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Georgia State Income Tax Forms 2012

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Georgia State Income Tax Forms 2012

Georgia state income tax forms 2012 4. Georgia state income tax forms 2012   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. Georgia state income tax forms 2012 Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. Georgia state income tax forms 2012 Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. Georgia state income tax forms 2012 However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Georgia state income tax forms 2012 Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Georgia state income tax forms 2012 Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. Georgia state income tax forms 2012 This information is also provided to the IRS. Georgia state income tax forms 2012 Form 1099-B. Georgia state income tax forms 2012   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. Georgia state income tax forms 2012 Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. Georgia state income tax forms 2012 Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. Georgia state income tax forms 2012 on Form 8949 and/or Schedule D, as applicable. Georgia state income tax forms 2012 For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. Georgia state income tax forms 2012 For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Georgia state income tax forms 2012 Form 1099-S. Georgia state income tax forms 2012   An information return must be provided on certain real estate transactions. Georgia state income tax forms 2012 Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. Georgia state income tax forms 2012 Land (improved or unimproved), including air space. Georgia state income tax forms 2012 An inherently permanent structure, including any residential, commercial, or industrial building. Georgia state income tax forms 2012 A condominium unit and its related fixtures and common elements (including land). Georgia state income tax forms 2012 Stock in a cooperative housing corporation. Georgia state income tax forms 2012 If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. Georgia state income tax forms 2012 The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. Georgia state income tax forms 2012   For more information see chapter 4 in Publication 550. Georgia state income tax forms 2012 Also, see the Instructions for Form 8949. Georgia state income tax forms 2012 Schedule D and Form 8949 Form 8949. Georgia state income tax forms 2012   Individuals, corporations, and partnerships, use Form 8949 to report the following. Georgia state income tax forms 2012    Sales or exchanges of capital assets, including stocks, bonds, etc. Georgia state income tax forms 2012 , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). Georgia state income tax forms 2012 Include these transactions even if you did not receive a Form 1099-B or 1099-S. Georgia state income tax forms 2012 Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Georgia state income tax forms 2012 Nonbusiness bad debts. Georgia state income tax forms 2012   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. Georgia state income tax forms 2012 You and your spouse may list your transactions on separate forms or you may combine them. Georgia state income tax forms 2012 However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. Georgia state income tax forms 2012    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. Georgia state income tax forms 2012   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. Georgia state income tax forms 2012 See the Instructions for Form 8949. Georgia state income tax forms 2012 Schedule D. Georgia state income tax forms 2012    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. Georgia state income tax forms 2012 Before completing Schedule D, you may have to complete other forms as shown below. Georgia state income tax forms 2012    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. Georgia state income tax forms 2012 Enter on Schedule D the combined totals from all your Forms 8949. Georgia state income tax forms 2012 For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). Georgia state income tax forms 2012 For a like-kind exchange, complete Form 8824. Georgia state income tax forms 2012 See Reporting the exchange under Like-Kind Exchanges in chapter 1. Georgia state income tax forms 2012 For an installment sale, complete Form 6252. Georgia state income tax forms 2012 See Publication 537. Georgia state income tax forms 2012 For an involuntary conversion due to casualty or theft, complete Form 4684. Georgia state income tax forms 2012 See Publication 547, Casualties, Disasters, and Thefts. Georgia state income tax forms 2012 For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. Georgia state income tax forms 2012 See Publication 925, Passive Activity and At-Risk Rules. Georgia state income tax forms 2012 For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. Georgia state income tax forms 2012 See Publication 925. Georgia state income tax forms 2012 For gains and losses from section 1256 contracts and straddles, complete Form 6781. Georgia state income tax forms 2012 See Publication 550. Georgia state income tax forms 2012 Personal-use property. Georgia state income tax forms 2012   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. Georgia state income tax forms 2012 Loss from the sale or exchange of property held for personal use is not deductible. Georgia state income tax forms 2012 But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. Georgia state income tax forms 2012 See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. Georgia state income tax forms 2012 Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. Georgia state income tax forms 2012 The time you own an asset before disposing of it is the holding period. Georgia state income tax forms 2012 If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. Georgia state income tax forms 2012 If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. Georgia state income tax forms 2012 Report it in Part I of Form 8949 and/or Schedule D, as applicable. Georgia state income tax forms 2012 If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. Georgia state income tax forms 2012 Report it in Part II of Form 8949 and/or Schedule D, as applicable. Georgia state income tax forms 2012   Table 4-1. Georgia state income tax forms 2012 Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. Georgia state income tax forms 2012 . Georgia state income tax forms 2012 . Georgia state income tax forms 2012  THEN you have a. Georgia state income tax forms 2012 . Georgia state income tax forms 2012 . Georgia state income tax forms 2012 1 year or less, Short-term capital gain or  loss. Georgia state income tax forms 2012 More than 1 year, Long-term capital gain or  loss. Georgia state income tax forms 2012 These distinctions are essential to correctly arrive at your net capital gain or loss. Georgia state income tax forms 2012 Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. Georgia state income tax forms 2012 See Capital Gains Tax Rates, later. Georgia state income tax forms 2012 Holding period. Georgia state income tax forms 2012   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. Georgia state income tax forms 2012 The day you disposed of the property is part of your holding period. Georgia state income tax forms 2012 Example. Georgia state income tax forms 2012 If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. Georgia state income tax forms 2012 If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. Georgia state income tax forms 2012 Patent property. Georgia state income tax forms 2012   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. Georgia state income tax forms 2012 For more information, see Patents in chapter 2. Georgia state income tax forms 2012 Inherited property. Georgia state income tax forms 2012   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. Georgia state income tax forms 2012 Installment sale. Georgia state income tax forms 2012   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. Georgia state income tax forms 2012 If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. Georgia state income tax forms 2012    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. Georgia state income tax forms 2012 Nontaxable exchange. Georgia state income tax forms 2012   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. Georgia state income tax forms 2012 That is, it begins on the same day as your holding period for the old property. Georgia state income tax forms 2012 Example. Georgia state income tax forms 2012 You bought machinery on December 4, 2012. Georgia state income tax forms 2012 On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. Georgia state income tax forms 2012 On December 5, 2013, you sold the machinery you got in the exchange. Georgia state income tax forms 2012 Your holding period for this machinery began on December 5, 2012. Georgia state income tax forms 2012 Therefore, you held it longer than 1 year. Georgia state income tax forms 2012 Corporate liquidation. Georgia state income tax forms 2012   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. Georgia state income tax forms 2012 Profit-sharing plan. Georgia state income tax forms 2012   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. Georgia state income tax forms 2012 Gift. Georgia state income tax forms 2012   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. Georgia state income tax forms 2012 For more information on basis, see Publication 551, Basis of Assets. Georgia state income tax forms 2012 Real property. Georgia state income tax forms 2012   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. Georgia state income tax forms 2012   However, taking possession of real property under an option agreement is not enough to start the holding period. Georgia state income tax forms 2012 The holding period cannot start until there is an actual contract of sale. Georgia state income tax forms 2012 The holding period of the seller cannot end before that time. Georgia state income tax forms 2012 Repossession. Georgia state income tax forms 2012   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. Georgia state income tax forms 2012 Your holding period does not include the time between the original sale and the repossession. Georgia state income tax forms 2012 That is, it does not include the period during which the first buyer held the property. Georgia state income tax forms 2012 Nonbusiness bad debts. Georgia state income tax forms 2012   Nonbusiness bad debts are short-term capital losses. Georgia state income tax forms 2012 For information on nonbusiness bad debts, see chapter 4 of Publication 550. Georgia state income tax forms 2012    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. Georgia state income tax forms 2012 Net short-term capital gain or loss. Georgia state income tax forms 2012   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. Georgia state income tax forms 2012 Do this by adding all your short-term capital gains. Georgia state income tax forms 2012 Then add all your short-term capital losses. Georgia state income tax forms 2012 Subtract the lesser total from the other. Georgia state income tax forms 2012 The result is your net short-term capital gain or loss. Georgia state income tax forms 2012 Net long-term capital gain or loss. Georgia state income tax forms 2012   Follow the same steps to combine your long-term capital gains and losses. Georgia state income tax forms 2012 Include the following items. Georgia state income tax forms 2012 Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. Georgia state income tax forms 2012 Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. Georgia state income tax forms 2012 Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. Georgia state income tax forms 2012 Any long-term capital loss carryover. Georgia state income tax forms 2012 The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. Georgia state income tax forms 2012 Net gain. Georgia state income tax forms 2012   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. Georgia state income tax forms 2012 Different tax rates may apply to the part that is a net capital gain. Georgia state income tax forms 2012 See Capital Gains Tax Rates, later. Georgia state income tax forms 2012 Net loss. Georgia state income tax forms 2012   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. Georgia state income tax forms 2012 But there are limits on how much loss you can deduct and when you can deduct it. Georgia state income tax forms 2012 See Treatment of Capital Losses, next. Georgia state income tax forms 2012    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. Georgia state income tax forms 2012 The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). Georgia state income tax forms 2012 Table 4-2. Georgia state income tax forms 2012 Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. Georgia state income tax forms 2012 Ends on trading date you sold security. Georgia state income tax forms 2012 U. Georgia state income tax forms 2012 S. Georgia state income tax forms 2012 Treasury notes and bonds If bought at auction, day after notification of bid acceptance. Georgia state income tax forms 2012 If bought through subscription, day after subscription was submitted. Georgia state income tax forms 2012 Nontaxable exchanges Day after date you acquired old property. Georgia state income tax forms 2012 Gift If your basis is giver's adjusted basis, same day as giver's holding period began. Georgia state income tax forms 2012 If your basis is FMV, day after date of gift. Georgia state income tax forms 2012 Real property bought Generally, day after date you received title to the property. Georgia state income tax forms 2012 Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. Georgia state income tax forms 2012 Capital loss carryover. Georgia state income tax forms 2012   Generally, you have a capital loss carryover if either of the following situations applies to you. Georgia state income tax forms 2012 Your net loss is more than the yearly limit. Georgia state income tax forms 2012 Your taxable income without your deduction for exemptions is less than zero. Georgia state income tax forms 2012 If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. Georgia state income tax forms 2012 Example. Georgia state income tax forms 2012 Bob and Gloria Sampson sold property in 2013. Georgia state income tax forms 2012 The sale resulted in a capital loss of $7,000. Georgia state income tax forms 2012 The Sampsons had no other capital transactions. Georgia state income tax forms 2012 On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. Georgia state income tax forms 2012 They had taxable income of $2,000. Georgia state income tax forms 2012 The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. Georgia state income tax forms 2012 If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. Georgia state income tax forms 2012 Their capital loss deduction would have been $2,000. Georgia state income tax forms 2012 They would have no carryover to 2014. Georgia state income tax forms 2012 Short-term and long-term losses. Georgia state income tax forms 2012   When you carry over a loss, it retains its original character as either long term or short term. Georgia state income tax forms 2012 A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. Georgia state income tax forms 2012 A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. Georgia state income tax forms 2012 A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. Georgia state income tax forms 2012   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. Georgia state income tax forms 2012 If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. Georgia state income tax forms 2012 To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). Georgia state income tax forms 2012 Joint and separate returns. Georgia state income tax forms 2012   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. Georgia state income tax forms 2012 If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. Georgia state income tax forms 2012 Neither you nor your spouse can deduct any part of the other's loss. Georgia state income tax forms 2012   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. Georgia state income tax forms 2012 However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. Georgia state income tax forms 2012 Death of taxpayer. Georgia state income tax forms 2012   Capital losses cannot be carried over after a taxpayer's death. Georgia state income tax forms 2012 They are deductible only on the final income tax return filed on the decedent's behalf. Georgia state income tax forms 2012 The yearly limit discussed earlier still applies in this situation. Georgia state income tax forms 2012 Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. Georgia state income tax forms 2012 Corporations. Georgia state income tax forms 2012   A corporation can deduct capital losses only up to the amount of its capital gains. Georgia state income tax forms 2012 In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. Georgia state income tax forms 2012 It must be carried to other tax years and deducted from capital gains occurring in those years. Georgia state income tax forms 2012 For more information, see Publication 542. Georgia state income tax forms 2012 Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. Georgia state income tax forms 2012 These lower rates are called the maximum capital gains rates. Georgia state income tax forms 2012 The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. Georgia state income tax forms 2012 For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. Georgia state income tax forms 2012 Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. Georgia state income tax forms 2012 For more information, see chapter 4 of Publication 550. Georgia state income tax forms 2012 Also see the Instructions for Schedule D (Form 1040). Georgia state income tax forms 2012 Unrecaptured section 1250 gain. Georgia state income tax forms 2012   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. Georgia state income tax forms 2012 Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. Georgia state income tax forms 2012 Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. Georgia state income tax forms 2012 For more information about section 1250 property and net section 1231 gain, see chapter 3. Georgia state income tax forms 2012 Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. Georgia state income tax forms 2012 The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Georgia state income tax forms 2012 The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). Georgia state income tax forms 2012 The disposition of capital assets not reported on Schedule D. Georgia state income tax forms 2012 The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. Georgia state income tax forms 2012 The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. Georgia state income tax forms 2012 Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). Georgia state income tax forms 2012 You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. Georgia state income tax forms 2012 Section 1231 gains and losses. Georgia state income tax forms 2012   Show any section 1231 gains and losses in Part I. Georgia state income tax forms 2012 Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. Georgia state income tax forms 2012 Carry a net loss to Part II of Form 4797 as an ordinary loss. Georgia state income tax forms 2012   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. Georgia state income tax forms 2012 Report any remaining gain on Schedule D (Form 1040). Georgia state income tax forms 2012 See Section 1231 Gains and Losses in chapter 3. Georgia state income tax forms 2012 Ordinary gains and losses. Georgia state income tax forms 2012   Show any ordinary gains and losses in Part II. Georgia state income tax forms 2012 This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. Georgia state income tax forms 2012 It also includes ordinary gain figured in Part III. Georgia state income tax forms 2012 Mark-to-market election. Georgia state income tax forms 2012   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). Georgia state income tax forms 2012 See the Instructions for Form 4797. Georgia state income tax forms 2012 Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. Georgia state income tax forms 2012 Ordinary income from depreciation. Georgia state income tax forms 2012   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. Georgia state income tax forms 2012 Carry the ordinary income to Part II of Form 4797 as an ordinary gain. Georgia state income tax forms 2012 Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. Georgia state income tax forms 2012 Carry any remaining gain from a casualty or theft to Form 4684. Georgia state income tax forms 2012 Prev  Up  Next   Home   More Online Publications
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Tax Quotes

When it comes to taxes, everyone has an opinion. These quotes reflect the opinions of their authors; their inclusion here is not an official IRS endorsement of the sentiments expressed.

"Taxes are what we pay for civilized society.'' — Oliver Wendell Holmes, Jr., U.S. Supreme Court Justice

"The power of taxing people and their property is essential to the very existence of government.'' — James Madison, U.S. President

"To tax and to please, no more than to love and to be wise, is not given to men." —  Edmund Burke, 18th Century Irish political philosopher and British statesman

“I am proud to be paying taxes in the United States. The only thing is – I could be just as proud for half the money.” — Arthur Godfrey, entertainer

“People who complain about taxes can be divided into two classes: men and women.” 
— Unknown

"No government can exist without taxation. This money must necessarily be levied on the people; and the grand art consists of levying so as not to oppress.'' — Frederick the Great, 18th Century Prussian king

"Like mothers, taxes are often misunderstood, but seldom forgotten.'' — Lord Bramwell, 19th Century English jurist

"The best measure of a man's honesty isn't his income tax return. It's the zero adjust on his bathroom scale.'' — Arthur C. Clarke, author

"Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund.” — F. J. Raymond, humorist

A tax loophole is "something that benefits the other guy. If it benefits you, it is tax reform.'' 
— Russell B. Long, U.S. Senator

"Few of us ever test our powers of deduction, except when filling out an income tax form.'' 
— Laurence J. Peter, author

“The hardest thing in the world to understand is the income tax.” — Albert Einstein, physicist

“Taxation with representation ain’t so hot either.” — Gerald Barzan, humorist

“Where there is an income tax, the just man will pay more and the unjust less on the same amount of income.” — Plato

“Income tax has made more liars out of the American people than golf.” — Will Rogers, humorist

Page Last Reviewed or Updated: 10-Mar-2014

The Georgia State Income Tax Forms 2012

Georgia state income tax forms 2012 7. Georgia state income tax forms 2012   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. Georgia state income tax forms 2012 Costs not included. Georgia state income tax forms 2012 Intangible Drilling Costs Exploration CostsPartnerships and S corporations. Georgia state income tax forms 2012 Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. Georgia state income tax forms 2012 Film and Television Production Costs What's New Film and television productions costs. Georgia state income tax forms 2012  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. Georgia state income tax forms 2012 See Film and Television Production Costs , later. Georgia state income tax forms 2012 Introduction This chapter discusses costs you can elect to deduct or capitalize. Georgia state income tax forms 2012 You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. Georgia state income tax forms 2012 If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. Georgia state income tax forms 2012 When you capitalize a cost, you add it to the basis of property to which it relates. Georgia state income tax forms 2012 A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. Georgia state income tax forms 2012 Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. Georgia state income tax forms 2012 You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. Georgia state income tax forms 2012 For more information on the alternative minimum tax, see the instructions for the following forms. Georgia state income tax forms 2012 Form 6251, Alternative Minimum Tax—Individuals. Georgia state income tax forms 2012 Form 4626, Alternative Minimum Tax—Corporations. Georgia state income tax forms 2012 Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. Georgia state income tax forms 2012 Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. Georgia state income tax forms 2012 Certain carrying charges must be capitalized under the uniform capitalization rules. Georgia state income tax forms 2012 (For information on capitalization of interest, see chapter 4 . Georgia state income tax forms 2012 ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. Georgia state income tax forms 2012 You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. Georgia state income tax forms 2012 For unimproved and unproductive real property, your election is good for only 1 year. Georgia state income tax forms 2012 You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. Georgia state income tax forms 2012 For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. Georgia state income tax forms 2012 For personal property, your election is effective until the date you install or first use it, whichever is later. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. Georgia state income tax forms 2012 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Attach the statement to the amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2” on the statement. Georgia state income tax forms 2012 File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 Research and Experimental Costs The costs of research and experimentation are generally capital expenses. Georgia state income tax forms 2012 However, you can elect to deduct these costs as a current business expense. Georgia state income tax forms 2012 Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. Georgia state income tax forms 2012 If you meet certain requirements, you may elect to defer and amortize research and experimental costs. Georgia state income tax forms 2012 For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. Georgia state income tax forms 2012 Research and experimental costs defined. Georgia state income tax forms 2012   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. Georgia state income tax forms 2012 Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. Georgia state income tax forms 2012 Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. Georgia state income tax forms 2012      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. Georgia state income tax forms 2012 However, costs paid or incurred to obtain another's patent are not research and experimental costs. Georgia state income tax forms 2012 Product. Georgia state income tax forms 2012   The term “product” includes any of the following items. Georgia state income tax forms 2012 Formula. Georgia state income tax forms 2012 Invention. Georgia state income tax forms 2012 Patent. Georgia state income tax forms 2012 Pilot model. Georgia state income tax forms 2012 Process. Georgia state income tax forms 2012 Technique. Georgia state income tax forms 2012 Property similar to the items listed above. Georgia state income tax forms 2012 It also includes products used by you in your trade or business or held for sale, lease, or license. Georgia state income tax forms 2012 Costs not included. Georgia state income tax forms 2012   Research and experimental costs do not include expenses for any of the following activities. Georgia state income tax forms 2012 Advertising or promotions. Georgia state income tax forms 2012 Consumer surveys. Georgia state income tax forms 2012 Efficiency surveys. Georgia state income tax forms 2012 Management studies. Georgia state income tax forms 2012 Quality control testing. Georgia state income tax forms 2012 Research in connection with literary, historical, or similar projects. Georgia state income tax forms 2012 The acquisition of another's patent, model, production, or process. Georgia state income tax forms 2012 When and how to elect. Georgia state income tax forms 2012   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. Georgia state income tax forms 2012 If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. Georgia state income tax forms 2012 Deducting or Amortizing Research and Experimentation Costs IF you . Georgia state income tax forms 2012 . Georgia state income tax forms 2012 . Georgia state income tax forms 2012 THEN . Georgia state income tax forms 2012 . Georgia state income tax forms 2012 . Georgia state income tax forms 2012 Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. Georgia state income tax forms 2012 Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. Georgia state income tax forms 2012 See Research and Experimental Costs in chapter 8. Georgia state income tax forms 2012 Research credit. Georgia state income tax forms 2012   If you pay or incur qualified research expenses, you may be able to take the research credit. Georgia state income tax forms 2012 For more information see Form 6765, Credit for Increasing Research Activities and its instructions. Georgia state income tax forms 2012 Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. Georgia state income tax forms 2012 You can usually recover them through depreciation or depletion. Georgia state income tax forms 2012 However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. Georgia state income tax forms 2012 These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. Georgia state income tax forms 2012 You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. Georgia state income tax forms 2012 You can elect to deduct only the costs of items with no salvage value. Georgia state income tax forms 2012 These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. Georgia state income tax forms 2012 Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. Georgia state income tax forms 2012 However, see Amounts paid to contractor that must be capitalized , later. Georgia state income tax forms 2012 You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. Georgia state income tax forms 2012 It does not matter whether there is any intent to produce hydrocarbons. Georgia state income tax forms 2012 If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. Georgia state income tax forms 2012 Amounts paid to contractor that must be capitalized. Georgia state income tax forms 2012   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. Georgia state income tax forms 2012 No formal statement is required. Georgia state income tax forms 2012 If you file Schedule C (Form 1040), enter these costs under “Other expenses. Georgia state income tax forms 2012 ”   For oil and gas wells, your election is binding for the year it is made and for all later years. Georgia state income tax forms 2012 For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. Georgia state income tax forms 2012 You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. Georgia state income tax forms 2012 Energy credit for costs of geothermal wells. Georgia state income tax forms 2012   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. Georgia state income tax forms 2012 See the Instructions for Form 3468 for more information. Georgia state income tax forms 2012 Nonproductive well. Georgia state income tax forms 2012   If you capitalize your IDCs, you have another option if the well is nonproductive. Georgia state income tax forms 2012 You can deduct the IDCs of the nonproductive well as an ordinary loss. Georgia state income tax forms 2012 You must indicate and clearly state your election on your tax return for the year the well is completed. Georgia state income tax forms 2012 Once made, the election for oil and gas wells is binding for all later years. Georgia state income tax forms 2012 You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. Georgia state income tax forms 2012 Costs incurred outside the United States. Georgia state income tax forms 2012   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. Georgia state income tax forms 2012 However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. Georgia state income tax forms 2012 If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. Georgia state income tax forms 2012 These rules do not apply to a nonproductive well. Georgia state income tax forms 2012 Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. Georgia state income tax forms 2012 You recover these costs through depletion as the mineral is removed from the ground. Georgia state income tax forms 2012 However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. Georgia state income tax forms 2012 Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. Georgia state income tax forms 2012 The election applies to the tax year you make this election and all later tax years. Georgia state income tax forms 2012 Partnerships and S corporations. Georgia state income tax forms 2012   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. Georgia state income tax forms 2012 Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. Georgia state income tax forms 2012 Reduced corporate deductions for exploration costs. Georgia state income tax forms 2012   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. Georgia state income tax forms 2012 It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. Georgia state income tax forms 2012 A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. Georgia state income tax forms 2012 For more information on this method of amortization, see Internal Revenue Code section 59(e). Georgia state income tax forms 2012   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. Georgia state income tax forms 2012 However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. Georgia state income tax forms 2012 See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. Georgia state income tax forms 2012   These rules also apply to the deduction of development costs by corporations. Georgia state income tax forms 2012 See Development Costs , later. Georgia state income tax forms 2012 Recapture of exploration expenses. Georgia state income tax forms 2012   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. Georgia state income tax forms 2012 Use either of the following methods. Georgia state income tax forms 2012 Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. Georgia state income tax forms 2012 Your election must be clearly indicated on the return. Georgia state income tax forms 2012 Increase your adjusted basis in the mine by the amount included in income. Georgia state income tax forms 2012 Generally, you must elect this recapture method by the due date (including extensions) of your return. Georgia state income tax forms 2012 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Make the election on your amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2” on the form where you are including the income. Georgia state income tax forms 2012 File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. Georgia state income tax forms 2012   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. Georgia state income tax forms 2012 Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. Georgia state income tax forms 2012   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. Georgia state income tax forms 2012 Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. Georgia state income tax forms 2012 If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. Georgia state income tax forms 2012 Foreign exploration costs. Georgia state income tax forms 2012   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. Georgia state income tax forms 2012 You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. Georgia state income tax forms 2012 (Cost depletion is discussed in chapter 9 . Georgia state income tax forms 2012 ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. Georgia state income tax forms 2012 These rules also apply to foreign development costs. Georgia state income tax forms 2012 Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. Georgia state income tax forms 2012 These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. Georgia state income tax forms 2012 Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. Georgia state income tax forms 2012 Development costs do not include the costs for the acquisition or improvement of depreciable property. Georgia state income tax forms 2012 Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. Georgia state income tax forms 2012 This election applies each tax year to expenses paid or incurred in that year. Georgia state income tax forms 2012 Once made, the election is binding for the year and cannot be revoked for any reason. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. Georgia state income tax forms 2012 Generally, you must make the election by the due date of the return (including extensions). Georgia state income tax forms 2012 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2. Georgia state income tax forms 2012 ” File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 Foreign development costs. Georgia state income tax forms 2012   The rules discussed earlier for foreign exploration costs apply to foreign development costs. Georgia state income tax forms 2012 Reduced corporate deductions for development costs. Georgia state income tax forms 2012   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. Georgia state income tax forms 2012 Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. Georgia state income tax forms 2012 For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. Georgia state income tax forms 2012 Circulation costs are deductible even if they normally would be capitalized. Georgia state income tax forms 2012 This rule does not apply to the following costs that must be capitalized. Georgia state income tax forms 2012 The purchase of land or depreciable property. Georgia state income tax forms 2012 The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. Georgia state income tax forms 2012 Other treatment of circulation costs. Georgia state income tax forms 2012   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. Georgia state income tax forms 2012 Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). Georgia state income tax forms 2012 Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. Georgia state income tax forms 2012 Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. Georgia state income tax forms 2012 Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. Georgia state income tax forms 2012 However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. Georgia state income tax forms 2012 The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Georgia state income tax forms 2012 Any remaining costs must be amortized. Georgia state income tax forms 2012 For information about amortizing start-up and organizational costs, see chapter 8 . Georgia state income tax forms 2012 Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. Georgia state income tax forms 2012 Organizational costs include the costs of creating a corporation. Georgia state income tax forms 2012 For more information on start-up and organizational costs, see chapter 8 . Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. Georgia state income tax forms 2012 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2. Georgia state income tax forms 2012 ” File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 The election applies when computing taxable income for the current tax year and all subsequent years. Georgia state income tax forms 2012 Reforestation Costs Reforestation costs are generally capital expenditures. Georgia state income tax forms 2012 However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. Georgia state income tax forms 2012 The remaining costs can be amortized over an 84-month period. Georgia state income tax forms 2012 For information about amortizing reforestation costs, see chapter 8 . Georgia state income tax forms 2012 Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. Georgia state income tax forms 2012 Qualified timber property is property that contains trees in significant commercial quantities. Georgia state income tax forms 2012 See chapter 8 for more information on qualifying reforestation costs and qualified timber property. Georgia state income tax forms 2012 If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. Georgia state income tax forms 2012 Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. Georgia state income tax forms 2012 If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. Georgia state income tax forms 2012 If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. Georgia state income tax forms 2012 The unique stand identification numbers. Georgia state income tax forms 2012 The total number of acres reforested during the tax year. Georgia state income tax forms 2012 The nature of the reforestation treatments. Georgia state income tax forms 2012 The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. Georgia state income tax forms 2012   If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2. Georgia state income tax forms 2012 ” File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 The election applies when computing taxable income for the current tax year and all subsequent years. Georgia state income tax forms 2012   For additional information on reforestation costs, see chapter 8 . Georgia state income tax forms 2012 Recapture. Georgia state income tax forms 2012   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. Georgia state income tax forms 2012 For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. Georgia state income tax forms 2012 Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. Georgia state income tax forms 2012 However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. Georgia state income tax forms 2012 Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. Georgia state income tax forms 2012 However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. Georgia state income tax forms 2012 You must own or lease the facility or vehicle for use in connection with your trade or business. Georgia state income tax forms 2012 A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. Georgia state income tax forms 2012 A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). Georgia state income tax forms 2012 You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. Georgia state income tax forms 2012 Deduction limit. Georgia state income tax forms 2012   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. Georgia state income tax forms 2012 However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. Georgia state income tax forms 2012 Partners and partnerships. Georgia state income tax forms 2012   The $15,000 limit applies to a partnership and also to each partner in the partnership. Georgia state income tax forms 2012 A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. Georgia state income tax forms 2012 If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. Georgia state income tax forms 2012   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). Georgia state income tax forms 2012 If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. Georgia state income tax forms 2012 Example. Georgia state income tax forms 2012 Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. Georgia state income tax forms 2012 Emilio had $12,000 of similar expenses in his sole proprietorship. Georgia state income tax forms 2012 He elected to deduct $7,000 of them. Georgia state income tax forms 2012 Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. Georgia state income tax forms 2012 Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. Georgia state income tax forms 2012 Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. Georgia state income tax forms 2012 Qualification standards. Georgia state income tax forms 2012   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. Georgia state income tax forms 2012 You can view the Americans with Disabilities Act at www. Georgia state income tax forms 2012 ada. Georgia state income tax forms 2012 gov/pubs/ada. Georgia state income tax forms 2012 htm. Georgia state income tax forms 2012   The following is a list of some architectural barrier removal costs that can be deducted. Georgia state income tax forms 2012 Ground and floor surfaces. Georgia state income tax forms 2012 Walks. Georgia state income tax forms 2012 Parking lots. Georgia state income tax forms 2012 Ramps. Georgia state income tax forms 2012 Entrances. Georgia state income tax forms 2012 Doors and doorways. Georgia state income tax forms 2012 Stairs. Georgia state income tax forms 2012 Floors. Georgia state income tax forms 2012 Toilet rooms. Georgia state income tax forms 2012 Water fountains. Georgia state income tax forms 2012 Public telephones. Georgia state income tax forms 2012 Elevators. Georgia state income tax forms 2012 Controls. Georgia state income tax forms 2012 Signage. Georgia state income tax forms 2012 Alarms. Georgia state income tax forms 2012 Protruding objects. Georgia state income tax forms 2012 Symbols of accessibility. Georgia state income tax forms 2012 You can find the ADA guidelines and requirements for architectural barrier removal at www. Georgia state income tax forms 2012 usdoj. Georgia state income tax forms 2012 gov/crt/ada/reg3a. Georgia state income tax forms 2012 html. Georgia state income tax forms 2012   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. Georgia state income tax forms 2012 You can find the guidelines and requirements for transportation barrier removal at www. Georgia state income tax forms 2012 fta. Georgia state income tax forms 2012 dot. Georgia state income tax forms 2012 gov. Georgia state income tax forms 2012   Also, you can access the ADA website at www. Georgia state income tax forms 2012 ada. Georgia state income tax forms 2012 gov for additional information. Georgia state income tax forms 2012 Other barrier removals. Georgia state income tax forms 2012   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. Georgia state income tax forms 2012 The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. Georgia state income tax forms 2012 The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). Georgia state income tax forms 2012 The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. Georgia state income tax forms 2012 How to make the election. Georgia state income tax forms 2012   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. Georgia state income tax forms 2012 Identify the deduction as a separate item. Georgia state income tax forms 2012 The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. Georgia state income tax forms 2012 If you make this election, you must maintain adequate records to support your deduction. Georgia state income tax forms 2012   For your election to be valid, you generally must file your return by its due date, including extensions. Georgia state income tax forms 2012 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Georgia state income tax forms 2012 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Georgia state income tax forms 2012 9100-2. Georgia state income tax forms 2012 ” File the amended return at the same address you filed the original return. Georgia state income tax forms 2012 Your election is irrevocable after the due date, including extensions, of your return. Georgia state income tax forms 2012 Disabled access credit. Georgia state income tax forms 2012   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. Georgia state income tax forms 2012 If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. Georgia state income tax forms 2012   For more information, see Form 8826, Disabled Access Credit. Georgia state income tax forms 2012 Film and Television Production Costs Film and television production costs are generally capital expenses. Georgia state income tax forms 2012 However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. Georgia state income tax forms 2012 For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. Georgia state income tax forms 2012 Prev  Up  Next   Home   More Online Publications