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Need To File 2012 Taxes

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Need To File 2012 Taxes

Need to file 2012 taxes 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). Need to file 2012 taxes Low Income Taxpayer Clinics (LITCs). Need to file 2012 taxes 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. Need to file 2012 taxes All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. Need to file 2012 taxes 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). Need to file 2012 taxes After notice and hearing, the bankruptcy court may extend the period for another 30 days. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes Individual debtors should use their home address when filing Form 1040 with the IRS. Need to file 2012 taxes Returns should not be filed “in care of” the trustee's address. Need to file 2012 taxes Ordering tax transcripts and copies of returns. Need to file 2012 taxes   Trustees may require the debtor to submit copies or transcripts of the debtor's returns as proof of filing. Need to file 2012 taxes 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. Need to file 2012 taxes If requested through ADS, the transcript will be mailed to the debtor's most current address according to the IRS's records. Need to file 2012 taxes 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. Need to file 2012 taxes Transcripts are normally mailed within 10 to 15 days of receipt of the request by the IRS. Need to file 2012 taxes A transcript contains most of the information on the debtor's filed return, but it is not a copy of the return. Need to file 2012 taxes To request a copy of the debtor's filed return, file Form 4506, Request for Copy of Tax Return. Need to file 2012 taxes 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. Need to file 2012 taxes 00 per tax return for copies of the returns. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Tax returns and payment of taxes in chapter 11 cases. Need to file 2012 taxes   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. Need to file 2012 taxes Disclosure of debtor's return information to trustee. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes    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. Need to file 2012 taxes Material interest is generally defined as a financial or monetary interest. Need to file 2012 taxes Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Need to file 2012 taxes   However, the U. Need to file 2012 taxes S. Need to file 2012 taxes 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. Need to file 2012 taxes Disclosure of bankruptcy estate's return information to debtor. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Need to file 2012 taxes Chapter 13 relief is not available to corporations or partnerships. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes S. Need to file 2012 taxes Individual Income Tax Return. Need to file 2012 taxes On the debtor's individual tax return, Form 1040, report all income received during the entire year and deduct all allowable expenses. Need to file 2012 taxes Do not include in income the amount from any debt canceled due to the debtor's bankruptcy. Need to file 2012 taxes 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. Need to file 2012 taxes See Debt Cancellation, later. Need to file 2012 taxes Interest on trust accounts in chapter 13 cases. Need to file 2012 taxes   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. Need to file 2012 taxes This interest is not available to either the debtor or creditors, it is available only to the trustee for use by the U. Need to file 2012 taxes S. Need to file 2012 taxes Trustee system. Need to file 2012 taxes The interest is also not taxable to the trustee as income. Need to file 2012 taxes 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. Need to file 2012 taxes The bankruptcy estate in a chapter 7 case is represented by a trustee. Need to file 2012 taxes The trustee is appointed to administer the estate and liquidate any nonexempt assets. Need to file 2012 taxes In chapter 11 cases, the debtor often remains in control of the assets as a “debtor-in-possession” and acts as the bankruptcy trustee. Need to file 2012 taxes However, the bankruptcy court, for cause, may appoint a trustee if such appointment is in the best interests of the creditors and the estate. Need to file 2012 taxes During the chapter 7 or 11 bankruptcy, the debtor continues to file an individual tax return on Form 1040. Need to file 2012 taxes The bankruptcy trustee files a Form 1041 for the bankruptcy estate. Need to file 2012 taxes 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). Need to file 2012 taxes 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. Need to file 2012 taxes Two separate bankruptcy estate income tax returns must be filed (if each spouse separately meets the filing requirements). Need to file 2012 taxes 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. Need to file 2012 taxes Debtor's Election To End Tax Year – Form 1040 Short tax years. Need to file 2012 taxes   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. Need to file 2012 taxes If the debtor makes this election, the debtor's tax year is divided into 2 short tax years of less than 12 months each. Need to file 2012 taxes The first tax year ends on the day before the commencement date and the second tax year begins on the commencement date. Need to file 2012 taxes   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. Need to file 2012 taxes Also, the tax liability for the first short tax year is not subject to discharge under the Bankruptcy Code. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes The debtor cannot make a short tax year election if no assets, other than exempt property, are in the bankruptcy estate. Need to file 2012 taxes Making the Election - Filing Requirements First short tax year. Need to file 2012 taxes   The debtor can elect to end the debtor's tax year by filing a return on Form 1040 for the first short tax year. Need to file 2012 taxes The return must be filed on or before the 15th day of the fourth full month after the end of that first tax year. Need to file 2012 taxes Second short tax year. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes To avoid delays in processing the return, write “Second Short Year Return After Section 1398 Election” at the top of the return. Need to file 2012 taxes Example. Need to file 2012 taxes Jane Doe, an individual calendar year taxpayer, filed a bankruptcy petition under chapter 7 or 11 on May 8, 2012. Need to file 2012 taxes 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. Need to file 2012 taxes Jane's second short year runs from May 8, 2012, through December 31, 2012. Need to file 2012 taxes 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. Need to file 2012 taxes To avoid delays in processing the return, write “Section 1398 Election” at the top of the return. Need to file 2012 taxes The debtor may also make the election by attaching a statement to Form 4868, Automatic Extension of Time to File an U. Need to file 2012 taxes S. Need to file 2012 taxes Individual Tax Return. Need to file 2012 taxes 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. Need to file 2012 taxes The debtor must file Form 4868 by the due date of the return for the first short tax year. Need to file 2012 taxes The debtor's spouse may also elect to close his or her tax year, see Election by debtor's spouse, below. Need to file 2012 taxes Election by debtor's spouse. Need to file 2012 taxes   If the debtor is married, the debtor's spouse may join in the election to end the tax year. Need to file 2012 taxes If the debtor and spouse make a joint election, the debtor must file a joint return for the first short tax year. Need to file 2012 taxes The debtor must elect by the due date for filing the return for the first short tax year. Need to file 2012 taxes Once the election is made, it cannot be revoked for the first short tax year. Need to file 2012 taxes However, the election does not prevent the debtor and the spouse from filing separate returns for the second short tax year. Need to file 2012 taxes Later bankruptcy of spouse. Need to file 2012 taxes    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. Need to file 2012 taxes   As each spouse has a separate bankruptcy, one or both of them may have 3 short tax years in the same calendar year. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The debtor and the spouse are precluded from this election because they have different tax years. Need to file 2012 taxes 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. Need to file 2012 taxes Example 1. Need to file 2012 taxes Paul and Mary Harris are calendar-year taxpayers. Need to file 2012 taxes Paul's voluntary chapter 7 bankruptcy case begins on March 4. Need to file 2012 taxes If Paul does not make an election, his tax year does not end on March 3. Need to file 2012 taxes If he makes an election, Paul's first tax year is January 1–March 3, and his second tax year begins on March 4. Need to file 2012 taxes Mary could join in Paul's election as long as they file a joint return for the tax year January 1–March 3. Need to file 2012 taxes They must make the election by July 15, the due date for filing the joint return. Need to file 2012 taxes Example 2. Need to file 2012 taxes Fred and Ethel Barnes are calendar-year taxpayers. Need to file 2012 taxes Fred's voluntary chapter 7 bankruptcy case begins on May 6, and Ethel's bankruptcy case begins on November 1 of the same year. Need to file 2012 taxes Ethel could elect to end her tax year on October 31. Need to file 2012 taxes 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. Need to file 2012 taxes Her first tax year is January 1–October 31, and her second year is November 1–December 31. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Fred and Ethel cannot file a joint return for that short tax year because their tax years preceding October 31 were not the same. Need to file 2012 taxes Example 3. Need to file 2012 taxes Jack and Karen Thomas are calendar-year taxpayers. Need to file 2012 taxes 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. Need to file 2012 taxes Karen elected to close her tax year on April 9 and Jack joins in Karen's election. Need to file 2012 taxes 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. Need to file 2012 taxes The first tax year would be January 1–April 9; the second, April 10–October 2; and the third, October 3–December 31. Need to file 2012 taxes Karen may join in Jack's election if they file a joint return for the second short tax year (April 10–October 2). Need to file 2012 taxes If Karen does join in, she would have the same 3 short tax years as Jack. Need to file 2012 taxes 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. Need to file 2012 taxes Annualizing taxable income. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Dismissal of bankruptcy case. Need to file 2012 taxes   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. Need to file 2012 taxes It is as if no bankruptcy estate was created for tax purposes. Need to file 2012 taxes 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. Need to file 2012 taxes Income, deductions, and credits previously reported by the bankruptcy estate must be reported on the debtor's amended returns. Need to file 2012 taxes Attach a statement to the amended returns explaining why the debtor is filing an amended return. Need to file 2012 taxes Taxes and the Bankruptcy Estate Property of the bankruptcy estate. Need to file 2012 taxes   At the commencement of a bankruptcy case a bankruptcy estate is created. Need to file 2012 taxes Bankruptcy law determines which of the debtor's assets become part of a bankruptcy estate. Need to file 2012 taxes This estate generally includes all of the debtor's legal and equitable interests in property as of the commencement date. Need to file 2012 taxes However, there are exceptions and certain property is exempted or excluded from the bankruptcy estate. Need to file 2012 taxes Note. Need to file 2012 taxes Exempt property and abandoned property are initially part of the bankruptcy estate, but are subsequently removed from the estate. Need to file 2012 taxes Excluded property is never included in the estate. Need to file 2012 taxes Transfer of assets between debtor and bankruptcy estate. Need to file 2012 taxes   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. Need to file 2012 taxes The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits. Need to file 2012 taxes For example, the transfer of an installment obligation to the estate would not accelerate gain under the rules for reporting installment sales. Need to file 2012 taxes The estate assumes the same basis, holding period, and character of the transferred assets. Need to file 2012 taxes Also, the estate generally accounts for the transferred assets in the same manner as debtor. Need to file 2012 taxes   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. Need to file 2012 taxes The transfer does not result in gain or loss, acceleration of income or deductions, or recapture of deductions or credits to the estate. Need to file 2012 taxes Abandoned property. Need to file 2012 taxes    The abandonment of property by the estate to the debtor is a nontaxable disposition of property. Need to file 2012 taxes If the debtor received abandoned property from the bankruptcy estate, the debtor assumes the same basis in the property that the bankruptcy estate had. Need to file 2012 taxes Separate taxable entity. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes S. Need to file 2012 taxes Income Tax Return for Estates and Trusts, and paying its taxes. Need to file 2012 taxes The debtor remains responsible for filing his or her own returns on Form 1040, U. Need to file 2012 taxes S. Need to file 2012 taxes Individual Income Tax Return, and paying taxes on income that does not belong to the estate. Need to file 2012 taxes Employer identification number. Need to file 2012 taxes   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Need to file 2012 taxes 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. Need to file 2012 taxes See Employer identification number, under Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due, later. Need to file 2012 taxes    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Need to file 2012 taxes Income, deductions, and credits – Form 1040. Need to file 2012 taxes   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). Need to file 2012 taxes Also, do not include as income on the debtor's return the amount of any debt canceled by reason of the bankruptcy discharge. Need to file 2012 taxes 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. Need to file 2012 taxes See Debt Cancellation, below. Need to file 2012 taxes Note. Need to file 2012 taxes The debtor may not be able to claim certain deductions available to the bankruptcy estate such as administrative expenses. Need to file 2012 taxes 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. Need to file 2012 taxes However, other exclusions, such as the insolvency exclusion, may apply. Need to file 2012 taxes Bankruptcy Estate – Income, Deductions, and Credits Bankruptcy Estate Income Income of the estate in individual chapter 7 cases. Need to file 2012 taxes    The gross income of the bankruptcy estate includes gross income of the debtor to which the estate is entitled under the Bankruptcy Code. Need to file 2012 taxes Gross income also includes income generated by the bankruptcy estate from property of the estate after the commencement of the case. Need to file 2012 taxes   Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the commencement of the case. Need to file 2012 taxes 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. Need to file 2012 taxes Income of the estate in individual chapter 11 cases. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes S. Need to file 2012 taxes C. Need to file 2012 taxes section 1115). Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes Such payments should be reported by the debtor as miscellaneous income on his or her individual income tax return (Form 1040). Need to file 2012 taxes 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. Need to file 2012 taxes See Administrative expenses, below. Need to file 2012 taxes Conversion or dismissal of chapter 11 cases. Need to file 2012 taxes   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. Need to file 2012 taxes If the chapter 11 case is converted to a chapter 7 case, 11 U. Need to file 2012 taxes S. Need to file 2012 taxes C. Need to file 2012 taxes 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. Need to file 2012 taxes Any income on this property will be taxed to the estate even if the income is realized after the conversion to chapter 7. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes 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). Need to file 2012 taxes Administrative expenses. Need to file 2012 taxes   Allowable expenses include administrative expenses. Need to file 2012 taxes    Administrative expenses can only be deducted by the estate, never by the debtor. Need to file 2012 taxes   The bankruptcy estate is allowed deductions for bankruptcy administrative expenses and fees, including accounting fees, attorney fees, and court costs. Need to file 2012 taxes 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. Need to file 2012 taxes See IRC section 67(e). Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes The bankruptcy estate uses Form 1041 as a transmittal for the tax return prepared using Form 1040 and its schedules. Need to file 2012 taxes See Transmittal for Form 1040 under Tax Return Filing Requirements and Payment of Tax, later. Need to file 2012 taxes Administrative expense loss. Need to file 2012 taxes   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. Need to file 2012 taxes The amounts can only be carried to a tax year of the estate and never to a debtor's tax year. Need to file 2012 taxes 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. Need to file 2012 taxes For a discussion of NOLs, see Publication 536. Need to file 2012 taxes Attribute carryovers. Need to file 2012 taxes   The bankruptcy estate may use its tax attributes the same way that the debtor would have used them. Need to file 2012 taxes These items are determined as of the first day of the debtor's tax year in which the bankruptcy case begins. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes See Debt Cancellation, later. Need to file 2012 taxes   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. Need to file 2012 taxes The debtor also generally assumes any of the tax attributes, listed above, that arose during the administration of the bankruptcy estate. Need to file 2012 taxes Note. Need to file 2012 taxes The debtor does not assume the bankruptcy estate's administrative expense losses because they cannot be used by an individual taxpayer filing Form 1040. Need to file 2012 taxes See Administrative expense loss, above. Need to file 2012 taxes Passive and at-risk activities. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes These transfers include the return of exempt property and abandonment of estate property to the debtor. Need to file 2012 taxes Carrybacks from the debtor's activities. Need to file 2012 taxes   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. Need to file 2012 taxes Carrybacks from the bankruptcy estate. Need to file 2012 taxes   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. Need to file 2012 taxes The estate may also carry back excess credits, such as the general business credit, to the pre-bankruptcy tax years. Need to file 2012 taxes Tax Reporting – Chapter 11 Cases Allocation of income and credits on information returns and required statement for returns for individual chapter 11 cases. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The debtor and trustee may use a simple percentage method to allocate income and income tax withheld. Need to file 2012 taxes The same method must be used to allocate the income and the withheld tax. Need to file 2012 taxes Example. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes See IRC section 31(a). Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes Note. Need to file 2012 taxes The debtor-in-possession or trustee must attach a similar statement to the bankruptcy estate's income tax return (Form 1041). Need to file 2012 taxes   The model Notice 2006-83 Statement, shown above, may be used by debtors, debtors-in-possession, and trustees to satisfy the reporting requirement. Need to file 2012 taxes Self-employment taxes in individual chapter 11 cases. Need to file 2012 taxes   IRC section 1401 imposes a tax upon the self-employment income, that is, the net earnings from self-employment of an individual. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes This schedule includes self-employment income earned post-petition and the attributable deductions. Need to file 2012 taxes The debtor must pay any self-employment tax imposed by IRC section 1401. Need to file 2012 taxes Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Need to file 2012 taxes   In chapter 11 cases, post-petition wages earned by a debtor are generally treated as gross income of the estate. Need to file 2012 taxes However, section 1115 of the Bankruptcy Code (11 U. Need to file 2012 taxes S. Need to file 2012 taxes C. Need to file 2012 taxes 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. Need to file 2012 taxes See Notice 2006-83. Need to file 2012 taxes   The reporting and withholding obligations of a debtor's employer also do not change. Need to file 2012 taxes 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. Need to file 2012 taxes Notice to persons required to file information returns (other than Form W-2, Wage and Tax Statement) in individual chapter 11 cases. Need to file 2012 taxes   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. Need to file 2012 taxes See IRC section 6109(a)(2). Need to file 2012 taxes 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). Need to file 2012 taxes   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. Need to file 2012 taxes See Notice 2006-83. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes See Employment Tax Regulations section 31. Need to file 2012 taxes 3402(f)(2)-1. Need to file 2012 taxes 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. Need to file 2012 taxes See IRC section 6654(a). Need to file 2012 taxes Notice required in converted and dismissed cases. Need to file 2012 taxes   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. Need to file 2012 taxes The debtor should, within a reasonable time, send notice of such event to the persons (or entities) previously notified of the bankruptcy case. Need to file 2012 taxes 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. Need to file 2012 taxes   When a chapter 11 case is converted to a chapter 7 case, the bankruptcy estate will continue to exist as a separate taxable entity. Need to file 2012 taxes 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. Need to file 2012 taxes However, income from services performed by the debtor after conversion of the case to chapter 7 is not property of the chapter 7 estate. Need to file 2012 taxes 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. Need to file 2012 taxes Employment taxes. Need to file 2012 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. Need to file 2012 taxes See Publication 15, Circular E, Employer's Tax Guide, for details on employer tax responsibilities. Need to file 2012 taxes   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. Need to file 2012 taxes For a further discussion of employment taxes, see Employment Taxes, later. Need to file 2012 taxes 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 . Need to file 2012 taxes The bankruptcy court case number is . Need to file 2012 taxes 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]:. Need to file 2012 taxes   Year Taxpayer   Estate 1. Need to file 2012 taxes Form W-2, Payor: $   $     Withheld income tax shown on Form W-2 $   $   2. Need to file 2012 taxes Form 1099-INT Payor: $   $     Withheld income tax (if any) shown on Form 1099-INT $   $   3. Need to file 2012 taxes Form 1099-DIV Payor: $   $     Withheld income tax (if any) shown on Form 1099-DIV $   $   4. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes This amount is equal to the sum of the personal exemption amount plus the basic standard deduction for a married individual filing separately. Need to file 2012 taxes   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). Need to file 2012 taxes   These amounts are generally adjusted annually. Need to file 2012 taxes See the present year Form 1041 Instructions at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/form1041 for the current dollar amounts. Need to file 2012 taxes Accounting period. Need to file 2012 taxes   A bankruptcy estate may have a fiscal year. Need to file 2012 taxes However, this period cannot be longer than 12 months. Need to file 2012 taxes Change of accounting period. Need to file 2012 taxes   The bankruptcy estate may change its accounting period (tax year) once without IRS approval. Need to file 2012 taxes This rule allows the bankruptcy trustee to close the estate's tax year early, before the expected termination of the bankruptcy estate. Need to file 2012 taxes The trustee can then file a return for the first short tax year to get a quick determination of the estate's tax liability. Need to file 2012 taxes Employer identification number. Need to file 2012 taxes   The trustee or debtor-in-possession must obtain an EIN for a bankruptcy estate. Need to file 2012 taxes 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. Need to file 2012 taxes    The social security number of the individual debtor cannot be used as the EIN for the bankruptcy estate. Need to file 2012 taxes   Obtain an EIN for a bankruptcy estate by applying: Online by clicking on the EIN link at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/businesses/small. Need to file 2012 taxes The EIN is issued immediately once the application information is validated. Need to file 2012 taxes By telephone at 1-800-829-4933 from 7:00 a. Need to file 2012 taxes m. Need to file 2012 taxes to 7:00 p. Need to file 2012 taxes m. Need to file 2012 taxes in the trustee's or debtor-in-possession's local time zone. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes For more details, see Pub. Need to file 2012 taxes 583, Starting a Business and Keeping Records. Need to file 2012 taxes   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. Need to file 2012 taxes Figuring tax due. Need to file 2012 taxes   The bankruptcy estate figures its taxable income the same way an individual figures taxable income. Need to file 2012 taxes However, the estate uses the tax rates for a married individual filing separately to calculate the tax on its taxable income. Need to file 2012 taxes 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. Need to file 2012 taxes The estate cannot take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. Need to file 2012 taxes Tax rate schedule. Need to file 2012 taxes 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. Need to file 2012 taxes When to file. Need to file 2012 taxes   Calendar year bankruptcy estates must file Form 1041 by April 15th. Need to file 2012 taxes Fiscal year bankruptcy estates must file on or before the 15th day of the 4th month following the close of its tax year. Need to file 2012 taxes 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. Need to file 2012 taxes If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes Transmittal for Form 1040. Need to file 2012 taxes   Form 1041 is used as a transmittal for Form 1040. Need to file 2012 taxes 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. Need to file 2012 taxes   Prepare the bankruptcy estate's return by completing Form 1040. Need to file 2012 taxes In the top margin of Form 1040, write “Attachment to Form 1041 —DO NOT DETACH. Need to file 2012 taxes ” Then, attach Form 1040 to the Form 1041 transmittal. Need to file 2012 taxes Enter the tax and payment amounts on lines 23 through 29 of Form 1041, then sign and date the return. Need to file 2012 taxes An example of a bankruptcy estate's tax return is prepared below. Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes Payment of Tax Due Payment methods. Need to file 2012 taxes   Payment of tax due may be made by check or money order or by credit or debit card. Need to file 2012 taxes For information on how to make payments electronically by credit or debit card, go to irs. Need to file 2012 taxes gov/e-pay. Need to file 2012 taxes      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. Need to file 2012 taxes To enroll in EFTPS, go to eftps. Need to file 2012 taxes gov or call 1-800-555-4477. Need to file 2012 taxes For more information see Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Need to file 2012 taxes Payment voucher – Form 1041-V. Need to file 2012 taxes   Form 1041-V accompanies payments made by check or money order for Form 1041. Need to file 2012 taxes The voucher includes information about the bankruptcy estate, including the name of the bankruptcy estate, trustee, EIN, and amount due. Need to file 2012 taxes Using Form 1041-V assists the IRS in processing the payment more accurately and efficiently. Need to file 2012 taxes We recommend the use of Form 1041-V; however, there is no penalty if the voucher is not used. Need to file 2012 taxes Estimated tax – Form 1041-ES. Need to file 2012 taxes   In most cases, the trustee or debtor-in-possession must pay any required estimated tax due for the bankruptcy estate. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes If the employment taxes are not paid as required, the trustee may be held personally liable for payment of the taxes. Need to file 2012 taxes   See Publication 15, (Circular E), Employer's Tax Guide, for details on employer tax responsibilities. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes , with their individual income tax returns. Need to file 2012 taxes Tax Return Example – Form 1041 This publication is not revised annually. Need to file 2012 taxes Future changes to the forms and their instructions may not be reflected in this example. Need to file 2012 taxes Note. Need to file 2012 taxes The following return was prepared for tax year 2011. Need to file 2012 taxes 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). Need to file 2012 taxes Facts and circumstances. Need to file 2012 taxes   On December 15, 2010, Thomas Smith filed a bankruptcy petition under chapter 7. Need to file 2012 taxes Joan Black was appointed trustee to administer the bankruptcy estate and to distribute the assets. Need to file 2012 taxes   The estate received the following assets from Mr. Need to file 2012 taxes 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. Need to file 2012 taxes   Also, the estate received a $251,500 capital loss carryover. Need to file 2012 taxes   Mr. Need to file 2012 taxes Smith's bankruptcy case was closed on December 31, 2011. Need to file 2012 taxes During 2011, Mr. Need to file 2012 taxes Smith was relieved of $70,000 of debt by the bankruptcy court. Need to file 2012 taxes The estate chose a calendar year as its tax year. Need to file 2012 taxes Joan, the trustee, reviews the estate's transactions and reports the taxable events on the estate's final return. Need to file 2012 taxes Schedule B (Form 1040). Need to file 2012 taxes    The certificate of deposit earned $5,500 of interest during 2011. Need to file 2012 taxes Joan reports this interest on Schedule B. Need to file 2012 taxes She completes this schedule and enters the result on Form 1040. Need to file 2012 taxes Form 4562. Need to file 2012 taxes   Joan enters the depreciation allowed on Form 4562. Need to file 2012 taxes She completes the form and enters the result on Schedule E. Need to file 2012 taxes Schedule E (Form 1040). Need to file 2012 taxes   The commercial real estate was rented through the date of sale. Need to file 2012 taxes Joan reports the income and expenses on Schedule E. Need to file 2012 taxes She enters the net income on Form 1040. Need to file 2012 taxes Form 4797. Need to file 2012 taxes   The commercial real estate was sold on July 1, 2011, for $280,000. Need to file 2012 taxes The property was purchased in 2001 at a cost of $250,000. Need to file 2012 taxes The total depreciation allowable as of the date of sale was $120,000. Need to file 2012 taxes Additionally, $25,000 of selling expenses were incurred. Need to file 2012 taxes Joan reports the gain or loss from the sale on Form 4797. Need to file 2012 taxes She completes the form and enters the gain on Schedule D (Form 1040). Need to file 2012 taxes   Mr. Need to file 2012 taxes Smith's former residence was sold on September 30, 2011. Need to file 2012 taxes The sale price was $200,000, the selling expenses were $20,000, and his adjusted basis was $130,000. Need to file 2012 taxes This sale is excluded from gross income under IRC section 121. Need to file 2012 taxes Note. Need to file 2012 taxes 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). Need to file 2012 taxes Bankruptcy estates succeed to this exclusion at the commencement of the case. Need to file 2012 taxes See Regulation section 1. Need to file 2012 taxes 1398-3. Need to file 2012 taxes Schedule D (Form 1040). Need to file 2012 taxes   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). Need to file 2012 taxes She enters the results on Form 1040. Need to file 2012 taxes Form 1040, page 1. Need to file 2012 taxes   Joan completes page 1 of the Form 1040 and enters the adjusted gross income on the first line of Form 1040, page 2. Need to file 2012 taxes Schedule A (Form 1040). Need to file 2012 taxes   During 2011, the estate paid mortgage interest and real property tax on Mr. Need to file 2012 taxes Smith's former residence. Need to file 2012 taxes It also paid income tax to the state. Need to file 2012 taxes Joan enters the mortgage interest, real estate tax, and income tax on Schedule A. Need to file 2012 taxes Also, she reports the bankruptcy estate's administrative expenses as a miscellaneous deduction not subject to the 2% floor on miscellaneous itemized deductions. Need to file 2012 taxes She completes the Schedule A and enters the result on page 2 of Form 1040. Need to file 2012 taxes Form 1040, page 2. Need to file 2012 taxes   Joan determines the estate's taxable income and figures its tax using the tax rate schedule for married filing separately. Need to file 2012 taxes She then enters the estate's estimated tax payments and figures the amount the estate still owes. Need to file 2012 taxes Form 982. Need to file 2012 taxes   Joan completes the Schedule D Tax Worksheet to figure the capital loss carryover. Need to file 2012 taxes Because $70,000 of debt was canceled, Joan must reduce the tax attributes of the estate by the amount of the canceled debt. Need to file 2012 taxes See Debt Cancellation, later. Need to file 2012 taxes After the bankruptcy case ends, Mr. Need to file 2012 taxes Smith will assume the estate's tax attributes. Need to file 2012 taxes Mr. Need to file 2012 taxes 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). Need to file 2012 taxes Note. Need to file 2012 taxes If the bankruptcy estate had continued, the capital loss carryover would be available to the bankruptcy estate for the 2012 tax year. Need to file 2012 taxes Form 1041. Need to file 2012 taxes   Joan enters the total tax, estimated tax payments, and tax due from Form 1040 on Form 1041. Need to file 2012 taxes 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. Need to file 2012 taxes This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 1040 - page 1 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 1040 - page 2 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Schedule A This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Schedule B This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Schedule D This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Schedule E This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 4797 - page 1 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 2119 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 4797 - page 2 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Form 4562 This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes Sample Capital Loss Carryover Worksheet This image is too large to be displayed in the current screen. Need to file 2012 taxes Please click the link to view the image. Need to file 2012 taxes 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. Need to file 2012 taxes Otherwise, you do not have any carryovers. Need to file 2012 taxes 1. Need to file 2012 taxes Enter the amount from your 2010 Form 1040, line 41, or Form 1040NR, line 38. Need to file 2012 taxes If a loss, enclose the amount in parentheses 1. Need to file 2012 taxes 19,880   2. Need to file 2012 taxes Enter the loss from your 2010 Schedule D, line 21, as a positive amount 2. Need to file 2012 taxes 1,500   3. Need to file 2012 taxes Combine lines 1 and 2. Need to file 2012 taxes If zero or less, enter -0- 3. Need to file 2012 taxes 21,380   4. Need to file 2012 taxes Enter the smaller of line 2 or line 3 4. Need to file 2012 taxes 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. Need to file 2012 taxes       5. Need to file 2012 taxes Enter the loss from your 2010 Schedule D, line 7, as a positive amount 5. Need to file 2012 taxes 0   6. Need to file 2012 taxes Enter any gain from your 2010 Schedule D, line 15. Need to file 2012 taxes If a loss, enter -0- 6. Need to file 2012 taxes         7. Need to file 2012 taxes Add lines 4 and 6 7. Need to file 2012 taxes 1,500   8. Need to file 2012 taxes Short-term capital loss carryover for 2011. Need to file 2012 taxes Subtract line 7 from line 5. Need to file 2012 taxes If zero or less, enter -0-. Need to file 2012 taxes If more than zero, also enter this amount on Schedule D, line 6 8. Need to file 2012 taxes 0     If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13. Need to file 2012 taxes       9. Need to file 2012 taxes Enter the loss from your 2010 Schedule D, line 15, as a positive amount 9. Need to file 2012 taxes 251,500   10. Need to file 2012 taxes Enter any gain from your 2010 Schedule D, line 7. Need to file 2012 taxes If a loss, enter -0- 10. Need to file 2012 taxes 0       11. Need to file 2012 taxes Subtract line 5 from line 4. Need to file 2012 taxes If zero or less, enter -0- 11. Need to file 2012 taxes 1,500       12. Need to file 2012 taxes Add lines 10 and 11 12. Need to file 2012 taxes 1,500   13. Need to file 2012 taxes Long-term capital loss carryover for 2011. Need to file 2012 taxes Subtract line 12 from line 9. Need to file 2012 taxes If zero or less, enter -0-. Need to file 2012 taxes If more than zero, also enter this amount on Schedule D, line 14 13. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Partnerships The filing requirements for a partnership in a bankruptcy proceeding do not change. Need to file 2012 taxes However, the responsibility to file the required returns becomes that of the court appointed trustee, receiver, or debtor-in-possession. Need to file 2012 taxes A partnership's debt that is canceled as a result of the bankruptcy proceeding is not included in the partnership's income. Need to file 2012 taxes However, It may or may not be included in the individual partners' income. Need to file 2012 taxes See Partnerships, below under Debt Cancellation. Need to file 2012 taxes Corporations The filing requirements for a corporation in a bankruptcy proceeding also do not change. Need to file 2012 taxes 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. Need to file 2012 taxes The following discussion only highlights bankruptcy tax rules applying to corporations. Need to file 2012 taxes The complex details of corporate bankruptcy reorganizations are beyond the scope of this publication. Need to file 2012 taxes Therefore, you may wish to seek the help of a professional tax advisor. Need to file 2012 taxes See Corporations under Debt Cancellation for information about a corporation's debt canceled in a bankruptcy proceeding. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes A “similar case” includes a receivership, foreclosure, or other similar proceeding in a federal or state court. Need to file 2012 taxes 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. Need to file 2012 taxes In a receivership, foreclosure, or similar proceeding before a federal or state agency involving certain financial institutions, the agency is treated as a court. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes No loss is recognized in this situation. Need to file 2012 taxes 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. Need to file 2012 taxes To qualify, the corporation must have ceased business operations and have no assets nor income for the tax year. Need to file 2012 taxes The exemption request must be submitted to the local IRS Insolvency Office handling the case. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes ” The statement must be signed by the trustee, receiver or assignee. Need to file 2012 taxes 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). Need to file 2012 taxes The IRS will act on your request within 90 days. Need to file 2012 taxes Disclosure of return information to trustee. Need to file 2012 taxes   Upon written request, current and earlier returns of the debtor are open to inspection by or disclosure to the trustee or receiver. Need to file 2012 taxes 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. Need to file 2012 taxes Material interest is generally defined as a financial or monetary interest. Need to file 2012 taxes Material interest is not limited to the trustee's responsibility to file a return on behalf of the bankruptcy estate. Need to file 2012 taxes Receiverships Court-established receiverships sometimes arise in connection with bankruptcies. Need to file 2012 taxes Certain court-established receiverships should be treated as qualified settlement funds ("QSFs") for purposes of IRC section 468B and the underlying Treasury Regulations. Need to file 2012 taxes QSFs are required to file an annual income tax return, Form 1120-SF, U. Need to file 2012 taxes S. Need to file 2012 taxes Income Tax Return for Settlement Funds. Need to file 2012 taxes More information about QSFs may be found in Treasury Regulation sections 1. Need to file 2012 taxes 468B-1 through -5. Need to file 2012 taxes 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. Need to file 2012 taxes After a return is filed, the IRS will either accept the return as filed or select the return for examination. Need to file 2012 taxes Under examination the IRS may redetermine the tax liability shown on the return. Need to file 2012 taxes 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. Need to file 2012 taxes See Court Jurisdiction over Tax Matters, later. Need to file 2012 taxes Prompt Determination Requests Pursuant to Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2006-24, 2006-22 I. Need to file 2012 taxes R. Need to file 2012 taxes B. Need to file 2012 taxes 943, www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/irb/2006-22_IRB/ar12, as modified by Announcement 2011-77, www. Need to file 2012 taxes irs. Need to file 2012 taxes 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. Need to file 2012 taxes 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). Need to file 2012 taxes Making the request for determination. Need to file 2012 taxes   As detailed in Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 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. Need to file 2012 taxes O. Need to file 2012 taxes Box 7346, Philadelphia, PA 19101–7346 (marked “Request for Prompt Determination”). Need to file 2012 taxes   The request must be submitted in duplicate and must be executed under penalties of perjury. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The name and location of the office where the return was filed. Need to file 2012 taxes The name of the debtor. Need to file 2012 taxes Debtor's social security number, TIN, or EIN. Need to file 2012 taxes Type of bankruptcy estate. Need to file 2012 taxes Bankruptcy case number. Need to file 2012 taxes Court where the bankruptcy case is pending. Need to file 2012 taxes   The copy of the return(s) submitted with the request must be an exact copy of a valid return. Need to file 2012 taxes 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. Need to file 2012 taxes    To qualify as valid, a return must meet certain criteria, including a signature under penalties of perjury. Need to file 2012 taxes A document filed by the trustee with the jurat stricken, deleted, or modified will not qualify as a valid return. Need to file 2012 taxes Examination of return. Need to file 2012 taxes   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. Need to file 2012 taxes If the return is selected for examination, it will be examined as soon as possible. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes Note. Need to file 2012 taxes An incomplete request includes those submitted with a copy of a return form, the original of which does not qualify as a valid return. Need to file 2012 taxes   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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Land Mobile Radio (LMR) Subscriber Unit

***Government One-Time Registration***

Welcome to the Land Mobile Radio (LMR) Subscriber Unit web page. On this site, you will find information and guidance to help you fulfill LMR Project 25 Subscriber Unit Radio equipment requirements through the LMR subscriber unit contracts.

The Government requires effective, reliable, and secure wireless communications capabilities to successfully carry out a wide range of enforcement, protective, and security missions. LMR subscriber units are a primary tool for the Government to communicate in the field. LMR equipment and systems provide command, control, and communications capabilities not available on commercial wireless networks. While the Government relies on commercial wireless services for routine voice communications, private LMR networks provide a unique level of reliability and privacy required by enforcement, protective, and security missions.

The LMR subscriber unit contracts provide standards-based and standards-compliant LMR equipment to enable communications interoperability with similarly configured equipment. The TIA/EIA-102 suite of standards, also known as Project 25, provides the basis for the required LMR technical specifications. The TIA/EIA-102 standards, also known as the Project 25 Standards, specify radio equipment that allows for a smooth migration from analog operating in the 25 kHz bandwidth to 12.5 kHz digital operations. TIA/EIA-102 standards also provide for a “Common Air Interface” (CAI) across which radio equipment from multiple contractors will interoperate.

The LMR subscriber unit equipment contracts are for portable and mobile radios, portable repeaters and portable base stations, encryption key loaders and ancillary support accessories. The contracts provide standards-based equipment to capitalize on contractor and product diversity and to provide effective solutions for the Government.

LMR Overview

LMR Contractors - List of Contractors under the Land Mobile Radio Program and information regarding their contracts (CLINs, Modifications, DUNS number, contractor points of contact and links to contractor websites).

Government Point of Contact

Contract - the general terms and conditions of the LMR contracts. Individual modifications to the contracts can be found under the link to LMR Contractors.

LMR Authorized Users

Customer Information - Step by Step Guide and Ordering Guide to provide information on how to use our contracts.

Frequently Asked Questions

508 Requirements/Policy - The requirements for the Section 508 of the Rehabilitation Act Amendments of 1998 (25 U.S.C. paragraph 794 (d)) has been waived based on the National Security Intelligence Exception in the calss-action waiver of contracts for subscriber unit Land Mobile Radio (LMR) equipment.


Questions about the Procurement information on this site, please contact the webmaster.
Contact the Office of Procurement for other Procurement related questions.

Page Last Reviewed or Updated: 22-Apr-2013

The Need To File 2012 Taxes

Need to file 2012 taxes Internal Revenue Bulletin:  2010-9  March 1, 2010  Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2010-18 Table of Contents SECTION 1. Need to file 2012 taxes PURPOSE SECTION 2. Need to file 2012 taxes BACKGROUND SECTION 3. Need to file 2012 taxes SCOPE SECTION 4. Need to file 2012 taxes APPLICATION SECTION 5. Need to file 2012 taxes EFFECTIVE DATE SECTION 6. Need to file 2012 taxes DRAFTING INFORMATION SECTION 1. Need to file 2012 taxes PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2010, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2010, including a separate table of inclusion amounts for lessees of trucks and vans. Need to file 2012 taxes The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Need to file 2012 taxes SECTION 2. Need to file 2012 taxes BACKGROUND . Need to file 2012 taxes 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Need to file 2012 taxes Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Need to file 2012 taxes The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Need to file 2012 taxes This change reflects the higher rate of price inflation for trucks and vans since 1988. Need to file 2012 taxes . Need to file 2012 taxes 02 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Need to file 2012 taxes The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Need to file 2012 taxes Under § 1. Need to file 2012 taxes 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Need to file 2012 taxes One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Need to file 2012 taxes Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Need to file 2012 taxes SECTION 3. Need to file 2012 taxes SCOPE . Need to file 2012 taxes 01 The limitations on depreciation deductions in section 4. Need to file 2012 taxes 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2010, and continue to apply for each taxable year that the passenger automobile remains in service. Need to file 2012 taxes . Need to file 2012 taxes 02 The tables in section 4. Need to file 2012 taxes 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2010. Need to file 2012 taxes Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Need to file 2012 taxes See Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2005-13, 2005-1 C. Need to file 2012 taxes B. Need to file 2012 taxes 759, for passenger automobiles first leased before calendar year 2006; Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2006-18, 2006-1 C. Need to file 2012 taxes B. Need to file 2012 taxes 645, for passenger automobiles first leased during calendar year 2006; Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2007-30, 2007-1 C. Need to file 2012 taxes B. Need to file 2012 taxes 1104, for passenger automobiles first leased during calendar year 2007; Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2008-22, 2008-12 I. Need to file 2012 taxes R. Need to file 2012 taxes B. Need to file 2012 taxes 658, for passenger automobiles first leased during calendar year 2008; and Rev. Need to file 2012 taxes Proc. Need to file 2012 taxes 2009-24, 2009-17 I. Need to file 2012 taxes R. Need to file 2012 taxes B. Need to file 2012 taxes 885, for passenger automobiles first leased during calendar year 2009. Need to file 2012 taxes SECTION 4. Need to file 2012 taxes APPLICATION . Need to file 2012 taxes 01 Limitations on Depreciation Deductions for Certain Automobiles. Need to file 2012 taxes (1) Amount of the inflation adjustment. Need to file 2012 taxes (a) Passenger automobiles (other than trucks or vans). Need to file 2012 taxes Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Need to file 2012 taxes The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Need to file 2012 taxes The new car component of the CPI was 115. Need to file 2012 taxes 2 for October 1987 and 137. Need to file 2012 taxes 851 for October 2009. Need to file 2012 taxes The October 2009 index exceeded the October 1987 index by 22. Need to file 2012 taxes 651. Need to file 2012 taxes Therefore, the automobile price inflation adjustment for 2010 for passenger automobiles (other than trucks and vans) is 19. Need to file 2012 taxes 66 percent (22. Need to file 2012 taxes 651/115. Need to file 2012 taxes 2 x 100%). Need to file 2012 taxes The dollar limitations in § 280F(a) are multiplied by a factor of 0. Need to file 2012 taxes 1966, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2010. Need to file 2012 taxes This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2010. Need to file 2012 taxes (b) Trucks and vans. Need to file 2012 taxes To determine the dollar limitations for trucks and vans first placed in service during calendar year 2010, the new truck component of the CPI is used instead of the new car component. Need to file 2012 taxes The new truck component of the CPI was 112. Need to file 2012 taxes 4 for October 1987 and 140. Need to file 2012 taxes 897 for October 2009. Need to file 2012 taxes The October 2009 index exceeded the October 1987 index by 28. Need to file 2012 taxes 497. Need to file 2012 taxes Therefore, the automobile price inflation adjustment for 2010 for trucks and vans is 25. Need to file 2012 taxes 35 percent (28. Need to file 2012 taxes 497/112. Need to file 2012 taxes 4 x 100%). Need to file 2012 taxes The dollar limitations in § 280F(a) are multiplied by a factor of 0. Need to file 2012 taxes 2535, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Need to file 2012 taxes This adjustment applies to all trucks and vans that are first placed in service in calendar year 2010. Need to file 2012 taxes (2) Amount of the limitation. Need to file 2012 taxes Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2010. Need to file 2012 taxes Use Table 1 for a passenger automobile (other than a truck or van) and Table 2 for a truck or van placed in service in calendar year 2010. Need to file 2012 taxes REV. Need to file 2012 taxes PROC. Need to file 2012 taxes 2010-18 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Need to file 2012 taxes PROC. Need to file 2012 taxes 2010-18 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 . Need to file 2012 taxes 02 Inclusions in Income of Lessees of Passenger Automobiles. Need to file 2012 taxes A taxpayer must follow the procedures in § 1. Need to file 2012 taxes 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2010. Need to file 2012 taxes In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 3 of this revenue procedure, while lessees of trucks and vans should use Table 4 of this revenue procedure. Need to file 2012 taxes REV. Need to file 2012 taxes PROC. Need to file 2012 taxes 2010-18 TABLE 3 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $16,700 $17,000 3 7 10 11 14 17,000 17,500 4 8 13 15 16 17,500 18,000 5 10 16 19 21 18,000 18,500 6 13 18 23 26 18,500 19,000 7 15 22 26 31 19,000 19,500 8 17 25 30 35 19,500 20,000 9 19 29 34 39 20,000 20,500 10 21 32 38 44 20,500 21,000 11 23 35 42 48 21,000 21,500 12 26 38 45 53 21,500 22,000 13 28 41 50 57 22,000 23,000 14 31 46 56 63 23,000 24,000 16 36 52 63 73 24,000 25,000 18 40 59 71 81 25,000 26,000 20 44 66 78 90 26,000 27,000 22 49 71 86 100 27,000 28,000 24 53 78 94 108 28,000 29,000 26 57 85 101 118 29,000 30,000 28 61 92 109 126 30,000 31,000 30 66 97 117 135 31,000 32,000 32 70 104 125 144 32,000 33,000 34 74 111 132 153 33,000 34,000 36 79 117 140 161 34,000 35,000 38 83 123 148 171 35,000 36,000 40 87 130 156 179 36,000 37,000 42 92 136 163 188 37,000 38,000 44 96 143 170 198 38,000 39,000 46 100 149 179 206 39,000 40,000 48 105 155 186 215 40,000 41,000 50 109 162 194 224 41,000 42,000 52 113 169 201 233 42,000 43,000 54 118 174 210 241 43,000 44,000 56 122 181 217 251 44,000 45,000 58 126 188 225 259 45,000 46,000 60 131 194 232 269 46,000 47,000 61 135 201 240 277 47,000 48,000 63 140 207 248 286 48,000 49,000 65 144 213 256 295 49,000 50,000 67 148 220 263 304 50,000 51,000 69 153 226 271 313 51,000 52,000 71 157 232 279 322 52,000 53,000 73 161 239 287 331 53,000 54,000 75 166 245 294 340 54,000 55,000 77 170 252 302 348 55,000 56,000 79 174 258 310 358 56,000 57,000 81 178 265 318 366 57,000 58,000 83 183 271 325 375 58,000 59,000 85 187 278 333 384 59,000 60,000 87 191 284 341 393 60,000 62,000 90 198 294 352 406 62,000 64,000 94 207 306 368 424 64,000 66,000 98 215 320 382 443 66,000 68,000 102 224 332 398 460 68,000 70,000 106 232 346 413 478 70,000 72,000 110 241 358 429 496 72,000 74,000 114 250 371 444 513 74,000 76,000 118 258 384 460 531 76,000 78,000 122 267 396 476 549 78,000 80,000 126 276 409 491 566 80,000 85,000 132 291 432 518 598 85,000 90,000 142 313 464 556 643 90,000 95,000 152 334 497 594 687 95,000 100,000 162 356 528 634 731 100,000 110,000 177 388 577 691 798 110,000 120,000 196 432 641 768 887 120,000 130,000 216 475 705 846 976 130,000 140,000 236 518 770 922 1,065 140,000 150,000 256 561 834 1,000 1,154 150,000 160,000 275 605 898 1,077 1,243 160,000 170,000 295 648 963 1,153 1,333 170,000 180,000 315 691 1,027 1,231 1,421 180,000 190,000 334 735 1,091 1,308 1,510 190,000 200,000 354 778 1,155 1,386 1,599 200,000 210,000 374 821 1,220 1,462 1,688 210,000 220,000 393 865 1,284 1,539 1,777 220,000 230,000 413 908 1,348 1,617 1,866 230,000 240,000 433 951 1,413 1,693 1,956 240,000 and up 453 995 1,476 1,771 2,044 REV. Need to file 2012 taxes PROC. Need to file 2012 taxes 2010-18 TABLE 4 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later 17,000 17,500 3 6 9 10 11 17,500 18,000 4 8 12 14 16 18,000 18,500 5 10 15 18 21 18,500 19,000 6 12 19 22 24 19,000 19,500 7 15 21 26 29 19,500 20,000 8 17 25 29 34 20,000 20,500 9 19 28 33 38 20,500 21,000 10 21 31 37 43 21,000 21,500 11 23 35 41 47 21,500 22,000 12 25 38 45 51 22,000 23,000 13 29 42 51 58 23,000 24,000 15 33 49 58 67 24,000 25,000 17 37 56 66 76 25,000 26,000 19 42 62 73 85 26,000 27,000 21 46 68 82 93 27,000 28,000 23 50 75 89 103 28,000 29,000 25 55 81 97 111 29,000 30,000 27 59 88 104 121 30,000 31,000 29 63 94 113 129 31,000 32,000 31 68 100 120 138 32,000 33,000 33 72 107 127 148 33,000 34,000 35 76 114 135 156 34,000 35,000 37 81 119 143 165 35,000 36,000 39 85 126 151 174 36,000 37,000 41 89 133 158 183 37,000 38,000 43 94 139 166 191 38,000 39,000 45 98 145 174 201 39,000 40,000 47 102 152 182 209 40,000 41,000 49 106 159 189 218 41,000 42,000 51 111 164 198 227 42,000 43,000 53 115 171 205 236 43,000 44,000 55 119 178 213 245 44,000 45,000 57 124 184 220 254 45,000 46,000 59 128 190 228 263 46,000 47,000 60 133 197 235 272 47,000 48,000 62 137 203 244 280 48,000 49,000 64 142 209 251 290 49,000 50,000 66 146 216 259 298 50,000 51,000 68 150 223 266 308 51,000 52,000 70 154 229 275 316 52,000 53,000 72 159 235 282 325 53,000 54,000 74 163 242 290 334 54,000 55,000 76 167 249 297 343 55,000 56,000 78 172 254 305 352 56,000 57,000 80 176 261 313 361 57,000 58,000 82 180 268 320 370 58,000 59,000 84 185 274 328 378 59,000 60,000 86 189 280 336 388 60,000 62,000 89 195 291 347 401 62,000 64,000 93 204 303 363 418 64,000 66,000 97 213 315 379 436 66,000 68,000 101 221 329 394 454 68,000 70,000 105 230 341 410 472 70,000 72,000 109 239 354 424 490 72,000 74,000 113 247 367 440 508 74,000 76,000 117 256 380 455 526 76,000 78,000 121 264 393 471 543 78,000 80,000 125 273 406 486 561 80,000 85,000 131 289 428 513 592 85,000 90,000 141 310 461 552 636 90,000 95,000 151 332 492 591 681 95,000 100,000 161 353 525 629 726 100,000 110,000 176 386 573 686 793 110,000 120,000 195 430 637 763 882 120,000 130,000 215 473 701 841 971 130,000 140,000 235 516 766 918 1,059 140,000 150,000 255 559 830 995 1,149 150,000 160,000 274 603 894 1,072 1,238 160,000 170,000 294 646 958 1,150 1,326 170,000 180,000 314 689 1,023 1,226 1,416 180,000 190,000 333 733 1,087 1,303 1,505 190,000 200,000 353 776 1,151 1,381 1,594 200,000 210,000 373 819 1,216 1,457 1,683 210,000 220,000 392 863 1,280 1,534 1,772 220,000 230,000 412 906 1,344 1,612 1,861 230,000 240,000 432 949 1,409 1,689 1,949 240,000 and up 452 992 1,473 1,766 2,039 SECTION 5. Need to file 2012 taxes EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Need to file 2012 taxes SECTION 6. Need to file 2012 taxes DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Need to file 2012 taxes Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Need to file 2012 taxes For further information regarding this revenue procedure, contact Mr. Need to file 2012 taxes Harvey at (202) 622-4930 (not a toll-free call). Need to file 2012 taxes Prev  Up  Next   Home   More Internal Revenue Bulletins