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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Turbotax Business Federal E File 2012 For Pc Download

Www Free State Tax ReturnH&r Block Free State Tax E FileTaxes Hrblock ComState Income Tax Form 2012Irs Tax Forms 2012Freetaxusa 2010Irs Tax Forms 1040ezWhat Can Students Write Off On TaxesFree Tax Filing 2013 Low IncomeE File Tax ReturnFile Free State ReturnWhere Can I File 2011 Taxes For FreeHow To File Past TaxesForm 1040ez InstructionsFree Federal Tax ReturnTax Credits For StudentsFile Only State Taxes Online FreeTax Exemptions For Disabled VeteransAmended Tax Return 2010H And R BlockMyfreetaxes OrgEz FormMilitary H And R BlockH&r Free Federal Tax FilingAmend 1040xCheapest State Tax FilingI Need To Amend My 2012 Tax ReturnFree E File State Tax ReturnH & R BlockCan I Refile My TaxesFree 2012 Tax ReturnMilitary Income Tax CalculatorWhere Can I File My Taxes Electronically For FreeCheap State Taxes OnlineState Income Tax FormFiling Taxes For Students1040ez Income Tax FormFiling An Amended Tax ReturnIrs 1040 FormHow To Get A 1040x Tax Form

Turbotax Business Federal E File 2012 For Pc Download

Turbotax business federal e file 2012 for pc download 8. Turbotax business federal e file 2012 for pc download   Amortization Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: How To Deduct Amortization Starting a BusinessBusiness Start-Up Costs Costs of Organizing a Corporation Costs of Organizing a Partnership How To Amortize Getting a Lease Section 197 IntangiblesSection 197 Intangibles Defined Assets That Are Not Section 197 Intangibles Safe Harbor for Creative Property Costs Anti-Churning Rules Incorrect Amount of Amortization Deducted Disposition of Section 197 Intangibles Reforestation Costs Geological and Geophysical Costs Pollution Control FacilitiesNew identifiable treatment facility. Turbotax business federal e file 2012 for pc download Research and Experimental Costs Optional Write-off of Certain Tax Preferences Introduction Amortization is a method of recovering (deducting) certain capital costs over a fixed period of time. Turbotax business federal e file 2012 for pc download It is similar to the straight line method of depreciation. Turbotax business federal e file 2012 for pc download The various amortizable costs covered in this chapter are included in the list below. Turbotax business federal e file 2012 for pc download However, this chapter does not discuss amortization of bond premium. Turbotax business federal e file 2012 for pc download For information on that topic, see chapter 3 of Publication 550, Investment Income and Expenses. Turbotax business federal e file 2012 for pc download Topics - This chapter discusses: Deducting amortization Amortizing costs of starting a business Amortizing costs of getting a lease Amortizing costs of section 197 intangibles Amortizing reforestation costs Amortizing costs of geological and geophysical costs Amortizing costs of pollution control facilities Amortizing costs of research and experimentation Amortizing costs of certain tax preferences Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 4626 Alternative Minimum Tax—Corporations 6251 Alternative Minimum Tax—Individuals See chapter 12 for information about getting publications and forms. Turbotax business federal e file 2012 for pc download How To Deduct Amortization To deduct amortization that begins during the current tax year, complete Part VI of Form 4562 and attach it to your income tax return. Turbotax business federal e file 2012 for pc download To report amortization from previous years, in addition to amortization that begins in the current year, list on Form 4562 each item separately. Turbotax business federal e file 2012 for pc download For example, in 2012, you began to amortize a lease. Turbotax business federal e file 2012 for pc download In 2013, you began to amortize a second lease. Turbotax business federal e file 2012 for pc download Report amortization from the new lease on line 42 of your 2013 Form 4562. Turbotax business federal e file 2012 for pc download Report amortization from the 2012 lease on line 43 of your 2013 Form 4562. Turbotax business federal e file 2012 for pc download If you do not have any new amortizable expenses for the current year, you are not required to complete Form 4562 (unless you are claiming depreciation). Turbotax business federal e file 2012 for pc download Report the current year's deduction for amortization that began in a prior year directly on the “Other deduction” or “Other expense line” of your return. Turbotax business federal e file 2012 for pc download Starting a Business When you start a business, treat all eligible costs you incur before you begin operating the business as capital expenditures which are part of your basis in the business. Turbotax business federal e file 2012 for pc download Generally, you recover costs for particular assets through depreciation deductions. Turbotax business federal e file 2012 for pc download However, you generally cannot recover other costs until you sell the business or otherwise go out of business. Turbotax business federal e file 2012 for pc download For a discussion on how to treat these costs, see If your attempt to go into business is unsuccessful under Capital Expenses in chapter 1. Turbotax business federal e file 2012 for pc download For costs paid or incurred after September 8, 2008, you can deduct a limited amount of start-up and organizational costs. Turbotax business federal e file 2012 for pc download The costs that are not deducted currently can be amortized ratably over a 180-month period. Turbotax business federal e file 2012 for pc download The amortization period starts with the month you begin operating your active trade or business. Turbotax business federal e file 2012 for pc download You are not required to attach a statement to make this election. Turbotax business federal e file 2012 for pc download You can choose to forgo this election by affirmatively electing to capitalize your start-up costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Turbotax business federal e file 2012 for pc download Once made, the election to either amortize or capitalize start-up costs is irrevocable and applies to all start-up costs that are related to your trade or business. Turbotax business federal e file 2012 for pc download See Regulations sections 1. Turbotax business federal e file 2012 for pc download 195-1, 1. Turbotax business federal e file 2012 for pc download 248-1, and 1. Turbotax business federal e file 2012 for pc download 709-1. Turbotax business federal e file 2012 for pc download For costs paid or incurred after October 22, 2004, and before September 9, 2008, you can elect to deduct a limited amount of business start-up and organizational costs in the year your active trade or business begins. Turbotax business federal e file 2012 for pc download Any costs not deducted can be amortized ratably over a 180-month period, beginning with the month you begin business. Turbotax business federal e file 2012 for pc download If the election is made, you must attach any statement required by Regulations sections 1. Turbotax business federal e file 2012 for pc download 195-1(b), 1. Turbotax business federal e file 2012 for pc download 248-1(c), and 1. Turbotax business federal e file 2012 for pc download 709-1(c), as in effect before September 9, 2008. Turbotax business federal e file 2012 for pc download Note. Turbotax business federal e file 2012 for pc download You can apply the provisions of Regulations sections 1. Turbotax business federal e file 2012 for pc download 195-1, 1. Turbotax business federal e file 2012 for pc download 248-1, and 1. Turbotax business federal e file 2012 for pc download 709-1 to all business start-up and organizational costs paid or incurred after October 22, 2004, provided the period of limitations on assessment has not expired for the year of the election. Turbotax business federal e file 2012 for pc download Otherwise, the provisions under Regulations sections 1. Turbotax business federal e file 2012 for pc download 195-1(b), 1. Turbotax business federal e file 2012 for pc download 248-1(c), and 1. Turbotax business federal e file 2012 for pc download 709-1(c), as in effect before September 9, 2008, will apply. Turbotax business federal e file 2012 for pc download For costs paid or incurred before October 23, 2004, you can elect to amortize business start-up and organization costs over an amortization period of 60 months or more. Turbotax business federal e file 2012 for pc download See How To Make the Election , later. Turbotax business federal e file 2012 for pc download The cost must qualify as one of the following. Turbotax business federal e file 2012 for pc download A business start-up cost. Turbotax business federal e file 2012 for pc download An organizational cost for a corporation. Turbotax business federal e file 2012 for pc download An organizational cost for a partnership. Turbotax business federal e file 2012 for pc download Business Start-Up Costs Start-up costs are amounts paid or incurred for: (a) creating an active trade or business; or (b) investigating the creation or acquisition of an active trade or business. Turbotax business federal e file 2012 for pc download Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit; and for the production of income in anticipation of the activity becoming an active trade or business. Turbotax business federal e file 2012 for pc download Qualifying costs. Turbotax business federal e file 2012 for pc download   A start-up cost is amortizable if it meets both of the following tests. Turbotax business federal e file 2012 for pc download It is a cost you could deduct if you paid or incurred it to operate an existing active trade or business (in the same field as the one you entered into). Turbotax business federal e file 2012 for pc download It is a cost you pay or incur before the day your active trade or business begins. Turbotax business federal e file 2012 for pc download   Start-up costs include amounts paid for the following: An analysis or survey of potential markets, products, labor supply, transportation facilities, etc. Turbotax business federal e file 2012 for pc download Advertisements for the opening of the business. Turbotax business federal e file 2012 for pc download Salaries and wages for employees who are being trained and their instructors. Turbotax business federal e file 2012 for pc download Travel and other necessary costs for securing prospective distributors, suppliers, or customers. Turbotax business federal e file 2012 for pc download Salaries and fees for executives and consultants, or for similar professional services. Turbotax business federal e file 2012 for pc download Nonqualifying costs. Turbotax business federal e file 2012 for pc download   Start-up costs do not include deductible interest, taxes, or research and experimental costs. Turbotax business federal e file 2012 for pc download See Research and Experimental Costs , later. Turbotax business federal e file 2012 for pc download Purchasing an active trade or business. Turbotax business federal e file 2012 for pc download   Amortizable start-up costs for purchasing an active trade or business include only investigative costs incurred in the course of a general search for or preliminary investigation of the business. Turbotax business federal e file 2012 for pc download These are costs that help you decide whether to purchase a business. Turbotax business federal e file 2012 for pc download Costs you incur in an attempt to purchase a specific business are capital expenses that you cannot amortize. Turbotax business federal e file 2012 for pc download Example. Turbotax business federal e file 2012 for pc download On June 1st, you hired an accounting firm and a law firm to assist you in the potential purchase of XYZ, Inc. Turbotax business federal e file 2012 for pc download They researched XYZ's industry and analyzed the financial projections of XYZ, Inc. Turbotax business federal e file 2012 for pc download In September, the law firm prepared and submitted a letter of intent to XYZ, Inc. Turbotax business federal e file 2012 for pc download The letter stated that a binding commitment would result only after a purchase agreement was signed. Turbotax business federal e file 2012 for pc download The law firm and accounting firm continued to provide services including a review of XYZ's books and records and the preparation of a purchase agreement. Turbotax business federal e file 2012 for pc download On October 22nd, you signed a purchase agreement with XYZ, Inc. Turbotax business federal e file 2012 for pc download All amounts paid or incurred to investigate the business before October 22nd are amortizable investigative costs. Turbotax business federal e file 2012 for pc download Amounts paid on or after that date relate to the attempt to purchase the business and therefore must be capitalized. Turbotax business federal e file 2012 for pc download Disposition of business. Turbotax business federal e file 2012 for pc download   If you completely dispose of your business before the end of the amortization period, you can deduct any remaining deferred start-up costs. Turbotax business federal e file 2012 for pc download However, you can deduct these deferred start-up costs only to the extent they qualify as a loss from a business. Turbotax business federal e file 2012 for pc download Costs of Organizing a Corporation Amounts paid to organize a corporation are the direct costs of creating the corporation. Turbotax business federal e file 2012 for pc download Qualifying costs. Turbotax business federal e file 2012 for pc download   To qualify as an organizational cost, it must be: For the creation of the corporation, Chargeable to a capital account (see chapter 1), Amortized over the life of the corporation if the corporation had a fixed life, and Incurred before the end of the first tax year in which the corporation is in business. Turbotax business federal e file 2012 for pc download   A corporation using the cash method of accounting can amortize organizational costs incurred within the first tax year, even if it does not pay them in that year. Turbotax business federal e file 2012 for pc download   Examples of organizational costs include: The cost of temporary directors. Turbotax business federal e file 2012 for pc download The cost of organizational meetings. Turbotax business federal e file 2012 for pc download State incorporation fees. Turbotax business federal e file 2012 for pc download The cost of legal services. Turbotax business federal e file 2012 for pc download Nonqualifying costs. Turbotax business federal e file 2012 for pc download   The following items are capital expenses that cannot be amortized: Costs for issuing and selling stock or securities, such as commissions, professional fees, and printing costs. Turbotax business federal e file 2012 for pc download Costs associated with the transfer of assets to the corporation. Turbotax business federal e file 2012 for pc download Costs of Organizing a Partnership The costs to organize a partnership are the direct costs of creating the partnership. Turbotax business federal e file 2012 for pc download Qualifying costs. Turbotax business federal e file 2012 for pc download   A partnership can amortize an organizational cost only if it meets all the following tests. Turbotax business federal e file 2012 for pc download It is for the creation of the partnership and not for starting or operating the partnership trade or business. Turbotax business federal e file 2012 for pc download It is chargeable to a capital account (see chapter 1). Turbotax business federal e file 2012 for pc download It could be amortized over the life of the partnership if the partnership had a fixed life. Turbotax business federal e file 2012 for pc download It is incurred by the due date of the partnership return (excluding extensions) for the first tax year in which the partnership is in business. Turbotax business federal e file 2012 for pc download However, if the partnership uses the cash method of accounting and pays the cost after the end of its first tax year, see Cash method partnership under How To Amortize, later. Turbotax business federal e file 2012 for pc download It is for a type of item normally expected to benefit the partnership throughout its entire life. Turbotax business federal e file 2012 for pc download   Organizational costs include the following fees. Turbotax business federal e file 2012 for pc download Legal fees for services incident to the organization of the partnership, such as negotiation and preparation of the partnership agreement. Turbotax business federal e file 2012 for pc download Accounting fees for services incident to the organization of the partnership. Turbotax business federal e file 2012 for pc download Filing fees. Turbotax business federal e file 2012 for pc download Nonqualifying costs. Turbotax business federal e file 2012 for pc download   The following costs cannot be amortized. Turbotax business federal e file 2012 for pc download The cost of acquiring assets for the partnership or transferring assets to the partnership. Turbotax business federal e file 2012 for pc download The cost of admitting or removing partners, other than at the time the partnership is first organized. Turbotax business federal e file 2012 for pc download The cost of making a contract concerning the operation of the partnership trade or business including a contract between a partner and the partnership. Turbotax business federal e file 2012 for pc download The costs for issuing and marketing interests in the partnership such as brokerage, registration, and legal fees and printing costs. Turbotax business federal e file 2012 for pc download These “syndication fees” are capital expenses that cannot be depreciated or amortized. Turbotax business federal e file 2012 for pc download Liquidation of partnership. Turbotax business federal e file 2012 for pc download   If a partnership is liquidated before the end of the amortization period, the unamortized amount of qualifying organizational costs can be deducted in the partnership's final tax year. Turbotax business federal e file 2012 for pc download However, these costs can be deducted only to the extent they qualify as a loss from a business. Turbotax business federal e file 2012 for pc download How To Amortize Deduct start-up and organizational costs in equal amounts over the applicable amortization period (discussed earlier). Turbotax business federal e file 2012 for pc download You can choose an amortization period for start-up costs that is different from the period you choose for organizational costs, as long as both are not less than the applicable amortization period. Turbotax business federal e file 2012 for pc download Once you choose an amortization period, you cannot change it. Turbotax business federal e file 2012 for pc download To figure your deduction, divide your total start-up or organizational costs by the months in the amortization period. Turbotax business federal e file 2012 for pc download The result is the amount you can deduct for each month. Turbotax business federal e file 2012 for pc download Cash method partnership. Turbotax business federal e file 2012 for pc download   A partnership using the cash method of accounting can deduct an organizational cost only if it has been paid by the end of the tax year. Turbotax business federal e file 2012 for pc download However, any cost the partnership could have deducted as an organizational cost in an earlier tax year (if it had been paid that year) can be deducted in the tax year of payment. Turbotax business federal e file 2012 for pc download How To Make the Election To elect to amortize start-up or organizational costs, you must complete and attach Form 4562 to your return for the first tax year you are in business. Turbotax business federal e file 2012 for pc download You may also be required to attach an accompanying statement (described later) to your return. Turbotax business federal e file 2012 for pc download For start-up or organizational costs paid or incurred after September 8, 2008, an accompanying statement is not required. Turbotax business federal e file 2012 for pc download Generally, for start-up or organizational costs paid or incurred before September 9, 2008, and after October 22, 2004, unless you choose to apply Regulations sections 1. Turbotax business federal e file 2012 for pc download 195-1, 1. Turbotax business federal e file 2012 for pc download 248-1, and 1. Turbotax business federal e file 2012 for pc download 709-1, you must also attach an accompanying statement to elect to amortize the costs. Turbotax business federal e file 2012 for pc download If you have both start-up and organizational costs, attach a separate statement (if required) to your return for each type of cost. Turbotax business federal e file 2012 for pc download See Starting a Business , earlier, for more information. Turbotax business federal e file 2012 for pc download Generally, you must file the return by the due date (including any extensions). Turbotax business federal e file 2012 for pc download However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Turbotax business federal e file 2012 for pc download For more information, see the instructions for Part VI of Form 4562. Turbotax business federal e file 2012 for pc download You can choose to forgo the election to amortize by affirmatively electing to capitalize your start-up or organizational costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Turbotax business federal e file 2012 for pc download Note. Turbotax business federal e file 2012 for pc download The election to either amortize or capitalize start-up or organizational costs is irrevocable and applies to all start-up and organizational costs that are related to the trade or business. Turbotax business federal e file 2012 for pc download If your business is organized as a corporation or partnership, only the corporation or partnership can elect to amortize its start-up or organizational costs. Turbotax business federal e file 2012 for pc download A shareholder or partner cannot make this election. Turbotax business federal e file 2012 for pc download You, as a shareholder or partner, cannot amortize any costs you incur in setting up your corporation or partnership. Turbotax business federal e file 2012 for pc download Only the corporation or partnership can amortize these costs. Turbotax business federal e file 2012 for pc download However, you, as an individual, can elect to amortize costs you incur to investigate an interest in an existing partnership. Turbotax business federal e file 2012 for pc download These costs qualify as business start-up costs if you acquire the partnership interest. Turbotax business federal e file 2012 for pc download Start-up costs election statement. Turbotax business federal e file 2012 for pc download   If you elect to amortize your start-up costs, attach a separate statement (if required) that contains the following information. Turbotax business federal e file 2012 for pc download A description of the business to which the start-up costs relate. Turbotax business federal e file 2012 for pc download A description of each start-up cost incurred. Turbotax business federal e file 2012 for pc download The month your active business began (or was acquired). Turbotax business federal e file 2012 for pc download The number of months in your amortization period (which is generally 180 months). Turbotax business federal e file 2012 for pc download Filing the statement early. Turbotax business federal e file 2012 for pc download   You can elect to amortize your start-up costs by filing the statement with a return for any tax year before the year your active business begins. Turbotax business federal e file 2012 for pc download If you file the statement early, the election becomes effective in the month of the tax year your active business begins. Turbotax business federal e file 2012 for pc download Revised statement. Turbotax business federal e file 2012 for pc download   You can file a revised statement to include any start-up costs not included in your original statement. Turbotax business federal e file 2012 for pc download However, you cannot include on the revised statement any cost you previously treated on your return as a cost other than a start-up cost. Turbotax business federal e file 2012 for pc download You can file the revised statement with a return filed after the return on which you elected to amortize your start-up costs. Turbotax business federal e file 2012 for pc download Organizational costs election statement. Turbotax business federal e file 2012 for pc download   If you elect to amortize your corporation's or partnership's organizational costs, attach a separate statement (if required) that contains the following information. Turbotax business federal e file 2012 for pc download A description of each cost. Turbotax business federal e file 2012 for pc download The amount of each cost. Turbotax business federal e file 2012 for pc download The date each cost was incurred. Turbotax business federal e file 2012 for pc download The month your corporation or partnership began active business (or acquired the business). Turbotax business federal e file 2012 for pc download The number of months in your amortization period (which is generally 180 months). Turbotax business federal e file 2012 for pc download Partnerships. Turbotax business federal e file 2012 for pc download   The statement prepared for a cash basis partnership must also indicate the amount paid before the end of the year for each cost. Turbotax business federal e file 2012 for pc download   You do not need to separately list any partnership organizational cost that is less than $10. Turbotax business federal e file 2012 for pc download Instead, you can list the total amount of these costs with the dates the first and last costs were incurred. Turbotax business federal e file 2012 for pc download   After a partnership makes the election to amortize organizational costs, it can later file an amended return to include additional organizational costs not included in the partnership's original return and statement. Turbotax business federal e file 2012 for pc download Getting a Lease If you get a lease for business property, you may recover the cost of acquiring the lease by amortizing it over the term of the lease. Turbotax business federal e file 2012 for pc download The term of the lease for amortization purposes generally includes all renewal options (and any other period for which you and the lessor reasonably expect the lease to be renewed). Turbotax business federal e file 2012 for pc download However, renewal periods are not included if 75% or more of the cost of acquiring the lease is for the term of the lease remaining on the acquisition date (not including any period for which you may choose to renew, extend, or continue the lease). Turbotax business federal e file 2012 for pc download For more information on the costs of getting a lease, see Cost of Getting a Lease in  chapter 3. Turbotax business federal e file 2012 for pc download How to amortize. Turbotax business federal e file 2012 for pc download   Enter your deduction in Part VI of Form 4562 if you are deducting amortization that begins during the current year, or on the appropriate line of your tax return if you are not otherwise required to file Form 4562. Turbotax business federal e file 2012 for pc download Section 197 Intangibles Generally, you may amortize the capitalized costs of “section 197 intangibles” (defined later) ratably over a 15-year period. Turbotax business federal e file 2012 for pc download You must amortize these costs if you hold the section 197 intangibles in connection with your trade or business or in an activity engaged in for the production of income. Turbotax business federal e file 2012 for pc download You may not be able to amortize section 197 intangibles acquired in a transaction that did not result in a significant change in ownership or use. Turbotax business federal e file 2012 for pc download See Anti-Churning Rules, later. Turbotax business federal e file 2012 for pc download Your amortization deduction each year is the applicable part of the intangible's adjusted basis (for purposes of determining gain), figured by amortizing it ratably over 15 years (180 months). Turbotax business federal e file 2012 for pc download The 15-year period begins with the later of: The month the intangible is acquired, or The month the trade or business or activity engaged in for the production of income begins. Turbotax business federal e file 2012 for pc download You cannot deduct amortization for the month you dispose of the intangible. Turbotax business federal e file 2012 for pc download If you pay or incur an amount that increases the basis of an amortizable section 197 intangible after the 15-year period begins, amortize it over the remainder of the 15-year period beginning with the month the basis increase occurs. Turbotax business federal e file 2012 for pc download You are not allowed any other depreciation or amortization deduction for an amortizable section 197 intangible. Turbotax business federal e file 2012 for pc download Tax-exempt use property subject to a lease. Turbotax business federal e file 2012 for pc download   The amortization period for any section 197 intangible leased under a lease agreement entered into after March 12, 2004, to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership), shall not be less than 125 percent of the lease term. Turbotax business federal e file 2012 for pc download Cost attributable to other property. Turbotax business federal e file 2012 for pc download   The rules for section 197 intangibles do not apply to any amount that is included in determining the cost of property that is not a section 197 intangible. Turbotax business federal e file 2012 for pc download For example, if the cost of computer software is not separately stated from the cost of hardware or other tangible property and you consistently treat it as part of the cost of the hardware or other tangible property, these rules do not apply. Turbotax business federal e file 2012 for pc download Similarly, none of the cost of acquiring real property held for the production of rental income is considered the cost of goodwill, going concern value, or any other section 197 intangible. Turbotax business federal e file 2012 for pc download Section 197 Intangibles Defined The following assets are section 197 intangibles and must be amortized over 180 months: Goodwill; Going concern value; Workforce in place; Business books and records, operating systems, or any other information base, including lists or other information concerning current or prospective customers; A patent, copyright, formula, process, design, pattern, know-how, format, or similar item; A customer-based intangible; A supplier-based intangible; Any item similar to items (3) through (7); A license, permit, or other right granted by a governmental unit or agency (including issuances and renewals); A covenant not to compete entered into in connection with the acquisition of an interest in a trade or business; Any franchise, trademark, or trade name; and A contract for the use of, or a term interest in, any item in this list. Turbotax business federal e file 2012 for pc download You cannot amortize any of the intangibles listed in items (1) through (8) that you created rather than acquired unless you created them in acquiring assets that make up a trade or business or a substantial part of a trade or business. Turbotax business federal e file 2012 for pc download Goodwill. Turbotax business federal e file 2012 for pc download   This is the value of a trade or business based on expected continued customer patronage due to its name, reputation, or any other factor. Turbotax business federal e file 2012 for pc download Going concern value. Turbotax business federal e file 2012 for pc download   This is the additional value of a trade or business that attaches to property because the property is an integral part of an ongoing business activity. Turbotax business federal e file 2012 for pc download It includes value based on the ability of a business to continue to function and generate income even though there is a change in ownership (but does not include any other section 197 intangible). Turbotax business federal e file 2012 for pc download It also includes value based on the immediate use or availability of an acquired trade or business, such as the use of earnings during any period in which the business would not otherwise be available or operational. Turbotax business federal e file 2012 for pc download Workforce in place, etc. Turbotax business federal e file 2012 for pc download   This includes the composition of a workforce (for example, its experience, education, or training). Turbotax business federal e file 2012 for pc download It also includes the terms and conditions of employment, whether contractual or otherwise, and any other value placed on employees or any of their attributes. Turbotax business federal e file 2012 for pc download   For example, you must amortize the part of the purchase price of a business that is for the existence of a highly skilled workforce. Turbotax business federal e file 2012 for pc download Also, you must amortize the cost of acquiring an existing employment contract or relationship with employees or consultants. Turbotax business federal e file 2012 for pc download Business books and records, etc. Turbotax business federal e file 2012 for pc download   This includes the intangible value of technical manuals, training manuals or programs, data files, and accounting or inventory control systems. Turbotax business federal e file 2012 for pc download It also includes the cost of customer lists, subscription lists, insurance expirations, patient or client files, and lists of newspaper, magazine, radio, and television advertisers. Turbotax business federal e file 2012 for pc download Patents, copyrights, etc. Turbotax business federal e file 2012 for pc download   This includes package design, computer software, and any interest in a film, sound recording, videotape, book, or other similar property, except as discussed later under Assets That Are Not Section 197 Intangibles . Turbotax business federal e file 2012 for pc download Customer-based intangible. Turbotax business federal e file 2012 for pc download   This is the composition of market, market share, and any other value resulting from the future provision of goods or services because of relationships with customers in the ordinary course of business. Turbotax business federal e file 2012 for pc download For example, you must amortize the part of the purchase price of a business that is for the existence of the following intangibles. Turbotax business federal e file 2012 for pc download A customer base. Turbotax business federal e file 2012 for pc download A circulation base. Turbotax business federal e file 2012 for pc download An undeveloped market or market growth. Turbotax business federal e file 2012 for pc download Insurance in force. Turbotax business federal e file 2012 for pc download A mortgage servicing contract. Turbotax business federal e file 2012 for pc download An investment management contract. Turbotax business federal e file 2012 for pc download Any other relationship with customers involving the future provision of goods or services. Turbotax business federal e file 2012 for pc download   Accounts receivable or other similar rights to income for goods or services provided to customers before the acquisition of a trade or business are not section 197 intangibles. Turbotax business federal e file 2012 for pc download Supplier-based intangible. Turbotax business federal e file 2012 for pc download   A supplier-based intangible is the value resulting from the future acquisitions, (through contract or other relationships with suppliers in the ordinary course of business) of goods or services that you will sell or use. Turbotax business federal e file 2012 for pc download The amount you pay or incur for supplier-based intangibles includes, for example, any portion of the purchase price of an acquired trade or business that is attributable to the existence of a favorable relationship with persons providing distribution services (such as a favorable shelf or display space or a retail outlet), or the existence of favorable supply contracts. Turbotax business federal e file 2012 for pc download Do not include any amount required to be paid for the goods or services to honor the terms of the agreement or other relationship. Turbotax business federal e file 2012 for pc download Also, see Assets That Are Not Section 197 Intangibles below. Turbotax business federal e file 2012 for pc download Government-granted license, permit, etc. Turbotax business federal e file 2012 for pc download   This is any right granted by a governmental unit or an agency or instrumentality of a governmental unit. Turbotax business federal e file 2012 for pc download For example, you must amortize the capitalized costs of acquiring (including issuing or renewing) a liquor license, a taxicab medallion or license, or a television or radio broadcasting license. Turbotax business federal e file 2012 for pc download Covenant not to compete. Turbotax business federal e file 2012 for pc download   Section 197 intangibles include a covenant not to compete (or similar arrangement) entered into in connection with the acquisition of an interest in a trade or business, or a substantial portion of a trade or business. Turbotax business federal e file 2012 for pc download An interest in a trade or business includes an interest in a partnership or a corporation engaged in a trade or business. Turbotax business federal e file 2012 for pc download   An arrangement that requires the former owner to perform services (or to provide property or the use of property) is not similar to a covenant not to compete to the extent the amount paid under the arrangement represents reasonable compensation for those services or for that property or its use. Turbotax business federal e file 2012 for pc download Franchise, trademark, or trade name. Turbotax business federal e file 2012 for pc download   A franchise, trademark, or trade name is a section 197 intangible. Turbotax business federal e file 2012 for pc download You must amortize its purchase or renewal costs, other than certain contingent payments that you can deduct currently. Turbotax business federal e file 2012 for pc download For information on currently deductible contingent payments, see chapter 11. Turbotax business federal e file 2012 for pc download Professional sports franchise. Turbotax business federal e file 2012 for pc download   A franchise engaged in professional sports and any intangible assets acquired in connection with acquiring the franchise (including player contracts) is a section 197 intangible amortizable over a 15-year period. Turbotax business federal e file 2012 for pc download Contract for the use of, or a term interest in, a section 197 intangible. Turbotax business federal e file 2012 for pc download   Section 197 intangibles include any right under a license, contract, or other arrangement providing for the use of any section 197 intangible. Turbotax business federal e file 2012 for pc download It also includes any term interest in any section 197 intangible, whether the interest is outright or in trust. Turbotax business federal e file 2012 for pc download Assets That Are Not Section 197 Intangibles The following assets are not section 197 intangibles. Turbotax business federal e file 2012 for pc download Any interest in a corporation, partnership, trust, or estate. Turbotax business federal e file 2012 for pc download Any interest under an existing futures contract, foreign currency contract, notional principal contract, interest rate swap, or similar financial contract. Turbotax business federal e file 2012 for pc download Any interest in land. Turbotax business federal e file 2012 for pc download Most computer software. Turbotax business federal e file 2012 for pc download (See Computer software , later. Turbotax business federal e file 2012 for pc download ) Any of the following assets not acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. Turbotax business federal e file 2012 for pc download An interest in a film, sound recording, video tape, book, or similar property. Turbotax business federal e file 2012 for pc download A right to receive tangible property or services under a contract or from a governmental agency. Turbotax business federal e file 2012 for pc download An interest in a patent or copyright. Turbotax business federal e file 2012 for pc download Certain rights that have a fixed duration or amount. Turbotax business federal e file 2012 for pc download (See Rights of fixed duration or amount , later. Turbotax business federal e file 2012 for pc download ) An interest under either of the following. Turbotax business federal e file 2012 for pc download An existing lease or sublease of tangible property. Turbotax business federal e file 2012 for pc download A debt that was in existence when the interest was acquired. Turbotax business federal e file 2012 for pc download A right to service residential mortgages unless the right is acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. Turbotax business federal e file 2012 for pc download Certain transaction costs incurred by parties to a corporate organization or reorganization in which any part of a gain or loss is not recognized. Turbotax business federal e file 2012 for pc download Intangible property that is not amortizable under the rules for section 197 intangibles can be depreciated if it meets certain requirements. Turbotax business federal e file 2012 for pc download You generally must use the straight line method over its useful life. Turbotax business federal e file 2012 for pc download For certain intangibles, the depreciation period is specified in the law and regulations. Turbotax business federal e file 2012 for pc download For example, the depreciation period for computer software that is not a section 197 intangible is generally 36 months. Turbotax business federal e file 2012 for pc download For more information on depreciating intangible property, see Intangible Property under What Method Can You Use To Depreciate Your Property? in chapter 1 of Publication 946. Turbotax business federal e file 2012 for pc download Computer software. Turbotax business federal e file 2012 for pc download   Section 197 intangibles do not include the following types of computer software. Turbotax business federal e file 2012 for pc download Software that meets all the following requirements. Turbotax business federal e file 2012 for pc download It is, or has been, readily available for purchase by the general public. Turbotax business federal e file 2012 for pc download It is subject to a nonexclusive license. Turbotax business federal e file 2012 for pc download It has not been substantially modified. Turbotax business federal e file 2012 for pc download This requirement is considered met if the cost of all modifications is not more than the greater of 25% of the price of the publicly available unmodified software or $2,000. Turbotax business federal e file 2012 for pc download Software that is not acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. Turbotax business federal e file 2012 for pc download Computer software defined. Turbotax business federal e file 2012 for pc download   Computer software includes all programs designed to cause a computer to perform a desired function. Turbotax business federal e file 2012 for pc download It also includes any database or similar item that is in the public domain and is incidental to the operation of qualifying software. Turbotax business federal e file 2012 for pc download Rights of fixed duration or amount. Turbotax business federal e file 2012 for pc download   Section 197 intangibles do not include any right under a contract or from a governmental agency if the right is acquired in the ordinary course of a trade or business (or in an activity engaged in for the production of income) but not as part of a purchase of a trade or business and either: Has a fixed life of less than 15 years, or Is of a fixed amount that, except for the rules for section 197 intangibles, would be recovered under a method similar to the unit-of-production method of cost recovery. Turbotax business federal e file 2012 for pc download However, this does not apply to the following intangibles. Turbotax business federal e file 2012 for pc download Goodwill. Turbotax business federal e file 2012 for pc download Going concern value. Turbotax business federal e file 2012 for pc download A covenant not to compete. Turbotax business federal e file 2012 for pc download A franchise, trademark, or trade name. Turbotax business federal e file 2012 for pc download A customer-related information base, customer-based intangible, or similar item. Turbotax business federal e file 2012 for pc download Safe Harbor for Creative Property Costs If you are engaged in the trade or business of film production, you may be able to amortize the creative property costs for properties not set for production within 3 years of the first capitalized transaction. Turbotax business federal e file 2012 for pc download You may amortize these costs ratably over a 15-year period beginning on the first day of the second half of the tax year in which you properly write off the costs for financial accounting purposes. Turbotax business federal e file 2012 for pc download If, during the 15-year period, you dispose of the creative property rights, you must continue to amortize the costs over the remainder of the 15-year period. Turbotax business federal e file 2012 for pc download Creative property costs include costs paid or incurred to acquire and develop screenplays, scripts, story outlines, motion picture production rights to books and plays, and other similar properties for purposes of potential future film development, production, and exploitation. Turbotax business federal e file 2012 for pc download Amortize these costs using the rules of Revenue Procedure 2004-36. Turbotax business federal e file 2012 for pc download For more information, see Revenue Procedure 2004-36, 2004-24 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 1063, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2004-24_IRB/ar16. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download A change in the treatment of creative property costs is a change in method of accounting. Turbotax business federal e file 2012 for pc download Anti-Churning Rules Anti-churning rules prevent you from amortizing most section 197 intangibles if the transaction in which you acquired them did not result in a significant change in ownership or use. Turbotax business federal e file 2012 for pc download These rules apply to goodwill and going concern value, and to any other section 197 intangible that is not otherwise depreciable or amortizable. Turbotax business federal e file 2012 for pc download Under the anti-churning rules, you cannot use 15-year amortization for the intangible if any of the following conditions apply. Turbotax business federal e file 2012 for pc download You or a related person (defined later) held or used the intangible at any time from July 25, 1991, through August 10, 1993. Turbotax business federal e file 2012 for pc download You acquired the intangible from a person who held it at any time during the period in (1) and, as part of the transaction, the user did not change. Turbotax business federal e file 2012 for pc download You granted the right to use the intangible to a person (or a person related to that person) who held or used it at any time during the period in (1). Turbotax business federal e file 2012 for pc download This applies only if the transaction in which you granted the right and the transaction in which you acquired the intangible are part of a series of related transactions. Turbotax business federal e file 2012 for pc download See Related person , later, for more information. Turbotax business federal e file 2012 for pc download Exceptions. Turbotax business federal e file 2012 for pc download   The anti-churning rules do not apply in the following situations. Turbotax business federal e file 2012 for pc download You acquired the intangible from a decedent and its basis was stepped up to its fair market value. Turbotax business federal e file 2012 for pc download The intangible was amortizable as a section 197 intangible by the seller or transferor you acquired it from. Turbotax business federal e file 2012 for pc download This exception does not apply if the transaction in which you acquired the intangible and the transaction in which the seller or transferor acquired it are part of a series of related transactions. Turbotax business federal e file 2012 for pc download The gain-recognition exception, discussed later, applies. Turbotax business federal e file 2012 for pc download Related person. Turbotax business federal e file 2012 for pc download   For purposes of the anti-churning rules, the following are related persons. Turbotax business federal e file 2012 for pc download An individual and his or her brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Turbotax business federal e file 2012 for pc download ), and lineal descendants (children, grandchildren, etc. Turbotax business federal e file 2012 for pc download ). Turbotax business federal e file 2012 for pc download A corporation and an individual who owns, directly or indirectly, more than 20% of the value of the corporation's outstanding stock. Turbotax business federal e file 2012 for pc download Two corporations that are members of the same controlled group as defined in section 1563(a) of the Internal Revenue Code, except that “more than 20%” is substituted for “at least 80%” in that definition and the determination is made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. Turbotax business federal e file 2012 for pc download (For an exception, see section 1. Turbotax business federal e file 2012 for pc download 197-2(h)(6)(iv) of the regulations. Turbotax business federal e file 2012 for pc download ) A trust fiduciary and a corporation if more than 20% of the value of the corporation's outstanding stock is owned, directly or indirectly, by or for the trust or grantor of the trust. Turbotax business federal e file 2012 for pc download The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Turbotax business federal e file 2012 for pc download The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. Turbotax business federal e file 2012 for pc download The executor and beneficiary of an estate. Turbotax business federal e file 2012 for pc download A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization (or whose family members control it). Turbotax business federal e file 2012 for pc download A corporation and a partnership if the same persons own more than 20% of the value of the outstanding stock of the corporation and more than 20% of the capital or profits interest in the partnership. Turbotax business federal e file 2012 for pc download Two S corporations, and an S corporation and a regular corporation, if the same persons own more than 20% of the value of the outstanding stock of each corporation. Turbotax business federal e file 2012 for pc download Two partnerships if the same persons own, directly or indirectly, more than 20% of the capital or profits interests in both partnerships. Turbotax business federal e file 2012 for pc download A partnership and a person who owns, directly or indirectly, more than 20% of the capital or profits interests in the partnership. Turbotax business federal e file 2012 for pc download Two persons who are engaged in trades or businesses under common control (as described in section 41(f)(1) of the Internal Revenue Code). Turbotax business federal e file 2012 for pc download When to determine relationship. Turbotax business federal e file 2012 for pc download   Persons are treated as related if the relationship existed at the following time. Turbotax business federal e file 2012 for pc download In the case of a single transaction, immediately before or immediately after the transaction in which the intangible was acquired. Turbotax business federal e file 2012 for pc download In the case of a series of related transactions (or a series of transactions that comprise a qualified stock purchase under section 338(d)(3) of the Internal Revenue Code), immediately before the earliest transaction or immediately after the last transaction. Turbotax business federal e file 2012 for pc download Ownership of stock. Turbotax business federal e file 2012 for pc download   In determining whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following rules apply. Turbotax business federal e file 2012 for pc download Rule 1. Turbotax business federal e file 2012 for pc download   Stock directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Turbotax business federal e file 2012 for pc download Rule 2. Turbotax business federal e file 2012 for pc download   An individual is considered to own the stock directly or indirectly owned by or for his or her family. Turbotax business federal e file 2012 for pc download Family includes only brothers and sisters, half-brothers and half-sisters, spouse, ancestors, and lineal descendants. Turbotax business federal e file 2012 for pc download Rule 3. Turbotax business federal e file 2012 for pc download   An individual owning (other than by applying Rule 2) any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. Turbotax business federal e file 2012 for pc download Rule 4. Turbotax business federal e file 2012 for pc download   For purposes of applying Rule 1, 2, or 3, treat stock constructively owned by a person under Rule 1 as actually owned by that person. Turbotax business federal e file 2012 for pc download Do not treat stock constructively owned by an individual under Rule 2 or 3 as owned by the individual for reapplying Rule 2 or 3 to make another person the constructive owner of the stock. Turbotax business federal e file 2012 for pc download Gain-recognition exception. Turbotax business federal e file 2012 for pc download   This exception to the anti-churning rules applies if the person you acquired the intangible from (the transferor) meets both of the following requirements. Turbotax business federal e file 2012 for pc download That person would not be related to you (as described under Related person , earlier) if the 20% test for ownership of stock and partnership interests were replaced by a 50% test. Turbotax business federal e file 2012 for pc download That person chose to recognize gain on the disposition of the intangible and pay income tax on the gain at the highest tax rate. Turbotax business federal e file 2012 for pc download See chapter 2 in Publication 544 for information on making this choice. Turbotax business federal e file 2012 for pc download   If this exception applies, the anti-churning rules apply only to the amount of your adjusted basis in the intangible that is more than the gain recognized by the transferor. Turbotax business federal e file 2012 for pc download Notification. Turbotax business federal e file 2012 for pc download   If the person you acquired the intangible from chooses to recognize gain under the rules for this exception, that person must notify you in writing by the due date of the return on which the choice is made. Turbotax business federal e file 2012 for pc download Anti-abuse rule. Turbotax business federal e file 2012 for pc download   You cannot amortize any section 197 intangible acquired in a transaction for which the principal purpose was either of the following. Turbotax business federal e file 2012 for pc download To avoid the requirement that the intangible be acquired after August 10, 1993. Turbotax business federal e file 2012 for pc download To avoid any of the anti-churning rules. Turbotax business federal e file 2012 for pc download More information. Turbotax business federal e file 2012 for pc download   For more information about the anti-churning rules, including additional rules for partnerships, see Regulations section 1. Turbotax business federal e file 2012 for pc download 197-2(h). Turbotax business federal e file 2012 for pc download Incorrect Amount of Amortization Deducted If you later discover that you deducted an incorrect amount for amortization for a section 197 intangible in any year, you may be able to make a correction for that year by filing an amended return. Turbotax business federal e file 2012 for pc download See Amended Return , next. Turbotax business federal e file 2012 for pc download If you are not allowed to make the correction on an amended return, you can change your accounting method to claim the correct amortization. Turbotax business federal e file 2012 for pc download See Changing Your Accounting Method , later. Turbotax business federal e file 2012 for pc download Amended Return If you deducted an incorrect amount for amortization, you can file an amended return to correct the following. Turbotax business federal e file 2012 for pc download A mathematical error made in any year. Turbotax business federal e file 2012 for pc download A posting error made in any year. Turbotax business federal e file 2012 for pc download An amortization deduction for a section 197 intangible for which you have not adopted a method of accounting. Turbotax business federal e file 2012 for pc download When to file. Turbotax business federal e file 2012 for pc download   If an amended return is allowed, you must file it by the later of the following dates. Turbotax business federal e file 2012 for pc download 3 years from the date you filed your original return for the year in which you did not deduct the correct amount. Turbotax business federal e file 2012 for pc download (A return filed early is considered filed on the due date. Turbotax business federal e file 2012 for pc download ) 2 years from the time you paid your tax for that year. Turbotax business federal e file 2012 for pc download Changing Your Accounting Method Generally, you must get IRS approval to change your method of accounting. Turbotax business federal e file 2012 for pc download File Form 3115, Application for Change in Accounting Method, to request a change to a permissible method of accounting for amortization. Turbotax business federal e file 2012 for pc download The following are examples of a change in method of accounting for amortization. Turbotax business federal e file 2012 for pc download A change in the amortization method, period of recovery, or convention of an amortizable asset. Turbotax business federal e file 2012 for pc download A change in the accounting for amortizable assets from a single asset account to a multiple asset account (pooling), or vice versa. Turbotax business federal e file 2012 for pc download A change in the accounting for amortizable assets from one type of multiple asset account to a different type of multiple asset account. Turbotax business federal e file 2012 for pc download Changes in amortization that are not a change in method of accounting include the following: A change in computing amortization in the tax year in which your use of the asset changes. Turbotax business federal e file 2012 for pc download An adjustment in the useful life of an amortizable asset. Turbotax business federal e file 2012 for pc download Generally, the making of a late amortization election or the revocation of a timely valid amortization election. Turbotax business federal e file 2012 for pc download Any change in the placed-in-service date of an amortizable asset. Turbotax business federal e file 2012 for pc download See Regulations section 1. Turbotax business federal e file 2012 for pc download 446-1(e)(2)(ii)(a) for more information and examples. Turbotax business federal e file 2012 for pc download Automatic approval. Turbotax business federal e file 2012 for pc download   In some instances, you may be able to get automatic approval from the IRS to change your method of accounting for amortization. Turbotax business federal e file 2012 for pc download For a list of automatic accounting method changes, see the Instructions for Form 3115. Turbotax business federal e file 2012 for pc download Also see the Instructions for Form 3115 for more information on getting approval, automatic approval procedures, and a list of exceptions to the automatic approval process. Turbotax business federal e file 2012 for pc download For more information, see Revenue Procedure 2006-12, as modified by Revenue Procedure 2006-37, and Revenue Procedure 2008-52, as amplified, clarified, and modified by Revenue Procedure 2009-39, as clarified and modified by Revenue Procedure 2011-14, as modified and amplified by Revenue Procedure 2011-22, as modified by Revenue Procedure 2012-39, or any successor. Turbotax business federal e file 2012 for pc download See Revenue Procedure 2006-12, 2006-3 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 310, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2006-03_IRB/ar14. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download  See Revenue Procedure 2006-37, 2006-38 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 499, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2006-38_IRB/ar10. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download  See Revenue Procedure 2008-52, 2008-36 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 587, available at www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2008-36_IRB/ar09. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download  See Revenue Procedure 2009-39, 2009-38 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 371, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2009-38_IRB/ar08. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download  See Revenue Procedure 2011-14, 2011-4 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 330, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2011-04_IRB/ar08. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download  See Revenue Procedure 2011-22, 2011-18 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 737, available at  www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2011-18_IRB/ar08. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download Also, see Revenue Procedure 2012-39, 2012-41 I. Turbotax business federal e file 2012 for pc download R. Turbotax business federal e file 2012 for pc download B. Turbotax business federal e file 2012 for pc download 470 available at www. Turbotax business federal e file 2012 for pc download irs. Turbotax business federal e file 2012 for pc download gov/irb/2012-41_IRB/index. Turbotax business federal e file 2012 for pc download html. Turbotax business federal e file 2012 for pc download Disposition of Section 197 Intangibles A section 197 intangible is treated as depreciable property used in your trade or business. Turbotax business federal e file 2012 for pc download If you held the intangible for more than 1 year, any gain on its disposition, up to the amount of allowable amortization, is ordinary income (section 1245 gain). Turbotax business federal e file 2012 for pc download If multiple section 197 intangibles are disposed of in a single transaction or a series of related transactions, treat all of the section 197 intangibles as if they were a single asset for purposes of determining the amount of gain that is ordinary income. Turbotax business federal e file 2012 for pc download Any remaining gain, or any loss, is a section 1231 gain or loss. Turbotax business federal e file 2012 for pc download If you held the intangible 1 year or less, any gain or loss on its disposition is an ordinary gain or loss. Turbotax business federal e file 2012 for pc download For more information on ordinary or capital gain or loss on business property, see chapter 3 in Publication 544. Turbotax business federal e file 2012 for pc download Nondeductible loss. Turbotax business federal e file 2012 for pc download   You cannot deduct any loss on the disposition or worthlessness of a section 197 intangible that you acquired in the same transaction (or series of related transactions) as other section 197 intangibles you still have. Turbotax business federal e file 2012 for pc download Instead, increase the adjusted basis of each remaining amortizable section 197 intangible by a proportionate part of the nondeductible loss. Turbotax business federal e file 2012 for pc download Figure the increase by multiplying the nondeductible loss on the disposition of the intangible by the following fraction. Turbotax business federal e file 2012 for pc download The numerator is the adjusted basis of each remaining intangible on the date of the disposition. Turbotax business federal e file 2012 for pc download The denominator is the total adjusted bases of all remaining amortizable section 197 intangibles on the date of the disposition. Turbotax business federal e file 2012 for pc download Covenant not to compete. Turbotax business federal e file 2012 for pc download   A covenant not to compete, or similar arrangement, is not considered disposed of or worthless before you dispose of your entire interest in the trade or business for which you entered into the covenant. Turbotax business federal e file 2012 for pc download Nonrecognition transfers. Turbotax business federal e file 2012 for pc download   If you acquire a section 197 intangible in a nonrecognition transfer, you are treated as the transferor with respect to the part of your adjusted basis in the intangible that is not more than the transferor's adjusted basis. Turbotax business federal e file 2012 for pc download You amortize this part of the adjusted basis over the intangible's remaining amortization period in the hands of the transferor. Turbotax business federal e file 2012 for pc download Nonrecognition transfers include transfers to a corporation, partnership contributions and distributions, like-kind exchanges, and involuntary conversions. Turbotax business federal e file 2012 for pc download   In a like-kind exchange or involuntary conversion of a section 197 intangible, you must continue to amortize the part of your adjusted basis in the acquired intangible that is not more than your adjusted basis in the exchanged or converted intangible over the remaining amortization period of the exchanged or converted intangible. Turbotax business federal e file 2012 for pc download Amortize over a new 15-year period the part of your adjusted basis in the acquired intangible that is more than your adjusted basis in the exchanged or converted intangible. Turbotax business federal e file 2012 for pc download Example. Turbotax business federal e file 2012 for pc download You own a section 197 intangible you have amortized for 4 full years. Turbotax business federal e file 2012 for pc download It has a remaining unamortized basis of $30,000. Turbotax business federal e file 2012 for pc download You exchange the asset plus $10,000 for a like-kind section 197 intangible. Turbotax business federal e file 2012 for pc download The nonrecognition provisions of like-kind exchanges apply. Turbotax business federal e file 2012 for pc download You amortize $30,000 of the $40,000 adjusted basis of the acquired intangible over the 11 years remaining in the original 15-year amortization period for the transferred asset. Turbotax business federal e file 2012 for pc download You amortize the other $10,000 of adjusted basis over a new 15-year period. Turbotax business federal e file 2012 for pc download For more information, see Regulations section 1. Turbotax business federal e file 2012 for pc download 197-2(g). Turbotax business federal e file 2012 for pc download Reforestation Costs You can elect to deduct a limited amount of reforestation costs paid or incurred during the tax year. Turbotax business federal e file 2012 for pc download See Reforestation Costs in chapter 7. Turbotax business federal e file 2012 for pc download You can elect to amortize the qualifying costs that are not deducted currently over an 84-month period. Turbotax business federal e file 2012 for pc download There is no limit on the amount of your amortization deduction for reforestation costs paid or incurred during the tax year. Turbotax business federal e file 2012 for pc download The election to amortize reforestation costs incurred by a partnership, S corporation, or estate must be made by the partnership, corporation, or estate. Turbotax business federal e file 2012 for pc download A partner, shareholder, or beneficiary cannot make that election. Turbotax business federal e file 2012 for pc download A partner's or shareholder's share of amortizable costs is figured under the general rules for allocating items of income, loss, deduction, etc. Turbotax business federal e file 2012 for pc download , of a partnership or S corporation. Turbotax business federal e file 2012 for pc download The amortizable costs of an estate are divided between the estate and the income beneficiary based on the income of the estate allocable to each. Turbotax business federal e file 2012 for pc download Qualifying costs. Turbotax business federal e file 2012 for pc download   Reforestation costs are the direct costs of planting or seeding for forestation or reforestation. Turbotax business federal e file 2012 for pc download Qualifying costs include only those costs you must capitalize and include in the adjusted basis of the property. Turbotax business federal e file 2012 for pc download They include costs for the following items. Turbotax business federal e file 2012 for pc download Site preparation. Turbotax business federal e file 2012 for pc download Seeds or seedlings. Turbotax business federal e file 2012 for pc download Labor. Turbotax business federal e file 2012 for pc download Tools. Turbotax business federal e file 2012 for pc download Depreciation on equipment used in planting and seeding. Turbotax business federal e file 2012 for pc download Qualifying costs do not include costs for which the government reimburses you under a cost-sharing program, unless you include the reimbursement in your income. Turbotax business federal e file 2012 for pc download Qualified timber property. Turbotax business federal e file 2012 for pc download   Qualified timber property is property that contains trees in significant commercial quantities. Turbotax business federal e file 2012 for pc download It can be a woodlot or other site that you own or lease. Turbotax business federal e file 2012 for pc download The property qualifies only if it meets all of the following requirements. Turbotax business federal e file 2012 for pc download It is located in the United States. Turbotax business federal e file 2012 for pc download It is held for the growing and cutting of timber you will either use in, or sell for use in, the commercial production of timber products. Turbotax business federal e file 2012 for pc download It consists of at least one acre planted with tree seedlings in the manner normally used in forestation or reforestation. Turbotax business federal e file 2012 for pc download Qualified timber property does not include property on which you have planted shelter belts or ornamental trees, such as Christmas trees. Turbotax business federal e file 2012 for pc download Amortization period. Turbotax business federal e file 2012 for pc download   The 84-month amortization period starts on the first day of the first month of the second half of the tax year you incur the costs (July 1 for a calendar year taxpayer), regardless of the month you actually incur the costs. Turbotax business federal e file 2012 for pc download You can claim amortization deductions for no more than 6 months of the first and last (eighth) tax years of the period. Turbotax business federal e file 2012 for pc download Life tenant and remainderman. Turbotax business federal e file 2012 for pc download   If one person holds the property for life with the remainder going to another person, the life tenant is entitled to the full amortization for qualifying reforestation costs incurred by the life tenant. Turbotax business federal e file 2012 for pc download Any remainder interest in the property is ignored for amortization purposes. Turbotax business federal e file 2012 for pc download Recapture. Turbotax business federal e file 2012 for pc download   If you dispose of qualified timber property within 10 years after the tax year you incur qualifying reforestation expenses, report any gain as ordinary income up to the amortization you took. Turbotax business federal e file 2012 for pc download See chapter 3 of Publication 544 for more information. Turbotax business federal e file 2012 for pc download How to make the election. Turbotax business federal e file 2012 for pc download   To elect to amortize qualifying reforestation costs, complete Part VI of Form 4562 and attach a statement that contains the following information. Turbotax business federal e file 2012 for pc download A description of the costs and the dates you incurred them. Turbotax business federal e file 2012 for pc download A description of the type of timber being grown and the purpose for which it is grown. Turbotax business federal e file 2012 for pc download Attach a separate statement for each property for which you amortize reforestation costs. Turbotax business federal e file 2012 for pc download   Generally, you must make the election on a timely filed return (including extensions) for the tax year in which you incurred the costs. Turbotax business federal e file 2012 for pc download However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Turbotax business federal e file 2012 for pc download Attach Form 4562 and the statement to the amended return and write “Filed pursuant to section 301. Turbotax business federal e file 2012 for pc download 9100-2” on Form 4562. Turbotax business federal e file 2012 for pc download File the amended return at the same address you filed the original return. Turbotax business federal e file 2012 for pc download Revoking the election. Turbotax business federal e file 2012 for pc download   You must get IRS approval to revoke your election to amortize qualifying reforestation costs. Turbotax business federal e file 2012 for pc download Your application to revoke the election must include your name, address, the years for which your election was in effect, and your reason for revoking it. Turbotax business federal e file 2012 for pc download Please provide your daytime telephone number (optional), in case we need to contact you. Turbotax business federal e file 2012 for pc download You, or your duly authorized representative, must sign the application and file it at least 90 days before the due date (without extensions) for filing your income tax return for the first tax year for which your election is to end. Turbotax business federal e file 2012 for pc download    Send the application to: Internal Revenue Service Associate Chief Counsel Passthroughs and Special Industries CC:PSI:6 1111 Constitution Ave. Turbotax business federal e file 2012 for pc download NW, IR-5300 Washington, DC 20224 Geological and Geophysical Costs You can amortize the cost of geological and geophysical expenses paid or incurred in connection with oil and gas exploration or development within the United States. Turbotax business federal e file 2012 for pc download These costs can be amortized ratably over a 24-month period beginning on the mid-point of the tax year in which the expenses were paid or incurred. Turbotax business federal e file 2012 for pc download For major integrated oil companies (as defined in section 167(h)(5)), these costs must be amortized ratably over a 5-year period for costs paid or incurred after May 17, 2006 (a 7-year period for costs paid or incurred after December 19, 2007). Turbotax business federal e file 2012 for pc download If you retire or abandon the property during the amortization period, no amortization deduction is allowed in the year of retirement or abandonment. Turbotax business federal e file 2012 for pc download Pollution Control Facilities You can elect to amortize the cost of a certified pollution control facility over 60 months. Turbotax business federal e file 2012 for pc download However, see Atmospheric pollution control facilities for an exception. Turbotax business federal e file 2012 for pc download The cost of a pollution control facility that is not eligible for amortization can be depreciated under the regular rules for depreciation. Turbotax business federal e file 2012 for pc download Also, you can claim a special depreciation allowance on a certified pollution control facility that is qualified property even if you elect to amortize its cost. Turbotax business federal e file 2012 for pc download You must reduce its cost (amortizable basis) by the amount of any special allowance you claim. Turbotax business federal e file 2012 for pc download See chapter 3 of Publication 946. Turbotax business federal e file 2012 for pc download A certified pollution control facility is a new identifiable treatment facility used in connection with a plant or other property in operation before 1976, to reduce or control water or atmospheric pollution or contamination. Turbotax business federal e file 2012 for pc download The facility must do so by removing, changing, disposing, storing, or preventing the creation or emission of pollutants, contaminants, wastes, or heat. Turbotax business federal e file 2012 for pc download The facility must be certified by state and federal certifying authorities. Turbotax business federal e file 2012 for pc download The facility must not significantly increase the output or capacity, extend the useful life, or reduce the total operating costs of the plant or other property. Turbotax business federal e file 2012 for pc download Also, it must not significantly change the nature of the manufacturing or production process or facility. Turbotax business federal e file 2012 for pc download The federal certifying authority will not certify your property to the extent it appears you will recover (over the property's useful life) all or part of its cost from the profit based on its operation (such as through sales of recovered wastes). Turbotax business federal e file 2012 for pc download The federal certifying authority will describe the nature of the potential cost recovery. Turbotax business federal e file 2012 for pc download You must then reduce the amortizable basis of the facility by this potential recovery. Turbotax business federal e file 2012 for pc download New identifiable treatment facility. Turbotax business federal e file 2012 for pc download   A new identifiable treatment facility is tangible depreciable property that is identifiable as a treatment facility. Turbotax business federal e file 2012 for pc download It does not include a building and its structural components unless the building is exclusively a treatment facility. Turbotax business federal e file 2012 for pc download Atmospheric pollution control facilities. Turbotax business federal e file 2012 for pc download   Certain atmospheric pollution control facilities can be amortized over 84 months. Turbotax business federal e file 2012 for pc download To qualify, the following must apply. Turbotax business federal e file 2012 for pc download The facility must be acquired and placed in service after April 11, 2005. Turbotax business federal e file 2012 for pc download If acquired, the original use must begin with you after April 11, 2005. Turbotax business federal e file 2012 for pc download The facility must be used in connection with an electric generation plant or other property placed in operation after December 31, 1975, that is primarily coal fired. Turbotax business federal e file 2012 for pc download If you construct, reconstruct, or erect the facility, only the basis attributable to the construction, reconstruction, or erection completed after April 11, 2005, qualifies. Turbotax business federal e file 2012 for pc download Basis reduction for corporations. Turbotax business federal e file 2012 for pc download   A corporation must reduce the amortizable basis of a pollution control facility by 20% before figuring the amortization deduction. Turbotax business federal e file 2012 for pc download More information. Turbotax business federal e file 2012 for pc download   For more information on the amortization of pollution control facilities, see Code sections 169 and 291(c) and the related regulations. Turbotax business federal e file 2012 for pc download Research and Experimental Costs You can elect to amortize your research and experimental costs, deduct them as current business expenses, or write them off over a 10-year period (see Optional write-off method below). Turbotax business federal e file 2012 for pc download If you elect to amortize these costs, deduct them in equal amounts over 60 months or more. Turbotax business federal e file 2012 for pc download The amortization period begins the month you first receive an economic benefit from the costs. Turbotax business federal e file 2012 for pc download For a definition of “research and experimental costs” and information on deducting them as current business expenses, see chapter 7. Turbotax business federal e file 2012 for pc download Optional write-off method. Turbotax business federal e file 2012 for pc download   Rather than amortize these costs or deduct them as a current expense, you have the option of deducting (writing off) research and experimental costs ratably over a 10-year period beginning with the tax year in which you incurred the costs. Turbotax business federal e file 2012 for pc download For more information, see Optional Write-off of Certain Tax Preferences , later, and section 59(e) of the Internal Revenue Code. Turbotax business federal e file 2012 for pc download Costs you can amortize. Turbotax business federal e file 2012 for pc download   You can amortize costs chargeable to a capital account (see chapter 1) if you meet both of the following requirements. Turbotax business federal e file 2012 for pc download You paid or incurred the costs in your trade or business. Turbotax business federal e file 2012 for pc download You are not deducting the costs currently. Turbotax business federal e file 2012 for pc download How to make the election. Turbotax business federal e file 2012 for pc download   To elect to amortize research and experimental costs, complete Part VI of Form 4562 and attach it to your income tax return. Turbotax business federal e file 2012 for pc download Generally, you must file the return by the due date (including extensions). Turbotax business federal e file 2012 for pc download However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Turbotax business federal e file 2012 for pc download Attach Form 4562 to the amended return and write “Filed pursuant to section 301. Turbotax business federal e file 2012 for pc download 9100-2” on Form 4562. Turbotax business federal e file 2012 for pc download File the amended return at the same address you filed the original return. Turbotax business federal e file 2012 for pc download   Your election is binding for the year it is made and for all later years unless you obtain approval from the IRS to change to a different method. Turbotax business federal e file 2012 for pc download Optional Write-off of Certain Tax Preferences You can elect to amortize certain tax preference items over an optional period beginning in the tax year in which you incurred the costs. Turbotax business federal e file 2012 for pc download If you make this election, there is no AMT adjustment. Turbotax business federal e file 2012 for pc download The applicable costs and the optional recovery periods are as follows: Circulation costs — 3 years, Intangible drilling and development costs — 60 months, Mining exploration and development costs — 10 years, and Research and experimental costs — 10 years. Turbotax business federal e file 2012 for pc download How to make the election. Turbotax business federal e file 2012 for pc download   To elect to amortize qualifying costs over the optional recovery period, complete Part VI of Form 4562 and attach a statement containing the following information to your return for the tax year in which the election begins: Your name, address, and taxpayer identification number; and The type of cost and the specific amount of the cost for which you are making the election. Turbotax business federal e file 2012 for pc download   Generally, the election must be made on a timely filed return (including extensions) for the tax year in which you incurred the costs. Turbotax business federal e file 2012 for pc download However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Turbotax business federal e file 2012 for pc download Attach Form 4562 to the amended return and write “Filed pursuant to section 301. Turbotax business federal e file 2012 for pc download 9100-2” on Form 4562. Turbotax business federal e file 2012 for pc download File the amended return at the same address you filed the original return. Turbotax business federal e file 2012 for pc download Revoking the election. Turbotax business federal e file 2012 for pc download   You must obtain consent from the IRS to revoke your election. Turbotax business federal e file 2012 for pc download Your request to revoke the election must be submitted to the IRS in the form of a letter ruling before the end of the tax year in which the optional recovery period ends. Turbotax business federal e file 2012 for pc download The request must contain all of the information necessary to demonstrate the rare and unusual circumstances that would justify granting revocation. Turbotax business federal e file 2012 for pc download If the request for revocation is approved, any unamortized costs are deductible in the year the revocation is effective. Turbotax business federal e file 2012 for pc download Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Relief for Victims of Hurricane Sandy in New Jersey

Updated 2/4/13 The IRS announced additional tax relief, further extending certain tax deadlines until April 1 for Monmouth and Ocean counties. 

NJ-2012-47, Nov. 7, 2012

MOUNTAINSIDE, NJ — Victims of Hurricane Sandy that began on Oct. 26, 2012 in parts of New Jersey may qualify for tax relief from the Internal Revenue Service.

The President has declared Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Oct. 26, and on or before Feb. 1, have been postponed to Feb. 1, 2013.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Oct. 26, and on or before Nov. 26, as long as the deposits are made by Nov. 26, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area need to call the IRS disaster hotline at 866-562-5227 to request this tax relief.

For a full description of the relief being provided by the IRS to the victims of Hurricane Sandy, visit IRS.gov.

Covered Disaster Area

The counties above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Feb. 1 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Oct. 26 and on or before Feb. 1.

The IRS also gives affected taxpayers until Feb. 1 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Oct. 26 and on or before Feb. 1.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Oct. 26 and on or before Nov. 26 provided the taxpayer makes these deposits by Nov. 26.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “New Jersey/Hurricane Sandy” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses

Recent IRS Disaster Relief Announcements

Page Last Reviewed or Updated: 04-Nov-2013

The Turbotax Business Federal E File 2012 For Pc Download

Turbotax business federal e file 2012 for pc download 10. Turbotax business federal e file 2012 for pc download   Education Savings Bond Program Table of Contents Introduction Who Can Cash In Bonds Tax FreeAdjusted qualified education expenses. Turbotax business federal e file 2012 for pc download Eligible educational institution. Turbotax business federal e file 2012 for pc download Dependent for whom you claim an exemption. Turbotax business federal e file 2012 for pc download MAGI when using Form 1040A. Turbotax business federal e file 2012 for pc download MAGI when using Form 1040. Turbotax business federal e file 2012 for pc download Figuring the Tax-Free AmountEffect of the Amount of Your Income on the Amount of Your Exclusion Claiming the Exclusion Introduction Generally, you must pay tax on the interest earned on U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download savings bonds. Turbotax business federal e file 2012 for pc download If you do not include the interest in income in the years it is earned, you must include it in your income in the year in which you cash in the bonds. Turbotax business federal e file 2012 for pc download However, when you cash in certain savings bonds under an education savings bond program, you may be able to exclude the interest from income. Turbotax business federal e file 2012 for pc download Who Can Cash In Bonds Tax Free You may be able to cash in qualified U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. Turbotax business federal e file 2012 for pc download You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return. Turbotax business federal e file 2012 for pc download Your modified adjusted gross income (MAGI) is less than the amount specified for your filing status. Turbotax business federal e file 2012 for pc download Your filing status is not married filing separately. Turbotax business federal e file 2012 for pc download Qualified U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download savings bonds. Turbotax business federal e file 2012 for pc download   A qualified U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download savings bond is a series EE bond issued after 1989 or a series I bond. Turbotax business federal e file 2012 for pc download The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). Turbotax business federal e file 2012 for pc download   The owner must be at least 24 years old before the bond's issue date. Turbotax business federal e file 2012 for pc download The issue date is printed on the front of the savings bond. Turbotax business federal e file 2012 for pc download    The issue date is not necessarily the date of purchase—it will be the first day of the month in which the bond is purchased (or posted, if bought electronically). Turbotax business federal e file 2012 for pc download Qualified education expenses. Turbotax business federal e file 2012 for pc download   These include the following items you pay for either yourself, your spouse, or a dependent for whom you claim an exemption. Turbotax business federal e file 2012 for pc download Tuition and fees required to enroll at or attend an eligible educational institution. Turbotax business federal e file 2012 for pc download Qualified education expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Turbotax business federal e file 2012 for pc download Contributions to a qualified tuition program (QTP) (see How Much Can You Contribute in chapter 8, Qualified Tuition Program). Turbotax business federal e file 2012 for pc download Contributions to a Coverdell education savings account (ESA) (see Contributions in chapter 7, Coverdell Education Savings Account). Turbotax business federal e file 2012 for pc download Adjusted qualified education expenses. Turbotax business federal e file 2012 for pc download   You must reduce your qualified education expenses by all of the following tax-free benefits. Turbotax business federal e file 2012 for pc download Tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Turbotax business federal e file 2012 for pc download Expenses used to figure the tax-free portion of distributions from a Coverdell ESA (see Qualified Education Expenses in chapter 7, Coverdell Education Savings Account). Turbotax business federal e file 2012 for pc download Expenses used to figure the tax-free portion of distributions from a QTP (see Qualified education expenses in chapter 8, Qualified Tuition Program). Turbotax business federal e file 2012 for pc download Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Qualified tuition reductions (see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), or Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ). Turbotax business federal e file 2012 for pc download Any expenses used in figuring the American opportunity and lifetime learning credits. Turbotax business federal e file 2012 for pc download See What Expenses Qualify in chapter 2, American Opportunity Credit, and What Expenses Qualify in chapter 3, Lifetime Learning Credit, for more information. Turbotax business federal e file 2012 for pc download Eligible educational institution. Turbotax business federal e file 2012 for pc download   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download Department of Education. Turbotax business federal e file 2012 for pc download It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Turbotax business federal e file 2012 for pc download The educational institution should be able to tell you if it is an eligible educational institution. Turbotax business federal e file 2012 for pc download   Certain educational institutions located outside the United States also participate in the U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download Department of Education's Federal Student Aid (FSA) programs. Turbotax business federal e file 2012 for pc download Dependent for whom you claim an exemption. Turbotax business federal e file 2012 for pc download   You claim an exemption for a person if you list his or her name and other required information on Form 1040 (or Form 1040A), line 6c. Turbotax business federal e file 2012 for pc download Modified adjusted gross income (MAGI). Turbotax business federal e file 2012 for pc download   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return without taking into account this interest exclusion. Turbotax business federal e file 2012 for pc download However, as discussed below, there may be other modifications. Turbotax business federal e file 2012 for pc download MAGI when using Form 1040A. Turbotax business federal e file 2012 for pc download   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Turbotax business federal e file 2012 for pc download MAGI when using Form 1040. Turbotax business federal e file 2012 for pc download   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Turbotax business federal e file 2012 for pc download    Use the worksheet in the instructions for line 9 of Form 8815 to figure your MAGI. Turbotax business federal e file 2012 for pc download If you claim any of the exclusion or deduction items (1)–(6) listed above, add the amount of the exclusion or deduction to the amount on line 5 of the worksheet. Turbotax business federal e file 2012 for pc download Do not add in the deduction for (7) student loan interest, and (8) tuition and fees, or (9) domestic production activities because line 4 of the worksheet already includes these amounts. Turbotax business federal e file 2012 for pc download Enter the total on Form 8815, line 9, as your modified adjusted gross income (MAGI). Turbotax business federal e file 2012 for pc download    Because the deduction for interest expenses attributable to royalties and other investments is limited to your net investment income, you cannot figure the deduction until you have figured this interest exclusion. Turbotax business federal e file 2012 for pc download Therefore, if you had interest expenses attributable to royalties and deductible on Schedule E (Form 1040), Supplemental Income and Loss, you must make a special computation of your deductible interest without regard to this exclusion to figure the net royalty income included in your MAGI. Turbotax business federal e file 2012 for pc download See Royalties included in MAGI under Education Savings Bond Program in Publication 550, chapter 1. Turbotax business federal e file 2012 for pc download Figuring the Tax-Free Amount If the total you receive when you cash in the bonds is not more than the adjusted qualified education expenses for the year, all of the interest on the bonds may be tax free. Turbotax business federal e file 2012 for pc download However, if the total you receive when you cash in the bonds is more than the adjusted expenses, only part of the interest may be tax free. Turbotax business federal e file 2012 for pc download To determine the tax-free amount, multiply the interest part of the proceeds by a fraction. Turbotax business federal e file 2012 for pc download The numerator (top part) of the fraction is the adjusted qualified education expenses (AQEE) you paid during the year. Turbotax business federal e file 2012 for pc download The denominator (bottom part) of the fraction is the total proceeds you received during the year. Turbotax business federal e file 2012 for pc download Example. Turbotax business federal e file 2012 for pc download In February 2013, Mark and Joan Washington, a married couple, cashed a qualified series EE U. Turbotax business federal e file 2012 for pc download S. Turbotax business federal e file 2012 for pc download savings bond. Turbotax business federal e file 2012 for pc download They received proceeds of $9,000, representing principal of $6,000 and interest of $3,000. Turbotax business federal e file 2012 for pc download In 2013, they paid $7,650 of their daughter's college tuition. Turbotax business federal e file 2012 for pc download They are not claiming an American opportunity or lifetime learning credit for those expenses, and their daughter does not have any tax-free educational assistance. Turbotax business federal e file 2012 for pc download Their MAGI for 2013 was $80,000. Turbotax business federal e file 2012 for pc download   $3,000 interest × $7,650 AQEE  $9,000 proceeds = $2,550 tax-free interest   They can exclude $2,550 of interest in 2013. Turbotax business federal e file 2012 for pc download They must pay tax on the remaining $450 ($3,000 − $2,550) interest. Turbotax business federal e file 2012 for pc download Effect of the Amount of Your Income on the Amount of Your Exclusion The amount of your interest exclusion is gradually reduced (phased out) based on your MAGI and filing status. Turbotax business federal e file 2012 for pc download Claiming the Exclusion Use Form 8815 to figure your education savings bond interest exclusion. Turbotax business federal e file 2012 for pc download Enter your exclusion on line 3 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Turbotax business federal e file 2012 for pc download Attach Form 8815 to your tax return. Turbotax business federal e file 2012 for pc download Prev  Up  Next   Home   More Online Publications