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File state taxes online for free Publication 595 - Main Contents Table of Contents Capital Construction FundCCF Accounts Types of Accounts You Must Maintain Within a CCF Tax Treatment of CCF Deposits Tax Treatment of CCF Earnings Tax Treatment of CCF Withdrawals More Information How To Get Tax Help Capital Construction Fund The following sections discuss CCF accounts and the types of bookkeeping accounts you must maintain when you invest in a CCF account. File state taxes online for free They also discuss the income tax treatment of CCF deposits, earnings, and withdrawals. File state taxes online for free CCF Accounts This section explains who can open a CCF account and how to use the account to defer income tax. File state taxes online for free Opening a CCF account. File state taxes online for free   If you are a U. File state taxes online for free S. File state taxes online for free citizen and you own or lease one or more eligible vessels (defined later), you can open a CCF account. File state taxes online for free However, before you open your CCF account, you must enter into an agreement with the Secretary of Commerce through the NMFS. File state taxes online for free This agreement will establish the following. File state taxes online for free Agreement vessels. File state taxes online for free Eligible vessels named in the agreement that will be the basis for the deferral of income tax. File state taxes online for free Planned use of withdrawals. File state taxes online for free Use of CCF funds to acquire, build, or rebuild a vessel. File state taxes online for free CCF depository. File state taxes online for free Where your CCF funds will be held. File state taxes online for free    You can request an application kit or get additional information from NMFS at the following address. File state taxes online for free NOAA/NMFS, Financial Services Division, F/MB5 Capital Construction Fund Program 1315 East-West Highway Silver Spring, MD 20910-3282    You can obtain information on the Capital Construction Fund Program at the following website: www. File state taxes online for free nmfs. File state taxes online for free noaa. File state taxes online for free gov/mb/financial_services/ccf. File state taxes online for free htm. File state taxes online for free    You can call NMFS to request an application kit or get additional information at (301) 713-2393 (ext. File state taxes online for free 204). File state taxes online for free Their fax number is (301) 713-1939. File state taxes online for free Eligible vessels. File state taxes online for free   There are two types of vessels that may be considered eligible, those weighing 5 tons or more and those weighing less than 5 tons. File state taxes online for free For each type, certain requirements must be met. File state taxes online for free Vessel weighing 5 tons or more. File state taxes online for free   To be considered eligible, the vessel must meet all the following requirements. File state taxes online for free Be built or rebuilt in the United States. File state taxes online for free Be documented under the laws of the United States. File state taxes online for free Be used commercially in the fisheries of the United States. File state taxes online for free Be operated in the foreign or domestic commerce of the United States. File state taxes online for free Vessel weighing less than 5 tons. File state taxes online for free   A small vessel, weighing at least 2 net tons but less than 5 net tons, must meet all the following requirements to be considered eligible. File state taxes online for free Be built or rebuilt in the United States. File state taxes online for free Be owned by a U. File state taxes online for free S. File state taxes online for free citizen. File state taxes online for free Have a home port in the United States. File state taxes online for free Be used commercially in the fisheries of the United States. File state taxes online for free Deferring tax on CCF deposits and earnings. File state taxes online for free   You can use a CCF account to defer income tax by taking the following actions. File state taxes online for free Making deposits to your CCF account from taxable income. File state taxes online for free Excluding from income deposits assigned to certain accounts (discussed later). File state taxes online for free Making withdrawals from your CCF account when you acquire, build, or rebuild fishing vessels. File state taxes online for free Reducing the basis of fishing vessels you acquire, build, or rebuild to recapture amounts previously excluded from tax. File state taxes online for free    Reporting requirements. File state taxes online for free Beginning with the tax year in which you establish your agreement, you must report annual deposit and withdrawal activity to the NMFS on NOAA Form 34-82. File state taxes online for free This form is due within 30 days after you file your federal income tax return even if no deposits or withdrawals are made. File state taxes online for free For more information, contact the NMFS at the address or phone number given earlier. File state taxes online for free Types of Accounts You Must Maintain Within a CCF This section discusses the three types of bookkeeping accounts you must maintain when you invest in a CCF account. File state taxes online for free Your total CCF deposits and earnings for any given year are limited to the amount attributed to these three accounts for that year. File state taxes online for free Capital account. File state taxes online for free   The capital account consists primarily of amounts attributable to the following items. File state taxes online for free Allowable depreciation deductions for agreement vessels. File state taxes online for free Any nontaxable return of capital from either (a) or (b), below. File state taxes online for free The sale or other disposition of agreement vessels. File state taxes online for free Insurance or indemnity proceeds attributable to agreement vessels. File state taxes online for free Any tax-exempt interest earned on state or local bonds in your CCF account. File state taxes online for free Capital gain account. File state taxes online for free   The capital gain account consists of amounts attributable to the following items reduced by any capital losses from assets held in your CCF account for more than 6 months. File state taxes online for free Any capital gain from either of the following sources. File state taxes online for free The sale or other disposition of agreement vessels held for more than 6 months. File state taxes online for free Insurance or indemnity proceeds attributable to agreement vessels held for more than 6 months. File state taxes online for free Any capital gain from assets held in your CCF account for more than 6 months. File state taxes online for free Ordinary income account. File state taxes online for free   The ordinary income account consists of amounts attributable to the following items. File state taxes online for free Any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States. File state taxes online for free Any capital gain from the following sources reduced by any capital losses from assets held in your CCF account for 6 months or less. File state taxes online for free The sale or other disposition of agreement vessels held for 6 months or less. File state taxes online for free Insurance or indemnity proceeds attributable to agreement vessels held for 6 months or less. File state taxes online for free Any capital gain from assets held in your CCF account for 6 months or less. File state taxes online for free Any ordinary income (such as depreciation recapture) from either of the following sources. File state taxes online for free The sale or other disposition of agreement vessels. File state taxes online for free Insurance or indemnity proceeds attributable to agreement vessels. File state taxes online for free Any interest (not including tax-exempt interest from state and local bonds), most dividends, and other ordinary income earned on the assets in your CCF account. File state taxes online for free Tax Treatment of CCF Deposits This section explains the tax treatment of income used as the basis for CCF deposits. File state taxes online for free Capital gains. File state taxes online for free   Do not report any transaction that produces a capital gain if you deposit the net proceeds into your CCF account. File state taxes online for free This treatment applies to either of the following transactions. File state taxes online for free The sale or other disposition of an agreement vessel. File state taxes online for free The receipt of insurance or indemnity proceeds attributable to an agreement vessel. File state taxes online for free Depreciation recapture. File state taxes online for free   Do not report any transaction that produces depreciation recapture if you deposit the net proceeds into your CCF account. File state taxes online for free This treatment applies to either of the following transactions. File state taxes online for free The sale or other disposition of an agreement vessel. File state taxes online for free The receipt of insurance or indemnity proceeds attributable to an agreement vessel. File state taxes online for free Earnings from operations. File state taxes online for free   Report earnings from the operation of agreement vessels on your Schedule C or C-EZ (Form 1040) even if you deposit part of these earnings into your CCF account. File state taxes online for free You subtract any part of the earnings you deposited into your CCF account from the amount you would otherwise enter as taxable income on Form 1040, line 43 (for 2005). File state taxes online for free Next to line 43, write “CCF” and the amount of the deposits. File state taxes online for free Do not deduct these CCF deposits on Schedule C or C-EZ (Form 1040). File state taxes online for free If you deposit earnings from operations into your CCF account and you must complete other forms such as Form 6251, Alternative Minimum Tax (Individuals), or a worksheet for Schedule D (Form 1040), you will need to make an extra computation. File state taxes online for free When the other form instructs you to use the amount from Form 1040, line 41 (for 2005), do not use that amount. File state taxes online for free Instead, add Form 1040, lines 42 and 43 (for 2005), and use that amount. File state taxes online for free Self-employment tax. File state taxes online for free   You must use your net profit or loss from your fishing business to figure your self-employment tax. File state taxes online for free Do not reduce your net profit or loss by any earnings from operations you deposit into your CCF account. File state taxes online for free    Partnerships and S corporations. File state taxes online for free The deduction for partnership earnings from operations deposited into a CCF account is separately stated on Schedule K (Form 1065), line 13d, and allocated to the partners on Schedule K-1 (Form 1065), box 13 (for 2005). File state taxes online for free   The deduction for S corporation earnings deposited into a CCF account is separately stated on Schedule K (Form 1120S), line 12d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 12 (for 2005). File state taxes online for free Tax Treatment of CCF Earnings This section explains the tax treatment of the earnings from the assets in your CCF account when the earnings are redeposited or left in your account. File state taxes online for free However, if you choose to withdraw the earnings in the year earned, you must generally pay income tax on them. File state taxes online for free Capital gains. File state taxes online for free   Do not report any capital gains from the sale of capital assets held in your CCF account. File state taxes online for free This includes capital gain distributions reported to you on Form 1099-DIV or a substitute statement. File state taxes online for free However, you should attach a statement to your tax return to list the payers and the amounts and to identify the capital gains as “CCF account earnings. File state taxes online for free ” Interest and dividends. File state taxes online for free   Do not report any ordinary income (such as interest and dividends) you earn on the assets in your CCF account. File state taxes online for free However, you should attach a statement to your return to list the payers and the amounts and to identify them as “CCF account earnings. File state taxes online for free ”   If you are required to file Schedule B (Form 1040), you can add these earnings to the list of payers and amounts on line 1 or line 5 and identify them as “CCF earnings. File state taxes online for free ” Then, subtract the same amounts from the list and identify them as “CCF deposits. File state taxes online for free ” Tax-exempt interest. File state taxes online for free   Do not report tax-exempt interest from state or local bonds you held in your CCF account. File state taxes online for free You are not required to report this interest on Form 1040, line 8b. File state taxes online for free Tax Treatment of CCF Withdrawals This section discusses the tax treatment of amounts you withdraw from your CCF account during the year. File state taxes online for free Qualified Withdrawals A qualified withdrawal from a CCF account is one that is approved by NMFS for either of the following uses. File state taxes online for free Acquiring, building, or rebuilding qualified vessels (defined next). File state taxes online for free Making principal payments on the mortgage of a qualified vessel. File state taxes online for free NMFS will not approve amounts withdrawn to purchase nets not continuously attached to the vessel, such as seine nets, gill set-nets, and gill drift-nets. File state taxes online for free NMFS will approve amounts withdrawn to purchase trawl nets. File state taxes online for free Qualified vessel. File state taxes online for free   This is any vessel that meets all of the following requirements. File state taxes online for free The vessel was built or rebuilt in the United States. File state taxes online for free The vessel is documented under the laws of the United States. File state taxes online for free The person maintaining the CCF account agrees with the Secretary of Commerce that the vessel will be operated in United States foreign trade, Great Lakes trade, noncontiguous domestic trade, or the fisheries of the United States. File state taxes online for free How to determine the source of qualified withdrawals. File state taxes online for free   When you make a qualified withdrawal, the amount is treated as being withdrawn in the following order from the accounts listed below. File state taxes online for free The capital account. File state taxes online for free The capital gain account. File state taxes online for free The ordinary income account. File state taxes online for free Excluding qualified withdrawals from tax. File state taxes online for free   Do not report on your income tax return any qualified withdrawals from your CCF account. File state taxes online for free Reduce the depreciable basis of fishing vessels you acquire, build, or rebuild when you make a qualified withdrawal from either the capital gain or the ordinary income account. File state taxes online for free Nonqualified Withdrawals A nonqualified withdrawal from a CCF account is generally any withdrawal that is not a qualified withdrawal. File state taxes online for free Qualified withdrawals are defined under Qualified Withdrawals, earlier. File state taxes online for free Examples. File state taxes online for free   Examples of nonqualified withdrawals include the following amounts from either the ordinary income account or the capital gain account. File state taxes online for free Amounts remaining in a CCF account upon termination of your agreement with NMFS. File state taxes online for free Amounts you withdraw and use to make principal payments on the mortgage of a vessel if the basis of that vessel and the bases of other vessels you own have already been reduced to zero. File state taxes online for free Amounts determined by the IRS to cause your CCF account balance to exceed the amount appropriate to meet your planned use of withdrawals. File state taxes online for free You will generally be given 3 years to revise your plans to cover this excess balance. File state taxes online for free Amounts you leave in your account for more than 25 years. File state taxes online for free There is a graduated schedule under which the percentage applied to determine the amount of the nonqualified withdrawal increases from 20% in the 26th year to 100% in the 30th year. File state taxes online for free How to determine the source of nonqualified withdrawals. File state taxes online for free    When you make a nonqualified withdrawal from your CCF account, the amount is treated as being withdrawn in the following order from the accounts listed below. File state taxes online for free The ordinary income account. File state taxes online for free The capital gain account. File state taxes online for free The capital account. File state taxes online for free Paying tax on nonqualified withdrawals. File state taxes online for free   In general, nonqualified withdrawals are taxed separately from your other gross income and at the highest marginal tax rate in effect for the year of withdrawal. File state taxes online for free However, nonqualified withdrawals treated as made from the capital gain account are taxed at a rate that cannot exceed 15% for individuals and 34% for corporations. File state taxes online for free    Partnerships and S corporations. File state taxes online for free Taxable nonqualified partnership withdrawals are separately stated on Schedule K (Form 1065), line 20c, and allocated to the partners on Schedule K-1 (Form 1065), box 20 (for 2005). File state taxes online for free Taxable nonqualified withdrawals by an S corporation are separately stated on Schedule K (Form 1120S), line 17d, and allocated to the shareholders on Schedule K-1 (Form 1120S), box 17. File state taxes online for free Interest. File state taxes online for free   You must pay interest on the additional tax due to nonqualified withdrawals that are treated as made from either the ordinary income or the capital gain account. File state taxes online for free The interest period begins on the last date for paying tax for the year for which you deposited the amount you withdrew from your CCF account. File state taxes online for free The period ends on the last date for paying tax for the year in which you make the nonqualified withdrawal. File state taxes online for free The interest rate on the nonqualified withdrawal is simple interest. File state taxes online for free The rate is subject to change annually and is published in the Federal Register. File state taxes online for free    You also can call NMFS at (301) 713-2393 (ext. File state taxes online for free 204) to get the current interest rate. File state taxes online for free Interest deduction. File state taxes online for free   You can deduct the interest you pay on a nonqualified withdrawal as a trade or business expense. File state taxes online for free Reporting the additional tax and interest. File state taxes online for free   Attach a statement to your income tax return showing your computation of the tax and the interest on a nonqualified withdrawal. File state taxes online for free Include the tax and interest on Form 1040, line 63 (for 2005). File state taxes online for free To the left of line 63, write in the amount of tax and interest and “CCF. File state taxes online for free ” Tax benefit rule. File state taxes online for free   If any portion of your nonqualified withdrawal is properly attributable to contributions (not earnings on the contributions) you made to the CCF account that did not reduce your tax liability for any tax year prior to the withdrawal year, the following tax treatment applies. File state taxes online for free The part that did not reduce your tax liability for any year prior to the withdrawal year is not taxed. File state taxes online for free That part is allowed as a net operating loss deduction. File state taxes online for free More Information This section briefly discussed the CCF program. File state taxes online for free For more detailed information, see the following legislative authorities. File state taxes online for free Section 607 of the Merchant Marine Act of 1936, as amended (46 U. File state taxes online for free S. File state taxes online for free C. File state taxes online for free 1177). File state taxes online for free Chapter 2, Part 259 of title 50 of the Code of Federal Regulations (50 C. File state taxes online for free F. File state taxes online for free R. File state taxes online for free , Part 259). File state taxes online for free Subchapter A, Part 3 of title 26 of the Code of Federal Regulations (26 C. File state taxes online for free F. File state taxes online for free R. File state taxes online for free , Part 3). File state taxes online for free Section 7518 of the Internal Revenue Code (IRC 7518). File state taxes online for free The application kit you can obtain from NMFS at the address or phone number given earlier may contain copies of some of these sources of additional information. File state taxes online for free Also, see their web page at www. File state taxes online for free nmfs. File state taxes online for free noaa. File state taxes online for free gov/mb/financial_services/ccf. File state taxes online for free htm. File state taxes online for free How To Get Tax Help 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. File state taxes online for free By selecting the method that is best for you, you will have quick and easy access to tax help. File state taxes online for free Contacting your Taxpayer Advocate. File state taxes online for free   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. File state taxes online for free   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. File state taxes online for free While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. File state taxes online for free   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778, Call, write, or fax the Taxpayer Advocate office in your area, Call 1-800-829-4059 if you are a TTY/TDD user, or Visit www. File state taxes online for free irs. File state taxes online for free gov/advocate. File state taxes online for free   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). File state taxes online for free Free tax services. File state taxes online for free   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. File state taxes online for free It contains a list of free tax publications and an index of tax topics. File state taxes online for free It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. File state taxes online for free Internet. File state taxes online for free You can access the IRS website 24 hours a day, 7 days a week, at www. File state taxes online for free irs. File state taxes online for free gov to: E-file your return. File state taxes online for free Find out about commercial tax preparation and e-file services available free to eligible taxpayers. File state taxes online for free Check the status of your refund. File state taxes online for free Click on Where's My Refund. File state taxes online for free Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). File state taxes online for free Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. File state taxes online for free Download forms, instructions, and publications. File state taxes online for free Order IRS products online. File state taxes online for free Research your tax questions online. File state taxes online for free Search publications online by topic or keyword. File state taxes online for free View Internal Revenue Bulletins (IRBs) published in the last few years. File state taxes online for free Figure your withholding allowances using our Form W-4 calculator. File state taxes online for free Sign up to receive local and national tax news by email. File state taxes online for free Get information on starting and operating a small business. File state taxes online for free Phone. File state taxes online for free Many services are available by phone. File state taxes online for free Ordering forms, instructions, and publications. File state taxes online for free Call 1-800-829-3676 to order current-year forms, instructions, and publications and prior-year forms and instructions. File state taxes online for free You should receive your order within 10 days. File state taxes online for free Asking tax questions. File state taxes online for free Call the IRS with your tax questions at 1-800-829-1040. File state taxes online for free Solving problems. File state taxes online for free You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. File state taxes online for free An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. File state taxes online for free Call your local Taxpayer Assistance Center for an appointment. File state taxes online for free To find the number, go to www. File state taxes online for free irs. File state taxes online for free gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. File state taxes online for free TTY/TDD equipment. File state taxes online for free If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. File state taxes online for free TeleTax topics. File state taxes online for free Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics. File state taxes online for free Refund information. File state taxes online for free If you would like to check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information and follow the recorded instructions or call 1-800-829-1954. File state taxes online for free Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). File state taxes online for free Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. File state taxes online for free Evaluating the quality of our telephone services. File state taxes online for free To ensure that IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. File state taxes online for free One method is for a second IRS representative to sometimes listen in on or record telephone calls. File state taxes online for free Another is to ask some callers to complete a short survey at the end of the call. File state taxes online for free Walk-in. File state taxes online for free Many products and services are available on a walk-in basis. File state taxes online for free Products. File state taxes online for free You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. File state taxes online for free 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-ROM or photocopy from reproducible proofs. File state taxes online for free Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. File state taxes online for free Services. File state taxes online for free You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. File state taxes online for free An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. File state taxes online for free If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're 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. File state taxes online for free No appointment is necessary, but if you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. File state taxes online for free A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. File state taxes online for free To find the number, go to www. File state taxes online for free irs. File state taxes online for free gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. File state taxes online for free Mail. File state taxes online for free You can send your order for forms, instructions, and publications to the address below and receive a response within 10 business days after your request is received. File state taxes online for free National Distribution Center P. File state taxes online for free O. File state taxes online for free Box 8903 Bloomington, IL 61702-8903 CD-ROM for tax products. File state taxes online for free You can order Publication 1796, IRS Tax Products on CD-ROM, and obtain: A CD that is released twice so you have the latest products. File state taxes online for free The first release ships in late December and the final release ships in late February. File state taxes online for free Current-year forms, instructions, and publications. File state taxes online for free Prior-year forms, instructions, and publications. File state taxes online for free Tax Map: an electronic research tool and finding aid. File state taxes online for free Tax law frequently asked questions (FAQs). File state taxes online for free Tax Topics from the IRS telephone response system. File state taxes online for free Fill-in, print, and save features for most tax forms. File state taxes online for free Internal Revenue Bulletins. File state taxes online for free Toll-free and email technical support. File state taxes online for free Buy the CD-ROM from National Technical Information Service (NTIS) at www. File state taxes online for free irs. File state taxes online for free gov/cdorders for $25 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $25 (plus a $5 handling fee). File state taxes online for free CD-ROM for small businesses. File state taxes online for free Publication 3207, Small Business Resource Guide CD-ROM, has a new look and enhanced navigation features. File state taxes online for free This CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. File state taxes online for free All the business tax forms, instructions, and publications needed to successfully manage a business. File state taxes online for free Tax law changes. File state taxes online for free IRS Tax Map to help you find forms, instructions, and publications by searching on a keyword or topic. File state taxes online for free Web links to various government agencies, business associations, and IRS organizations. File state taxes online for free “Rate the Product” survey—your opportunity to suggest changes for future editions. File state taxes online for free An updated version of this CD is available each year in early April. File state taxes online for free You can get a free copy by calling 1-800-829-3676 or by visiting www. File state taxes online for free irs. File state taxes online for free gov/smallbiz. File state taxes online for free Prev  Up  Next   Home   More Online Publications
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