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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

State Tax E

1040x 2013H And R Block Tax ReturnTurbotax 2011Free 1040ez Filing OnlineWww Irs Gov FreefileFiling Free State Tax Return2009 Amended Tax Return InstructionsCan Ie File An Amended Tax ReturnStateincometaxTax Slayer 20112012 Free Taxes Online1040 Ez1040 Long Form1040ez Form 2013H&r Block Free State FileFree Amended Tax Return OnlineH&r Block State TaxesHow To Fill Out A 1040x Form For The IrsHow To Fill Out 1040xTax Filing Sites Federal California State Tax ReturnsHow To Fill Out 1040x Step By StepTaxes 1040ezForm1040ezFree Tax Preparation For UnemployedFree Tax Efile1040ez Online Filing Free1040ez Form 2012H&r Block Taxcut1040 2010H & R Block Free FileWhere's My Amended Return1040 Ez Tax TableTurbotax Free State Efile CouponIrs Instructions 1040H And R Block FreeIrs Tax Form 1040ezFree E File 1040ezFree Filing State Income TaxFiling State TaxesTaxact 2012

State Tax E

State tax e Publication 530 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Oops! We can't find the file

Official information and services from the U.S. government

We're sorry, but the page you're looking for might have been removed, had its name changed, or is temporarily unavailable.

What should you do?

  • If you typed the page url, check the spelling.
  • Go to our home page and browse through our topics for the information you want.
  • Go to our site index, and look through the alphabetical listing for links to the page you want.
  • If you need help finding government information, please contact us.
  • Use our search engine to find the information you want.

The State Tax E

State tax e 7. State tax e   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. State tax e Costs not included. State tax e Intangible Drilling Costs Exploration CostsPartnerships and S corporations. State tax e Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. State tax e Film and Television Production Costs What's New Film and television productions costs. State tax e  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. State tax e See Film and Television Production Costs , later. State tax e Introduction This chapter discusses costs you can elect to deduct or capitalize. State tax e You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. State tax e If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. State tax e When you capitalize a cost, you add it to the basis of property to which it relates. State tax e A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. State tax e Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. State tax e You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. State tax e For more information on the alternative minimum tax, see the instructions for the following forms. State tax e Form 6251, Alternative Minimum Tax—Individuals. State tax e Form 4626, Alternative Minimum Tax—Corporations. State tax e Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. State tax e Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. State tax e Certain carrying charges must be capitalized under the uniform capitalization rules. State tax e (For information on capitalization of interest, see chapter 4 . State tax e ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. State tax e You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. State tax e For unimproved and unproductive real property, your election is good for only 1 year. State tax e You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. State tax e For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. State tax e For personal property, your election is effective until the date you install or first use it, whichever is later. State tax e How to make the election. State tax e   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. State tax e However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Attach the statement to the amended return and write “Filed pursuant to section 301. State tax e 9100-2” on the statement. State tax e File the amended return at the same address you filed the original return. State tax e Research and Experimental Costs The costs of research and experimentation are generally capital expenses. State tax e However, you can elect to deduct these costs as a current business expense. State tax e Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. State tax e If you meet certain requirements, you may elect to defer and amortize research and experimental costs. State tax e For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. State tax e Research and experimental costs defined. State tax e   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. State tax e Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. State tax e Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. State tax e      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. State tax e However, costs paid or incurred to obtain another's patent are not research and experimental costs. State tax e Product. State tax e   The term “product” includes any of the following items. State tax e Formula. State tax e Invention. State tax e Patent. State tax e Pilot model. State tax e Process. State tax e Technique. State tax e Property similar to the items listed above. State tax e It also includes products used by you in your trade or business or held for sale, lease, or license. State tax e Costs not included. State tax e   Research and experimental costs do not include expenses for any of the following activities. State tax e Advertising or promotions. State tax e Consumer surveys. State tax e Efficiency surveys. State tax e Management studies. State tax e Quality control testing. State tax e Research in connection with literary, historical, or similar projects. State tax e The acquisition of another's patent, model, production, or process. State tax e When and how to elect. State tax e   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. State tax e If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. State tax e Deducting or Amortizing Research and Experimentation Costs IF you . State tax e . State tax e . State tax e THEN . State tax e . State tax e . State tax e Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. State tax e Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. State tax e See Research and Experimental Costs in chapter 8. State tax e Research credit. State tax e   If you pay or incur qualified research expenses, you may be able to take the research credit. State tax e For more information see Form 6765, Credit for Increasing Research Activities and its instructions. State tax e Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. State tax e You can usually recover them through depreciation or depletion. State tax e However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. State tax e These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. State tax e You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. State tax e You can elect to deduct only the costs of items with no salvage value. State tax e These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. State tax e Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. State tax e However, see Amounts paid to contractor that must be capitalized , later. State tax e You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. State tax e It does not matter whether there is any intent to produce hydrocarbons. State tax e If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. State tax e Amounts paid to contractor that must be capitalized. State tax e   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. State tax e How to make the election. State tax e   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. State tax e No formal statement is required. State tax e If you file Schedule C (Form 1040), enter these costs under “Other expenses. State tax e ”   For oil and gas wells, your election is binding for the year it is made and for all later years. State tax e For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. State tax e You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. State tax e Energy credit for costs of geothermal wells. State tax e   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. State tax e See the Instructions for Form 3468 for more information. State tax e Nonproductive well. State tax e   If you capitalize your IDCs, you have another option if the well is nonproductive. State tax e You can deduct the IDCs of the nonproductive well as an ordinary loss. State tax e You must indicate and clearly state your election on your tax return for the year the well is completed. State tax e Once made, the election for oil and gas wells is binding for all later years. State tax e You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. State tax e Costs incurred outside the United States. State tax e   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. State tax e However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. State tax e If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. State tax e These rules do not apply to a nonproductive well. State tax e Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. State tax e You recover these costs through depletion as the mineral is removed from the ground. State tax e However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). State tax e How to make the election. State tax e   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. State tax e Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. State tax e The election applies to the tax year you make this election and all later tax years. State tax e Partnerships and S corporations. State tax e   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. State tax e Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. State tax e Reduced corporate deductions for exploration costs. State tax e   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. State tax e It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. State tax e A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. State tax e For more information on this method of amortization, see Internal Revenue Code section 59(e). State tax e   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. State tax e However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. State tax e See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. State tax e   These rules also apply to the deduction of development costs by corporations. State tax e See Development Costs , later. State tax e Recapture of exploration expenses. State tax e   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. State tax e Use either of the following methods. State tax e Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. State tax e Your election must be clearly indicated on the return. State tax e Increase your adjusted basis in the mine by the amount included in income. State tax e Generally, you must elect this recapture method by the due date (including extensions) of your return. State tax e However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Make the election on your amended return and write “Filed pursuant to section 301. State tax e 9100-2” on the form where you are including the income. State tax e File the amended return at the same address you filed the original return. State tax e Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. State tax e   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. State tax e Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. State tax e   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. State tax e Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. State tax e If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. State tax e Foreign exploration costs. State tax e   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. State tax e You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. State tax e (Cost depletion is discussed in chapter 9 . State tax e ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. State tax e These rules also apply to foreign development costs. State tax e Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. State tax e These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. State tax e Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. State tax e Development costs do not include the costs for the acquisition or improvement of depreciable property. State tax e Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. State tax e This election applies each tax year to expenses paid or incurred in that year. State tax e Once made, the election is binding for the year and cannot be revoked for any reason. State tax e How to make the election. State tax e   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. State tax e Generally, you must make the election by the due date of the return (including extensions). State tax e However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Clearly indicate the election on your amended return and write “Filed pursuant to section 301. State tax e 9100-2. State tax e ” File the amended return at the same address you filed the original return. State tax e Foreign development costs. State tax e   The rules discussed earlier for foreign exploration costs apply to foreign development costs. State tax e Reduced corporate deductions for development costs. State tax e   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. State tax e Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. State tax e For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. State tax e Circulation costs are deductible even if they normally would be capitalized. State tax e This rule does not apply to the following costs that must be capitalized. State tax e The purchase of land or depreciable property. State tax e The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. State tax e Other treatment of circulation costs. State tax e   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. State tax e Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). State tax e Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. State tax e How to make the election. State tax e   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. State tax e Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. State tax e Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. State tax e However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. State tax e The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. State tax e Any remaining costs must be amortized. State tax e For information about amortizing start-up and organizational costs, see chapter 8 . State tax e Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. State tax e Organizational costs include the costs of creating a corporation. State tax e For more information on start-up and organizational costs, see chapter 8 . State tax e How to make the election. State tax e   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. State tax e However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Clearly indicate the election on your amended return and write “Filed pursuant to section 301. State tax e 9100-2. State tax e ” File the amended return at the same address you filed the original return. State tax e The election applies when computing taxable income for the current tax year and all subsequent years. State tax e Reforestation Costs Reforestation costs are generally capital expenditures. State tax e However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. State tax e The remaining costs can be amortized over an 84-month period. State tax e For information about amortizing reforestation costs, see chapter 8 . State tax e Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. State tax e Qualified timber property is property that contains trees in significant commercial quantities. State tax e See chapter 8 for more information on qualifying reforestation costs and qualified timber property. State tax e If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. State tax e Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. State tax e How to make the election. State tax e   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. State tax e If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. State tax e If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. State tax e The unique stand identification numbers. State tax e The total number of acres reforested during the tax year. State tax e The nature of the reforestation treatments. State tax e The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. State tax e   If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Clearly indicate the election on your amended return and write “Filed pursuant to section 301. State tax e 9100-2. State tax e ” File the amended return at the same address you filed the original return. State tax e The election applies when computing taxable income for the current tax year and all subsequent years. State tax e   For additional information on reforestation costs, see chapter 8 . State tax e Recapture. State tax e   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. State tax e For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. State tax e Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. State tax e However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. State tax e Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. State tax e However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. State tax e You must own or lease the facility or vehicle for use in connection with your trade or business. State tax e A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. State tax e A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). State tax e You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. State tax e Deduction limit. State tax e   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. State tax e However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. State tax e Partners and partnerships. State tax e   The $15,000 limit applies to a partnership and also to each partner in the partnership. State tax e A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. State tax e If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. State tax e   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). State tax e If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. State tax e Example. State tax e Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. State tax e Emilio had $12,000 of similar expenses in his sole proprietorship. State tax e He elected to deduct $7,000 of them. State tax e Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. State tax e Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. State tax e Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. State tax e Qualification standards. State tax e   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. State tax e You can view the Americans with Disabilities Act at www. State tax e ada. State tax e gov/pubs/ada. State tax e htm. State tax e   The following is a list of some architectural barrier removal costs that can be deducted. State tax e Ground and floor surfaces. State tax e Walks. State tax e Parking lots. State tax e Ramps. State tax e Entrances. State tax e Doors and doorways. State tax e Stairs. State tax e Floors. State tax e Toilet rooms. State tax e Water fountains. State tax e Public telephones. State tax e Elevators. State tax e Controls. State tax e Signage. State tax e Alarms. State tax e Protruding objects. State tax e Symbols of accessibility. State tax e You can find the ADA guidelines and requirements for architectural barrier removal at www. State tax e usdoj. State tax e gov/crt/ada/reg3a. State tax e html. State tax e   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. State tax e You can find the guidelines and requirements for transportation barrier removal at www. State tax e fta. State tax e dot. State tax e gov. State tax e   Also, you can access the ADA website at www. State tax e ada. State tax e gov for additional information. State tax e Other barrier removals. State tax e   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. State tax e The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. State tax e The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). State tax e The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. State tax e How to make the election. State tax e   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. State tax e Identify the deduction as a separate item. State tax e The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. State tax e If you make this election, you must maintain adequate records to support your deduction. State tax e   For your election to be valid, you generally must file your return by its due date, including extensions. State tax e However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). State tax e Clearly indicate the election on your amended return and write “Filed pursuant to section 301. State tax e 9100-2. State tax e ” File the amended return at the same address you filed the original return. State tax e Your election is irrevocable after the due date, including extensions, of your return. State tax e Disabled access credit. State tax e   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. State tax e If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. State tax e   For more information, see Form 8826, Disabled Access Credit. State tax e Film and Television Production Costs Film and television production costs are generally capital expenses. State tax e However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. State tax e For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. State tax e Prev  Up  Next   Home   More Online Publications