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Taxslayer Publication 908 - Main Content Table of Contents Bankruptcy Code Tax Compliance RequirementsTax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Tax Returns Due After the Bankruptcy Filing Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11Debtor's Election To End Tax Year – Form 1040 Taxes and the Bankruptcy Estate Bankruptcy Estate – Income, Deductions, and Credits Tax Reporting – Chapter 11 Cases Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Tax Return Example – Form 1041 Partnerships and CorporationsFiling Requirements Partnerships Corporations Receiverships Determination of TaxPrompt Determination Requests Court Jurisdiction Over Tax MattersBankruptcy Court Tax Court Federal Tax ClaimsUnsecured Tax Claims Discharge of Unpaid Tax Debt CancellationExclusions Reduction of Tax Attributes Partnerships Corporations Tax Attribute Reduction Example How To Get Tax HelpTaxpayer Advocacy Panel (TAP). Taxslayer Low Income Taxpayer Clinics (LITCs). Taxslayer Bankruptcy Code Tax Compliance Requirements Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases The Bankruptcy Code requires chapter 13 debtors to file all required tax returns for tax periods ending within 4 years of the debtor's bankruptcy filing. Taxslayer All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. Taxslayer The debtor may request the trustee to hold the meeting open for an additional 120 days to enable the debtor to file the returns (or until the day the returns are due under an automatic IRS extension, if later). Taxslayer After notice and hearing, the bankruptcy court may extend the period for another 30 days. Taxslayer Failure to timely file the returns can prevent confirmation of a chapter 13 plan and result in either dismissal of the chapter 13 case or conversion to a chapter 7 case. Taxslayer Note. Taxslayer Individual debtors should use their home address when filing Form 1040 with the IRS. Taxslayer Returns should not be filed “in care of” the trustee's address. Taxslayer Ordering tax transcripts and copies of returns. Taxslayer   Trustees may require the debtor to submit copies or transcripts of the debtor's returns as proof of filing. Taxslayer The debtor can request free transcripts of the debtor's income tax returns by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS or by placing a request on the IRS's free Automated Delivery Service (ADS), available by calling 1-800-829-1040. Taxslayer If requested through ADS, the transcript will be mailed to the debtor's most current address according to the IRS's records. Taxslayer Transcripts requested using Form 4506-T may be mailed to any address, including to the attention of the trustee in the debtor's bankruptcy case. Taxslayer Transcripts are normally mailed within 10 to 15 days of receipt of the request by the IRS. Taxslayer A transcript contains most of the information on the debtor's filed return, but it is not a copy of the return. Taxslayer To request a copy of the debtor's filed return, file Form 4506, Request for Copy of Tax Return. Taxslayer It may take up to 60 days for the IRS to provide the copies after receipt of the debtor's request, and there is a fee of $57. Taxslayer 00 per tax return for copies of the returns. Taxslayer Tax Returns Due After the Bankruptcy Filing For debtors filing bankruptcy under all chapters (chapters 7, 11, 12, or 13), the Bankruptcy Code provides that if the debtor does not file a tax return that becomes due after the commencement of the bankruptcy case, or obtain an extension for filing the return before the due date, the taxing authority may request that the bankruptcy court either dismiss the case or convert the case to a case under another chapter of the Bankruptcy Code. Taxslayer If the debtor does not file the required return or obtain an extension within 90 days after the request is made, the bankruptcy court must dismiss or convert the case. Taxslayer Tax returns and payment of taxes in chapter 11 cases. Taxslayer   The Bankruptcy Code provides that a chapter 11 debtor's failure to timely file tax returns and pay taxes owed after the date of the “order for relief” (the bankruptcy petition date in voluntary cases) is cause for dismissal of the chapter 11 case, conversion to a chapter 7 case, or appointment of a chapter 11 trustee. Taxslayer Disclosure of debtor's return information to trustee. Taxslayer   In bankruptcy cases filed under chapter 7 or 11 by individuals, the debtor's income tax returns for the year the bankruptcy case begins and for earlier years are, upon written request, open to inspection by or disclosure to the trustee. Taxslayer If the bankruptcy case was not voluntary, disclosure cannot be made before the bankruptcy court has entered an order for relief, unless the court rules that the disclosure is needed for determining whether relief should be ordered. Taxslayer    In bankruptcy cases other than those of individuals filing under chapter 7 or 11, the debtor's income tax returns for the current and prior years are, upon written request, open to inspection by or disclosure to the trustee, but only if the IRS finds that the trustee has a material interest that will be affected by information on the return. Taxslayer Material interest is generally defined as a financial or monetary interest. Taxslayer Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Taxslayer   However, the U. Taxslayer S. Taxslayer Trustee (an officer of the Department of Justice, responsible for maintaining and supervising a panel of private trustees for chapter 7 bankruptcy cases) and the standing chapter 13 trustee (the administrator of chapter 13 cases in a specific geographic region) generally do not have a material interest in the debtor’s return or return information. Taxslayer Disclosure of bankruptcy estate's return information to debtor. Taxslayer    The bankruptcy estate's tax return(s) are open, upon written request, to inspection by or disclosure to the individual debtor in a chapter 7 or 11 bankruptcy. Taxslayer Disclosure of the estate's return to the debtor may be necessary to enable the debtor to determine the amount and nature of the tax attributes, if any, that the debtor assumes when the bankruptcy estate terminates. Taxslayer Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Taxslayer Chapter 13 relief is not available to corporations or partnerships. Taxslayer The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income) or 13 (Adjustment of Debts of an Individual with Regular Income) of the Bankruptcy Code. Taxslayer In these cases the individual continues to file the same federal income tax returns that were filed prior to the bankruptcy petition, Form 1040, U. Taxslayer S. Taxslayer Individual Income Tax Return. Taxslayer On the debtor's individual tax return, Form 1040, report all income received during the entire year and deduct all allowable expenses. Taxslayer Do not include in income the amount from any debt canceled due to the debtor's bankruptcy. Taxslayer To the extent the debtor has any losses, credits, or basis in property that were previously reduced as a result of canceled debt, these reductions must be included on the debtor's return. Taxslayer See Debt Cancellation, later. Taxslayer Interest on trust accounts in chapter 13 cases. Taxslayer   In chapter 13 proceedings, do not include interest earned on amounts held by the trustee in trust accounts as income on the debtor's return. Taxslayer This interest is not available to either the debtor or creditors, it is available only to the trustee for use by the U. Taxslayer S. Taxslayer Trustee system. Taxslayer The interest is also not taxable to the trustee as income. Taxslayer Individuals in Chapter 7 or 11 When an individual debtor files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code, the bankruptcy estate is treated as a new taxable entity, separate from the individual taxpayer. Taxslayer The bankruptcy estate in a chapter 7 case is represented by a trustee. Taxslayer The trustee is appointed to administer the estate and liquidate any nonexempt assets. Taxslayer In chapter 11 cases, the debtor often remains in control of the assets as a “debtor-in-possession” and acts as the bankruptcy trustee. Taxslayer However, the bankruptcy court, for cause, may appoint a trustee if such appointment is in the best interests of the creditors and the estate. Taxslayer During the chapter 7 or 11 bankruptcy, the debtor continues to file an individual tax return on Form 1040. Taxslayer The bankruptcy trustee files a Form 1041 for the bankruptcy estate. Taxslayer However, when a debtor in a chapter 11 bankruptcy case remains a debtor-in-possession, he or she must file both a Form 1040 individual return and a Form 1041 estate return for the bankruptcy estate (if return filing requirements are met). Taxslayer Although a husband and wife may file a joint bankruptcy petition whose bankruptcy estates are jointly administered, the estates are be treated as two separate entities for tax purposes. Taxslayer Two separate bankruptcy estate income tax returns must be filed (if each spouse separately meets the filing requirements). Taxslayer For information about determining the tax due and paying tax for a chapter 7 or 11 bankruptcy estate, see Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Taxslayer Debtor's Election To End Tax Year – Form 1040 Short tax years. Taxslayer   An individual debtor in a chapter 7 or 11 case may elect to close the debtor's tax year for the year in which the bankruptcy petition is filed, as of the day before the date on which the bankruptcy case commences. Taxslayer If the debtor makes this election, the debtor's tax year is divided into 2 short tax years of less than 12 months each. Taxslayer The first tax year ends on the day before the commencement date and the second tax year begins on the commencement date. Taxslayer   If the election is made, the debtor's federal income tax liability for the first short tax year becomes an allowable claim against the bankruptcy estate arising before the bankruptcy filing. Taxslayer Also, the tax liability for the first short tax year is not subject to discharge under the Bankruptcy Code. Taxslayer    If the debtor does not make an election to end the tax year, the commencement of the bankruptcy case does not affect the debtor's tax year. Taxslayer Also, no part of the debtor's income tax liability for the year in which the bankruptcy case commences can be collected from the bankruptcy estate. Taxslayer Note. Taxslayer The debtor cannot make a short tax year election if no assets, other than exempt property, are in the bankruptcy estate. Taxslayer Making the Election - Filing Requirements First short tax year. Taxslayer   The debtor can elect to end the debtor's tax year by filing a return on Form 1040 for the first short tax year. Taxslayer The return must be filed on or before the 15th day of the fourth full month after the end of that first tax year. Taxslayer Second short tax year. Taxslayer   If the debtor elects to end the tax year on the day before filing the bankruptcy case, the debtor must file the return for the first short tax year in the manner discussed above. Taxslayer   If the debtor makes this election, the debtor must also file a separate Form 1040 for the second short tax year by the regular due date. Taxslayer To avoid delays in processing the return, write “Second Short Year Return After Section 1398 Election” at the top of the return. Taxslayer Example. Taxslayer Jane Doe, an individual calendar year taxpayer, filed a bankruptcy petition under chapter 7 or 11 on May 8, 2012. Taxslayer If Jane elected to close her tax year at the commencement of her case, Jane's first short year for 2012 runs from January 1 through May 7, 2012. Taxslayer Jane's second short year runs from May 8, 2012, through December 31, 2012. Taxslayer To have a timely filed election for the first short year, Jane must file Form 1040 (or an extension of time to file) for the period January 1 through May 7 by September 15. Taxslayer To avoid delays in processing the return, write “Section 1398 Election” at the top of the return. Taxslayer The debtor may also make the election by attaching a statement to Form 4868, Automatic Extension of Time to File an U. Taxslayer S. Taxslayer Individual Tax Return. Taxslayer The statement must state that the debtor elects under IRC section 1398(d)(2) to close the debtor's tax year on the day before filing the bankruptcy case. Taxslayer The debtor must file Form 4868 by the due date of the return for the first short tax year. Taxslayer The debtor's spouse may also elect to close his or her tax year, see Election by debtor's spouse, below. Taxslayer Election by debtor's spouse. Taxslayer   If the debtor is married, the debtor's spouse may join in the election to end the tax year. Taxslayer If the debtor and spouse make a joint election, the debtor must file a joint return for the first short tax year. Taxslayer The debtor must elect by the due date for filing the return for the first short tax year. Taxslayer Once the election is made, it cannot be revoked for the first short tax year. Taxslayer However, the election does not prevent the debtor and the spouse from filing separate returns for the second short tax year. Taxslayer Later bankruptcy of spouse. Taxslayer    If the debtor's spouse files for bankruptcy later in the same year, he or she may also choose to end his or her tax year, regardless of whether he or she joined in the election to end the debtor's tax year. Taxslayer   As each spouse has a separate bankruptcy, one or both of them may have 3 short tax years in the same calendar year. Taxslayer If the debtor's spouse joined the debtor's election or if the debtor had not made the election to end the tax year, the debtor can join in the spouse's election. Taxslayer However, if the debtor made an election and the spouse did not join that election, the debtor cannot then join the spouse's later election. Taxslayer The debtor and the spouse are precluded from this election because they have different tax years. Taxslayer This results because the debtor does not have a tax year ending the day before the spouse's filing for bankruptcy, and the debtor cannot file a joint return for a year ending on the day before the spouse's filing of bankruptcy. Taxslayer Example 1. Taxslayer Paul and Mary Harris are calendar-year taxpayers. Taxslayer Paul's voluntary chapter 7 bankruptcy case begins on March 4. Taxslayer If Paul does not make an election, his tax year does not end on March 3. Taxslayer If he makes an election, Paul's first tax year is January 1–March 3, and his second tax year begins on March 4. Taxslayer Mary could join in Paul's election as long as they file a joint return for the tax year January 1–March 3. Taxslayer They must make the election by July 15, the due date for filing the joint return. Taxslayer Example 2. Taxslayer Fred and Ethel Barnes are calendar-year taxpayers. Taxslayer Fred's voluntary chapter 7 bankruptcy case begins on May 6, and Ethel's bankruptcy case begins on November 1 of the same year. Taxslayer Ethel could elect to end her tax year on October 31. Taxslayer If Fred did not elect to end his tax year on May 5, or if he elected to do so but Ethel had not joined in his election, Ethel would have 2 tax years in the same calendar year if she decided to close her tax year. Taxslayer Her first tax year is January 1–October 31, and her second year is November 1–December 31. Taxslayer If Fred did not end his tax year as of May 5, he could join in Ethel's election to close her tax year on October 31, but only if they file a joint return for the tax year January 1–October 31. Taxslayer If Fred elected to end his tax year on May 5, but Ethel did not join in Fred's election, Fred cannot join in Ethel's election to end her tax year on October 31. Taxslayer Fred and Ethel cannot file a joint return for that short tax year because their tax years preceding October 31 were not the same. Taxslayer Example 3. Taxslayer Jack and Karen Thomas are calendar-year taxpayers. Taxslayer Karen's voluntary chapter 7 bankruptcy case began on April 10, and Jack's voluntary chapter 7 bankruptcy case began on October 3 of the same year. Taxslayer Karen elected to close her tax year on April 9 and Jack joins in Karen's election. Taxslayer Under these facts, Jack would have 3 tax years for the same calendar year if he makes the election relating to his own bankruptcy case. Taxslayer The first tax year would be January 1–April 9; the second, April 10–October 2; and the third, October 3–December 31. Taxslayer Karen may join in Jack's election if they file a joint return for the second short tax year (April 10–October 2). Taxslayer If Karen does join in, she would have the same 3 short tax years as Jack. Taxslayer Also, if Karen joins in Jack's election, they may file a joint return for the third tax year (October 3–December 31), but they are not required to do so. Taxslayer Annualizing taxable income. Taxslayer   If the debtor elects to close the tax year, the debtor must annualize taxable income for each short tax year in the same manner a change in annual accounting period is calculated. Taxslayer See Short Tax Year in Publication 538, for information on how to annualize the debtor's income and to figure the tax for the short tax year. Taxslayer Dismissal of bankruptcy case. Taxslayer   If the bankruptcy court later dismisses an individual chapter 7 or 11 case, the bankruptcy estate is no longer treated as a separate taxable entity. Taxslayer It is as if no bankruptcy estate was created for tax purposes. Taxslayer In this situation, the debtor must file amended tax returns on Form 1040X, to replace all full or short year individual returns (Form 1040) and bankruptcy estate returns (Form 1041) filed as a result of the bankruptcy case. Taxslayer Income, deductions, and credits previously reported by the bankruptcy estate must be reported on the debtor's amended returns. Taxslayer Attach a statement to the amended returns explaining why the debtor is filing an amended return. Taxslayer Taxes and the Bankruptcy Estate Property of the bankruptcy estate. Taxslayer   At the commencement of a bankruptcy case a bankruptcy estate is created. Taxslayer Bankruptcy law determines which of the debtor's assets become part of a bankruptcy estate. Taxslayer This estate generally includes all of the debtor's legal and equitable interests in property as of the commencement date. Taxslayer However, there are exceptions and certain property is exempted or excluded from the bankruptcy estate. Taxslayer Note. Taxslayer Exempt property and abandoned property are initially part of the bankruptcy estate, but are subsequently removed from the estate. Taxslayer Excluded property is never included in the estate. Taxslayer Transfer of assets between debtor and bankruptcy estate. Taxslayer   The transfer (other than by sale or exchange) of an asset from the debtor to the bankruptcy estate is not treated as a disposition for income tax purposes. Taxslayer The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits. Taxslayer For example, the transfer of an installment obligation to the estate would not accelerate gain under the rules for reporting installment sales. Taxslayer The estate assumes the same basis, holding period, and character of the transferred assets. Taxslayer Also, the estate generally accounts for the transferred assets in the same manner as debtor. Taxslayer   When the bankruptcy estate is terminated or dissolved, any resulting transfer (other than by sale or exchange) of the estate's assets back to the debtor is also not treated as a disposition for tax purposes. Taxslayer The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits to the estate. Taxslayer Abandoned property. Taxslayer    The abandonment of property by the estate to the debtor is a nontaxable disposition of property. Taxslayer If the debtor received abandoned property from the bankruptcy estate, the debtor assumes the same basis in the property that the bankruptcy estate had. Taxslayer Separate taxable entity. Taxslayer   When an individual files a bankruptcy petition under chapter 7 or 11, the bankruptcy estate is treated as a separate taxable entity from the debtor. Taxslayer The court appointed trustee or the debtor-in-possession is responsible for preparing and filing all of the bankruptcy estate's tax returns, including its income tax return on Form 1041, U. Taxslayer S. Taxslayer Income Tax Return for Estates and Trusts, and paying its taxes. Taxslayer The debtor remains responsible for filing his or her own returns on Form 1040, U. Taxslayer S. Taxslayer Individual Income Tax Return, and paying taxes on income that does not belong to the estate. Taxslayer Employer identification number. Taxslayer   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Taxslayer The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Taxslayer See Employer identification number, under Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Taxslayer    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Taxslayer Income, deductions, and credits – Form 1040. Taxslayer   In an individual chapter 7 or 11 bankruptcy case, do not include the income, deductions, and credits that belong to the bankruptcy estate on the debtor's individual income tax return (Form 1040). Taxslayer Also, do not include as income on the debtor's return the amount of any debt canceled by reason of the bankruptcy discharge. Taxslayer The bankruptcy estate must reduce certain losses, credits, and the basis in property (to the extent of these items) by the amount of canceled debt. Taxslayer See Debt Cancellation, below. Taxslayer Note. Taxslayer The debtor may not be able to claim certain deductions available to the bankruptcy estate such as administrative expenses. Taxslayer Additionally, the bankruptcy exclusion cannot be used to exclude income from a cancelled debt if the discharge of indebtedness was not within the bankruptcy case, even though the debtor was under the bankruptcy court's protection at the time. Taxslayer However, other exclusions, such as the insolvency exclusion, may apply. Taxslayer Bankruptcy Estate – Income, Deductions, and Credits Bankruptcy Estate Income Income of the estate in individual chapter 7 cases. Taxslayer    The gross income of the bankruptcy estate includes gross income of the debtor to which the estate is entitled under the Bankruptcy Code. Taxslayer Gross income also includes income generated by the bankruptcy estate from property of the estate after the commencement of the case. Taxslayer   Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the commencement of the case. Taxslayer Additionally, in chapter 7 cases, gross income of the bankruptcy estate does not include any income that the debtor earns after the date of the bankruptcy petition. Taxslayer Income of the estate in individual chapter 11 cases. Taxslayer    In chapter 11 cases, under IRC section 1398(e)(1), gross income of the bankruptcy estate includes income that the debtor earns for services performed after the bankruptcy petition date. Taxslayer Also, earnings from services performed by an individual debtor after the commencement of the chapter 11 case are property of the bankruptcy estate under section 1115 of the Bankruptcy Code (11 U. Taxslayer S. Taxslayer C. Taxslayer section 1115). Taxslayer Note. Taxslayer A debtor-in-possession may be compensated by the estate for managing or operating a trade or business that the debtor conducted before the commencement of the bankruptcy case. Taxslayer Such payments should be reported by the debtor as miscellaneous income on his or her individual income tax return (Form 1040). Taxslayer Amounts paid by the estate to the debtor-in-possession for managing or operating the trade or business may qualify as administrative expenses of the estate. Taxslayer See Administrative expenses, below. Taxslayer Conversion or dismissal of chapter 11 cases. Taxslayer   If a chapter 11 case is converted to a chapter 13 case, the chapter 13 estate is not a separate taxable entity and earnings from post-conversion services and income from property of the estate realized after the conversion to chapter 13 are taxed to the debtor. Taxslayer If the chapter 11 case is converted to a chapter 7 case, 11 U. Taxslayer S. Taxslayer C. Taxslayer section 1115 does not apply after conversion and: Earnings from post-conversion services will be taxed to the debtor, rather than the estate, and The property of the chapter 11 estate will become property of the chapter 7 estate. Taxslayer Any income on this property will be taxed to the estate even if the income is realized after the conversion to chapter 7. Taxslayer If a chapter 11 case is dismissed, the debtor is treated as if the bankruptcy case had never been filed and as if no bankruptcy estate had been created. Taxslayer Bankruptcy Estate Deductions and Credits A bankruptcy estate deducts expenses incurred in a trade, business, or activity, and uses credits in the same way the debtor would have deducted or credited them had he or she continued operations. Taxslayer Note. Taxslayer Expenses may be disallowed under other provisions of the IRC (such as the disallowance of certain capital expenditures or expenses relating to tax-exempt interest). Taxslayer Administrative expenses. Taxslayer   Allowable expenses include administrative expenses. Taxslayer    Administrative expenses can only be deducted by the estate, never by the debtor. Taxslayer   The bankruptcy estate is allowed deductions for bankruptcy administrative expenses and fees, including accounting fees, attorney fees, and court costs. Taxslayer These expenses are deductible on Form 1040, Schedule A as miscellaneous itemized deductions not subject to the 2% floor on miscellaneous itemized deductions, because they would not have been incurred if property had not been held by the bankruptcy estate. Taxslayer See IRC section 67(e). Taxslayer Administrative expenses of the bankruptcy estate attributable to conducting a trade or business for the production of estate rents or royalties are deductible in arriving at adjusted gross income on Form 1040, Schedules C, E, and F. Taxslayer Note. Taxslayer The bankruptcy estate uses Form 1041 as a transmittal for the tax return prepared using Form 1040 and its schedules. Taxslayer See Transmittal for Form 1040 under Tax Return Filing Requirements and Payment of Tax, later. Taxslayer Administrative expense loss. Taxslayer   If the administrative expenses of the bankruptcy estate are more than its gross income for a tax year, the excess amount may be carried back 3 years and forward 7 years. Taxslayer The amounts can only be carried to a tax year of the estate and never to a debtor's tax year. Taxslayer The excess amount to be carried back or forward is treated like a net operating loss (NOL) and must first be carried back to the earliest year possible. Taxslayer For a discussion of NOLs, see Publication 536. Taxslayer Attribute carryovers. Taxslayer   The bankruptcy estate may use its tax attributes the same way that the debtor would have used them. Taxslayer These items are determined as of the first day of the debtor's tax year in which the bankruptcy case begins. Taxslayer The bankruptcy estate assumes the following tax attributes from the debtor: NOL carryovers, Carryovers of excess charitable contributions, Recovery of tax benefit items, Credit carryovers, Capital loss carryovers, Basis, holding period, and character of assets, Method of accounting, Passive activity loss and credit carryovers, Unused at-risk deductions, and Other tax attributes provided in the regulations. Taxslayer   Certain tax attributes of the bankruptcy estate must be reduced by the amount of income that was previously excluded as a result of cancellation of debt during the bankruptcy proceeding. Taxslayer See Debt Cancellation, later. Taxslayer   When the bankruptcy estate is terminated (for example, when the case ends), the debtor assumes any remaining tax attributes previously taken over by the bankruptcy estate. Taxslayer The debtor also generally assumes any of the tax attributes, listed above, that arose during the administration of the bankruptcy estate. Taxslayer Note. Taxslayer The debtor does not assume the bankruptcy estate's administrative expense losses because they cannot be used by an individual taxpayer filing Form 1040. Taxslayer See Administrative expense loss, above. Taxslayer Passive and at-risk activities. Taxslayer   For bankruptcy cases beginning after November 8, 1992, passive activity carryover losses and credits and unused at-risk deductions are treated as tax attributes passing from the debtor to the bankruptcy estate, which the estate then passes back to the debtor when the bankruptcy estate terminates. Taxslayer Additionally, transfers to the debtor (other than by sale or exchange) of interests in passive or at-risk activities are treated as non-taxable exchanges. Taxslayer These transfers include the return of exempt property and abandonment of estate property to the debtor. Taxslayer Carrybacks from the debtor's activities. Taxslayer   The debtor cannot carry back any NOL or credit carryback from a tax year ending after the bankruptcy case has begun to any tax year ending before the case began. Taxslayer Carrybacks from the bankruptcy estate. Taxslayer   If the bankruptcy estate has an NOL that did not pass to the estate from the debtor under the attribute carryover rules, the estate can carry the loss back not only to its own earlier tax years but also to the debtor's tax years before the year the bankruptcy case began. Taxslayer The estate may also carry back excess credits, such as the general business credit, to the pre-bankruptcy tax years. Taxslayer Tax Reporting – Chapter 11 Cases Allocation of income and credits on information returns and required statement for returns for individual chapter 11 cases. Taxslayer    In chapter 11 cases, when an employer issues a Form W-2 reporting all of the debtor's wages, salary, or other compensation for a calendar year, and a portion of the earnings represent post-petition services includible in the estate's gross income, the Form W-2 amounts must be allocated between the estate and the debtor. Taxslayer The debtor-in-possession or trustee must allocate the income amount reported in box 1 and the income tax withheld reported in box 2 between the debtor and the estate. Taxslayer These allocations must reflect that the debtor's gross earnings from post-petition services and gross income from post-petition property are, generally, includible in the estate's gross income and not the debtor's gross income. Taxslayer The debtor and trustee may use a simple percentage method to allocate income and income tax withheld. Taxslayer The same method must be used to allocate the income and the withheld tax. Taxslayer Example. Taxslayer If 20% of the wages reported on Form W-2 for a calendar year were earned after the commencement of the case and are included in the estate's gross income, 20% of the withheld income tax reported on Form W-2 must also be claimed as a credit on the estate's income tax return. Taxslayer Likewise, 80% of wages must be reported by the debtor and 80% of the income tax withheld must be claimed as a credit on the debtor's income tax return. Taxslayer See IRC section 31(a). Taxslayer   If information returns are issued to the debtor for gross income, gross proceeds, or other reportable payments that should have been reported to the bankruptcy estate, the debtor-in-possession or trustee must allocate the improperly reported income in a reasonable manner between the debtor and the estate. Taxslayer In general, the allocation must ensure that any income and income tax withheld attributable to the post-petition period is reported on the estate's return, and any income and income tax withheld attributable to the pre-petition period is reported on the debtor's return. Taxslayer    IRS Notice 2006-83 requires the debtor to attach a statement to his or her individual income tax return (Form 1040) stating that the return is filed subject to a chapter 11 bankruptcy case. Taxslayer The statement must also: Show the allocations of income and income tax withheld, Describe the method used to allocate income and income tax withheld, and List the filing date of the bankruptcy case, the bankruptcy court in which the case is pending, the bankruptcy court case number, and the bankruptcy estate's EIN. Taxslayer Note. Taxslayer The debtor-in-possession or trustee must attach a similar statement to the bankruptcy estate's income tax return (Form 1041). Taxslayer   The model Notice 2006-83 Statement, shown above, may be used by debtors, debtors-in-possession, and trustees to satisfy the reporting requirement. Taxslayer Self-employment taxes in individual chapter 11 cases. Taxslayer   IRC section 1401 imposes a tax upon the self-employment income, that is, the net earnings from self-employment of an individual. Taxslayer Net earnings from self-employment are equal to the gross income derived by an individual from any trade or business carried on by such individual, less deductions attributable to the business. Taxslayer   Neither section 1115 of the Bankruptcy Code nor IRC section 1398 addresses the application of self-employment tax to the post-petition earnings of the individual debtor. Taxslayer Therefore, if the debtor continues to derive gross income from the performance of services as a self-employed individual after the commencement of the bankruptcy case, the debtor must continue to report the debtor's self-employment income on Schedule SE (Form 1040) of the debtor's income tax return. Taxslayer This schedule includes self-employment income earned post-petition and the attributable deductions. Taxslayer The debtor must pay any self-employment tax imposed by IRC section 1401. Taxslayer Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Taxslayer   In chapter 11 cases, post-petition wages earned by a debtor are generally treated as gross income of the estate. Taxslayer However, section 1115 of the Bankruptcy Code (11 U. Taxslayer S. Taxslayer C. Taxslayer section 1115) does not affect the determination of what are deemed wages for Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, or Federal Income Tax Withholding purposes. Taxslayer See Notice 2006-83. Taxslayer   The reporting and withholding obligations of a debtor's employer also do not change. Taxslayer An employer should continue to report the wages and tax withholding on a Form W-2 issued under the debtor's name and social security number. Taxslayer Notice to persons required to file information returns (other than Form W-2, Wage and Tax Statement) in individual chapter 11 cases. Taxslayer   Within a reasonable time after the commencement of a chapter 11 bankruptcy case, the trustee or debtor-in-possession should provide notification of the bankruptcy estate's EIN to all persons (or entities) that are required to file information returns for the bankruptcy estate's gross income, gross proceeds, or other types of reportable payments. Taxslayer See IRC section 6109(a)(2). Taxslayer As these payments are the property of the estate under section 1115 of the Bankruptcy Code, the payors should report the gross income, gross proceeds, or other reportable payments on the appropriate information return using the estate's name and EIN as required under the IRC and regulations (see IRC sections 6041 through 6049). Taxslayer   The trustee or debtor-in-possession should not, however, provide the EIN to a person (or entity) filing Form W-2 reporting the debtor's wages or other compensation, as section 1115 of the Bankruptcy Code does not affect the determination of what constitutes wages for purposes of federal income tax withholding or FICA. Taxslayer See Notice 2006-83. Taxslayer An employer should continue to report all wage income and tax withholding, both pre-petition and post-petition, on a Form W-2 to the debtor under the debtor's social security number. Taxslayer   The debtor in a chapter 11 case is not required to file a new Form W-4 with an employer solely because the debtor filed a chapter 11 case and the post-petition wages are includible in the estate's income and not the debtor's income. Taxslayer However, a new Form W-4 may be necessary if the debtor is no longer entitled to claim the same number of allowances previously claimed because certain deductions or credits now belong to the estate. Taxslayer See Employment Tax Regulations section 31. Taxslayer 3402(f)(2)-1. Taxslayer Additionally, the debtor may wish to file a new Form W-4 to increase the income tax withheld from post-petition wages allocated to the estate to avoid having to make estimated tax payments for the estate. Taxslayer See IRC section 6654(a). Taxslayer Notice required in converted and dismissed cases. Taxslayer   When a chapter 11 bankruptcy case is closed, dismissed, or converted to a chapter 12 or 13 case, the bankruptcy estate ends as a separate taxable entity. Taxslayer The debtor should, within a reasonable time, send notice of such event to the persons (or entities) previously notified of the bankruptcy case. Taxslayer This helps to ensure that gross income, proceeds, and other reportable payments realized after the event are reported to the debtor under the correct TIN rather than to the estate. Taxslayer   When a chapter 11 case is converted to a chapter 7 case, the bankruptcy estate will continue to exist as a separate taxable entity. Taxslayer Gross income (other than post-conversion income from the debtor's services), gross proceeds, or other reportable payments should continue to be reported to the estate if they are property of the chapter 7 estate. Taxslayer However, income from services performed by the debtor after conversion of the case to chapter 7 is not property of the chapter 7 estate. Taxslayer After the conversion, the debtor should notify payors required to report the debtor's nonemployee compensation that compensation earned after the conversion should be reported using the debtor's name and TIN, not the estate's name and EIN. Taxslayer Employment taxes. Taxslayer   The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Taxslayer See Publication 15, Circular E, Employer's Tax Guide, for details on employer tax responsibilities. Taxslayer   The trustee also has the duty to prepare and file Forms W-2 for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Taxslayer For a further discussion of employment taxes, see Employment Taxes, later. Taxslayer Notice 2006-83 Statement Pending Bankruptcy Case The taxpayer, , filed a bankruptcy petition under chapter 11 of the Bankruptcy Code in the bankruptcy court for the District of . Taxslayer The bankruptcy court case number is . Taxslayer Gross income, and withheld federal income tax, reported on Form W-2, Forms 1099, Schedule K-1, and other information returns received under the taxpayer's name and social security number (or other taxpayer identification number) are allocated between the taxpayer's TIN and the bankruptcy estate's EIN as follows, using [describe allocation method]:. Taxslayer   Year Taxpayer   Estate 1. Taxslayer Form W-2, Payor: $   $     Withheld income tax shown on Form W-2 $   $   2. Taxslayer Form 1099-INT Payor: $   $     Withheld income tax (if any) shown on Form 1099-INT $   $   3. Taxslayer Form 1099-DIV Payor: $   $     Withheld income tax (if any) shown on Form 1099-DIV $   $   4. Taxslayer Form 1099-MISC Payor: $   $     Withheld income tax (if any) shown on Form 1099-MISC $   $   Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Filing Requirements Filing threshold. Taxslayer   If the bankruptcy estate has gross income that meets or exceeds the minimum amount required for filing, the trustee or debtor-in-possession must file an income tax return on Form 1041. Taxslayer This amount is equal to the sum of the personal exemption amount plus the basic standard deduction for a married individual filing separately. Taxslayer   For 2012, the threshold filing amount for a bankruptcy estate is $9,750 (the sum of the $3,800 personal exemption plus the $5,950 standard deduction for married individuals filing separately). Taxslayer   These amounts are generally adjusted annually. Taxslayer See the present year Form 1041 Instructions at www. Taxslayer irs. Taxslayer gov/form1041 for the current dollar amounts. Taxslayer Accounting period. Taxslayer   A bankruptcy estate may have a fiscal year. Taxslayer However, this period cannot be longer than 12 months. Taxslayer Change of accounting period. Taxslayer   The bankruptcy estate may change its accounting period (tax year) once without IRS approval. Taxslayer This rule allows the bankruptcy trustee to close the estate's tax year early, before the expected termination of the bankruptcy estate. Taxslayer The trustee can then file a return for the first short tax year to get a quick determination of the estate's tax liability. Taxslayer Employer identification number. Taxslayer   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Taxslayer The trustee or debtor-in-possession uses this EIN on all tax returns filed for the bankruptcy estate with the IRS, including estimated tax returns. Taxslayer    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Taxslayer   Obtain an EIN for a bankruptcy estate by applying: Online by clicking on the EIN link at www. Taxslayer irs. Taxslayer gov/businesses/small. Taxslayer The EIN is issued immediately once the application information is validated. Taxslayer By telephone at 1-800-829-4933 from 7:00 a. Taxslayer m. Taxslayer to 7:00 p. Taxslayer m. Taxslayer in the trustee's or debtor-in-possession's local time zone. Taxslayer Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone, or By mailing or faxing Form SS-4, Application for Employer Identification Number. Taxslayer   If the trustee or debtor-in-possession has not received the bankruptcy estate's EIN by the time the return is due, write “Applied for” and the date you applied in the space for the EIN. Taxslayer For more details, see Pub. Taxslayer 583, Starting a Business and Keeping Records. Taxslayer   Trustees representing ten or more bankruptcy estates (other than estates that will be filing employment or excise tax returns) may request a series or block of EINs. Taxslayer Figuring tax due. Taxslayer   The bankruptcy estate figures its taxable income the same way an individual figures taxable income. Taxslayer However, the estate uses the tax rates for a married individual filing separately to calculate the tax on its taxable income. Taxslayer The estate is entitled to one personal exemption and may either itemize deductions or take the basic standard deduction for a married individual filing a separate return. Taxslayer The estate cannot take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. Taxslayer Tax rate schedule. Taxslayer The tax on income for bankruptcy estates is calculated using the tax rate schedule for Married Individuals Filing Separately not the Estates and Trusts tax rate schedule. Taxslayer When to file. Taxslayer   Calendar year bankruptcy estates must file Form 1041 by April 15th. Taxslayer Fiscal year bankruptcy estates must file on or before the 15th day of the 4th month following the close of its tax year. Taxslayer For example, an estate that has a tax year that ends on June 30th must file Form 1041 by October 15th of the tax year. Taxslayer If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Taxslayer Note. Taxslayer The bankruptcy estate is allowed an automatic 6-month extension of time to file the bankruptcy estate tax return upon filing the required application, Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Taxslayer Transmittal for Form 1040. Taxslayer   Form 1041 is used as a transmittal for Form 1040. Taxslayer If a return is required, the trustee or debtor-in-possession must complete the identification area at the top of Form 1041 and indicate the chapter under which the bankruptcy estate filed, either chapter 7 or chapter 11. Taxslayer   Prepare the bankruptcy estate's return by completing Form 1040. Taxslayer In the top margin of Form 1040, write “Attachment to Form 1041 —DO NOT DETACH. Taxslayer ” Then, attach Form 1040 to the Form 1041 transmittal. Taxslayer Enter the tax and payment amounts on lines 23 through 29 of Form 1041, then sign and date the return. Taxslayer An example of a bankruptcy estate's tax return is prepared below. Taxslayer Note. Taxslayer The filing of the bankruptcy estate's tax return does not relieve a debtor from the requirement to file his or her individual tax return on Form 1040. Taxslayer Payment of Tax Due Payment methods. Taxslayer   Payment of tax due may be made by check or money order or by credit or debit card. Taxslayer For information on how to make payments electronically by credit or debit card, go to irs. Taxslayer gov/e-pay. Taxslayer      Payments may also be made electronically using the Electronic Federal Tax Payment System (EFTPS), a free tax payment system that allows you to make payments online or by phone. Taxslayer To enroll in EFTPS, go to eftps. Taxslayer gov or call 1-800-555-4477. Taxslayer For more information see Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Taxslayer Payment voucher – Form 1041-V. Taxslayer   Form 1041-V accompanies payments made by check or money order for Form 1041. Taxslayer The voucher includes information about the bankruptcy estate, including the name of the bankruptcy estate, trustee, EIN, and amount due. Taxslayer Using Form 1041-V assists the IRS in processing the payment more accurately and efficiently. Taxslayer We recommend the use of Form 1041-V; however, there is no penalty if the voucher is not used. Taxslayer Estimated tax – Form 1041-ES. Taxslayer   In most cases, the trustee or debtor-in-possession must pay any required estimated tax due for the bankruptcy estate. Taxslayer See the Form 1041-ES Instructions for information on the minimum threshold amount required for filing Form 1041-ES, paying the estimated tax, and exceptions to filing. Taxslayer Employment Taxes The trustee or debtor-in-possession must withhold income and social security taxes and file employment tax returns for any wages paid by the trustee or debtor, including wage claims paid as administrative expenses. Taxslayer Until these employment taxes are deposited as required by the IRC, they should be set aside in a separate bank account to ensure that funds are available to satisfy the liability. Taxslayer If the employment taxes are not paid as required, the trustee may be held personally liable for payment of the taxes. Taxslayer   See Publication 15, (Circular E), Employer's Tax Guide, for details on employer tax responsibilities. Taxslayer Also see IRS Notice 931, Deposit Requirements for Employment Taxes, for details on the deposit rules, including the requirement that federal employment tax deposits be made by electronic funds transfer. Taxslayer The trustee also has a duty to prepare and file Forms W-2, Wage and Tax Statement, for wage claims paid by the trustee, regardless of whether the claims accrued before or during bankruptcy. Taxslayer If the debtor fails to prepare and file Forms W-2 for wages paid before bankruptcy, the trustee should instruct the employees to file a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Taxslayer , with their individual income tax returns. Taxslayer Tax Return Example – Form 1041 This publication is not revised annually. Taxslayer Future changes to the forms and their instructions may not be reflected in this example. Taxslayer Note. Taxslayer The following return was prepared for tax year 2011. Taxslayer In 2011, the threshold filing amount for a bankruptcy estate was $9,500 (the sum of the $3,700 personal exemption plus the $5,800 standard deduction for married individuals filing separately). Taxslayer Facts and circumstances. Taxslayer   On December 15, 2010, Thomas Smith filed a bankruptcy petition under chapter 7. Taxslayer Joan Black was appointed trustee to administer the bankruptcy estate and to distribute the assets. Taxslayer   The estate received the following assets from Mr. Taxslayer Smith: A $100,000 certificate of deposit, Commercial rental real estate with a fair market value (FMV) of $280,000, and His personal residence with an FMV of $200,000. Taxslayer   Also, the estate received a $251,500 capital loss carryover. Taxslayer   Mr. Taxslayer Smith's bankruptcy case was closed on December 31, 2011. Taxslayer During 2011, Mr. Taxslayer Smith was relieved of $70,000 of debt by the bankruptcy court. Taxslayer The estate chose a calendar year as its tax year. Taxslayer Joan, the trustee, reviews the estate's transactions and reports the taxable events on the estate's final return. Taxslayer Schedule B (Form 1040). Taxslayer    The certificate of deposit earned $5,500 of interest during 2011. Taxslayer Joan reports this interest on Schedule B. Taxslayer She completes this schedule and enters the result on Form 1040. Taxslayer Form 4562. Taxslayer   Joan enters the depreciation allowed on Form 4562. Taxslayer She completes the form and enters the result on Schedule E. Taxslayer Schedule E (Form 1040). Taxslayer   The commercial real estate was rented through the date of sale. Taxslayer Joan reports the income and expenses on Schedule E. Taxslayer She enters the net income on Form 1040. Taxslayer Form 4797. Taxslayer   The commercial real estate was sold on July 1, 2011, for $280,000. Taxslayer The property was purchased in 2001 at a cost of $250,000. Taxslayer The total depreciation allowable as of the date of sale was $120,000. Taxslayer Additionally, $25,000 of selling expenses were incurred. Taxslayer Joan reports the gain or loss from the sale on Form 4797. Taxslayer She completes the form and enters the gain on Schedule D (Form 1040). Taxslayer   Mr. Taxslayer Smith's former residence was sold on September 30, 2011. Taxslayer The sale price was $200,000, the selling expenses were $20,000, and his adjusted basis was $130,000. Taxslayer This sale is excluded from gross income under IRC section 121. Taxslayer Note. Taxslayer Gains from the sale of personal residences are excluded from gross income up to $250,000 under IRC section 121 ($500,000 for married couples filing a joint return). Taxslayer Bankruptcy estates succeed to this exclusion at the commencement of the case. Taxslayer See Regulation section 1. Taxslayer 1398-3. Taxslayer Schedule D (Form 1040). Taxslayer   Joan completes Schedule D, taking into account the $250,000 capital loss carryover from 2010 ($251,500 transferred to the estate minus $1,500 used on the estate's 2010 return). Taxslayer She enters the results on Form 1040. Taxslayer Form 1040, page 1. Taxslayer   Joan completes page 1 of the Form 1040 and enters the adjusted gross income on the first line of Form 1040, page 2. Taxslayer Schedule A (Form 1040). Taxslayer   During 2011, the estate paid mortgage interest and real property tax on Mr. Taxslayer Smith's former residence. Taxslayer It also paid income tax to the state. Taxslayer Joan enters the mortgage interest, real estate tax, and income tax on Schedule A. Taxslayer Also, she reports the bankruptcy estate's administrative expenses as a miscellaneous deduction not subject to the 2% floor on miscellaneous itemized deductions. Taxslayer She completes the Schedule A and enters the result on page 2 of Form 1040. Taxslayer Form 1040, page 2. Taxslayer   Joan determines the estate's taxable income and figures its tax using the tax rate schedule for married filing separately. Taxslayer She then enters the estate's estimated tax payments and figures the amount the estate still owes. Taxslayer Form 982. Taxslayer   Joan completes the Schedule D Tax Worksheet to figure the capital loss carryover. Taxslayer Because $70,000 of debt was canceled, Joan must reduce the tax attributes of the estate by the amount of the canceled debt. Taxslayer See Debt Cancellation, later. Taxslayer After the bankruptcy case ends, Mr. Taxslayer Smith will assume the estate's tax attributes. Taxslayer Mr. Taxslayer Smith will assume a capital loss carryover of $53,500 ($123,500 carryover minus the $70,000 attribute reduction) for use in preparation of his individual tax return (Form 1040). Taxslayer Note. Taxslayer If the bankruptcy estate had continued, the capital loss carryover would be available to the bankruptcy estate for the 2012 tax year. Taxslayer Form 1041. Taxslayer   Joan enters the total tax, estimated tax payments, and tax due from Form 1040 on Form 1041. Taxslayer She completes the identification area at the top of Form 1041, then signs and dates the return as the trustee on behalf of the bankruptcy estate. Taxslayer This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 1040 - page 1 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 1040 - page 2 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Schedule A This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Schedule B This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Schedule D This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Schedule E This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 4797 - page 1 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 2119 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 4797 - page 2 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 4562 This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Capital Loss Carryover Worksheet This image is too large to be displayed in the current screen. Taxslayer Please click the link to view the image. Taxslayer Sample Form 982 Capital Loss Carryover Worksheet—Lines 6 and 14 Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form 1040NR, line 38, if applicable) is less than zero. Taxslayer Otherwise, you do not have any carryovers. Taxslayer 1. Taxslayer Enter the amount from your 2010 Form 1040, line 41, or Form 1040NR, line 38. Taxslayer If a loss, enclose the amount in parentheses 1. Taxslayer 19,880   2. Taxslayer Enter the loss from your 2010 Schedule D, line 21, as a positive amount 2. Taxslayer 1,500   3. Taxslayer Combine lines 1 and 2. Taxslayer If zero or less, enter -0- 3. Taxslayer 21,380   4. Taxslayer Enter the smaller of line 2 or line 3 4. Taxslayer 1,500     If line 7 of your 2010 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9. Taxslayer       5. Taxslayer Enter the loss from your 2010 Schedule D, line 7, as a positive amount 5. Taxslayer 0   6. Taxslayer Enter any gain from your 2010 Schedule D, line 15. Taxslayer If a loss, enter -0- 6. Taxslayer         7. Taxslayer Add lines 4 and 6 7. Taxslayer 1,500   8. Taxslayer Short-term capital loss carryover for 2011. Taxslayer Subtract line 7 from line 5. Taxslayer If zero or less, enter -0-. Taxslayer If more than zero, also enter this amount on Schedule D, line 6 8. Taxslayer 0     If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13. Taxslayer       9. Taxslayer Enter the loss from your 2010 Schedule D, line 15, as a positive amount 9. Taxslayer 251,500   10. Taxslayer Enter any gain from your 2010 Schedule D, line 7. Taxslayer If a loss, enter -0- 10. Taxslayer 0       11. Taxslayer Subtract line 5 from line 4. Taxslayer If zero or less, enter -0- 11. Taxslayer 1,500       12. Taxslayer Add lines 10 and 11 12. Taxslayer 1,500   13. Taxslayer Long-term capital loss carryover for 2011. Taxslayer Subtract line 12 from line 9. Taxslayer If zero or less, enter -0-. Taxslayer If more than zero, also enter this amount on Schedule D, line 14 13. Taxslayer 250,000                       Partnerships and Corporations Filing Requirements A separate taxable estate is not created when a partnership or corporation files a bankruptcy petition and their tax return filing requirements do not change. Taxslayer The debtor-in-possession, court appointed trustee, assignee, or receiver must file the entity's income tax returns on Form 1065, Form 1120 or, Form 1120S. Taxslayer In cases where a trustee or receiver is not appointed, the debtor-in-possession continues business operations and remains in possession of the business' property during the bankruptcy proceeding. Taxslayer The debtor-in-possession, rather than the general partner of a partnership or corporate officer of a corporation, assumes the fiduciary responsibility to file the business' tax returns. Taxslayer Partnerships The filing requirements for a partnership in a bankruptcy proceeding do not change. Taxslayer However, the responsibility to file the required returns becomes that of the court appointed trustee, receiver, or debtor-in-possession. Taxslayer A partnership's debt that is canceled as a result of the bankruptcy proceeding is not included in the partnership's income. Taxslayer However, It may or may not be included in the individual partners' income. Taxslayer See Partnerships, below under Debt Cancellation. Taxslayer Corporations The filing requirements for a corporation in a bankruptcy proceeding also do not change. Taxslayer A bankruptcy trustee, receiver, or debtor-in-possession, having possession of or holding title to substantially all of the property or business operations of the debtor corporation, must file the debtor's corporate income tax return for the tax year. Taxslayer The following discussion only highlights bankruptcy tax rules applying to corporations. Taxslayer The complex details of corporate bankruptcy reorganizations are beyond the scope of this publication. Taxslayer Therefore, you may wish to seek the help of a professional tax advisor. Taxslayer See Corporations under Debt Cancellation for information about a corporation's debt canceled in a bankruptcy proceeding. Taxslayer Tax-Free Reorganizations The tax-free reorganization provisions of the Internal Revenue Code allow a corporation to transfer all or part of its assets to another corporation in a bankruptcy under title 11 of the United States Code or in a similar case. Taxslayer However, under the reorganization plan, the stock or securities of the corporation to which the assets are transferred must be distributed in a transaction that qualifies under IRC section 354, 355, or 356. Taxslayer A “similar case” includes a receivership, foreclosure, or other similar proceeding in a federal or state court. Taxslayer In these cases, any party to the reorganization must be under the jurisdiction of the court and the transfer of assets under the plan of reorganization must be approved by the court. Taxslayer In a receivership, foreclosure, or similar proceeding before a federal or state agency involving certain financial institutions, the agency is treated as a court. Taxslayer Generally, IRC section 354 provides that no gain or loss is recognized if a corporation's stock is exchanged solely for stock or securities in a corporation that is a party to the reorganization under a qualifying reorganization plan. Taxslayer In this case, shareholders in the bankrupt corporation would recognize no gain or loss if they exchange their stock solely for stock or securities of the corporation acquiring the bankrupt corporation's assets. Taxslayer IRC section 355 generally provides that no gain or loss is recognized by a shareholder if a corporation distributes solely stock or securities of another corporation that the distributing corporation controls immediately before the distribution. Taxslayer IRC section 356 allows tax-free exchanges in situations that would qualify under IRC section 354 or 355, except that other property or money, in addition to the permitted stock or securities, is received by the shareholder. Taxslayer In this situation, gain is recognized by the shareholder, but only to the extent of the money and the FMV of the other property received. Taxslayer No loss is recognized in this situation. Taxslayer Exemption from tax return filing A trustee, receiver, or assignee of a corporation in bankruptcy, receivership, or in the process of dissolving, may apply to the IRS for relief from filing federal income tax returns for the corporation. Taxslayer To qualify, the corporation must have ceased business operations and have no assets nor income for the tax year. Taxslayer The exemption request must be submitted to the local IRS Insolvency Office handling the case. Taxslayer The request to the IRS must include the name, address, and EIN of the corporation and a statement of the facts (with any supporting documents) showing why the debtor needs relief from the filing requirements. Taxslayer The request must also include the following statement: “I hereby request relief from filing federal income tax returns for tax years ending _____ for the above-named corporation and declare under penalties of perjury that to the best of my knowledge and belief the information contained herein is correct. Taxslayer ” The statement must be signed by the trustee, receiver or assignee. Taxslayer The statement must also include notice of appointment to act on behalf of the corporation (this is not required for bankruptcy trustees or debtors-in-possession). Taxslayer The IRS will act on your request within 90 days. Taxslayer Disclosure of return information to trustee. Taxslayer   Upon written request, current and earlier returns of the debtor are open to inspection by or disclosure to the trustee or receiver. Taxslayer However, in bankruptcy cases other than those of individuals filing under chapter 7 or 11, such as a corporate bankruptcy, the IRS must find that the trustee has a material interest that will be affected by information on the return. Taxslayer Material interest is generally defined as a financial or monetary interest. Taxslayer Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Taxslayer Receiverships Court-established receiverships sometimes arise in connection with bankruptcies. Taxslayer Certain court-established receiverships should be treated as qualified settlement funds ("QSFs") for purposes of IRC section 468B and the underlying Treasury Regulations. Taxslayer QSFs are required to file an annual income tax return, Form 1120-SF, U. Taxslayer S. Taxslayer Income Tax Return for Settlement Funds. Taxslayer More information about QSFs may be found in Treasury Regulation sections 1. Taxslayer 468B-1 through -5. Taxslayer Determination of Tax The determination of the proper amount of tax due for a tax year begins with the bankruptcy estate's filing of Form 1041, and the individual debtor's filing of Form 1040, or for bankrupt entities filing Forms 1065, 1120, or 1120S. Taxslayer After a return is filed, the IRS will either accept the return as filed or select the return for examination. Taxslayer Under examination the IRS may redetermine the tax liability shown on the return. Taxslayer If the bankruptcy estate or debtor disagrees with the redetermined tax due, the tax as redetermined by the IRS may be contested in the bankruptcy court, or Tax Court, as applicable. Taxslayer See Court Jurisdiction over Tax Matters, later. Taxslayer Prompt Determination Requests Pursuant to Rev. Taxslayer Proc. Taxslayer 2006-24, 2006-22 I. Taxslayer R. Taxslayer B. Taxslayer 943, www. Taxslayer irs. Taxslayer gov/irb/2006-22_IRB/ar12, as modified by Announcement 2011-77, www. Taxslayer irs. Taxslayer gov/irb/2011-51_IRB/ar13, the bankruptcy trustee may request a determination of any unpaid tax liability incurred by the bankruptcy estate during the administration of the case, by filing a tax return and a request for such determination with the IRS. Taxslayer Unless the return is fraudulent or contains a material misrepresentation, the estate, trustee, debtor, and any successor to the debtor are discharged from liability upon payment of the tax: As determined by the IRS, As determined by the bankruptcy court, after completion of the IRS examination, or As shown on the return, if the IRS does not: Notify the trustee within 60 days after the request for determination that the return has been selected for examination, or Complete the examination and notify the trustee of any tax due within 180 days after the request (or any additional time permitted by the bankruptcy court). Taxslayer Making the request for determination. Taxslayer   As detailed in Rev. Taxslayer Proc. Taxslayer 2006-24, as modified by Announcement 2011-77, to request a prompt determination of any unpaid tax liability of the estate, the trustee must file a signed written request, in duplicate, with the Internal Revenue Service, Centralized Insolvency Operation, P. Taxslayer O. Taxslayer Box 7346, Philadelphia, PA 19101–7346 (marked “Request for Prompt Determination”). Taxslayer   The request must be submitted in duplicate and must be executed under penalties of perjury. Taxslayer In addition, the trustee must submit along with the request an exact copy of the return(s) filed by the trustee with the IRS for each completed tax period. Taxslayer The request must contain the following information: A statement indicating that it is a Request for Prompt Determination of Tax Liability, specifying the type of return and tax period for each return being filed. Taxslayer The name and location of the office where the return was filed. Taxslayer The name of the debtor. Taxslayer Debtor's social security number, TIN, or EIN. Taxslayer Type of bankruptcy estate. Taxslayer Bankruptcy case number. Taxslayer Court where the bankruptcy case is pending. Taxslayer   The copy of the return(s) submitted with the request must be an exact copy of a valid return. Taxslayer A request for prompt determination will be considered incomplete and returned to the trustee if it is filed with a copy of a document that does not qualify as a valid return. Taxslayer    To qualify as valid, a return must meet certain criteria, including a signature under penalties of perjury. Taxslayer A document filed by the trustee with the jurat stricken, deleted, or modified will not qualify as a valid return. Taxslayer Examination of return. Taxslayer   The IRS will notify the trustee within 60 days from receipt of the request whether the return filed by the trustee has been selected for examination or has been accepted as filed. Taxslayer If the return is selected for examination, it will be examined as soon as possible. Taxslayer The IRS will notify the trustee of any tax due within 180 days from receipt of the application or within any additional time permitted by the bankruptcy court. Taxslayer   If a prompt determination request is incomplete, all the documents received by the IRS will be returned to the trustee by the assigned Field Insolvency Office with an explanation identifying the missing item(s) and instructions to re-file the request once corrected. Taxslayer   Once corrected, the request must be filed with the IRS at the Field Insolvency Office address specified in the correspondence accompanying the returned incomplete request. Taxslayer   In the case of an incomplete request submitted with a copy of an invalid return document, the trustee must file a valid original return with the appropriate IRS office and submit a copy of that return with the corrected request when the request is re-filed. Taxslayer Note. Taxslayer An incomplete request includes those submitted with a copy of a return form, the original of which does not qualify as a valid return. Taxslayer   The 60-day period to notify the trustee whether the return is accepted as filed or has been selected for examination does not begin to run until a complete request package is recei
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People get jobs in the federal government in the same way that they get most jobs in the private industry: by finding job openings and submitting a resume or job application. You can research and apply for government jobs online with a resume. However, while the process is now very similar to that in private industry, there are still significant differences due to the many laws, executive orders, and regulations that govern federal and state employment.

USAJOBS.gov can help you find out how federal jobs are filled; learn more about the hiring reform; find tips for your resume, application, and interview; and how to apply for federal jobs. Most federal jobs are listed on USAJOBS; however, some excepted service agencies, such U. S. Department of State for Foreign Service Officers, post jobs independently on their own website or elsewhere. If you’d like to work for a specific agency, do a targeted search of their job sections and employment information pages.

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The Taxslayer

Taxslayer Index A Abandonment, Abandonment Accounting method Accrual, Accrual Method Cash, Cash Method Change in, Changes in Methods of Accounting Crop, Crop method. Taxslayer Farm inventory, Farm Inventory Accounting periods, Introduction Accrual method of accounting, Accrual Method Additional Medicare Tax withholding, What's New for 2013, Additional Medicare Tax. Taxslayer Adjusted basis for installment sale, Adjusted basis for installment sale purposes. Taxslayer Adjusted basis of assets, Adjusted Basis Agricultural activity codes, Schedule F, Reminders Agricultural program payments, Agricultural Program Payments Agricultural structure, defined, Agricultural structure. Taxslayer Alternative Depreciation System (ADS), Required use of ADS. Taxslayer , ADS election. Taxslayer Amortization Going into business, Business Start-Up Costs Reforestation expenses, Reforestation Costs Section 197 intangibles, Section 197 Intangibles Assessments By conservation district, Assessment by Conservation District Depreciable property, Assessment for Depreciable Property Assistance (see Tax help) Automobiles, depreciation, Limits for passenger automobiles. Taxslayer B Bankruptcy, Bankruptcy. Taxslayer Barter income, Barter income. Taxslayer Basis Adjusted, Adjusted basis. Taxslayer Installment sale, Adjusted basis for installment sale purposes. Taxslayer Involuntary conversion, Basis for depreciation. Taxslayer Like-kind exchange, Basis for depreciation. Taxslayer Partner's basis, Property Distributed From a Partnership or Corporation Replacement property, Basis of replacement property. Taxslayer Shareholder's basis, Property Distributed From a Partnership or Corporation Basis of assets Adjusted basis, Adjusted Basis Allocating to several assets, Allocating the Basis Changed to business use, Property changed from personal to business or rental use. Taxslayer Constructing assets, Constructing assets. Taxslayer Cost, Cost Basis Decreases, Decreases to Basis Depreciation, What Is the Basis for Depreciation? Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Gifts, Property Received as a Gift Increases, Increases to Basis Real property, Real Property Received for services, Property received for services. Taxslayer Uniform capitalization rules, Uniform Capitalization Rules Below-market loans, Below-market loans. Taxslayer Books and records, Importance of Records Breeding fees, Breeding Fees Business income limit, section 179 expense deduction, Business Income Limit Business use of home, Business Use of Your Home C Canceled debt, Cancellation of Debt Capital assets, Capital Assets Capital expenses, Capital Expenses Car expenses, Truck and Car Expenses Cash method of accounting, Cash Method Casualties and thefts Adjustments to basis, Adjustments to basis. Taxslayer Casualty, defined, Casualty. Taxslayer Disaster area losses, Disaster Area Losses Leased property, Leased property. Taxslayer Livestock, Livestock or produce bought for resale. Taxslayer , Raised draft, breeding, dairy, or sporting animals. Taxslayer Reimbursement, Insurance and other reimbursements. Taxslayer Reporting gains and losses, Reporting Gains and Losses Theft, defined, Theft. Taxslayer Change in accounting method, Changes in Methods of Accounting Chickens, purchased, Chickens, seeds, and young plants. Taxslayer Christmas trees, Christmas tree cultivation. Taxslayer , Christmas trees. Taxslayer Club dues, Club dues and membership fees. Taxslayer Comments on publication, Comments and suggestions. Taxslayer Commodity Futures, Hedging (Commodity Futures) Wages, Noncash wages. Taxslayer Commodity Credit Corporation (CCC) Loans, Commodity Credit Corporation (CCC) Loans Market gain, Market Gain Community property, Community property. Taxslayer , Community property. Taxslayer Computer, software, Computer software. Taxslayer Condemnation, Casualties, Thefts, and Condemnations, Condemnation Conservation Cost-sharing exclusion, Conservation Expenses District assessments, Assessment by Conservation District Expenses, Conservation Expenses Plans, Conservation plan. Taxslayer Conservation Reserve Program, Conservation Reserve Program (CRP) payments. Taxslayer Conservation Reserve Program (CRP), Conservation Reserve Program (CRP) Constructing assets, Constructing assets. Taxslayer Constructive receipt of income, Constructive receipt. Taxslayer Contamination, Soil or other environmental contamination. Taxslayer Contract price, Contract price. Taxslayer Converted wetland, Converted Wetland and Highly Erodible Cropland Cooperatives, income from, Income From Cooperatives Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements) Counter-cyclical payments, Direct payments and counter-cyclical payments. Taxslayer , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Credits Employment, Employment Credits Fuel tax, Fuel tax credit and refund. Taxslayer , How To Claim a Credit or Refund, Claiming a Credit Social security and Medicare, Earning credits in 2013. Taxslayer Social security coverage, How to become insured under social security. Taxslayer State unemployment tax, Tax rate and credit. Taxslayer Crew leaders, Crew Leaders Crop Destroyed, Standing crop destroyed by casualty. Taxslayer Insurance proceeds, Crop Insurance and Crop Disaster Payments Method of accounting, Crop method. Taxslayer Shares, Rents (Including Crop Shares) Unharvested, Cost of raising unharvested crops. Taxslayer , Section 1231 transactions. Taxslayer , Gain or loss. Taxslayer Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland D Damage Casualties and thefts, Casualties and Thefts Crop insurance, Crop Insurance and Crop Disaster Payments Tree seedlings, Tree Seedlings Debt Bad, Nonbusiness bad debt. Taxslayer Canceled, Cancellation of Debt, Canceled debt excluded from income. Taxslayer , Cancellation of debt. Taxslayer , Canceled debt. Taxslayer Nonrecourse, Amount realized on a nonrecourse debt. Taxslayer Qualified farm, Qualified Farm Debt Qualified principal residence, Qualified Principal Residence Debt Recourse, Amount realized on a recourse debt. Taxslayer Depletion, Depletion Depreciation, Claiming the Special Depreciation Allowance ADS election, ADS election. Taxslayer Conservation assets, Depreciable conservation assets. Taxslayer Deduction, Overview of Depreciation Incorrect amount deducted, How Do You Correct Depreciation Deductions? Limit for automobiles, Limits for passenger automobiles. Taxslayer Listed property, Additional Rules for Listed Property Raised livestock, Livestock. Taxslayer Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property When to file, Do You Have To File Form 4562? Depreciation allowable, Basis adjustment for depreciation allowed or allowable. Taxslayer Depreciation allowed, Basis adjustment for depreciation allowed or allowable. Taxslayer Direct payments, Direct payments and counter-cyclical payments. Taxslayer , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Disaster area losses, Disaster Area Losses Disaster payments, Crop Insurance and Crop Disaster Payments Disaster relief grants, Federal disaster relief grants. Taxslayer Disaster relief payments, Qualified disaster relief payments. Taxslayer Dispositions, Sale or other disposal of land during 9-year period. Taxslayer , Gain on sale of farmland. Taxslayer , Introduction Domestic production activities deduction, Domestic Production Activities Deduction Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E e-file, Reminders Easement, Easements and rights-of-way. Taxslayer , Easements. Taxslayer Election ADS depreciation, Electing ADS. Taxslayer , ADS election. Taxslayer Amortization Business start-up costs, Business Start-Up Costs Reforestation costs, Reforestation Costs Crop method, Election to use crop method. Taxslayer Cutting of timber, Election to treat cutting as a sale or exchange. Taxslayer Deducting conservation expenses, When to Deduct or Capitalize Not excluding cost-sharing payments, Electing not to exclude payments. Taxslayer Out of installment method, Electing out of the installment method. Taxslayer Postponing casualty gain, Postponing Gain Postponing reporting crop insurance proceeds, Election to postpone reporting until the following year. Taxslayer Section 179 expense deduction, How Do You Elect the Deduction? Electronic filing, Reminders Embryo transplants, Transplanted embryo. Taxslayer Employer identification number, Reminders, Employer identification number (EIN). Taxslayer Endangered species recovery expenses, Endangered species recovery expenses. Taxslayer Environmental contamination, Soil or other environmental contamination. Taxslayer Estimated tax Farm gross income, Gross Income From Farming Gross income, Gross Income Penalties, Estimated Tax Penalty for 2013 Exchanges Basis Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Like-Kind Exchanges Excise taxes Credit, Claiming a Credit Diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Farming purposes, Fuels Used in Farming Home use of fuels, Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines Off-highway uses, Fuels Used in Off-Highway Business Use Refund, Claiming a Refund F Fair market value defined, Fair market value (FMV). Taxslayer , Fair market value (FMV). Taxslayer Family member Business expenses, Special rule for related persons. Taxslayer Installment sale, Sale to a related person. Taxslayer Like-kind exchange, Like-kind exchanges between related persons. Taxslayer Loss on sale or exchange of property, Losses from sales or exchanges between related persons. Taxslayer Personal-use property, Personal-use property. Taxslayer Social security coverage, Family Employees Farm Business expenses, Farm Business Expenses Business, defined, Business of Farming Defined, Farm defined. Taxslayer , Farm. Taxslayer Income averaging, Income Averaging for Farmers Rental, Farm rental. Taxslayer Sale of, Sale of a Farm Farmer, Farmer. Taxslayer Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax Fertilizer, Fertilizer and Lime, Fertilizer and Lime Foreclosure, Foreclosure or Repossession Forestation costs, Forestation and reforestation costs. Taxslayer Form 1099-A, Form 1099-A. Taxslayer , Forms 1099-A and 1099-C. Taxslayer 1099-C, Cancellation of Debt, Form 1099-C. Taxslayer , Forms 1099-A and 1099-C. Taxslayer 1099-G, Market Gain, Payment to More Than One Person 1099-MISC, Reminders, Nonemployee compensation. Taxslayer 1099-PATR, Form 1099-PATR. Taxslayer 1128, Introduction 2210-F, Estimated Tax Penalty for 2013 3115, Changes in Methods of Accounting 4136, Claiming a Credit 4562, Do You Have To File Form 4562? 4797, Form 4797. Taxslayer , Recapture. Taxslayer , Reporting the exchange. Taxslayer 4835, Rents (Including Crop Shares) 5213, Using the presumption later. Taxslayer 6252, Form 6252. Taxslayer 8822, Reminders 8824, Reporting the exchange. Taxslayer 8849, Claiming a Refund 8886, Reminders 940, Form 940. Taxslayer 943, Form 943. Taxslayer 982, Form 982 I-9, Form I-9. Taxslayer SS-4, Reminders, Employer identification number (EIN). Taxslayer SS-5, Obtaining a social security number. Taxslayer T (Timber), Form T (Timber). Taxslayer W-2, Form W-2. Taxslayer W-4, Reminders, New hire reporting. Taxslayer , Form W-4. Taxslayer W-4V, Commodity Credit Corporation (CCC) Loans, Crop Insurance and Crop Disaster Payments W-7, Obtaining an individual taxpayer identification number. Taxslayer Free tax services, How To Get Tax Help, Free help with your tax return. Taxslayer Fuel tax credit or refund, Fuel tax credit and refund. Taxslayer , How To Claim a Credit or Refund G Gains and losses Basis of assets, Cost Basis Capital assets, defined, Capital Assets Casualty, How To Figure a Loss, Figuring a Gain Installment sales, Installment Sales Livestock, Livestock Long- or short-term, Long and Short Term Ordinary or capital, Ordinary or Capital Gain or Loss Sale of farm, Sale of a Farm Section 1231, Section 1231 Gains and Losses Theft, How To Figure a Loss, Figuring a Gain Timber, Timber General asset accounts, How Do You Use General Asset Accounts? Gifts, Crop shares you give to others (gift). Taxslayer , Cost related to gifts. Taxslayer , Property Received as a Gift, Gift. Taxslayer Going into business, Business Start-Up Costs Grants, disaster relief, Federal disaster relief grants. Taxslayer Gross profit percentage, Gross profit percentage. Taxslayer Gross profit, defined, Gross profit. Taxslayer Guarantee, Debt not payable on demand. Taxslayer H Health insurance deduction, Self-employed health insurance deduction. Taxslayer Hedging, Hedging (Commodity Futures) Help (see Tax help) Highway use tax, Highway use tax. Taxslayer Holding period, Holding period. Taxslayer Horticultural structure, Horticultural structure. Taxslayer I Illegal irrigation subsidy, Illegal federal irrigation subsidy. Taxslayer Important dates, Important Dates for 2014 Improvements, Cost-Sharing Exclusion (Improvements) Income Accounting for, Accounting Methods Accrual method of accounting, Income Canceled debt excluded, Cancellation of Debt From farming, Farm Income, Gross income from farming. Taxslayer , Gross Income From Farming Gross, Gross Income Not-for-profit farming, Not-for-Profit Farming Pasture, Pasture income and rental. Taxslayer Schedule F, Farm Income Withholding of tax, Federal Income Tax Withholding Income averaging (see Farm: Income averaging) Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions? Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number. Taxslayer Inherited property, Inherited Property Insolvency, Insolvency. Taxslayer Installment sales, Form 6252. Taxslayer Electing out, Electing out of the installment method. Taxslayer Farm, sale of, Installment Sale of a Farm Figuring income, Figuring Installment Sale Income Reporting income, Form 6252. Taxslayer Unstated interest, Unstated interest. Taxslayer Insurance, Insurance, Self-employed health insurance deduction. Taxslayer Intangible property, Section 197 Intangibles Interest Expense, Interest Income, Interest income. Taxslayer Unstated, Unstated interest. Taxslayer Inventory Items included, Farm Inventory Methods of valuation, Inventory valuation methods. Taxslayer Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion. Taxslayer , Introduction Irrigation Illegal subsidy, Illegal federal irrigation subsidy. Taxslayer Project, Irrigation Project L Labor hired, Labor Hired Landlord participation, Landlord Participation in Farming Lease or purchase, Lease or Purchase Life tenant (see Term interests) Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Lime, Fertilizer and Lime Limits At-risk, At-Risk Limits Business use of home, Deduction limit. Taxslayer Capital losses, Treatment of Capital Losses Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction Depreciation Business-use, What Is the Business-Use Requirement? Excluded farm debt, Exclusion limit. Taxslayer Farm losses, Losses From Operating a Farm Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property Not-for-profit farming, Not-for-Profit Farming Passive activity, Passive Activity Limits Percentage depletion, Taxable income limit. Taxslayer Prepaid farm supplies, Deduction limit. Taxslayer Reforestation costs, Reforestation Costs Section 179 expense deduction Automobile, Limits for passenger automobiles. Taxslayer Business income, Business Income Limit Dollar, Dollar Limits Time to keep records, How Long To Keep Records Listed property Defined, What Is Listed Property? Passenger automobile, Passenger automobiles. Taxslayer Rules, Additional Rules for Listed Property Livestock, Section 1231 transactions. Taxslayer Casualty and theft losses, Livestock or produce bought for resale. Taxslayer Crop shares, Crop shares you use to feed livestock. Taxslayer Depreciation, Livestock. Taxslayer Diseased, Diseased livestock. Taxslayer Feed assistance, Feed Assistance and Payments Immature, Immature livestock. Taxslayer Losses, Loss of livestock. Taxslayer , Livestock Purchased, Purchased livestock. Taxslayer Raised, Raised livestock. Taxslayer Sale of, Sales of Farm Products, Livestock Unit-livestock-price, inventory valuation, Unit-livestock-price method. Taxslayer Used in a farm business, Livestock used in farm business. Taxslayer Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Taxslayer Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses. Taxslayer Losses At-risk limits, At-Risk Limits Casualty, Casualties, Thefts, and Condemnations Disaster areas, Disaster Area Losses Farming, Farming Losses Growing crops, Loss of growing plants, produce, and crops. Taxslayer Hobby farming, Not-for-Profit Farming Livestock, Livestock, Diseased livestock. Taxslayer Nondeductible, Other Nondeductible Items Theft, Casualties, Thefts, and Condemnations Lost income payments, Lost income payments. Taxslayer Lost property, Mislaid or lost property. Taxslayer M MACRS property Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Taxslayer Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion. Taxslayer Nontaxable transfer, Property acquired in a nontaxable transfer. Taxslayer Market gain, reporting, Market Gain Marketing quota penalties, Marketing Quota Penalties Material participation, Landlord Participation in Farming Meals, Meals. Taxslayer Membership fees, Club dues and membership fees. Taxslayer Methods of accounting, Accounting Methods Modified ACRS (MACRS) ADS election, ADS election. Taxslayer Conventions, Which Convention Applies? Depreciation methods, Which Depreciation Method Applies? Exchange, Property acquired in a like-kind exchange or involuntary conversion. Taxslayer Figuring the deduction, How Is the Depreciation Deduction Figured? Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Taxslayer Nontaxable transfer, Property acquired in a nontaxable transfer. Taxslayer Percentage tables, Rules for using the tables. Taxslayer Property classes, Which Property Class Applies Under GDS? Recovery periods, Which Recovery Period Applies? N New hire reporting, New hire reporting. Taxslayer Noncapital asset, Noncapital Assets Nontaxable exchanges, Like-Kind Exchanges Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer. Taxslayer Not-for-profit farming, Not-for-Profit Farming O Organizational costs, Business start-up and organizational costs. Taxslayer P Partners, limited, Limited partner. Taxslayer Partners, retired, Retired partner. Taxslayer Partners, Spouse, Business Owned and Operated by Spouses. Taxslayer Partnership, Partnership income or loss. Taxslayer Passenger automobile, Passenger automobiles. Taxslayer Pasture income, Pasture income and rental. Taxslayer Patronage dividends, Patronage Dividends Payments considered received, Payments Received or Considered Received Payments received, Payments Received or Considered Received Penalties Estimated tax, Estimated Tax Penalty for 2013 Returns, Estimated Tax Penalty for 2013 Trust fund recovery, Trust fund recovery penalty. Taxslayer Per-unit retain certificates, Per-Unit Retain Certificates Personal expenses, Personal, Living, and Family Expenses Placed in service, Placed in Service, What Is the Placed-in-Service Date? Postponing casualty gain, Postponing Gain Prepaid expense Advance premiums, Advance premiums. Taxslayer Extends useful life, Prepayment. Taxslayer Farm supplies, Prepaid Farm Supplies Livestock feed, Prepaid Livestock Feed Prizes, Prizes. Taxslayer Produce, Sales of Farm Products Property Changed to business use, Property changed from personal to business or rental use. Taxslayer Received for services, Property received for services. Taxslayer Repairs and improvements, How Do You Treat Repairs and Improvements? Section 1231, Section 1231 transactions. Taxslayer Section 1245, Section 1245 Property Section 1250, Section 1250 Property Section 1252, Section 1252 property. Taxslayer Section 1255, Section 1255 property. Taxslayer Tangible personal, Tangible personal property. Taxslayer Publications (see Tax help) Q Qualified disaster relief payments, Qualified disaster relief payments. Taxslayer Qualified farm debt, Qualified Farm Debt Qualified joint venture, Qualified joint venture. Taxslayer Qualified principal residence debt, Qualified Principal Residence Debt R Recapture Amortization, Depreciation and amortization. Taxslayer Basis reductions, Recapture of basis reductions. Taxslayer Certain depreciation, Recapture of certain depreciation. Taxslayer Cost-sharing payments, Recapture. Taxslayer Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture. Taxslayer Section 1245 property, Section 1245 Property Section 1250 property, Section 1250 Property Section 179 expense deduction, When Must You Recapture the Deduction? Section 179 GO Zone property, Recapture for qualified section 179 GO Zone property. Taxslayer Special depreciation allowance, When Must You Recapture an Allowance Recordkeeping, Importance of Records, Meals. Taxslayer Records on depreciable property, Depreciation Recapture Reforestation costs, Forestation and reforestation costs. Taxslayer , Reforestation Costs Refund Deduction taken, Refund or reimbursement. Taxslayer Fuel tax, Fuel tax credit and refund. Taxslayer , Including the Credit or Refund in Income Reimbursements Casualties and thefts, Casualty and theft losses. Taxslayer , Casualties and Thefts, Insurance and other reimbursements. Taxslayer Deduction taken, Refund or reimbursement. Taxslayer Expenses, Reimbursed expenses. Taxslayer Feed assistance, Feed Assistance and Payments Real estate taxes, Real estate taxes. Taxslayer Reforestation expenses, Qualifying costs. Taxslayer To employees, Reimbursements to employees. Taxslayer Related persons, Special rule for related persons. Taxslayer , Losses from sales or exchanges between related persons. Taxslayer , Special rules for related persons. Taxslayer , Like-kind exchanges between related persons. Taxslayer , Sale to a related person. Taxslayer , Buying replacement property from a related person. Taxslayer , Related persons. Taxslayer Rental income, Rents (Including Crop Shares) Rented property, improvements, Improvements to rented property. Taxslayer Repairs, Repairs and Maintenance Repairs and improvements, How Do You Treat Repairs and Improvements? Repayment of income, Repayment of income. Taxslayer Replacement Period, Replacement Period Property, Replacement Property Reportable transactions. Taxslayer , Reminders Repossessions, Foreclosure or Repossession Right-of-way income, Easements and rights-of-way. Taxslayer S Sale of home, Sale of your home. Taxslayer Section 179 expense deduction, Section 179 Expense Deduction How to elect, How Do You Elect the Deduction? Listed property, Additional Rules for Listed Property Qualifying property, What Property Qualifies? Recapture, When Must You Recapture the Deduction? Self-employed health insurance, Self-employed health insurance deduction. Taxslayer Self-employed health insurance deduction, Self-employed health insurance deduction. Taxslayer Self-employment tax Community property, Community property. Taxslayer Deduction, Deduction for employer-equivalent portion of self-employment tax. Taxslayer How to pay, How To Pay Self-Employment Tax Landlord participation, Landlord Participation in Farming Material participation, Material participation for landlords. Taxslayer Maximum net earnings, What's New for 2013 Methods for figuring net earnings, Methods for Figuring Net Earnings Optional method, Farm Optional Method Regular method, Regular Method Rental income, Landlord Participation in Farming Reporting, Reporting Self-Employment Tax Self-employment tax rate, Self-employment tax rate. Taxslayer Share farming, Share farmer. Taxslayer Tax rates, What's New for 2013 Who must pay, Who Must Pay Self-Employment Tax? Selling expenses, Selling expenses. Taxslayer Selling price Defined, Selling price. Taxslayer Reduced, Selling price reduced. Taxslayer Settlement costs (fees), Settlement costs. Taxslayer Social security and Medicare Credits of coverage, Earning credits in 2013. Taxslayer Withholding of tax, Social Security and Medicare Taxes Social security number, Obtaining a social security number. Taxslayer Software, computer, Computer software. Taxslayer Soil Conservation, Conservation Expenses Contamination, Soil or other environmental contamination. Taxslayer Special depreciation allowance How to elect not to claim, How Can You Elect Not To Claim the Allowance? Recapture, When Must You Recapture an Allowance Standard mileage rate, Standard mileage rate. Taxslayer Start-up costs for businesses, Business start-up and organizational costs. Taxslayer Suggestions for publication, Comments and suggestions. Taxslayer T Tangible personal property, Tangible personal property. Taxslayer Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. Taxslayer Tax shelter At-risk limits, At-Risk Limits Defined, Tax shelter. Taxslayer Tax-free exchanges, Like-Kind Exchanges Taxes Excise, Excise Taxes Federal use, Highway use tax. Taxslayer General, Taxes Self-employment, Self-Employment Tax State and federal, State and federal income taxes. Taxslayer State and local general sales, State and local general sales taxes. Taxslayer Withholding, Federal income tax withholding. Taxslayer , Social Security and Medicare Taxes, Federal Income Tax Withholding Telephone expense, Telephone expense. Taxslayer Tenant house expenses, Tenant House Expenses Term interests, Certain term interests in property. Taxslayer Theft losses, Casualties, Thefts, and Condemnations Timber, Timber. Taxslayer , Timber Depletion, Timber Tobacco quota buyout payments, Tobacco Quota Buyout Program Payments Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments Trade-in, Sale and Purchase Travel expenses, Travel Expenses Truck expenses, Truck and Car Expenses Trust fund recovery penalty, Trust fund recovery penalty. Taxslayer TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Basis of assets, Uniform Capitalization Rules Inventory, Uniform capitalization rules. Taxslayer Unstated interest, Unstated interest. Taxslayer W Wages and salaries, Wages and salaries. Taxslayer Water conservation, Conservation Expenses Water well, Water well. Taxslayer , Water wells. Taxslayer Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Taxslayer Withholding Income tax, Federal Income Tax Withholding Social security and Medicare tax, Social Security and Medicare Taxes Prev  Up     Home   More Online Publications