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Irs Ez Form 2013

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Irs Ez Form 2013

Irs ez form 2013 2. Irs ez form 2013   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Irs ez form 2013 Providing information. Irs ez form 2013 Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Irs ez form 2013 Fuel used between airfield and farm. Irs ez form 2013 Fuel not used for farming. Irs ez form 2013 Vehicles not considered highway vehicles. Irs ez form 2013 Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Irs ez form 2013 This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Irs ez form 2013 Information on the refund of second tax is included. Irs ez form 2013 This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Irs ez form 2013 Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Irs ez form 2013 Exported taxable fuel. Irs ez form 2013   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Irs ez form 2013 Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Irs ez form 2013 Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Irs ez form 2013 Gasoline and Aviation Gasoline Ultimate Purchasers. Irs ez form 2013   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Irs ez form 2013 On a farm for farming purposes (credit only). Irs ez form 2013 Off-highway business use. Irs ez form 2013 Export. Irs ez form 2013 In a boat engaged in commercial fishing. Irs ez form 2013 In certain intercity and local buses. Irs ez form 2013 In a school bus. Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 In a highway vehicle owned by the United States that is not used on a highway. Irs ez form 2013 Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Irs ez form 2013 In an aircraft or vehicle owned by an aircraft museum. Irs ez form 2013   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Irs ez form 2013 On a farm for farming purposes (credit only). Irs ez form 2013 Export. Irs ez form 2013 In foreign trade. Irs ez form 2013 Certain helicopter and fixed-wing air ambulance uses. Irs ez form 2013 In commercial aviation (other than foreign trade). Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Irs ez form 2013 In an aircraft owned by an aircraft museum. Irs ez form 2013 In military aircraft. Irs ez form 2013 Claims by persons who paid the tax to the government. Irs ez form 2013   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Irs ez form 2013 See Filing Claims, later. Irs ez form 2013 Sales by registered ultimate vendors. Irs ez form 2013   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Irs ez form 2013 A state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs ez form 2013 A nonprofit educational organization for its exclusive use. Irs ez form 2013   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Irs ez form 2013 A sample certificate is included as Model Certificate M in the Appendix. Irs ez form 2013 The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Irs ez form 2013   The ultimate vendor must be registered by the IRS. Irs ez form 2013 See Registration Requirements, earlier. Irs ez form 2013 Credit card purchases. Irs ez form 2013   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs ez form 2013   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs ez form 2013 How to make the claim. Irs ez form 2013   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Irs ez form 2013 Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Irs ez form 2013 Ultimate purchasers. Irs ez form 2013   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Irs ez form 2013 On a farm for farming purposes. Irs ez form 2013 Off-highway business use. Irs ez form 2013 Export. Irs ez form 2013 In a qualified local bus. Irs ez form 2013 In a school bus. Irs ez form 2013 Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 In a highway vehicle owned by the United States that is not used on a highway. Irs ez form 2013 Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Irs ez form 2013 In a vehicle owned by an aircraft museum. Irs ez form 2013 As a fuel in a propulsion engine of a diesel-powered train. Irs ez form 2013 Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Irs ez form 2013 Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Irs ez form 2013 Registered ultimate vendor (state use). Irs ez form 2013   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs ez form 2013 The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Irs ez form 2013 The ultimate vendor must be registered by the IRS. Irs ez form 2013 See Registration Requirements, earlier. Irs ez form 2013 Registered ultimate vendor (blocked pump). Irs ez form 2013   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Irs ez form 2013   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Irs ez form 2013 Blocked pump. Irs ez form 2013   A blocked pump is a fuel pump that meets all the following requirements. Irs ez form 2013 It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Irs ez form 2013 It is at a fixed location. Irs ez form 2013 It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Irs ez form 2013 ” It meets either of the following conditions. Irs ez form 2013 It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Irs ez form 2013 It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Irs ez form 2013 Registered ultimate vendor (certain intercity and local buses). Irs ez form 2013   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Irs ez form 2013   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Irs ez form 2013 A sample waiver is included as Model Waiver N in the Appendix. Irs ez form 2013 The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Irs ez form 2013 Credit Card Purchases. Irs ez form 2013   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs ez form 2013   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs ez form 2013 Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Irs ez form 2013 The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Irs ez form 2013 198 per gallon is $. Irs ez form 2013 197 (if exported, the claim rate is $. Irs ez form 2013 198). Irs ez form 2013 The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Irs ez form 2013 On a farm for farming purposes. Irs ez form 2013 Off-highway business use. Irs ez form 2013 Export. Irs ez form 2013 In a qualified local bus. Irs ez form 2013 In a school bus. Irs ez form 2013 Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 In a highway vehicle owned by the United States that is not used on a highway. Irs ez form 2013 Exclusive use by a nonprofit educational organization. Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia. Irs ez form 2013 In an aircraft or vehicle owned by an aircraft museum. Irs ez form 2013 Blender claims. Irs ez form 2013   The claim rate for undyed diesel fuel taxed at $. Irs ez form 2013 244 and used to produce a diesel-water fuel emulsion is $. Irs ez form 2013 046 per gallon of diesel fuel so used. Irs ez form 2013 The blender must be registered by the IRS in order to make the claim. Irs ez form 2013 The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Irs ez form 2013 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Irs ez form 2013 Kerosene for Use in Aviation Ultimate purchasers. Irs ez form 2013   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Irs ez form 2013   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Irs ez form 2013 Generally, the ultimate purchaser is the aircraft operator. Irs ez form 2013   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Irs ez form 2013 On a farm for farming purposes. Irs ez form 2013 Certain helicopter and fixed-wing aircraft uses. Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 Exclusive use by a nonprofit educational organization. Irs ez form 2013 In an aircraft owned by an aircraft museum. Irs ez form 2013 In military aircraft. Irs ez form 2013 Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Irs ez form 2013   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Irs ez form 2013 At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Irs ez form 2013   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Irs ez form 2013 For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Irs ez form 2013 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Irs ez form 2013 025 per gallon part of the tax. Irs ez form 2013 The ultimate vendor may make this claim. Irs ez form 2013 The operator may make a claim for the $. Irs ez form 2013 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Irs ez form 2013 175 tax per gallon. Irs ez form 2013 Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Irs ez form 2013   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Irs ez form 2013 A sample waiver is included as Model Waiver L in the Appendix. Irs ez form 2013 The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Irs ez form 2013   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Irs ez form 2013 For the definition of commercial aviation, see Commercial aviation on page 11. Irs ez form 2013 Kerosene for use in nonexempt, noncommercial aviation. Irs ez form 2013   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Irs ez form 2013 The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Irs ez form 2013 A sample certificate is included as Model Certificate Q in the Appendix. Irs ez form 2013 The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Irs ez form 2013 Kerosene for use in aviation by a state or local government. Irs ez form 2013   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs ez form 2013 The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Irs ez form 2013 The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Irs ez form 2013 A sample certificate is included as Model Certificate P in the Appendix. Irs ez form 2013 The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Irs ez form 2013 Credit card purchases. Irs ez form 2013   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs ez form 2013   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs ez form 2013 Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Irs ez form 2013 While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Irs ez form 2013 The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Irs ez form 2013 On a farm for farming purposes. Irs ez form 2013 Off-highway business use. Irs ez form 2013 In a boat engaged in commercial fishing. Irs ez form 2013 In certain intercity and local buses. Irs ez form 2013 In a school bus. Irs ez form 2013 In a qualified local bus. Irs ez form 2013 Exclusive use by a qualified blood collector organization. Irs ez form 2013 Exclusive use by a nonprofit educational organization. Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia. Irs ez form 2013 In an aircraft or vehicle owned by an aircraft museum. Irs ez form 2013 Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Irs ez form 2013 See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Irs ez form 2013 Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Irs ez form 2013 This is in addition to all other taxes imposed on the sale or use of the fuel. Irs ez form 2013 The section 4081(e) refund (discussed below) cannot be claimed. Irs ez form 2013 If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Irs ez form 2013 No credit against any tax is allowed for this tax. Irs ez form 2013 For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Irs ez form 2013 Conditions to allowance of refund. Irs ez form 2013   A claim for refund of the tax is allowed only if all the following conditions are met. Irs ez form 2013 A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Irs ez form 2013 After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Irs ez form 2013 The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Irs ez form 2013 The person that paid the first tax has met the reporting requirements, discussed next. Irs ez form 2013 Reporting requirements. Irs ez form 2013   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Irs ez form 2013 A model first taxpayer's report is shown in the Appendix as Model Certificate B. Irs ez form 2013 The report must contain all information needed to complete the model. Irs ez form 2013   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Irs ez form 2013 Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Irs ez form 2013 Optional reporting. Irs ez form 2013   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Irs ez form 2013 However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Irs ez form 2013 Providing information. Irs ez form 2013   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Irs ez form 2013 If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Irs ez form 2013   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Irs ez form 2013 If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Irs ez form 2013 A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Irs ez form 2013 The statement must contain all information necessary to complete the model. Irs ez form 2013   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Irs ez form 2013 Each buyer must be given a copy of the report. Irs ez form 2013 Refund claim. Irs ez form 2013   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Irs ez form 2013 You must make your claim for refund on Form 8849. Irs ez form 2013 Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Irs ez form 2013 Do not include this claim with a claim under another tax provision. Irs ez form 2013 You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Irs ez form 2013 You must submit the following information with your claim. Irs ez form 2013 A copy of the first taxpayer's report (discussed earlier). Irs ez form 2013 A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Irs ez form 2013 Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Irs ez form 2013 If applicable, the type of use number from Table 2-1 is indicated in each heading. Irs ez form 2013 Type of use table. Irs ez form 2013   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Irs ez form 2013 For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Irs ez form 2013 Table 2-1. Irs ez form 2013 Type of Use Table No. Irs ez form 2013 Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Irs ez form 2013 1). Irs ez form 2013   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Irs ez form 2013 Farm. Irs ez form 2013   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Irs ez form 2013 It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Irs ez form 2013 A fish farm is an area where fish are grown or raised — not merely caught or harvested. Irs ez form 2013 Farming purposes. Irs ez form 2013   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Irs ez form 2013 To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Irs ez form 2013 To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Irs ez form 2013 To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Irs ez form 2013 To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Irs ez form 2013 For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Irs ez form 2013 Commodity means a single raw product. Irs ez form 2013 For example, apples and peaches are two separate commodities. Irs ez form 2013 To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Irs ez form 2013 , is incidental to your farming operations. Irs ez form 2013 Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Irs ez form 2013   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Irs ez form 2013 However, see Custom application of fertilizer and pesticide, next. Irs ez form 2013   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Irs ez form 2013 For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Irs ez form 2013 Custom application of fertilizer and pesticide. Irs ez form 2013   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Irs ez form 2013 Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Irs ez form 2013 For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Irs ez form 2013 For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Irs ez form 2013 Fuel used between airfield and farm. Irs ez form 2013   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Irs ez form 2013 Fuel not used for farming. Irs ez form 2013   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Irs ez form 2013 Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Irs ez form 2013 For personal use, such as mowing the lawn. Irs ez form 2013 In processing, packaging, freezing, or canning operations. Irs ez form 2013 In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Irs ez form 2013 Off-highway business use (No. Irs ez form 2013 2). Irs ez form 2013   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Irs ez form 2013 The terms “highway vehicle,” “public highway,” and “registered” are defined below. Irs ez form 2013 Do not consider any use in a boat as an off-highway business use. Irs ez form 2013   Off-highway business use includes fuels used in any of the following ways. Irs ez form 2013 In stationary machines such as generators, compressors, power saws, and similar equipment. Irs ez form 2013 For cleaning purposes. Irs ez form 2013 In forklift trucks, bulldozers, and earthmovers. Irs ez form 2013   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Irs ez form 2013 Example. Irs ez form 2013 Caroline owns a landscaping business. Irs ez form 2013 She uses power lawn mowers and chain saws in her business. Irs ez form 2013 The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Irs ez form 2013 The gasoline used in her personal lawn mower at home does not qualify. Irs ez form 2013 Highway vehicle. Irs ez form 2013   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Irs ez form 2013 Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Irs ez form 2013 A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Irs ez form 2013 A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Irs ez form 2013 A special kind of cargo, goods, supplies, or materials. Irs ez form 2013 Some off-highway task unrelated to highway transportation, except as discussed next. Irs ez form 2013 Vehicles not considered highway vehicles. Irs ez form 2013   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Irs ez form 2013 Specially designed mobile machinery for nontransportation functions. Irs ez form 2013 A self-propelled vehicle is not a highway vehicle if all the following apply. Irs ez form 2013 The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Irs ez form 2013 The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Irs ez form 2013 The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Irs ez form 2013 The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Irs ez form 2013 Vehicles specially designed for off-highway transportation. Irs ez form 2013 A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Irs ez form 2013 To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Irs ez form 2013 It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Irs ez form 2013 Nontransportation trailers and semitrailers. Irs ez form 2013 A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Irs ez form 2013 For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Irs ez form 2013 Public highway. Irs ez form 2013   A public highway includes any road in the United States that is not a private roadway. Irs ez form 2013 This includes federal, state, county, and city roads and streets. Irs ez form 2013 Registered. Irs ez form 2013   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Irs ez form 2013 Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Irs ez form 2013 A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Irs ez form 2013 Dual use of propulsion motor. Irs ez form 2013   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Irs ez form 2013 It does not matter if the special equipment is mounted on the vehicle. Irs ez form 2013 Example. Irs ez form 2013 The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Irs ez form 2013 The fuel used in the motor to run the mixer is not off-highway business use. Irs ez form 2013 Use in separate motor. Irs ez form 2013   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Irs ez form 2013 If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Irs ez form 2013 You may make a reasonable estimate based on your operating experience and supported by your records. Irs ez form 2013   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Irs ez form 2013 Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Irs ez form 2013 The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Irs ez form 2013 Example. Irs ez form 2013 Hazel owns a refrigerated truck. Irs ez form 2013 It has a separate motor for the refrigeration unit. Irs ez form 2013 The same tank supplies both motors. Irs ez form 2013 Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Irs ez form 2013 Therefore, 10% of the fuel is used in an off-highway business use. Irs ez form 2013 Fuel lost or destroyed. Irs ez form 2013   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Irs ez form 2013 Export (No. Irs ez form 2013 3). Irs ez form 2013   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Irs ez form 2013 Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Irs ez form 2013 In a boat engaged in commercial fishing (No. Irs ez form 2013 4). Irs ez form 2013   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Irs ez form 2013 They include boats used in both fresh and salt water fishing. Irs ez form 2013 They do not include boats used for both sport fishing and commercial fishing on the same trip. Irs ez form 2013 In certain intercity and local buses (No. Irs ez form 2013 5). Irs ez form 2013   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Irs ez form 2013 The bus must be engaged in one of the following activities. Irs ez form 2013 Scheduled transportation along regular routes. Irs ez form 2013 Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Irs ez form 2013 Vans and similar vehicles used for van-pooling or taxi service do not qualify. Irs ez form 2013 Available to the general public. Irs ez form 2013   This means you offer service to more than a limited number of persons or organizations. Irs ez form 2013 If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Irs ez form 2013 A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Irs ez form 2013 Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Irs ez form 2013 In a qualified local bus (No. Irs ez form 2013 6). Irs ez form 2013   In a qualified local bus means fuel used in a bus meeting all the following requirements. Irs ez form 2013 It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Irs ez form 2013 It operates along scheduled, regular routes. Irs ez form 2013 It has a seating capacity of at least 20 adults (excluding the driver). Irs ez form 2013 It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Irs ez form 2013 Intracity passenger land transportation. Irs ez form 2013   This is the land transportation of passengers between points located within the same metropolitan area. Irs ez form 2013 It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Irs ez form 2013 Under contract. Irs ez form 2013   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Irs ez form 2013 More than a nominal subsidy. Irs ez form 2013   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Irs ez form 2013 A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Irs ez form 2013 In a school bus (No. Irs ez form 2013 7). Irs ez form 2013   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Irs ez form 2013 A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Irs ez form 2013 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Irs ez form 2013 8). Irs ez form 2013   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Irs ez form 2013 In foreign trade (No. Irs ez form 2013 9). Irs ez form 2013   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Irs ez form 2013 The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Irs ez form 2013 In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Irs ez form 2013 Certain helicopter and fixed-wing aircraft uses (No. Irs ez form 2013 10). Irs ez form 2013   Includes: Certain helicopter uses. Irs ez form 2013   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Irs ez form 2013 Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Irs ez form 2013 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Irs ez form 2013 Providing emergency medical transportation. Irs ez form 2013   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Irs ez form 2013 For item (1), treat each flight segment as a separate flight. Irs ez form 2013 Fixed-wing aircraft uses. Irs ez form 2013   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Irs ez form 2013 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Irs ez form 2013 Providing emergency medical transportation. Irs ez form 2013 The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Irs ez form 2013 During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Irs ez form 2013 Exclusive use by a qualified blood collector organization (No. Irs ez form 2013 11). Irs ez form 2013   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Irs ez form 2013 Qualified blood collector organization. Irs ez form 2013   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Irs ez form 2013 In a highway vehicle owned by the United States that is not used on a highway (No. Irs ez form 2013 12). Irs ez form 2013   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Irs ez form 2013 This use applies whether or not the vehicle is registered or required to be registered for highway use. Irs ez form 2013 Exclusive use by a nonprofit educational organization (No. Irs ez form 2013 13). Irs ez form 2013   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Irs ez form 2013 It has a regular faculty and curriculum. Irs ez form 2013 It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Irs ez form 2013   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Irs ez form 2013 Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Irs ez form 2013 14). Irs ez form 2013   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Irs ez form 2013 A state or local government is any state, any political subdivision thereof, or the District of Columbia. Irs ez form 2013 An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Irs ez form 2013 Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Irs ez form 2013 In an aircraft or vehicle owned by an aircraft museum (No. Irs ez form 2013 15). Irs ez form 2013   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Irs ez form 2013 It is exempt from income tax as an organization described in section 501(c)(3). Irs ez form 2013 It is operated as a museum under a state (or District of Columbia) charter. Irs ez form 2013 It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Irs ez form 2013   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Irs ez form 2013 In military aircraft (No. Irs ez form 2013 16). Irs ez form 2013   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Irs ez form 2013 In commercial aviation (other than foreign trade). Irs ez form 2013   See Commercial aviation, earlier, for the definition. Irs ez form 2013 Use in a train. Irs ez form 2013   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Irs ez form 2013 This includes use in a locomotive, work train, switching engine, and track maintenance machine. Irs ez form 2013 Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Irs ez form 2013 The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Irs ez form 2013 Biodiesel or renewable diesel mixture credit claimant. Irs ez form 2013   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Irs ez form 2013 Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Irs ez form 2013   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Irs ez form 2013 The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Irs ez form 2013 Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Irs ez form 2013 Claim requirements. Irs ez form 2013   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Irs ez form 2013 Alternative fuel credit claimant. Irs ez form 2013   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Irs ez form 2013 Carbon capture requirement. Irs ez form 2013   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Irs ez form 2013 Alternative fuel credit. Irs ez form 2013   The registered alternative fueler is the person eligible to make the claim. Irs ez form 2013 An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Irs ez form 2013 An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Irs ez form 2013 Alternative fuel mixture credit claimant. Irs ez form 2013   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Irs ez form 2013 The credit is based on the gallons of alternative fuel in the mixture. Irs ez form 2013 An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Irs ez form 2013 Registration. Irs ez form 2013   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Irs ez form 2013 See Registration Requirements in chapter 1. Irs ez form 2013 Credits for fuel provide incentive for United States production. Irs ez form 2013   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Irs ez form 2013 The United States includes any possession of the United States. Irs ez form 2013 Credit for fuels derived from paper or pulp production. Irs ez form 2013   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Irs ez form 2013 How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Irs ez form 2013 Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Irs ez form 2013 See Notice 2005-4 and the Instructions for Form 720 for more information. Irs ez form 2013 Also see Notice 2013-26 on page 984 of I. Irs ez form 2013 R. Irs ez form 2013 B. Irs ez form 2013 2013-18 at www. Irs ez form 2013 irs. Irs ez form 2013 gov/pub/irs-irbs/irb13-18. Irs ez form 2013 pdf; and see chapter 2, later. Irs ez form 2013 Coordination with income tax credit. Irs ez form 2013   Only one credit may be taken for any amount of biodiesel or renewable diesel. Irs ez form 2013 If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Irs ez form 2013   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Irs ez form 2013 Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Irs ez form 2013   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Irs ez form 2013   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Irs ez form 2013 Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Irs ez form 2013 This section also covers recordkeeping requirements and when to include the credit or refund in your income. Irs ez form 2013 Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Irs ez form 2013 In some cases, you will have to attach additional information. Irs ez form 2013 You need to keep records that support your claim for a credit or refund. Irs ez form 2013 Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Irs ez form 2013 Ultimate purchaser. Irs ez form 2013   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Irs ez form 2013 If you are an ultimate purchaser, you must keep the following records. Irs ez form 2013 The number of gallons purchased and used during the period covered by your claim. Irs ez form 2013 The dates of the purchases. Irs ez form 2013 The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Irs ez form 2013 The nontaxable use for which you used the fuel. Irs ez form 2013 The number of gallons used for each nontaxable use. Irs ez form 2013 It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Irs ez form 2013 If the fuel is exported, you must have proof of exportation. Irs ez form 2013   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Irs ez form 2013 Exceptions. Irs ez form 2013    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Irs ez form 2013 However, see Claims by credit card issuers, later, for an exception. Irs ez form 2013 The ultimate purchaser may not claim a credit or refund as follows. Irs ez form 2013 The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Irs ez form 2013 A new certificate is required each year or when any information in the current certificate expires. Irs ez form 2013 The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Irs ez form 2013 A new waiver is required each year or when any information in the current waiver expires. Irs ez form 2013 The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Irs ez form 2013 A new waiver is required each year or when any information in the current waiver expires. Irs ez form 2013 The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Irs ez form 2013 A new certificate is required each year or when any information in the current certificate expires. Irs ez form 2013 Registered ultimate vendor. Irs ez form 2013   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Irs ez form 2013 If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Irs ez form 2013   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Irs ez form 2013 You are required to have a valid certificate or waiver in your possession in order to make the claim. Irs ez form 2013   In addition, you must have a registration number that has not been revoked or suspended. Irs ez form 2013 See Form 637. Irs ez form 2013 State use. Irs ez form 2013   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Irs ez form 2013 If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Irs ez form 2013 The name and taxpayer identification number of each person (government unit) that bought the fuel. Irs ez form 2013 The number of gallons sold to each person. Irs ez form 2013 An unexpired certificate from the buyer. Irs ez form 2013 See Model Certificate P in the Appendix. Irs ez form 2013 The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Irs ez form 2013 Nonprofit educational organization and state use. Irs ez form 2013   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Irs ez form 2013 If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Irs ez form 2013 The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Irs ez form 2013 The number of gallons sold to each person. Irs ez form 2013 An unexpired certificate from the buyer. Irs ez form 2013 See Model Certificate M in the Appendix. Irs ez form 2013  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Irs ez form 2013 Blocked pump. Irs ez form 2013   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Irs ez form 2013 If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Irs ez form 2013 The date of each sale. Irs ez form 2013 The name and address of the buyer. Irs ez form 2013 The number of gallons sold to that buyer. Irs ez form 2013 Certain intercity and local bus use. Irs ez form 2013   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Irs ez form 2013 You must keep the following information. Irs ez form 2013 The date of each sale. Irs ez form 2013 The name and address of the buyer. Irs ez form 2013 The number of gallons sold to the buyer. Irs ez form 2013 A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Irs ez form 2013 See Model Waiver N in the Appendix. Irs ez form 2013 Kerosene for use in commercial aviation or noncommercial aviation. Irs ez form 2013   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Irs ez form 2013 See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Irs ez form 2013 You must keep the following information. Irs ez form 2013 The date of each sale. Irs ez form 2013 The name and address of the buyer. Irs ez form 2013 The number of gallons sold to the buyer. Irs ez form 2013 A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Irs ez form 2013 See Model Waiver L in the Appendix. Irs ez form 2013 Kerosene for use in nonexempt, noncommercial aviation. Irs ez form 2013   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Irs ez form 2013 You must keep the following information. Irs ez form 2013 The date of each sale. Irs ez form 2013 The name and address of the buyer. Irs ez form 2013 The number of gallons sold to the buyer. Irs ez form 2013 A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Irs ez form 2013 See Model Certificate Q in the Appendix. Irs ez form 2013 Claims by credit card issuers. Irs ez form 2013   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Irs ez form 2013 An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Irs ez form 2013   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Irs ez form 2013 However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Irs ez form 2013   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Irs ez form 2013 A state is not allowed to make a claim for these fuels. Irs ez form 2013 However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Irs ez form 2013   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Irs ez form 2013 The total number of gallons. Irs ez form 2013 Its registration number. Irs ez form 2013 A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Irs ez form 2013 A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Irs ez form 2013 Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Irs ez form 2013 Taxpayer identification number. Irs ez form 2013   To file a claim, you must have a taxpayer identification number. Irs ez form 2013 Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Irs ez form 2013   If you normally file only a U. Irs ez form 2013 S. Irs ez form 2013 individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Irs ez form 2013 You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Irs ez form 2013 To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Irs ez form 2013   If you operate a business, use your EIN. Irs ez form 2013 If you do not have an EIN, you may apply for one online. Irs ez form 2013 Go to the IRS website at irs. Irs ez form 2013 gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Irs ez form 2013 You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Irs ez form 2013 Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Irs ez form 2013 Complete and attach to Form 8849 the appropriate Form 8849 schedules. Irs ez form 2013 The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Irs ez form 2013 If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Irs ez form 2013 See the Instructions for Form 720. Irs ez form 2013 Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Irs ez form 2013 The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Irs ez form 2013 The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Irs ez form 2013 To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Irs ez form 2013 Only one claim may be made for any particular amount of alternative fuel. Irs ez form 2013 Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Irs ez form 2013 See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Irs ez form 2013 A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Irs ez form 2013 If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Irs ez form 2013 Credit only. Irs ez form 2013   You can claim the following taxes only as a credit on Form 4136. Irs ez form 2013 Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Irs ez form 2013 Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Irs ez form 2013 Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Irs ez form 2013 Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Irs ez form 2013 When to file. Irs ez form 2013   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Irs ez form 2013 You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Irs ez form 2013 Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Irs ez form 2013 How to claim a credit. Irs ez form 2013   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Irs ez form 2013 Individuals. Irs ez form 2013   You claim the credit on the “Credits from” line of Form 1040. Irs ez form 2013 Also check box b on that line. Irs ez form 2013 If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Irs ez form 2013 Partnerships. Irs ez form 2013   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Irs ez form 2013 , showing each partner's share of the number of gallons of each fuel sold or used for a non
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The Irs Ez Form 2013

Irs ez form 2013 6. Irs ez form 2013   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. Irs ez form 2013 However, to determine these costs, you must value your inventory at the beginning and end of each tax year. Irs ez form 2013 This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. Irs ez form 2013 This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. Irs ez form 2013 However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. Irs ez form 2013 If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. Irs ez form 2013 For more information, see chapter 2. Irs ez form 2013 Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. Irs ez form 2013 These lines are reproduced below and are explained in the discussion that follows. Irs ez form 2013 35 Inventory at beginning of year. Irs ez form 2013 If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. Irs ez form 2013 Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. Irs ez form 2013 Subtract line 41 from line 40. Irs ez form 2013  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. Irs ez form 2013 If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). Irs ez form 2013 Opening inventory usually will be identical to the closing inventory of the year before. Irs ez form 2013 You must explain any difference in a schedule attached to your return. Irs ez form 2013 Donation of inventory. Irs ez form 2013   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. Irs ez form 2013 The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Irs ez form 2013 You must remove the amount of your contribution deduction from your opening inventory. Irs ez form 2013 It is not part of the cost of goods sold. Irs ez form 2013   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Irs ez form 2013 Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Irs ez form 2013 For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Irs ez form 2013   A special rule may apply to certain donations of food inventory. Irs ez form 2013 See Publication 526, Charitable Contributions. Irs ez form 2013 Example 1. Irs ez form 2013 You are a calendar year taxpayer who uses an accrual method of accounting. Irs ez form 2013 In 2013, you contributed property from inventory to a church. Irs ez form 2013 It had a fair market value of $600. Irs ez form 2013 The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. Irs ez form 2013 The charitable contribution allowed for 2013 is $400 ($600 − $200). Irs ez form 2013 The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. Irs ez form 2013 The cost of goods sold you use in determining gross income for 2013 must not include the $400. Irs ez form 2013 You remove that amount from opening inventory for 2013. Irs ez form 2013 Example 2. Irs ez form 2013 If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. Irs ez form 2013 You would not be allowed any charitable contribution deduction for the contributed property. Irs ez form 2013 Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. Irs ez form 2013 If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. Irs ez form 2013 Trade discounts. Irs ez form 2013   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. Irs ez form 2013 You must use the prices you pay (not the stated prices) in figuring your cost of purchases. Irs ez form 2013 Do not show the discount amount separately as an item in gross income. Irs ez form 2013   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. Irs ez form 2013 Cash discounts. Irs ez form 2013   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. Irs ez form 2013 There are two methods of accounting for cash discounts. Irs ez form 2013 You can either credit them to a separate discount account or deduct them from total purchases for the year. Irs ez form 2013 Whichever method you use, you must be consistent. Irs ez form 2013 If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. Irs ez form 2013 For more information, see Change in Accounting Method in chapter 2. Irs ez form 2013   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. Irs ez form 2013 If you use this method, do not reduce your cost of goods sold by the cash discounts. Irs ez form 2013 Purchase returns and allowances. Irs ez form 2013   You must deduct all returns and allowances from your total purchases during the year. Irs ez form 2013 Merchandise withdrawn from sale. Irs ez form 2013   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. Irs ez form 2013 Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. Irs ez form 2013 You must also charge the amount to your drawing account. Irs ez form 2013   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. Irs ez form 2013 As stated above, you also use it to record withdrawals of merchandise for personal or family use. Irs ez form 2013 This account is also known as a “withdrawals account” or “personal account. Irs ez form 2013 ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. Irs ez form 2013 Small merchandisers (wholesalers, retailers, etc. Irs ez form 2013 ) usually do not have labor costs that can properly be charged to cost of goods sold. Irs ez form 2013 In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. Irs ez form 2013 Direct labor. Irs ez form 2013   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. Irs ez form 2013 They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. Irs ez form 2013 Indirect labor. Irs ez form 2013   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. Irs ez form 2013 Other labor. Irs ez form 2013   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. Irs ez form 2013 Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. Irs ez form 2013 Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. Irs ez form 2013 Those that are not used in the manufacturing process are treated as deferred charges. Irs ez form 2013 You deduct them as a business expense when you use them. Irs ez form 2013 Business expenses are discussed in chapter 8. Irs ez form 2013 Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. Irs ez form 2013 Containers. Irs ez form 2013   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. Irs ez form 2013 If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. Irs ez form 2013 Freight-in. Irs ez form 2013   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. Irs ez form 2013 Overhead expenses. Irs ez form 2013   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. Irs ez form 2013 The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. Irs ez form 2013 Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. Irs ez form 2013 Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. Irs ez form 2013 Inventory at the end of the year is also known as closing or ending inventory. Irs ez form 2013 Your ending inventory will usually become the beginning inventory of your next tax year. Irs ez form 2013 Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. 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