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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Irs Extention Forms

1040x Form 2011Irs Amendment FormsTax Planning Us 1040xMilitary Tax PreparationFile An Amended Tax Return For 2010File State Taxes Only For FreeFiling Late ReturnsE File ExtensionHow To File My State Taxes For FreeDo I File Back Taxes FreeFree Tax E File 2012Military Tax ReturnMilitary Tax Return Calculator1040x Form 2013Fillable 1040ezTax Return Forms 2012Free Online 1040x Filing2011 Amended Tax FormFile An Amended Return OnlineFile Your Taxes Online For Free1040ez Instructions 20131040 Ez Form1040ez WorksheetIrs E File 1040 EzAmend My 2011 TaxWww Irs Gov 1040x InstructionsFree State Taxes FileFreetaxusa 20101040ez Forms 2013Free Online Federal Tax Filing 2011Taxslayer Login2012 1040ez FormHow To File Tax Extensions OnlineHow Long Does An Amended Tax Return TakeHow To Amend My Tax Return1040nr Ez OnlineWww H&rblock1040a Tax TableState Income Tax AddressFile 1040ez

Irs Extention Forms

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

"Slamming" occurs when a phone company illegally switches your phone service without your permission. If you notice a different company name on your bill or see phone charges that are higher than normal, take action:

  • Contact the company that slammed you and ask to be switched back to your original company. Tell the company you are exercising your right to refuse to pay any charges.
  • Report the problem to your original company and ask to be enrolled in your previous calling plan. If you're unable to resolve your complaint, contact the FCC.

"Cramming" occurs when companies add charges to your telephone bill without your permission. These charges may be for services such as voice mail, ringtones, or club memberships. You may not notice these monthly charges because they are relatively small, $5 to $30, and look like your regular phone charges.

Take These Steps to Avoid Slammers and Crammers:

  • Block changes to your phone service. Ask your telephone service provider if they offer a blocking service, which usually requires the company to notify you before making any changes to your service.
  • Read the fine print on contest entry forms and coupons. You could be agreeing to switch your phone service or buy optional services.
  • Watch out for impostors. Companies could falsely claim to be your regular phone company and offer some type of discount plan or change in billing. They might also say they are taking a survey or pretend to be a government agency.
  • Beware of "negative option notices". You can be switched or signed up for optional services unless you say "NO" to telemarketers.
  • Examine your telephone bill carefully, including pages that show the details, and look for suspicious charges.

Your phone service cannot be shut off for refusal to pay for unauthorized services. For help, contact your local or state consumer protection agency, state public utilities commission, or the FCC.

Beware: Caller ID Spoofing

Scammers have adopted the practice of Caller ID spoofing to obtain personal information from consumers. In this fraud, someone calls you using a false name and phone number for the Caller ID screen. During the call, the scammer describes an urgent scenario, such as the cancellation of an account. The caller may say you can avoid the cancellation if you provide your bank account or credit card number to pay the company. If you give the sensitive information, he can use it to steal your identity, or use your bank accounts.
You can prevent being a victim of caller ID spoofing. Don’t give out personal information on an incoming call. Hang up and call the customer service phone number printed on your statement, the company’s website or in the phonebook.
Report caller ID spoofers to the Federal Communications Commission online or 1-888-225-5322.

Beware: GPS Enabled Apps on Your Mobile Phone

GPS enabled apps on mobile phones make it easy to share your fun adventures through social media. Some apps let others know your general vicinity, while others allow you to virtually “check in” at your favorite places so that you can earn free merchandise. Beware: this same information in the wrong hands can make you vulnerable to stalking, home burglary, or worse. Take advantage of the privacy settings on these apps and only share your location with people that you know and trust.

The Irs Extention Forms

Irs extention forms Index A Actual knowledge Innocent spouse relief, Actual Knowledge or Reason To Know Separation of liability relief, Actual Knowledge Assistance (see Tax help) B Burden of proof, separation of liability, Burden of proof. Irs extention forms C Comments on publication, Comments and suggestions. Irs extention forms Community property law, relief from liability arising from, Community Property Laws Community property laws, Community Property Laws D Decedent, Form 8857 filed by or on behalf of a decedent. Irs extention forms Domestic violence (separation of liability), Exception for spousal abuse or domestic violence. Irs extention forms E Equitable relief Conditions for getting, Conditions for Getting Equitable Relief Factors for determining whether to grant, Factors for Determining Whether To Grant Equitable Relief Refunds, Refunds Under Equitable Relief Erroneous items, Erroneous Items Executors (see Decedent) F Flowcharts, Flowcharts Form 8857 Filled-in example, Filled-in Form 8857 For decedent, Form 8857 filed by or on behalf of a decedent. Irs extention forms Tax Court review, Tax Court Review of Request When to file, When to file Form 8857. Irs extention forms Free tax services, How To Get Tax Help H Help (see Tax help) How to request relief, How To Request Relief I Indications of unfairness Innocent spouse relief, Indications of Unfairness for Innocent Spouse Relief Injured spouse relief, Publication 971 - Additional Material Innocent spouse relief, Innocent Spouse Relief J Joint and several liability, Publication 971 - Additional Material L Limitations on Relief, Limitations on Relief M More information (see Tax help) N No joint return filed, Relief for Married Persons Who Did Not File Joint Returns P Partial relief, innocent spouse relief, Partial relief when a portion of erroneous item is unknown. Irs extention forms Publications (see Tax help) Q Questions & Answers, Publication 971 - Additional Material R Reason to know, Actual Knowledge or Reason To Know Refunds, Refunds Limit on amount of refund, Limit on Amount of Refund Proof required, Proof Required Under equitable relief, Refunds Under Equitable Relief S Separation of liability relief, Separation of Liability Relief Spousal abuse, The IRS Must Contact Your Spouse or Former Spouse, Exception for spousal abuse or domestic violence. Irs extention forms Spousal notification, The IRS Must Contact Your Spouse or Former Spouse, Publication 971 - Additional Material Suggestions for publication, Comments and suggestions. Irs extention forms T Tax Court review, Tax Court Review of Request Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. Irs extention forms TEFRA partnership proceedings, Exception for agreements relating to TEFRA partnership proceedings. Irs extention forms Transferee liability, Transferee liability not affected by innocent spouse relief provisions. Irs extention forms Transfers of property to avoid tax, Transfers of Property To Avoid Tax TTY/TDD information, How To Get Tax Help U Underpaid tax, Equitable Relief Understated tax, Understated Tax United States Tax Court, Tax Court Review of Request W When to file Form 8857, When to file Form 8857. Irs extention forms Prev  Up     Home   More Online Publications