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1040 Es Tax Forms

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

1040 es tax forms Publication 4492-A - Main Contents Table of Contents DefinitionsKansas Disaster Area Storms and Tornadoes Casualty and Theft Losses Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Recovery Assistance Distributions Repayment of Qualified Recovery Assistance Distributions How To Report Qualified Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Employee Retention Credit Demolition and Clean-up Costs Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040 es tax forms Definitions The following definitions are used throughout this publication. 1040 es tax forms Kansas Disaster Area The Kansas disaster area covers the Kansas counties of Barton, Clay, Cloud, Comanche, Dickinson, Edwards, Ellsworth, Kiowa, Leavenworth, Lyon, McPherson, Osage, Osborne, Ottawa, Phillips, Pottawatomie, Pratt, Reno, Rice, Riley, Saline, Shawnee, Smith, and Stafford. 1040 es tax forms Storms and Tornadoes The term “storms and tornadoes” as used in this publication, refers to the storms and tornadoes that began on May 4, 2007, and affected the Kansas disaster area (defined above). 1040 es tax forms Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that occurred in the Kansas disaster area. 1040 es tax forms Limits on personal casualty or theft losses in the Kansas disaster area. 1040 es tax forms   Losses of personal use property that arose in the Kansas disaster area after May 3, 2007, are not subject to the $100 or 10% of adjusted gross income limits. 1040 es tax forms Qualifying losses include losses from casualties and thefts that arose in the disaster area and that were attributable to the storms and tornadoes. 1040 es tax forms When to deduct the loss. 1040 es tax forms   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. 1040 es tax forms However, the Kansas disaster area is a Presidentially declared disaster. 1040 es tax forms Therefore, you could have elected to deduct losses from these storms and tornadoes on your tax return for the previous year. 1040 es tax forms The deadline for making this election has expired. 1040 es tax forms   The following special instructions explain how to complete your forms if you deduct the loss in 2007 or elected to deduct the loss in 2006. 1040 es tax forms Special instructions for individuals who file Form 4684 to claim a Kansas disaster area casualty or theft loss for 2007 or are amending their 2006 return. 1040 es tax forms   Individuals filing or amending their 2007 tax return or amending their 2006 tax return for casualty or theft losses that were attributable to the storms and tornadoes should enter “Kansas Disaster Area” at the top of Form 1040 or 1040X. 1040 es tax forms They must also complete and attach the 2006 version of Form 4684 for either year and enter “Kansas Disaster Area” on the top and on the dotted line next to line 11 and enter -0- on line 11. 1040 es tax forms Individuals filing or amending their 2007 tax return should cross out “2006” and enter “2007” at the top of Form 4684. 1040 es tax forms They must also enter the amount from line 21 of that form on line 20 of Schedule A (Form 1040). 1040 es tax forms Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. 1040 es tax forms Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). 1040 es tax forms However, for property that was involuntarily converted after May 3, 2007, as a result of the storms and tornadoes, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Kansas disaster area. 1040 es tax forms For more information, see the Instructions for Form 4684. 1040 es tax forms Net Operating Losses Qualified recovery assistance loss. 1040 es tax forms   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. 1040 es tax forms However, the portion of an NOL that is a qualified recovery assistance loss can be carried back to the 5 tax years before the NOL year. 1040 es tax forms In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. 1040 es tax forms   A qualified recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified recovery assistance casualty loss (as defined below), Moving expenses paid or incurred after May 3, 2007, and before January 1, 2010, for the employment of an individual whose main home was in the Kansas disaster area before May 4, 2007, who was unable to remain in that home because of the storms and tornadoes, and whose main job location (after the move) is in the Kansas disaster area, Temporary housing expenses paid or incurred after May 3, 2007, and before January 1, 2010, to house employees of the taxpayer whose main job location is in the Kansas disaster area, Depreciation or amortization allowable for any qualified recovery assistance property (even if you elected not to claim the special recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after May 3, 2007, and before January 1, 2010, for any damage from the storms and tornadoes to property located in the Kansas disaster area. 1040 es tax forms Qualified recovery assistance casualty loss. 1040 es tax forms   A qualified recovery assistance casualty loss is any deductible section 1231 loss of property located in the Kansas disaster area if the loss was caused by the storms and tornadoes. 1040 es tax forms For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the storms and tornadoes of property located in the Kansas disaster area. 1040 es tax forms Any such loss taken into account in figuring your qualified recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. 1040 es tax forms Amended return. 1040 es tax forms   If you have already filed your 2007 tax return and then carried your NOL back 2 years, you may file an amended return to carry back for 5 years your NOL attributable to a qualified recovery assistance loss. 1040 es tax forms More information. 1040 es tax forms    For more information on NOLs, see Publication 536. 1040 es tax forms IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for individuals who suffered economic losses as a result of the storms and tornadoes. 1040 es tax forms Definitions Qualified recovery assistance distribution. 1040 es tax forms   Except as provided below, a qualified recovery assistance distribution is any distribution you received and designated as such from an eligible retirement plan if all of the following apply. 1040 es tax forms The distribution was made after May 3, 2007, and before January 1, 2009. 1040 es tax forms Your main home was located in the Kansas disaster area on May 4, 2007. 1040 es tax forms You sustained an economic loss because of the storms and tornadoes. 1040 es tax forms Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040 es tax forms   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified recovery assistance distribution, regardless of whether the distribution was made on account of the storms and tornadoes. 1040 es tax forms Qualified recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. 1040 es tax forms   The total of your qualified recovery assistance distributions from all plans is limited to $100,000. 1040 es tax forms If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. 1040 es tax forms   A reduction or offset after May 3, 2007, of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified recovery assistance distribution. 1040 es tax forms Eligible retirement plan. 1040 es tax forms   An eligible retirement plan can be any of the following. 1040 es tax forms A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). 1040 es tax forms A qualified annuity plan. 1040 es tax forms A tax-sheltered annuity contract. 1040 es tax forms A governmental section 457 deferred compensation plan. 1040 es tax forms A traditional, SEP, SIMPLE, or Roth IRA. 1040 es tax forms Main home. 1040 es tax forms   Generally, your main home is the home where you live most of the time. 1040 es tax forms A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. 1040 es tax forms Taxation of Qualified Recovery Assistance Distributions Qualified recovery assistance distributions are included in income in equal amounts over three years. 1040 es tax forms However, if you elect, you can include the entire distribution in your income in the year it was received. 1040 es tax forms Qualified recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). 1040 es tax forms However, any distributions you receive in excess of the $100,000 qualified recovery assistance distribution limit may be subject to the additional tax on early distributions. 1040 es tax forms For more information, see How To Report Qualified Recovery Assistance Distributions on page 4. 1040 es tax forms Repayment of Qualified Recovery Assistance Distributions If you choose, you generally can repay any portion of a qualified recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. 1040 es tax forms Also, you can repay a qualified recovery assistance distribution made on account of a hardship from a retirement plan. 1040 es tax forms However, see Exceptions below for qualified recovery assistance distributions you cannot repay. 1040 es tax forms You have three years from the day after the date you received the distribution to make a repayment. 1040 es tax forms Amounts that are repaid are treated as a qualified rollover and are not included in income. 1040 es tax forms Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 1040 es tax forms See Form 8915 for more information on how to report repayments. 1040 es tax forms Exceptions. 1040 es tax forms   You cannot repay the following types of distributions. 1040 es tax forms Qualified recovery assistance distributions received as a beneficiary (other than a surviving spouse). 1040 es tax forms Required minimum distributions. 1040 es tax forms Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. 1040 es tax forms How To Report Qualified Recovery Assistance Distributions You will need the following information to correctly report any 2007 or 2008 qualified recovery assistance distributions. 1040 es tax forms 2007 Qualified Recovery Assistance Distributions If you received a distribution after May 3, 2007, from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 1040 es tax forms See Qualified recovery assistance distribution on page 3. 1040 es tax forms If you have not filed your 2007 income tax return, see Form 8915 and Form 8606 on this page to see how to complete these forms for any qualified recovery assistance distributions. 1040 es tax forms Be sure to attach Form 8915 and Form 8606 (if required) to your 2007 income tax return. 1040 es tax forms If you have filed your 2007 income tax return, you will need to amend your return to designate any distributions as qualified recovery assistance distributions. 1040 es tax forms You can amend your 2007 income tax return by using Form 1040X. 1040 es tax forms You will need to complete and attach Form 8915 and Form 8606 (if required) to your amended income tax return for any qualified recovery assistance distributions. 1040 es tax forms See Form 8915 and Form 8606 on this page. 1040 es tax forms Form 8915. 1040 es tax forms   For a 2007 qualified recovery assistance distribution, complete the 2005 Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayments. 1040 es tax forms Before you complete the form, modify the form as follows. 1040 es tax forms Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 1040 es tax forms ” To the right of the title, cross out “2005” and enter “2007. 1040 es tax forms ” In Part I, at the top of column (a), cross out “2005” and enter “2007. 1040 es tax forms ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 1040 es tax forms ” On lines 10 and 11, cross out “2005” and enter “2007. 1040 es tax forms ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 1040 es tax forms ” On line 12, cross out “hurricane” and enter “recovery assistance. 1040 es tax forms ” On lines 13 and 14, cross out “line 15b” and “line 25b. 1040 es tax forms ” On lines 18 and 19, cross out “2005” and enter “2007. 1040 es tax forms ”   You can now complete Form 8915. 1040 es tax forms For the instructions, use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions. 1040 es tax forms See Example 1 on page 5 to see how to complete Form 8915. 1040 es tax forms Form 8606. 1040 es tax forms   For a 2007 qualified recovery assistance distribution, complete or amend the 2007 Form 8606, Nondeductible IRAs. 1040 es tax forms Before you complete or amend the form, use the following additional instructions. 1040 es tax forms Form 8606, Part I. 1040 es tax forms    On line 6, subtract any repayments of qualified recovery assistance distributions from the amount you would otherwise enter on line 6. 1040 es tax forms Do not enter an amount less than -0-. 1040 es tax forms Include on line 7 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 1040 es tax forms Complete line 15 as follows. 1040 es tax forms If all of your distributions are qualified recovery assistance distributions, enter the amount from line 15 on Form 8915, line 13. 1040 es tax forms Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 1040 es tax forms If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 15 by a fraction. 1040 es tax forms The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 7. 1040 es tax forms Enter the result in the white space in the bottom margin of the form under line 15. 1040 es tax forms To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 13. 1040 es tax forms Then, subtract this amount from the amount on line 15 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 1040 es tax forms Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 1040 es tax forms To the left of this amount, enter “Other distributions. 1040 es tax forms ” Form 8606, Part III. 1040 es tax forms    Include on line 19 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 1040 es tax forms Complete line 25 as follows. 1040 es tax forms If all of your distributions are qualified recovery assistance distributions, enter the amount from line 25 on Form 8915, line 14. 1040 es tax forms Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 1040 es tax forms If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 25 by a fraction. 1040 es tax forms The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 21. 1040 es tax forms Enter the result in the white space in the bottom margin of the form under line 25. 1040 es tax forms To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 14. 1040 es tax forms Then, subtract this amount from the amount on line 25 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 1040 es tax forms Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 1040 es tax forms To the left of this amount, enter “Other distributions. 1040 es tax forms ” Example 1. 1040 es tax forms   On May 4, 2007, Margaret Maple lost her home due to the tornadoes on that day. 1040 es tax forms Her home was located in the Kansas disaster area. 1040 es tax forms On July 31, 2007, Margaret took out $30,000 from her 401(k) plan and an additional $15,000 from her traditional IRA in order to rebuild her home. 1040 es tax forms Margaret has not filed her 2007 return yet but would like to designate the $45,000 in distributions from her retirement plans as qualified recovery assistance distributions. 1040 es tax forms Since the distributions occurred in 2007, Margaret would modify and complete the 2005 Form 8915 as discussed on page 4. 1040 es tax forms Margaret would also need to complete Form 8606 since her distribution from her traditional IRA has nondeductible contributions from previous years. 1040 es tax forms   In addition to the $15,000 qualified recovery assistance distribution on July 31, 2007, Margaret received an additional distribution of $15,000 from her traditional IRA on October 31, 2007, that she did not designate as a qualified recovery assistance distribution. 1040 es tax forms Because Margaret has a qualified recovery assistance distribution as well as a distribution not so designated, Margaret must allocate the amount on Form 8606, line 15 to both distributions, as discussed earlier. 1040 es tax forms Margaret's qualified recovery assistance distributions are $13,125 ($26,250 × $15,000 ÷ $30,000). 1040 es tax forms Margaret enters in the white space in the bottom margin of Form 8606, the following, “Qualified recovery assistance distributions $13,125. 1040 es tax forms ” This amount is then reported on Form 8915, line 13. 1040 es tax forms Below this entry, Margaret enters “Other distributions $13,125,” and includes this amount on Form 1040, line 15b. 1040 es tax forms See Margaret's modified 2005 Form 8915 and 2007 Form 8606 shown on pages 6 through 8. 1040 es tax forms This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms 2005 Form 8915, page 1, Illustrated Example 1. 1040 es tax forms This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms 2005 Form 8915, page 2, Illustrated Example 1 This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms Form 8606, page 1, Illustrated Example 1 2008 Qualified Recovery Assistance Distributions If you received a distribution in 2008 from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 1040 es tax forms See Qualified recovery assistance distribution on page 3. 1040 es tax forms You will need to complete and attach Form 8915 and Form 8606 (if required) to your 2008 income tax return for any qualified recovery assistance distributions. 1040 es tax forms See Form 8915 and Form 8606 below. 1040 es tax forms Form 8915. 1040 es tax forms   For a 2008 qualified recovery assistance distribution, you will need to complete the 2006 Form 8915. 1040 es tax forms Before you complete the form, modify the form as follows. 1040 es tax forms Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 1040 es tax forms ” To the right of the title, cross out “2006” and enter “2008. 1040 es tax forms ” In the first sentence of Part I and on line 1, cross out “hurricane” and enter “recovery assistance,” cross out “2006” and enter “2008,” and cross out “2005” and enter “2007. 1040 es tax forms ” At the top of column (a) cross out “2006” and enter “2008. 1040 es tax forms ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 1040 es tax forms ” On lines 12, 14, and 15, cross out “2005” and enter “2007. 1040 es tax forms ” On lines 17 and 19, cross out “2006” and enter “2008. 1040 es tax forms ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 1040 es tax forms ” On line 21, cross out “hurricane” and enter “recovery assistance. 1040 es tax forms ” On lines 22 and 23, cross out “line 15b” and “line 25b. 1040 es tax forms ” On lines 27, 29, and 30, cross out “2005” and enter “2007. 1040 es tax forms ” On lines 32 and 34, cross out “2006” and enter “2008. 1040 es tax forms ”   You can now complete Form 8915. 1040 es tax forms For the instructions, use the applicable dates and terms in this publication instead of those used in the 2006 Form 8915 instructions. 1040 es tax forms Example 2. 1040 es tax forms   On June 15, 2008, Margaret Maple, from the previous example, took out $15,000 from her 401(k) plan that she is designating as a qualified recovery assistance distribution. 1040 es tax forms Since the distribution occurred in 2008, Margaret would modify and complete the 2006 Form 8915 as discussed above. 1040 es tax forms Also, since Margaret is including her 2007 recovery assistance distributions in income over 3 years, she reports the applicable amount of those distributions on the modified 2006 Form 8915. 1040 es tax forms See Margaret's modified 2006 Form 8915 shown on pages 9 and 10. 1040 es tax forms This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms 2006 Form 8915, page 1, Illustrated Example 2 This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms 2006 Form 8915, page 2, Illustrated Example 2 Form 8606. 1040 es tax forms   For a 2008 qualified recovery assistance distribution, you may need to complete the 2008 Form 8606. 1040 es tax forms Before you complete Form 8606, use the additional instructions outlined in Form 8606, Part I, on page 4 and Form 8606, Part III, on this page. 1040 es tax forms Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Kansas disaster area, you can repay part or all of that distribution after May 3, 2007, but no later than October 22, 2008, to an eligible retirement plan. 1040 es tax forms For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. 1040 es tax forms To be a qualified distribution, the distribution must meet all of the following requirements. 1040 es tax forms The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. 1040 es tax forms The distribution was received after November 4, 2006, and before May 5, 2007. 1040 es tax forms The distribution was to be used to purchase or construct a main home in the Kansas disaster area that was not purchased or constructed because of the storms and tornadoes. 1040 es tax forms Amounts that are repaid before October 23, 2008, are treated as a qualified rollover and are not included in income. 1040 es tax forms Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 1040 es tax forms A qualified distribution not repaid before October 23, 2008, may be taxable for 2006 or 2007 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. 1040 es tax forms You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before October 23, 2008. 1040 es tax forms See How to report, next, for information on completing Form 8915. 1040 es tax forms How to report. 1040 es tax forms   To report the repayment of a qualified distribution for the purchase or construction of a main home that was not purchased or constructed due to the storms and tornadoes, use the 2005 Form 8915, Part IV. 1040 es tax forms Before you complete the form, modify the form as follows. 1040 es tax forms Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 1040 es tax forms ” To the right of the title, cross out “2005” and enter “2006” or “2007. 1040 es tax forms ” Enter only the year the distribution was received. 1040 es tax forms Cross out “Hurricane” in the title of Part IV and enter “Kansas. 1040 es tax forms ” In the sentence below the title of Part IV, cross out “March 1, 2006” and enter “October 23, 2008. 1040 es tax forms ” On line 24, cross out “March 1, 2006” and enter “October 23, 2008. 1040 es tax forms ” You can now complete Part IV of Form 8915. 1040 es tax forms Use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions to complete the form. 1040 es tax forms Attach Form 8915 to your original or amended return for the year of the distribution. 1040 es tax forms Amended return. 1040 es tax forms   If you repay part or all of a qualified distribution by October 22, 2008, you will need to file an amended return for that part of a distribution that was previously included in income. 1040 es tax forms Loans From Qualified Plans The following benefits are available to qualified individuals. 1040 es tax forms Increases to the limits for distributions treated as loans from employer plans. 1040 es tax forms A 1-year suspension for payments due on plan loans. 1040 es tax forms Qualified individual. 1040 es tax forms   You are a qualified individual if your main home on May 4, 2007, was located in the Kansas disaster area and you had an economic loss because of the storms and tornadoes. 1040 es tax forms Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 1040 es tax forms Limits on plan loans. 1040 es tax forms   The $50,000 limit for distributions treated as plan loans is increased to $100,000. 1040 es tax forms In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. 1040 es tax forms If your home was located in the Kansas disaster area, the higher limits apply only to loans received during the period beginning on May 22, 2008, and ending on December 31, 2008. 1040 es tax forms One-year suspension of loan payments. 1040 es tax forms   Payments on plan loans outstanding after May 3, 2007, may be suspended for 1 year by the plan administrator. 1040 es tax forms To qualify for the suspension, the due date for any loan payment must occur during the period beginning on May 4, 2007, and ending on December 31, 2008. 1040 es tax forms Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified recovery assistance property (as defined below) you acquire after May 4, 2007. 1040 es tax forms The special allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). 1040 es tax forms The special allowance applies only for the first year the property is placed in service. 1040 es tax forms The special allowance is deductible for both the regular tax and the alternative minimum tax (AMT). 1040 es tax forms There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 1040 es tax forms You can elect not to deduct the special allowance for qualified recovery assistance property. 1040 es tax forms If you make this election for any property, it applies to all property in the same class placed in service during the year. 1040 es tax forms Qualified recovery assistance property. 1040 es tax forms   Property that qualifies for the special allowance for qualified recovery assistance property includes the following. 1040 es tax forms Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. 1040 es tax forms Water utility property. 1040 es tax forms Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. 1040 es tax forms (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 1040 es tax forms ) Qualified leasehold improvement property. 1040 es tax forms Nonresidential real property and residential rental property. 1040 es tax forms   For more information on this property, see Publication 946. 1040 es tax forms Other tests to be met. 1040 es tax forms   To be qualified recovery assistance property, the property must also meet all of the following tests. 1040 es tax forms You must have acquired the property, by purchase, after May 4, 2007, but only if no binding written contract for the acquisition was in effect before May 5, 2007. 1040 es tax forms The property must be placed in service before 2009 (2010 in the case of nonresidential real property and residential rental property). 1040 es tax forms Substantially all of the use of the property must be in the Kansas disaster area and in the active conduct of your trade or business in the Kansas disaster area. 1040 es tax forms The original use of the property in the Kansas disaster area must begin with you after May 4, 2007. 1040 es tax forms Used property can be qualified recovery assistance property if it has not previously been used within the Kansas disaster area. 1040 es tax forms Also, additional capital expenditures you incurred after May 4, 2007, to recondition or rebuild your property meet the original use test if the original use of the property in the Kansas disaster area began with you. 1040 es tax forms Excepted property. 1040 es tax forms   Qualified recovery assistance property does not include any of the following. 1040 es tax forms Property required to be depreciated using the Alternative Depreciation System (ADS). 1040 es tax forms Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. 1040 es tax forms Property for which you are claiming a commercial revitalization deduction. 1040 es tax forms Property in the same class as that for which you elected not to claim the special allowance for qualified recovery assistance property. 1040 es tax forms Property placed in service and disposed of in the same tax year. 1040 es tax forms Property converted from business use to personal use in the same tax year it is placed in service. 1040 es tax forms Property converted from personal use to business use in the same or later tax year may be qualified recovery assistance property. 1040 es tax forms Recapture of special allowance. 1040 es tax forms   If, in any year after the year you claim the special allowance, the property ceases to be qualified recovery assistance property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. 1040 es tax forms Amended return. 1040 es tax forms   If you have already filed your tax return, you may have to amend that return to claim any special allowance. 1040 es tax forms Additional guidance will be published on how you may claim, or elect not to claim, the special allowance if you have already filed your tax return. 1040 es tax forms Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 recovery assistance property (as defined later) placed in service in the Kansas disaster area. 1040 es tax forms Increased dollar limit. 1040 es tax forms   The limit on the section 179 deduction ($125,000 for 2007, $250,000 for 2008) is increased by the smaller of: $100,000, or The cost of qualified section 179 recovery assistance property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). 1040 es tax forms   The amount for which you can make the election is reduced if the cost of all section 179 property you placed in service during the year exceeds $500,000 for 2007 and $800,000 for 2008 increased by the smaller of: $600,000, or The cost of qualified section 179 recovery assistance property placed in service during the year. 1040 es tax forms Qualified section 179 recovery assistance property. 1040 es tax forms   Qualified section 179 recovery assistance property is section 179 property that is qualified recovery assistance property (explained earlier under Special Depreciation Allowance). 1040 es tax forms Section 179 property does not include nonresidential real property or residential rental property. 1040 es tax forms For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. 1040 es tax forms Amended return. 1040 es tax forms   If you have already filed your tax return, you may have to amend that return for any increased section 179 deduction. 1040 es tax forms Employee Retention Credit An eligible employer who conducted an active trade or business in the Kansas disaster area can claim the employee retention credit. 1040 es tax forms The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). 1040 es tax forms Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 1040 es tax forms Use Form 5884-A to claim the credit. 1040 es tax forms See Form 5884-A later. 1040 es tax forms The following rules and definitions apply. 1040 es tax forms Employers affected by the storms and tornadoes. 1040 es tax forms   The following definitions apply to employers affected by the storms and tornadoes. 1040 es tax forms Eligible employer. 1040 es tax forms   For this purpose, an eligible employer is any employer who meets all of the following. 1040 es tax forms Employed an average of not more than 200 employees on business days during the tax year before May 4, 2007. 1040 es tax forms Conducted an active trade or business on May 4, 2007, in the Kansas disaster area. 1040 es tax forms Whose trade or business was inoperable on any day after May 4, 2007, and before January 1, 2008, because of damage caused by the storms and tornadoes. 1040 es tax forms Eligible employee. 1040 es tax forms   For this purpose, an eligible employee is an employee whose principal place of employment on May 4, 2007, with the eligible employer was in the Kansas disaster area. 1040 es tax forms An employee is not an eligible employee for purposes of the storms and tornadoes if the employee is treated as an eligible employee for the work opportunity credit. 1040 es tax forms Qualified wages. 1040 es tax forms   Qualified wages are wages you paid or incurred before January 1, 2008, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before May 4, 2007, and ending on the date your trade or business resumed significant operations at that place. 1040 es tax forms In addition, the wages must have been paid or incurred after May 4, 2007. 1040 es tax forms    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. 1040 es tax forms    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). 1040 es tax forms Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. 1040 es tax forms Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. 1040 es tax forms   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. 1040 es tax forms For a special rule that applies to railroad employees, see section 51(h)(1)(B). 1040 es tax forms   Qualified wages do not include the following. 1040 es tax forms Wages paid to your dependent or a related individual. 1040 es tax forms See section 51(i)(1). 1040 es tax forms Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. 1040 es tax forms Wages for services of replacement workers during a strike or lockout. 1040 es tax forms Form 5884-A. 1040 es tax forms   Use Section A of Form 5884-A (Rev. 1040 es tax forms October 2006) to claim the employer retention credit. 1040 es tax forms Section B does not apply to the Kansas disaster area. 1040 es tax forms Before you complete the form, modify the form as follows. 1040 es tax forms Cross out “Hurricane Katrina, Rita, or Wilma” in the title at the top of the form and enter “Kansas Storms and Tornadoes. 1040 es tax forms ” On line 1a cross out “Hurricane Katrina” and enter “Kansas Storms and Tornadoes,” cross out “August 28, 2005,” and enter “May 4, 2007,” and cross out “January 1, 2006,” and enter “January 1, 2008. 1040 es tax forms ”   Complete the form as instructed. 1040 es tax forms Lines 1b and 1c do not apply. 1040 es tax forms Include the amount from Form 5884-A, line 4 in the amount entered on Form 3800, line 1x. 1040 es tax forms On the dotted line to the left of line 1x, enter “5884-A. 1040 es tax forms ” Use the applicable dates and terms in this publication instead of those used in the Form 5884-A instructions. 1040 es tax forms Amended return. 1040 es tax forms   You may have to amend a previously filed return to claim the employee retention credit. 1040 es tax forms Demolition and Clean-up Costs You can elect to deduct 50% of any qualified recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. 1040 es tax forms Qualified recovery assistance clean-up costs are any amounts paid or incurred after May 3, 2007, and before January 1, 2010, for the removal of debris from, or the demolition of structures on, real property located in the Kansas disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. 1040 es tax forms Amended return. 1040 es tax forms   If you have already filed your tax return, you may have to amend that return to claim the 50% of any qualified recovery assistance clean-up costs. 1040 es tax forms Request for Copy or Transcript of Tax Return Request for copy of tax return. 1040 es tax forms   You can use Form 4506 to order a copy of your tax return. 1040 es tax forms Generally, there is a $39. 1040 es tax forms 00 fee (subject to change) for requesting each copy of a tax return. 1040 es tax forms If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Kansas Storms”) is written in red across the top of the form when filed. 1040 es tax forms Request for transcript of tax return. 1040 es tax forms   You can use Form 4506-T to order a free transcript of your tax return. 1040 es tax forms A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. 1040 es tax forms You can also call 1-800-829-1040 to order a transcript. 1040 es tax forms How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 1040 es tax forms By selecting the method that is best for you, you will have quick and easy access to tax help. 1040 es tax forms Contacting your Taxpayer Advocate. 1040 es tax forms   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. 1040 es tax forms   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. 1040 es tax forms You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. 1040 es tax forms You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. 1040 es tax forms For more information, go to www. 1040 es tax forms irs. 1040 es tax forms gov/advocate. 1040 es tax forms Low Income Taxpayer Clinics (LITCs). 1040 es tax forms   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. 1040 es tax forms The clinics also provide tax education and outreach for taxpayers who speak English as a second language. 1040 es tax forms Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. 1040 es tax forms It is available at www. 1040 es tax forms irs. 1040 es tax forms gov or your local IRS office. 1040 es tax forms Free tax services. 1040 es tax forms   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 1040 es tax forms It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. 1040 es tax forms It also has an index of over 100 TeleTax topics, (recorded tax information) you can listen to on your telephone. 1040 es tax forms   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 1040 es tax forms Free help with your return. 1040 es tax forms   Free help in preparing your return is available nationwide from IRS-trained volunteers. 1040 es tax forms The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 1040 es tax forms Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040 es tax forms To find a site near you, call 1-800-829-1040. 1040 es tax forms Or to find the nearest AARP TaxAide site, visit AARP's website at www. 1040 es tax forms aarp. 1040 es tax forms org/taxaide or call 1-888-227-7669. 1040 es tax forms For more information on these programs, go to www. 1040 es tax forms irs. 1040 es tax forms gov and enter keyword “VITA” in the upper right-hand corner. 1040 es tax forms Internet. 1040 es tax forms You can access the IRS website at www. 1040 es tax forms irs. 1040 es tax forms gov 24 hours a day, 7 days a week to: E-file your return. 1040 es tax forms Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040 es tax forms Check the status of your refund. 1040 es tax forms Click on Where's My Refund. 1040 es tax forms Wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 1040 es tax forms Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 es tax forms Download forms, instructions, and publications. 1040 es tax forms Order IRS products online. 1040 es tax forms Research your tax questions online. 1040 es tax forms Search publications online by topic or keyword. 1040 es tax forms View Internal Revenue Bulletins (IRBs) published in the last few years. 1040 es tax forms Figure your withholding allowances using the withholding calculator online at www. 1040 es tax forms irs. 1040 es tax forms gov/individuals. 1040 es tax forms Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. 1040 es tax forms Sign up to receive local and national tax news by email. 1040 es tax forms Get information on starting and operating a small business. 1040 es tax forms Phone. 1040 es tax forms Many services are available by phone. 1040 es tax forms Ordering forms, instructions, and publications. 1040 es tax forms Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. 1040 es tax forms You should receive your order within 10 days. 1040 es tax forms Asking tax questions. 1040 es tax forms Call the IRS with your tax questions at 1-800-829-1040. 1040 es tax forms Solving problems. 1040 es tax forms You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 1040 es tax forms An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040 es tax forms Call your local Taxpayer Assistance Center for an appointment. 1040 es tax forms To find the number, go to www. 1040 es tax forms irs. 1040 es tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040 es tax forms TTY/TDD equipment. 1040 es tax forms If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040 es tax forms TeleTax topics. 1040 es tax forms Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 1040 es tax forms Refund information. 1040 es tax forms To check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information or call 1-800-829-1954. 1040 es tax forms Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 1040 es tax forms Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 es tax forms Evaluating the quality of our telephone services. 1040 es tax forms To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040 es tax forms One method is for a second IRS representative to listen in on or record random telephone calls. 1040 es tax forms Another is to ask some callers to complete a short survey at the end of the call. 1040 es tax forms Walk-in. 1040 es tax forms Many products and services are available on a walk-in basis. 1040 es tax forms Products. 1040 es tax forms You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040 es tax forms Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. 1040 es tax forms Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040 es tax forms Services. 1040 es tax forms You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 1040 es tax forms An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040 es tax forms If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. 1040 es tax forms No appointment is necessary — just walk in. 1040 es tax forms If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 1040 es tax forms A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 1040 es tax forms If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment may be requested. 1040 es tax forms All other issues will be handled without an appointment. 1040 es tax forms To find the number of your local office, go to www. 1040 es tax forms irs. 1040 es tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040 es tax forms Mail. 1040 es tax forms You can send your order for forms, instructions, and publications to the address below. 1040 es tax forms You should receive a response within 10 days after your request is received. 1040 es tax forms Internal Revenue Service 1201 N. 1040 es tax forms Mitsubishi Motorway Bloomington, IL 61705-6613 CD/DVD for tax products. 1040 es tax forms You can order Publication 1796, IRS Tax Products CD/DVD, and obtain: Current-year forms, instructions, and publications. 1040 es tax forms Prior-year forms, instructions, and publications. 1040 es tax forms Bonus: Historical Tax Products DVD - Ships with the final release. 1040 es tax forms IRS Tax Map: an electronic research tool and finding aid. 1040 es tax forms Tax law frequently asked questions (FAQ). 1040 es tax forms Tax Topics from the IRS telephone response system. 1040 es tax forms Fill-in, print, and save features for most tax forms. 1040 es tax forms Internal Revenue Bulletins. 1040 es tax forms Toll-free and email technical support. 1040 es tax forms The CD/DVD is released twice during the year in January and March. 1040 es tax forms Purchase the CD/DVD from National Technical Information Service (NTIS) at www. 1040 es tax forms irs. 1040 es tax forms gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the CD/DVD for $35 (plus a $5 handling fee). 1040 es tax forms Price is subject to change. 1040 es tax forms CD for small businesses. 1040 es tax forms Publication 3207, The Small Business Resource Guide CD, is a must for every small business owner or any taxpayer about to start a business. 1040 es tax forms This year's CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. 1040 es tax forms All the business tax forms, instructions, and publications needed to successfully manage a business. 1040 es tax forms Tax law changes. 1040 es tax forms Tax Map: an electronic research tool and finding aid. 1040 es tax forms Web links to various government agencies, business associations, and IRS organizations. 1040 es tax forms “Rate the Product” survey—your opportunity to suggest changes for future editions. 1040 es tax forms A site map of the CD to help you navigate the pages of the CD with ease. 1040 es tax forms An interactive “Teens in Biz” module that gives practical tips for teens about starting their own business, creating a business plan, and filing taxes. 1040 es tax forms An updated version of this CD is available each year in early April. 1040 es tax forms You can get a free copy by calling 1-800-829-3676 or by visiting www. 1040 es tax forms irs. 1040 es tax forms gov/smallbiz. 1040 es tax forms Prev  Up  Next   Home   More Online Publications