 40 tax form gov and enter keyword “VITA” in the upper right-hand corner. Ez 40 tax form Internet. Ez 40 tax form You can access the IRS website at www. Ez 40 tax form irs. Ez 40 tax form gov 24 hours a day, 7 days a week to: E-file your return. Ez 40 tax form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Ez 40 tax form Check the status of your 2009 refund. Ez 40 tax form Go to www. Ez 40 tax form irs. Ez 40 tax form gov and click on Where's My Refund. Ez 40 tax form Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Ez 40 tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 40 tax form Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 40 tax form Download forms, instructions, and publications. Ez 40 tax form Order IRS products online. Ez 40 tax form Research your tax questions online. Ez 40 tax form Search publications online by topic or keyword. Ez 40 tax form Use the online Internal Revenue Code, Regulations, or other official guidance. Ez 40 tax form View Internal Revenue Bulletins (IRBs) published in the last few years. Ez 40 tax form Figure your withholding allowances using the withholding calculator online at www. Ez 40 tax form irs. Ez 40 tax form gov/individuals. Ez 40 tax form Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. Ez 40 tax form Sign up to receive local and national tax news by email. Ez 40 tax form Get information on starting and operating a small business. Ez 40 tax form Phone. Ez 40 tax form Many services are available by phone. Ez 40 tax form Ordering forms, instructions, and publications. Ez 40 tax form Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Ez 40 tax form You should receive your order within 10 days. Ez 40 tax form Asking tax questions. Ez 40 tax form Call the IRS with your tax questions at 1-800-829-1040. Ez 40 tax form Solving problems. Ez 40 tax form You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Ez 40 tax form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Ez 40 tax form Call your local Taxpayer Assistance Center for an appointment. Ez 40 tax form To find the number, go to www. Ez 40 tax form irs. Ez 40 tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 40 tax form TTY/TDD equipment. Ez 40 tax form If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Ez 40 tax form TeleTax topics. Ez 40 tax form Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Ez 40 tax form Refund information. Ez 40 tax form To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Ez 40 tax form Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Ez 40 tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 40 tax form Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 40 tax form Refunds are sent out weekly on Fridays. Ez 40 tax form If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Ez 40 tax form Other refund information. Ez 40 tax form To check the status of a prior year refund or amended return refund, call 1-800-829-1954. Ez 40 tax form Evaluating the quality of our telephone services. Ez 40 tax form To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Ez 40 tax form One method is for a second IRS representative to listen in on or record random telephone calls. Ez 40 tax form Another is to ask some callers to complete a short survey at the end of the call. Ez 40 tax form Walk-in. Ez 40 tax form Many products and services are available on a walk-in basis. Ez 40 tax form Products. Ez 40 tax form You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ez 40 tax form Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Ez 40 tax form Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Ez 40 tax form Services. Ez 40 tax form You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Ez 40 tax form An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Ez 40 tax form If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Ez 40 tax form No appointment is necessary—just walk in. Ez 40 tax form If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Ez 40 tax form A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Ez 40 tax form If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Ez 40 tax form All other issues will be handled without an appointment. Ez 40 tax form To find the number of your local office, go to www. Ez 40 tax form irs. Ez 40 tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 40 tax form Mail. Ez 40 tax form You can send your order for forms, instructions, and publications to the address below. Ez 40 tax form You should receive a response within 10 days after your request is received. Ez 40 tax form Internal Revenue Service1201 N. Ez 40 tax form Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. Ez 40 tax form You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Ez 40 tax form Prior-year forms, instructions, and publications. Ez 40 tax form Tax Map: an electronic research tool and finding aid. Ez 40 tax form Tax law frequently asked questions. Ez 40 tax form Tax Topics from the IRS telephone response system. Ez 40 tax form Internal Revenue Code—Title 26 of the U. Ez 40 tax form S. Ez 40 tax form Code. Ez 40 tax form Fill-in, print, and save features for most tax forms. Ez 40 tax form Internal Revenue Bulletins. Ez 40 tax form Toll-free and email technical support. Ez 40 tax form Two releases during the year. Ez 40 tax form – The first release will ship the beginning of January 2010. Ez 40 tax form – The final release will ship the beginning of March 2010. Ez 40 tax form Purchase the DVD from National Technical Information Service (NTIS) at www. Ez 40 tax form irs. Ez 40 tax form gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Ez 40 tax form Prev  Up  Next   Home   More Online Publications
Español

Administration on Developmental Disabilities

The Administration on Developmental Disabilities ensures that individuals with developmental disabilities and their families have access to community services, individualized supports, and other forms of assistance that promote self-determination, independence, productivity, integration and inclusion in all facets of community life.

Contact the Agency or Department

Website: Administration on Developmental Disabilities

Contact In-Person: Find Administration on Developmental Disabilities Offices Near You

E-mail:

Address: HHH 405-D
370 L'Enfant Promenade, S.W.

Washington, DC 20447

Phone Number: (202) 690-6590

TTY: (202) 690-6415

The Ez 40 Tax Form

Ez 40 tax form 9. Ez 40 tax form   Dispositions of Property Used in Farming Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Section 1231 Gains and LossesNonrecaptured section 1231 losses. Ez 40 tax form Depreciation RecaptureSection 1245 Property Section 1250 Property Installment Sale Other Dispositions Other GainsExceptions. Ez 40 tax form Amount to report as ordinary income. Ez 40 tax form Applicable percentage. Ez 40 tax form Amount to report as ordinary income. Ez 40 tax form Applicable percentage. Ez 40 tax form Introduction When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income (which is taxed at the same rates as wages and interest income) or capital gain (which is generally taxed at lower rates) under the rules for section 1231 transactions. Ez 40 tax form When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Ez 40 tax form Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. Ez 40 tax form Gains and losses from property used in farming are reported on Form 4797, Sales of Business Property. Ez 40 tax form Table 9-1 contains examples of items reported on Form 4797 and refers to the part of that form on which they first should be reported. Ez 40 tax form Topics - This chapter discusses: Section 1231 gains and losses Depreciation recapture Other gains Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Ez 40 tax form Section 1231 Gains and Losses Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions (explained below). Ez 40 tax form Their treatment as ordinary or capital gains depends on whether you have a net gain or a net loss from all of your section 1231 transactions in the tax year. Ez 40 tax form Table 9-1. Ez 40 tax form Where to First Report Certain Items on Form 4797 Type of property Held 1 year  or less Held more than  1 year 1 Depreciable trade or business property:       a Sold or exchanged at a gain Part II Part III (1245, 1250)   b Sold or exchanged at a loss Part II Part I 2 Farmland held less than 10 years for which soil, water, or land clearing expenses were deducted:       a Sold at a gain Part II Part III (1252)   b Sold at a loss Part II Part I 3 All other farmland Part II Part I 4 Disposition of cost-sharing payment property described in section 126 Part II Part III (1255) 5 Cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 24 mos. Ez 40 tax form Held 24 mos. Ez 40 tax form  or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised cattle and horses sold at a gain Part II Part I 6 Livestock other than cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 12 mos. Ez 40 tax form Held 12 mos. Ez 40 tax form   or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised livestock sold at a gain Part II Part I If you have a gain from a section 1231 transaction, first determine whether any of the gain is ordinary income under the depreciation recapture rules (explained later). Ez 40 tax form Do not take that gain into account as section 1231 gain. Ez 40 tax form Section 1231 transactions. Ez 40 tax form   Gain or loss on the following transactions is subject to section 1231 treatment. Ez 40 tax form Sale or exchange of cattle and horses. Ez 40 tax form The cattle and horses must be held for draft, breeding, dairy, or sporting purposes and held for 24 months or longer. Ez 40 tax form Sale or exchange of other livestock. Ez 40 tax form This livestock must be held for draft, breeding, dairy, or sporting purposes and held for 12 months or longer. Ez 40 tax form Other livestock includes hogs, mules, sheep, goats, donkeys, and other fur-bearing animals. Ez 40 tax form Other livestock does not include poultry. Ez 40 tax form Sale or exchange of depreciable personal property. Ez 40 tax form This property must be used in your business and held longer than 1 year. Ez 40 tax form Generally, property held for the production of rents or royalties is considered to be used in a trade or business. Ez 40 tax form Examples of depreciable personal property include farm machinery and trucks. Ez 40 tax form It also includes amortizable section 197 intangibles. Ez 40 tax form Sale or exchange of real estate. Ez 40 tax form This property must be used in your business and held longer than 1 year. Ez 40 tax form Examples are your farm or ranch (including barns and sheds). Ez 40 tax form Sale or exchange of unharvested crops. Ez 40 tax form The crop and land must be sold, exchanged, or involuntarily converted at the same time and to the same person, and the land must have been held longer than 1 year. Ez 40 tax form You cannot keep any right or option to reacquire the land directly or indirectly (other than a right customarily incident to a mortgage or other security transaction). Ez 40 tax form Growing crops sold with a leasehold on the land, even if sold to the same person in a single transaction, are not included. Ez 40 tax form Distributive share of partnership gains and losses. Ez 40 tax form Your distributive share must be from the sale or exchange of property listed above and held longer than 1 year (or for the required period for certain livestock). Ez 40 tax form Cutting or disposal of timber. Ez 40 tax form Special rules apply if you owned the timber longer than 1 year and elect to treat timber cutting as a sale or exchange, or you enter into a cutting contract, as described in chapter 8 under Timber . Ez 40 tax form Condemnation. Ez 40 tax form The condemned property (defined in chapter 11) must have been held longer than 1 year. Ez 40 tax form It must be business property or a capital asset held in connection with a trade or business or a transaction entered into for profit, such as investment property. Ez 40 tax form It cannot be property held for personal use. Ez 40 tax form Casualty or theft. Ez 40 tax form The casualty or theft must have affected business property, property held for the production of rents or royalties, or investment property (such as notes and bonds). Ez 40 tax form You must have held the property longer than 1 year. Ez 40 tax form However, if your casualty or theft losses are more than your casualty or theft gains, neither the gains nor the losses are taken into account in the section 1231 computation. Ez 40 tax form Section 1231 does not apply to personal casualty gains and losses. Ez 40 tax form See chapter 11 for information on how to treat those gains and losses. Ez 40 tax form If the property is not held for the required holding period, the transaction is not subject to section 1231 treatment, and any gain or loss is ordinary income reported in Part II of Form 4797. Ez 40 tax form See Table 9-1. Ez 40 tax form Property for sale to customers. Ez 40 tax form   A sale, exchange, or involuntary conversion of property held mainly for sale to customers is not a section 1231 transaction. Ez 40 tax form If you will get back all, or nearly all, of your investment in the property by selling it rather than by using it up in your business, it is property held mainly for sale to customers. Ez 40 tax form Treatment as ordinary or capital. Ez 40 tax form   To determine the treatment of section 1231 gains and losses, combine all of your section 1231 gains and losses for the year. Ez 40 tax form If you have a net section 1231 loss, it is an ordinary loss. Ez 40 tax form If you have a net section 1231 gain, it is ordinary income up to your nonrecaptured section 1231 losses from previous years, explained next. Ez 40 tax form The rest, if any, is long-term capital gain. Ez 40 tax form Nonrecaptured section 1231 losses. Ez 40 tax form   Your nonrecaptured section 1231 losses are your net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain by treating the gain as ordinary income. Ez 40 tax form These losses are applied against your net section 1231 gain beginning with the earliest loss in the 5-year period. Ez 40 tax form Example. Ez 40 tax form In 2013, Ben has a $2,000 net section 1231 gain. Ez 40 tax form To figure how much he has to report as ordinary income and long-term capital gain, he must first determine his section 1231 gains and losses from the previous 5-year period. Ez 40 tax form From 2008 through 2012 he had the following section 1231 gains and losses. Ez 40 tax form Year Amount 2008 -0- 2009 -0- 2010 ($2,500) 2011 -0- 2012 $1,800   Ben uses this information to figure how to report his net section 1231 gain for 2013 as shown below. Ez 40 tax form 1) Net section 1231 gain (2013) $2,000 2) Net section 1231 loss (2010) ($2,500)   3) Net section 1231 gain (2012) 1,800   4) Remaining net section 1231 loss from prior 5 years ($700)   5) Gain treated as  ordinary income $700 6) Gain treated as long-term  capital gain $1,300 His remaining net section 1231 loss from 2010 is completely recaptured in 2013. Ez 40 tax form Depreciation Recapture If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if it is otherwise nontaxable) as ordinary income. Ez 40 tax form To figure any gain that must be reported as ordinary income, you must keep permanent records of the facts necessary to figure the depreciation or amortization allowed or allowable on your property. Ez 40 tax form For more information, see chapter 3 of Publication 544. Ez 40 tax form Section 1245 Property A gain on the disposition of section 1245 property is treated as ordinary income to the extent of depreciation allowed or allowable. Ez 40 tax form Any recognized gain that is more than the part that is ordinary income is a section 1231 gain. Ez 40 tax form See Treatment as ordinary or capital under Section 1231 Gains and Losses , earlier. Ez 40 tax form Section 1245 property includes any property that is or has been subject to an allowance for depreciation or amortization and that is any of the following types of property. Ez 40 tax form Personal property (either tangible or intangible). Ez 40 tax form Other tangible property (except buildings and their structural components) used as any of the following. Ez 40 tax form See Buildings and structural components below. Ez 40 tax form An integral part of manufacturing, production, or extraction, or of furnishing certain services. Ez 40 tax form A research facility in any of the activities in (a). Ez 40 tax form A facility in any of the activities in (a) above, for the bulk storage of fungible commodities (discussed later). Ez 40 tax form That part of real property (not included in (2)) with an adjusted basis reduced by (but not limited to) the following. Ez 40 tax form Amortization of certified pollution control facilities. Ez 40 tax form The section 179 expense deduction. Ez 40 tax form Deduction for clean-fuel vehicles and certain refueling property. Ez 40 tax form Expenditures to remove architectural and transportation barriers to the handicapped and elderly. Ez 40 tax form Certain reforestation expenditures (as described under Reforestation Costs in chapter 7. Ez 40 tax form Single purpose agricultural (livestock) or horticultural structures. Ez 40 tax form Storage facilities (except buildings and their structural components) used in distributing petroleum or any primary product of petroleum. Ez 40 tax form Buildings and structural components. Ez 40 tax form   Section 1245 property does not include buildings and structural components. Ez 40 tax form The term building includes a house, barn, warehouse, or garage. Ez 40 tax form The term structural component includes walls, floors, windows, doors, central air conditioning systems, light fixtures, etc. Ez 40 tax form   Do not treat a structure that is essentially machinery or equipment as a building or structural component. Ez 40 tax form Also, do not treat a structure that houses property used as an integral part of an activity as a building or structural component if the structure's use is so closely related to the property's use that the structure can be expected to be replaced when the property it initially houses is replaced. Ez 40 tax form   The fact that the structure is specially designed to withstand the stress and other demands of the property and cannot be used economically for other purposes indicates it is closely related to the use of the property it houses. Ez 40 tax form Structures such as oil and gas storage tanks, grain storage bins, and silos are not treated as buildings, but as section 1245 property. Ez 40 tax form Facility for bulk storage of fungible commodities. Ez 40 tax form   This is a facility used mainly for the bulk storage of fungible commodities. Ez 40 tax form Bulk storage means storage of a commodity in a large mass before it is used. Ez 40 tax form For example, if a facility is used to store oranges that have been sorted and boxed, it is not used for bulk storage. Ez 40 tax form To be fungible, a commodity must be such that one part may be used in place of another. Ez 40 tax form Gain Treated as Ordinary Income The gain treated as ordinary income on the sale, exchange, or involuntary conversion of section 1245 property, including a sale and leaseback transaction, is the lesser of the following amounts. Ez 40 tax form The depreciation (which includes any section 179 deduction claimed) and amortization allowed or allowable on the property. Ez 40 tax form The gain realized on the disposition (the amount realized from the disposition minus the adjusted basis of the property). Ez 40 tax form For any other disposition of section 1245 property, ordinary income is the lesser of (1) above or the amount by which its fair market value (FMV) is more than its adjusted basis. Ez 40 tax form For details, see chapter 3 of Publication 544. Ez 40 tax form Use Part III of Form 4797 to figure the ordinary income part of the gain. Ez 40 tax form Depreciation claimed on other property or claimed by other taxpayers. Ez 40 tax form   Depreciation and amortization include the amounts you claimed on the section 1245 property as well as the following depreciation and amortization amounts. Ez 40 tax form Amounts you claimed on property you exchanged for, or converted to, your section 1245 property in a like-kind exchange or involuntary conversion. Ez 40 tax form For details on exchanges of property that are not taxable, see Like-Kind Exchanges in chapter 8. Ez 40 tax form Amounts a previous owner of the section 1245 property claimed if your basis is determined with reference to that person's adjusted basis (for example, the donor's depreciation deductions on property you received as a gift and part of the transfer is a sale or exchange). Ez 40 tax form Example. Ez 40 tax form Jeff Free paid $120,000 for a tractor in 2012. Ez 40 tax form On February 23, 2013, he traded it for a chopper and paid an additional $30,000. Ez 40 tax form To figure his depreciation deduction on the chopper for the current year, Jeff continues to use the basis of the tractor as he would have before the trade. Ez 40 tax form Jeff can also depreciate the additional $30,000 for the chopper. Ez 40 tax form Depreciation and amortization. Ez 40 tax form   Depreciation and amortization deductions that must be recaptured as ordinary income include (but are not limited to) the following items. Ez 40 tax form See Depreciation Recapture in chapter 3 of Publication 544 for more details. Ez 40 tax form Ordinary depreciation deductions. Ez 40 tax form Section 179 deduction (see chapter 7). Ez 40 tax form Any special depreciation allowance. Ez 40 tax form Amortization deductions for all the following costs. Ez 40 tax form Acquiring a lease. Ez 40 tax form Lessee improvements. Ez 40 tax form Pollution control facilities. Ez 40 tax form Reforestation expenses. Ez 40 tax form Section 197 intangibles. Ez 40 tax form Qualified disaster expenses. Ez 40 tax form Franchises, trademarks, and trade names acquired before August 11, 1993. Ez 40 tax form Example. Ez 40 tax form You file your returns on a calendar year basis. Ez 40 tax form In February 2011, you bought and placed in service for 100% use in your farming business a light-duty truck (5-year property) that cost $10,000. Ez 40 tax form You used the half-year convention and your MACRS deductions for the truck were $1,500 in 2011 and $2,550 in 2012. Ez 40 tax form You did not claim the section 179 expense deduction for the truck. Ez 40 tax form You sold it in May 2013 for $7,000. Ez 40 tax form The MACRS deduction in 2013, the year of sale, is $893 (½ of $1,785). Ez 40 tax form Figure the gain treated as ordinary income as follows. Ez 40 tax form 1) Amount realized $7,000 2) Cost (February 2011) $10,000   3) Depreciation allowed or allowable (MACRS deductions: $1,500 + $2,550 + $893) 4,943   4) Adjusted basis (subtract line 3 from line 2) $5,057 5) Gain realized (subtract line 4 from line 1) 1,943 6) Gain treated as ordinary income (lesser of line 3 or line 5) $1,943 Depreciation allowed or allowable. Ez 40 tax form   You generally use the greater of the depreciation allowed or allowable when figuring the part of gain to report as ordinary income. Ez 40 tax form If, in prior years, you have consistently taken proper deductions under one method, the amount allowed for your prior years will not be increased even though a greater amount would have been allowed under another proper method. Ez 40 tax form If you did not take any deduction at all for depreciation, your adjustments to basis for depreciation allowable are figured by using the straight line method. Ez 40 tax form This treatment applies only when figuring what part of the gain is treated as ordinary income under the rules for section 1245 depreciation recapture. Ez 40 tax form Disposition of plants and animals. Ez 40 tax form   If you elect not to use the uniform capitalization rules (see chapter 6), you must treat any plant you produce as section 1245 property. Ez 40 tax form If you have a gain on the property's disposition, you must recapture the pre-productive expenses you would have capitalized if you had not made the election by treating the gain, up to the amount of these expenses, as ordinary income. Ez 40 tax form For section 1231 transactions, show these expenses as depreciation on Form 4797, Part III, line 22. Ez 40 tax form For plant sales that are reported on Schedule F (1040), Profit or Loss From Farming, this recapture rule does not change the reporting of income because the gain is already ordinary income. Ez 40 tax form You can use the farm-price method or the unit-livestock-price method discussed in  chapter 2 to figure these expenses. Ez 40 tax form Example. Ez 40 tax form Janet Maple sold her apple orchard in 2013 for $80,000. Ez 40 tax form Her adjusted basis at the time of sale was $60,000. Ez 40 tax form She bought the orchard in 2006, but the trees did not produce a crop until 2009. Ez 40 tax form Her pre-productive expenses were $6,000. Ez 40 tax form She elected not to use the uniform capitalization rules. Ez 40 tax form Janet must treat $6,000 of the gain as ordinary income. Ez 40 tax form Section 1250 Property Section 1250 property includes all real property subject to an allowance for depreciation that is not and never has been section 1245 property. Ez 40 tax form It includes buildings and structural components that are not section 1245 property (discussed earlier). Ez 40 tax form It includes a leasehold of land or section 1250 property subject to an allowance for depreciation. Ez 40 tax form A fee simple interest in land is not section 1250 property because, like land, it is not depreciable. Ez 40 tax form Gain on the disposition of section 1250 property is treated as ordinary income to the extent of additional depreciation allowed or allowable. Ez 40 tax form To determine the additional depreciation on section 1250 property, see Depreciation Recapture in chapter 3 of Publication 544. Ez 40 tax form You will not have additional depreciation if any of the following apply to the property disposed of. Ez 40 tax form You figured depreciation for the property using the straight line method or any other method that does not result in depreciation that is more than the amount figured by the straight line method and you have held the property longer than 1 year. Ez 40 tax form You chose the alternate ACRS (straight line) method for the property, which was a type of 15-, 18-, or 19-year real property covered by the section 1250 rules. Ez 40 tax form The property was nonresidential real property placed in service after 1986 (or after July 31, 1986, if the choice to use MACRS was made) and you held it longer than 1 year. Ez 40 tax form These properties are depreciated using the straight line method. Ez 40 tax form Installment Sale If you report the sale of property under the installment method, any depreciation recapture under section 1245 or 1250 is taxable as ordinary income in the year of sale. Ez 40 tax form This applies even if no payments are received in that year. Ez 40 tax form If the gain is more than the depreciation recapture income, report the rest of the gain using the rules of the installment method. Ez 40 tax form For this purpose, include the recapture income in your installment sale basis to determine your gross profit on the installment sale. Ez 40 tax form If you dispose of more than one asset in a single transaction, you must separately figure the gain on each asset so that it may be properly reported. Ez 40 tax form To do this, allocate the selling price and the payments you receive in the year of sale to each asset. Ez 40 tax form Report any depreciation recapture income in the year of sale before using the installment method for any remaining gain. Ez 40 tax form For more information on installment sales, see chapter 10. Ez 40 tax form Other Dispositions Chapter 3 of Publication 544 discusses the tax treatment of the following transfers of depreciable property. Ez 40 tax form By gift. Ez 40 tax form At death. Ez 40 tax form In like-kind exchanges. Ez 40 tax form In involuntary conversions. Ez 40 tax form Publication 544 also explains how to handle a single transaction involving multiple properties. Ez 40 tax form Other Gains This section discusses gain on the disposition of farmland for which you were allowed either of the following. Ez 40 tax form Deductions for soil and water conservation expenditures (section 1252 property). Ez 40 tax form Exclusions from income for certain cost sharing payments (section 1255 property). Ez 40 tax form Section 1252 property. Ez 40 tax form   If you disposed of farmland you held more than 1 year and less than 10 years at a gain and you were allowed deductions for soil and water conservation expenses for the land, as discussed in chapter 5, you must treat part of the gain as ordinary income and treat the balance as section 1231 gain. Ez 40 tax form Exceptions. Ez 40 tax form   Do not treat gain on the following transactions as gain on section 1252 property. Ez 40 tax form Disposition of farmland by gift. Ez 40 tax form Transfer of farm property at death (except for income in respect of a decedent). Ez 40 tax form For more information, see Regulations section 1. Ez 40 tax form 1252-2. Ez 40 tax form Amount to report as ordinary income. Ez 40 tax form   You report as ordinary income the lesser of the following amounts. Ez 40 tax form Your gain (determined by subtracting the adjusted basis from the amount realized from a sale, exchange, or involuntary conversion, or the FMV for all other dispositions). Ez 40 tax form The total deductions allowed for soil and water conservation expenses multiplied by the applicable percentage, discussed next. Ez 40 tax form Applicable percentage. Ez 40 tax form   The applicable percentage is based on the length of time you held the land. Ez 40 tax form If you dispose of your farmland within 5 years after the date you acquired it, the percentage is 100%. Ez 40 tax form If you dispose of the land within the 6th through 9th year after you acquired it, the applicable percentage is reduced by 20% a year for each year or part of a year you hold the land after the 5th year. Ez 40 tax form If you dispose of the land 10 or more years after you acquired it, the percentage is 0%, and the entire gain is a section 1231 gain. Ez 40 tax form Example. Ez 40 tax form You acquired farmland on January 19, 2005. Ez 40 tax form On October 3, 2013, you sold the land at a $30,000 gain. Ez 40 tax form Between January 1 and October 3, 2013, you incur soil and water conservation expenditures of $15,000 for the land that are fully deductible in 2013. Ez 40 tax form The applicable percentage is 40% since you sold the land within the 8th year after you acquired it. Ez 40 tax form You treat $6,000 (40% of $15,000) of the $30,000 gain as ordinary income and the $24,000 balance as a section 1231 gain. Ez 40 tax form Section 1255 property. Ez 40 tax form   If you receive certain cost-sharing payments on property and you exclude those payments from income (as discussed in chapter 3), you may have to treat part of any gain as ordinary income and treat the balance as a section 1231 gain. Ez 40 tax form If you chose not to exclude these payments, you will not have to recognize ordinary income under this provision. Ez 40 tax form Amount to report as ordinary income. Ez 40 tax form   You report as ordinary income the lesser of the following amounts. Ez 40 tax form The applicable percentage of the total excluded cost-sharing payments. Ez 40 tax form The gain on the disposition of the property. Ez 40 tax form You do not report ordinary income under this rule to the extent the gain is recognized as ordinary income under sections 1231 through 1254, 1256, and 1257. Ez 40 tax form However, if applicable, gain reported under this rule must be reported regardless of any contrary provisions (including nonrecognition provisions) under any other section. Ez 40 tax form Applicable percentage. Ez 40 tax form   The applicable percentage of the excluded cost-sharing payments to be reported as ordinary income is based on the length of time you hold the property after receiving the payments. Ez 40 tax form If the property is held less than 10 years after you receive the payments, the percentage is 100%. Ez 40 tax form After 10 years, the percentage is reduced by 10% a year, or part of a year, until the rate is 0%. Ez 40 tax form Form 4797, Part III. Ez 40 tax form   Use Form 4797, Part III, to figure the ordinary income part of a gain from the sale, exchange, or involuntary conversion of section 1252 property and section 1255 property. Ez 40 tax form Prev  Up  Next   Home   More Online Publications