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Tax Act 2012 Return

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Tax Act 2012 Return

Tax act 2012 return 4. Tax act 2012 return   Farm Business Expenses Table of Contents What's New for 2013 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible ExpensesReasonable allocation. Tax act 2012 return Prepaid Farm Supplies Prepaid Livestock Feed Labor Hired Repairs and Maintenance Interest Breeding Fees Fertilizer and Lime Taxes Insurance Rent and Leasing Depreciation Business Use of Your Home Truck and Car Expenses Travel Expenses Marketing Quota Penalties Tenant House Expenses Items Purchased for Resale Other Expenses Domestic Production Activities Deduction Capital ExpensesForestation and reforestation costs. Tax act 2012 return Nondeductible ExpensesPersonal, Living, and Family Expenses Other Nondeductible Items Losses From Operating a FarmAt-Risk Limits Passive Activity Limits Excess Farm Loss Limit Not-for-Profit FarmingUsing the presumption later. Tax act 2012 return Category 1. Tax act 2012 return Category 2. Tax act 2012 return Category 3. Tax act 2012 return What's New for 2013 Standard mileage rate. Tax act 2012 return  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Tax act 2012 return 5 cents. Tax act 2012 return See Truck and Car Expenses , later. Tax act 2012 return Simplified method for business use of home deduction. Tax act 2012 return  The IRS now provides a simplified method to determine your expenses for business use of your home. Tax act 2012 return For more information, see Schedule C (Form 1040), Part II, and its instructions. Tax act 2012 return Introduction You can generally deduct the current costs of operating your farm. Tax act 2012 return Current costs are expenses you do not have to capitalize or include in inventory costs. Tax act 2012 return However, your deduction for the cost of livestock feed and certain other supplies may be limited. Tax act 2012 return If you have an operating loss, you may not be able to deduct all of it. Tax act 2012 return Topics - This chapter discusses: Deductible expenses Domestic production activities deduction Capital expenses Nondeductible expenses Losses from operating a farm Not-for-profit farming Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home 925 Passive Activity and At-Risk Rules 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch F (Form 1040) Profit or Loss From Farming 1045 Application for Tentative Refund 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8903 Domestic Production Activities Deduction See chapter 16 for information about getting publications and forms. Tax act 2012 return Deductible Expenses The ordinary and necessary costs of operating a farm for profit are deductible business expenses. Tax act 2012 return “Ordinary” means what most farmers do and “necessary” means what is useful and helpful in farming. Tax act 2012 return Schedule F, Part II, lists some common farm expenses that are typically deductible. Tax act 2012 return This chapter discusses many of these expenses, as well as others not listed on Schedule F. Tax act 2012 return Reimbursed expenses. Tax act 2012 return   If the reimbursement is received in the same year that the expense is claimed, reduce the expense by the amount of the reimbursement. Tax act 2012 return If the reimbursement is received in a year after the expense is claimed, include the reimbursement amount in income. Tax act 2012 return See Refund or reimbursement under Income From Other Sources in chapter 3. Tax act 2012 return Personal and business expenses. Tax act 2012 return   Some expenses you pay during the tax year may be part personal and part business. Tax act 2012 return These may include expenses for gasoline, oil, fuel, water, rent, electricity, telephone, automobile upkeep, repairs, insurance, interest, and taxes. Tax act 2012 return   You must allocate these mixed expenses between their business and personal parts. Tax act 2012 return Generally, the personal part of these expenses is not deductible. Tax act 2012 return The business portion of the expenses is deductible on Schedule F. Tax act 2012 return Example. Tax act 2012 return You paid $1,500 for electricity during the tax year. Tax act 2012 return You used 1/3 of the electricity for personal purposes and 2/3 for farming. Tax act 2012 return Under these circumstances, you can deduct $1,000 (2/3 of $1,500) of your electricity expense as a farm business expense. Tax act 2012 return Reasonable allocation. Tax act 2012 return   It is not always easy to determine the business and nonbusiness parts of an expense. Tax act 2012 return There is no method of allocation that applies to all mixed expenses. Tax act 2012 return Any reasonable allocation is acceptable. Tax act 2012 return What is reasonable depends on the circumstances in each case. Tax act 2012 return Prepaid Farm Supplies Prepaid farm supplies include the following items if paid for during the year. Tax act 2012 return Feed, seed, fertilizer, and similar farm supplies not used or consumed during the year, but not including farm supplies that you would have consumed during the year if not for a fire, storm, flood, other casualty, disease, or drought. Tax act 2012 return Poultry (including egg-laying hens and baby chicks) bought for use (or for both use and resale) in your farm business. Tax act 2012 return However, include only the amount that would be deductible in the following year if you had capitalized the cost and deducted it ratably over the lesser of 12 months or the useful life of the poultry. Tax act 2012 return Poultry bought for resale and not resold during the year. Tax act 2012 return Deduction limit. Tax act 2012 return   If you use the cash method of accounting to report your income and expenses, your deduction for prepaid farm supplies in the year you pay for them may be limited to 50% of your other deductible farm expenses for the year (all Schedule F deductions except prepaid farm supplies). Tax act 2012 return This limit does not apply if you meet one of the exceptions described later. Tax act 2012 return See Chapter 2 for a discussion of the cash method of accounting. Tax act 2012 return   If the limit applies, you can deduct the excess cost of farm supplies other than poultry in the year you use or consume the supplies. Tax act 2012 return The excess cost of poultry bought for use (or for both use and resale) in your farm business is deductible in the year following the year you pay for it. Tax act 2012 return The excess cost of poultry bought for resale is deductible in the year you sell or otherwise dispose of that poultry. Tax act 2012 return Example. Tax act 2012 return You may not qualify for the exception described next. Tax act 2012 return During 2013, you bought fertilizer ($4,000), feed ($1,000), and seed ($500) for use on your farm in the following year. Tax act 2012 return Your total prepaid farm supplies expense for 2013 is $5,500. Tax act 2012 return Your other deductible farm expenses totaled $10,000 for 2013. Tax act 2012 return Therefore, your deduction for prepaid farm supplies cannot be more than $5,000 (50% of $10,000) for 2013. Tax act 2012 return The excess prepaid farm supplies expense of $500 ($5,500 − $5,000) is deductible in a later tax year when you use or consume the supplies. Tax act 2012 return Exceptions. Tax act 2012 return   This limit on the deduction for prepaid farm supplies expense does not apply if you are a farm-related taxpayer and either of the following apply. Tax act 2012 return Your prepaid farm supplies expense is more than 50% of your other deductible farm expenses because of a change in business operations caused by unusual circumstances. Tax act 2012 return Your total prepaid farm supplies expense for the preceding 3 tax years is less than 50% of your total other deductible farm expenses for those 3 tax years. Tax act 2012 return   You are a farm-related taxpayer if any of the following tests apply. Tax act 2012 return Your main home is on a farm. Tax act 2012 return Your principal business is farming. Tax act 2012 return A member of your family meets (1) or (2). Tax act 2012 return For this purpose, your family includes your brothers and sisters, half-brothers and half-sisters, spouse, parents, grandparents, children, grandchildren, and aunts and uncles and their children. Tax act 2012 return    Whether or not the deduction limit for prepaid farm supplies applies, your expenses for prepaid livestock feed may be subject to the rules for advance payment of livestock feed, discussed next. Tax act 2012 return Prepaid Livestock Feed If you report your income and expenses under the cash method of accounting, you cannot deduct in the year paid the cost of feed your livestock will consume in a later year unless you meet all the following tests. Tax act 2012 return The payment is for the purchase of feed rather than a deposit. Tax act 2012 return The prepayment has a business purpose and is not merely for tax avoidance. Tax act 2012 return Deducting the prepayment does not result in a material distortion of your income. Tax act 2012 return If you meet all three tests, you can deduct the prepaid feed, subject to the limit on prepaid farm supplies discussed earlier. Tax act 2012 return If you fail any of these tests, you can deduct the prepaid feed only in the year it is consumed. Tax act 2012 return This rule does not apply to the purchase of commodity futures contracts. Tax act 2012 return Payment for the purchase of feed. Tax act 2012 return   Whether a payment is for the purchase of feed or a deposit depends on the facts and circumstances in each case. Tax act 2012 return It is for the purchase of feed if you can show you made it under a binding commitment to accept delivery of a specific quantity of feed at a fixed price and you are not entitled, by contract or business custom, to a refund or repurchase. Tax act 2012 return   The following are some factors that show a payment is a deposit rather than for the purchase of feed. Tax act 2012 return The absence of specific quantity terms. Tax act 2012 return The right to a refund of any unapplied payment credit at the end of the contract. Tax act 2012 return The seller's treatment of the payment as a deposit. Tax act 2012 return The right to substitute other goods or products for those specified in the contract. Tax act 2012 return   A provision permitting substitution of ingredients to vary the particular feed mix to meet your livestock's current diet requirements will not suggest a deposit. Tax act 2012 return Further, a price adjustment to reflect market value at the date of delivery is not, by itself, proof of a deposit. Tax act 2012 return Business purpose. Tax act 2012 return   The prepayment has a business purpose only if you have a reasonable expectation of receiving some business benefit from prepaying the cost of livestock feed. Tax act 2012 return The following are some examples of business benefits. Tax act 2012 return Fixing maximum prices and securing an assured feed supply. Tax act 2012 return Securing preferential treatment in anticipation of a feed shortage. Tax act 2012 return   Other factors considered in determining the existence of a business purpose are whether the prepayment was a condition imposed by the seller and whether that condition was meaningful. Tax act 2012 return No material distortion of income. Tax act 2012 return   The following are some factors considered in determining whether deducting prepaid livestock feed materially distorts income. Tax act 2012 return Your customary business practice in conducting your livestock operations. Tax act 2012 return The expense in relation to past purchases. Tax act 2012 return The time of year you made the purchase. Tax act 2012 return The expense in relation to your income for the year. Tax act 2012 return Labor Hired You can deduct reasonable wages paid for regular farm labor, piecework, contract labor, and other forms of labor hired to perform your farming operations. Tax act 2012 return You can pay wages in cash or in noncash items such as inventory, capital assets, or assets used in your business. Tax act 2012 return The cost of boarding farm labor is a deductible labor cost. Tax act 2012 return Other deductible costs you incur for farm labor include health insurance, workers' compensation insurance, and other benefits. Tax act 2012 return If you must withhold social security, Medicare, and income taxes from your employees' cash wages, you can still deduct the full amount of wages before withholding. Tax act 2012 return See chapter 13 for more information on employment taxes. Tax act 2012 return Also, deduct the employer's share of the social security and Medicare taxes you must pay on your employees' wages as a farm business expense on Schedule F, line 29. Tax act 2012 return See Taxes , later. Tax act 2012 return Property for services. Tax act 2012 return   If you transfer property to an employee in payment for services, you can deduct as wages paid the fair market value of the property on the date of transfer. Tax act 2012 return If the employee pays you anything for the property, deduct as wages the fair market value of the property minus the payment by the employee for the property. Tax act 2012 return   Treat the wages deducted as an amount received for the property. Tax act 2012 return You may have a gain or loss to report if the property's adjusted basis on the date of transfer is different from its fair market value. Tax act 2012 return Any gain or loss has the same character the exchanged property had in your hands. Tax act 2012 return For more information, see chapter 8. Tax act 2012 return Child as an employee. Tax act 2012 return   You can deduct reasonable wages or other compensation you pay to your child for doing farmwork if a true employer-employee relationship exists between you and your child. Tax act 2012 return Include these wages in the child's income. Tax act 2012 return The child may have to file an income tax return. Tax act 2012 return These wages may also be subject to social security and Medicare taxes if your child is age 18 or older. Tax act 2012 return For more information, see Family Employees in chapter 13. Tax act 2012 return    A Form W-2, Wage and Tax Statement, should be issued to the child employee. Tax act 2012 return   The fact that your child spends the wages to buy clothes or other necessities you normally furnish does not prevent you from deducting your child's wages as a farm expense. Tax act 2012 return The amount of wages paid to the child could cause a loss of the dependency exemption depending on how the child uses the money. Tax act 2012 return Spouse as an employee. Tax act 2012 return   You can deduct reasonable wages or other compensation you pay to your spouse if a true employer-employee relationship exists between you and your spouse. Tax act 2012 return Wages you pay to your spouse are subject to social security and Medicare taxes. Tax act 2012 return For more information, see Family Employees in chapter 13. Tax act 2012 return Nondeductible Pay You cannot deduct wages paid for certain household work, construction work, and maintenance of your home. Tax act 2012 return However, those wages may be subject to the employment taxes discussed in chapter 13. Tax act 2012 return Household workers. Tax act 2012 return   Do not deduct amounts paid to persons engaged in household work, except to the extent their services are used in boarding or otherwise caring for farm laborers. Tax act 2012 return Construction labor. Tax act 2012 return   Do not deduct wages paid to hired help for the construction of new buildings or other improvements. Tax act 2012 return These wages are part of the cost of the building or other improvement. Tax act 2012 return You must capitalize them. Tax act 2012 return Maintaining your home. Tax act 2012 return   If your farm employee spends time maintaining or repairing your home, the wages and employment taxes you pay for that work are nondeductible personal expenses. Tax act 2012 return For example, assume you have a farm employee for the entire tax year and the employee spends 5% of the time maintaining your home. Tax act 2012 return The employee devotes the remaining time to work on your farm. Tax act 2012 return You cannot deduct 5% of the wages and employment taxes you pay for that employee. Tax act 2012 return Employment Credits Reduce your deduction for wages by the amount of any employment credits you claim such as the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans (Form 5884-C). Tax act 2012 return Repairs and Maintenance You can deduct most expenses for the repair and maintenance of your farm property. Tax act 2012 return Common items of repair and maintenance are repainting, replacing shingles and supports on farm buildings, and periodic or routine maintenance of trucks, tractors, and other farm machinery. Tax act 2012 return However, repairs to, or overhauls of, depreciable property that substantially prolong the life of the property, increase its value, or adapt it to a different use are capital expenses. Tax act 2012 return For example, if you repair the barn roof, the cost is deductible. Tax act 2012 return But if you replace the roof, it is a capital expense. Tax act 2012 return For more information, see Capital Expenses , later. Tax act 2012 return Interest You can deduct as a farm business expense interest paid on farm mortgages and other obligations you incur in your farm business. Tax act 2012 return Cash method. Tax act 2012 return   If you use the cash method of accounting, you can generally deduct interest paid during the tax year. Tax act 2012 return You cannot deduct interest paid with funds received from the original lender through another loan, advance, or other arrangement similar to a loan. Tax act 2012 return You can, however, deduct the interest when you start making payments on the new loan. Tax act 2012 return For more information, see Cash Method in chapter 2. Tax act 2012 return Prepaid interest. Tax act 2012 return   Under the cash method, you generally cannot deduct any interest paid before the year it is due. Tax act 2012 return Interest paid in advance may be deducted only in the tax year in which it is due. Tax act 2012 return Accrual method. Tax act 2012 return   If you use an accrual method of accounting, you can deduct only interest that has accrued during the tax year. Tax act 2012 return However, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. Tax act 2012 return For more information, see Accrual Method in chapter 2. Tax act 2012 return Allocation of interest. Tax act 2012 return   If you use the proceeds of a loan for more than one purpose, you must allocate the interest on that loan to each use. Tax act 2012 return Allocate the interest to the following categories. Tax act 2012 return Trade or business interest. Tax act 2012 return Passive activity interest. Tax act 2012 return Investment interest. Tax act 2012 return Portfolio interest. Tax act 2012 return Personal interest. Tax act 2012 return   You generally allocate interest on a loan the same way you allocate the loan proceeds. Tax act 2012 return You allocate loan proceeds by tracing disbursements to specific uses. Tax act 2012 return The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. Tax act 2012 return Secured loan. Tax act 2012 return   The allocation of loan proceeds and the related interest is generally not affected by the use of property that secures the loan. Tax act 2012 return Example. Tax act 2012 return You secure a loan with property used in your farming business. Tax act 2012 return You use the loan proceeds to buy a car for personal use. Tax act 2012 return You must allocate interest expense on the loan to personal use (purchase of the car) even though the loan is secured by farm business property. Tax act 2012 return If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. Tax act 2012 return The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. Tax act 2012 return However, you can choose to treat the loan as not secured by your home. Tax act 2012 return For more information, see Publication 936. Tax act 2012 return Allocation period. Tax act 2012 return   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. Tax act 2012 return The date the loan is repaid. Tax act 2012 return The date the loan is reallocated to another use. Tax act 2012 return More information. Tax act 2012 return   For more information on interest, see chapter 4 in Publication 535. Tax act 2012 return Breeding Fees You can deduct breeding fees as a farm business expense. Tax act 2012 return However, if you use an accrual method of accounting, you must capitalize breeding fees and allocate them to the cost basis of the calf, foal, etc. Tax act 2012 return For more information on who must use an accrual method of accounting, see Accrual Method Required under Accounting Methods in chapter 2. Tax act 2012 return Fertilizer and Lime You can deduct in the year paid or incurred the cost of fertilizer, lime, and other materials applied to farmland to enrich, neutralize, or condition it if the benefits last a year or less. Tax act 2012 return You can also deduct the cost of applying these materials in the year you pay or incur it. Tax act 2012 return However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these materials. Tax act 2012 return If the benefits of the fertilizer, lime, or other materials last substantially more than one year, you generally capitalize their cost and deduct a part each year the benefits last. Tax act 2012 return However, you can choose to deduct these expenses in the year paid or incurred. Tax act 2012 return If you make this choice, you will need IRS approval if you later decide to capitalize the cost of previously deducted items. Tax act 2012 return If you sell farmland on which fertilizer or lime has been applied and if the selling price of the land includes part or all of the cost of the fertilizer or lime, you report the sale amount attributable to the fertilizer or lime as ordinary income. Tax act 2012 return Farmland, for these purposes, is land used for producing crops, fruits, or other agricultural products or for sustaining livestock. Tax act 2012 return It does not include land you have never used previously for producing crops or sustaining livestock. Tax act 2012 return You cannot deduct initial land preparation costs. Tax act 2012 return (See Capital Expenses , later. Tax act 2012 return ) Include government payments you receive for lime or fertilizer in income. Tax act 2012 return See Fertilizer and Lime under Agricultural Program Payments in chapter 3. Tax act 2012 return Taxes You can deduct as a farm business expense the real estate and personal property taxes on farm business assets, such as farm equipment, animals, farmland, and farm buildings. Tax act 2012 return You also can deduct the social security and Medicare taxes you pay to match the amount withheld from the wages of farm employees and any federal unemployment tax you pay. Tax act 2012 return For information on employment taxes, see chapter 13. Tax act 2012 return Allocation of taxes. Tax act 2012 return   The taxes on the part of your farm you use as your home (including the furnishings and surrounding land not used for farming) are nonbusiness taxes. Tax act 2012 return You may be able to deduct these nonbusiness taxes as itemized deductions on Schedule A (Form 1040). Tax act 2012 return To determine the nonbusiness part, allocate the taxes between the farm assets and nonbusiness assets. Tax act 2012 return The allocation can be done from the assessed valuations. Tax act 2012 return If your tax statement does not show the assessed valuations, you can usually get them from the tax assessor. Tax act 2012 return State and local general sales taxes. Tax act 2012 return   State and local general sales taxes on nondepreciable farm business expense items are deductible as part of the cost of those items. Tax act 2012 return Include state and local general sales taxes imposed on the purchase of assets for use in your farm business as part of the cost you depreciate. Tax act 2012 return Also treat the taxes as part of your cost if they are imposed on the seller and passed on to you. Tax act 2012 return State and federal income taxes. Tax act 2012 return   Individuals cannot deduct state and federal income taxes as farm business expenses. Tax act 2012 return Individuals can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Tax act 2012 return However, you cannot deduct federal income tax. Tax act 2012 return Highway use tax. Tax act 2012 return   You can deduct the federal use tax on highway motor vehicles paid on a truck or truck tractor used in your farm business. Tax act 2012 return For information on the tax itself, including information on vehicles subject to the tax, see the Instructions for Form 2290, Heavy Highway Vehicle Use Tax Return. Tax act 2012 return Self-employment tax deduction. Tax act 2012 return   You can deduct as an adjustment to income on Form 1040 one-half of your self-employment tax in figuring your adjusted gross income. Tax act 2012 return For more information, see chapter 12. Tax act 2012 return Insurance You generally can deduct the ordinary and necessary cost of insurance for your farm business as a business expense. Tax act 2012 return This includes premiums you pay for the following types of insurance. Tax act 2012 return Fire, storm, crop, theft, liability, and other insurance on farm business assets. Tax act 2012 return Health and accident insurance on your farm employees. Tax act 2012 return Workers' compensation insurance set by state law that covers any claims for job-related bodily injuries or diseases suffered by employees on your farm, regardless of fault. Tax act 2012 return Business interruption insurance. Tax act 2012 return State unemployment insurance on your farm employees (deductible as taxes if they are considered taxes under state law). Tax act 2012 return Insurance to secure a loan. Tax act 2012 return   If you take out a policy on your life or on the life of another person with a financial interest in your farm business to get or protect a business loan, you cannot deduct the premiums as a business expense. Tax act 2012 return In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Tax act 2012 return Advance premiums. Tax act 2012 return   Deduct advance payments of insurance premiums only in the year to which they apply, regardless of your accounting method. Tax act 2012 return Example. Tax act 2012 return On June 28, 2013, you paid a premium of $3,000 for fire insurance on your barn. Tax act 2012 return The policy will cover a period of 3 years beginning on July 1, 2013. Tax act 2012 return Only the cost for the 6 months in 2013 is deductible as an insurance expense on your 2013 calendar year tax return. Tax act 2012 return Deduct $500, which is the premium for 6 months of the 36-month premium period, or 6/36 of $3,000. Tax act 2012 return In both 2014 and 2015, deduct $1,000 (12/36 of $3,000). Tax act 2012 return Deduct the remaining $500 in 2016. Tax act 2012 return Had the policy been effective on January 1, 2013, the deductible expense would have been $1,000 for each of the years 2013, 2014, and 2015, based on one-third of the premium used each year. Tax act 2012 return Business interruption insurance. Tax act 2012 return   Use and occupancy and business interruption insurance premiums are deductible as a business expense. Tax act 2012 return This insurance pays for lost profits if your business is shut down due to a fire or other cause. Tax act 2012 return Report any proceeds in full on Schedule F, Part I. Tax act 2012 return Self-employed health insurance deduction. Tax act 2012 return   If you are self-employed, you can deduct as an adjustment to income on Form 1040 your payments for medical, dental, and qualified long-term care insurance coverage for yourself, your spouse, and your dependents when figuring your adjusted gross income on your Form 1040. Tax act 2012 return Effective March 30, 2010, the insurance can also cover any child of yours under age 27 at the end of 2013, even if the child was not your dependent. Tax act 2012 return Generally, this deduction cannot be more than the net profit from the business under which the plan was established. Tax act 2012 return   If you or your spouse is also an employee of another person, you cannot take the deduction for any month in which you are eligible to participate in a subsidized health plan maintained by your employer or your spouse's employer. Tax act 2012 return   Generally, use the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Form 1040 to figure your deduction. Tax act 2012 return Include the remaining part of the insurance payment in your medical expenses on Schedule A (Form 1040) if you itemize your deductions. Tax act 2012 return   For more information, see Deductible Premiums in Publication 535, chapter 6. Tax act 2012 return Rent and Leasing If you lease property for use in your farm business, you can generally deduct the rent you pay on Schedule F. Tax act 2012 return However, you cannot deduct rent you pay in crop shares if you deduct the cost of raising the crops as farm expenses. Tax act 2012 return Advance payments. Tax act 2012 return   Deduct advance payments of rent only in the year to which they apply, regardless of your accounting method. Tax act 2012 return Farm home. Tax act 2012 return   If you rent a farm, do not deduct the part of the rental expense that represents the fair rental value of the farm home in which you live. Tax act 2012 return Lease or Purchase If you lease a farm building or equipment, you must determine whether or not the agreement must be treated as a conditional sales contract rather than a lease. Tax act 2012 return If the agreement is treated as a conditional sales contract, the payments under the agreement (so far as they do not represent interest or other charges) are payments for the purchase of the property. Tax act 2012 return Do not deduct these payments as rent, but capitalize the cost of the property and recover this cost through depreciation. Tax act 2012 return Conditional sales contract. Tax act 2012 return   Whether an agreement is a conditional sales contract depends on the intent of the parties. Tax act 2012 return Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. Tax act 2012 return No single test, or special combination of tests, always applies. Tax act 2012 return However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. Tax act 2012 return The agreement applies part of each payment toward an equity interest you will receive. Tax act 2012 return You get title to the property after you make a stated amount of required payments. Tax act 2012 return The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. Tax act 2012 return You pay much more than the current fair rental value of the property. Tax act 2012 return You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. Tax act 2012 return Determine this value when you make the agreement. Tax act 2012 return You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. Tax act 2012 return The agreement designates part of the payments as interest, or part of the payments can be easily recognized as interest. Tax act 2012 return Example. Tax act 2012 return You lease new farm equipment from a dealer who both sells and leases. Tax act 2012 return The agreement includes an option to purchase the equipment for a specified price. Tax act 2012 return The lease payments and the specified option price equal the sales price of the equipment plus interest. Tax act 2012 return Under the agreement, you are responsible for maintenance, repairs, and the risk of loss. Tax act 2012 return For federal income tax purposes, the agreement is a conditional sales contract. Tax act 2012 return You cannot deduct any of the lease payments as rent. Tax act 2012 return You can deduct interest, repairs, insurance, depreciation, and other expenses related to the equipment. Tax act 2012 return Motor vehicle leases. Tax act 2012 return   Special rules apply to lease agreements that have a terminal rental adjustment clause. Tax act 2012 return In general, this is a clause that provides for a rental price adjustment based on the amount the lessor is able to sell the vehicle for at the end of the lease. Tax act 2012 return If your rental agreement contains a terminal rental adjustment clause, treat the agreement as a lease if the agreement otherwise qualifies as a lease. Tax act 2012 return For more information, see Internal Revenue Code (IRC) section 7701(h). Tax act 2012 return Leveraged leases. Tax act 2012 return   Special rules apply to leveraged leases of equipment (arrangements in which the equipment is financed by a nonrecourse loan from a third party). Tax act 2012 return For more information, see Publication 535, chapter 3, and Revenue Procedure 2001-28, which begins on page 1156 of Internal Revenue Bulletin 2001-19 at www. Tax act 2012 return irs. Tax act 2012 return gov/pub/irs-irbs/irb01-19. Tax act 2012 return pdf. Tax act 2012 return Depreciation If property you acquire to use in your farm business is expected to last more than one year, you generally cannot deduct the entire cost in the year you acquire it. Tax act 2012 return You must recover the cost over more than one year and deduct part of it each year on Schedule F as depreciation or amortization. Tax act 2012 return However, you can choose to deduct part or all of the cost of certain qualifying property, up to a limit, as a section 179 deduction in the year you place it in service. Tax act 2012 return Depreciation, amortization, and the section 179 deduction are discussed in chapter 7. Tax act 2012 return Business Use of Your Home You can deduct expenses for the business use of your home if you use part of your home exclusively and regularly: As the principal place of business for any trade or business in which you engage, As a place to meet or deal with patients, clients, or customers in the normal course of your trade or business, or In connection with your trade or business, if you are using a separate structure that is not attached to your home. Tax act 2012 return Your home office will qualify as your principal place of business for deducting expenses for its use if you meet both of the following requirements. Tax act 2012 return You use it exclusively and regularly for the administrative or management activities of your trade or business. Tax act 2012 return You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Tax act 2012 return If you use part of your home for business, you must divide the expenses of operating your home between personal and business use. Tax act 2012 return The IRS now provides a simplified method to determine your expenses for business use of your home. Tax act 2012 return For more information, see Schedule C (Form 1040), Part II, and its instructions. Tax act 2012 return Deduction limit. Tax act 2012 return   If your gross income from farming equals or exceeds your total farm expenses (including expenses for the business use of your home), you can deduct all your farm expenses. Tax act 2012 return But if your gross income from farming is less than your total farm expenses, your deduction for certain expenses for the use of your home in your farming business is limited. Tax act 2012 return   Your deduction for otherwise nondeductible expenses, such as utilities, insurance, and depreciation (with depreciation taken last), cannot be more than the gross income from farming minus the following expenses. Tax act 2012 return The business part of expenses you could deduct even if you did not use your home for business (such as deductible mortgage interest, real estate taxes, and casualty and theft losses). Tax act 2012 return Farm expenses other than expenses that relate to the use of your home. Tax act 2012 return If you are self-employed, do not include your deduction for half of your self-employment tax. Tax act 2012 return   Deductions over the current year's limit can be carried over to your next tax year. Tax act 2012 return They are subject to the deduction limit for the next tax year. Tax act 2012 return More information. Tax act 2012 return   See Publication 587 for more information on deducting expenses for the business use of your home. Tax act 2012 return Telephone expense. Tax act 2012 return   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. Tax act 2012 return However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for your farm business, are deductible business expenses. Tax act 2012 return Cell phone charges for calls relating to your farm business are deductible. Tax act 2012 return If the cell phone you use for your farm business is part of a family cell phone plan, you must allocate and deduct only the portion of the charges attributable to farm business calls. Tax act 2012 return Truck and Car Expenses You can deduct the actual cost of operating a truck or car in your farm business. Tax act 2012 return Only expenses for business use are deductible. Tax act 2012 return These include such items as gasoline, oil, repairs, license tags, insurance, and depreciation (subject to certain limits). Tax act 2012 return Standard mileage rate. Tax act 2012 return   Instead of using actual costs, under certain conditions you can use the standard mileage rate. Tax act 2012 return The standard mileage rate for each mile of business use is 56. Tax act 2012 return 5 cents in 2013. Tax act 2012 return You can use the standard mileage rate for a car or a light truck, such as a van, pickup, or panel truck, you own or lease. Tax act 2012 return   You cannot use the standard mileage rate if you operate five or more cars or light trucks at the same time. Tax act 2012 return You are not using five or more vehicles at the same time if you alternate using the vehicles (you use them at different times) for business. Tax act 2012 return Example. Tax act 2012 return Maureen owns a car and four pickup trucks that are used in her farm business. Tax act 2012 return Her farm employees use the trucks and she uses the car for business. Tax act 2012 return Maureen cannot use the standard mileage rate for the car or the trucks. Tax act 2012 return This is because all five vehicles are used in Maureen's farm business at the same time. Tax act 2012 return She must use actual expenses for all vehicles. Tax act 2012 return Business use percentage. Tax act 2012 return   You can claim 75% of the use of a car or light truck as business use without any records if you used the vehicle during most of the normal business day directly in connection with the business of farming. Tax act 2012 return You choose this method of substantiating business use the first year the vehicle is placed in service. Tax act 2012 return Once you make this choice, you may not change to another method later. Tax act 2012 return The following are uses directly connected with the business of farming. Tax act 2012 return Cultivating land. Tax act 2012 return Raising or harvesting any agricultural or horticultural commodity. Tax act 2012 return Raising, shearing, feeding, caring for, training, and managing animals. Tax act 2012 return Driving to the feed or supply store. Tax act 2012 return   If you keep records and they show that your business use was more than 75%, you may be able to claim more. Tax act 2012 return See Recordkeeping requirements under Travel Expenses , below. Tax act 2012 return More information. Tax act 2012 return   For more information on deductible truck and car expenses, see Publication 463, chapter 4. Tax act 2012 return If you pay your employees for the use of their truck or car in your farm business, see Reimbursements to employees under Travel Expenses next. Tax act 2012 return Travel Expenses You can deduct ordinary and necessary expenses you incur while traveling away from home for your farm business. Tax act 2012 return You cannot deduct lavish or extravagant expenses. Tax act 2012 return Usually, the location of your farm business is considered your home for tax purposes. Tax act 2012 return You are traveling away from home if: Your duties require you to be absent from your farm substantially longer than an ordinary work day, and You need to get sleep or rest to meet the demands of your work while away from home. Tax act 2012 return If you meet these requirements and can prove the time, place, and business purpose of your travel, you can deduct your ordinary and necessary travel expenses. Tax act 2012 return The following are some types of deductible travel expenses. Tax act 2012 return Air, rail, bus, and car transportation; Meals and lodging; Dry cleaning and laundry; Telephone and fax; Transportation between your hotel and your temporary work or business meeting location; and Tips for any of the above expenses. Tax act 2012 return Meals. Tax act 2012 return   You ordinarily can deduct only 50% of your business-related meals expenses. Tax act 2012 return You can deduct the cost of your meals while traveling on business only if your business trip is overnight or long enough to require you to stop for sleep or rest to properly perform your duties. Tax act 2012 return You cannot deduct any of the cost of meals if it is not necessary for you to rest, unless you meet the rules for business entertainment. Tax act 2012 return For information on entertainment expenses, see Publication 463, chapter 2. Tax act 2012 return   The expense of a meal includes amounts you spend for your food, beverages, taxes, and tips relating to the meal. Tax act 2012 return You can deduct either 50% of the actual cost or 50% of a standard meal allowance that covers your daily meal and incidental expenses. Tax act 2012 return    Recordkeeping requirements. Tax act 2012 return You must be able to prove your deductions for travel by adequate records or other evidence that will support your own statement. Tax act 2012 return Estimates or approximations do not qualify as proof of an expense. Tax act 2012 return   You should keep an account book or similar record, supported by adequate documentary evidence, such as receipts, that together support each element of an expense. Tax act 2012 return Generally, it is best to record the expense and get documentation of it at the time you pay it. Tax act 2012 return   If you choose to deduct a standard meal allowance rather than the actual expense, you do not have to keep records to prove amounts spent for meals and incidental items. Tax act 2012 return However, you must still keep records to prove the actual amount of other travel expenses, and the time, place, and business purpose of your travel. Tax act 2012 return More information. Tax act 2012 return   For detailed information on travel, recordkeeping, and the standard meal allowance, see Publication 463. Tax act 2012 return Reimbursements to employees. Tax act 2012 return   You generally can deduct reimbursements you pay to your employees for travel and transportation expenses they incur in the conduct of your business. Tax act 2012 return Employees may be reimbursed under an accountable or nonaccountable plan. Tax act 2012 return Under an accountable plan, the employee must provide evidence of expenses. Tax act 2012 return Under a nonaccountable plan, no evidence of expenses is required. Tax act 2012 return If you reimburse expenses under an accountable plan, deduct them as travel and transportation expenses. Tax act 2012 return If you reimburse expenses under a nonaccountable plan, you must report the reimbursements as wages on Form W-2 and deduct them as wages. Tax act 2012 return For more information, see Publication 535, chapter 11. Tax act 2012 return Marketing Quota Penalties You can deduct as Other expenses on Schedule F penalties you pay for marketing crops in excess of farm marketing quotas. Tax act 2012 return However, if you do not pay the penalty, but instead the purchaser of your crop deducts it from the payment to you, include in gross income only the amount you received. Tax act 2012 return Do not take a separate deduction for the penalty. Tax act 2012 return Tenant House Expenses You can deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses. Tax act 2012 return These costs include repairs, utilities, insurance, and depreciation. Tax act 2012 return The value of a dwelling you furnish to a tenant under the usual tenant-farmer arrangement is not taxable income to the tenant. Tax act 2012 return Items Purchased for Resale If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale. Tax act 2012 return You deduct this cost, including freight charges for transporting the livestock to the farm, on Schedule F, Part I. Tax act 2012 return However, see Chickens, seeds, and young plants , below. Tax act 2012 return Example. Tax act 2012 return You use the cash method of accounting. Tax act 2012 return In 2013, you buy 50 steers you will sell in 2014. Tax act 2012 return You cannot deduct the cost of the steers on your 2013 tax return. Tax act 2012 return You deduct their cost on your 2014 Schedule F, Part I. Tax act 2012 return Chickens, seeds, and young plants. Tax act 2012 return   If you are a cash method farmer, you can deduct the cost of hens and baby chicks bought for commercial egg production, or for raising and resale, as an expense on Schedule F, Part I, in the year paid if you do it consistently and it does not distort income. Tax act 2012 return You also can deduct the cost of seeds and young plants bought for further development and cultivation before sale as an expense on Schedule F, Part I, when paid if you do this consistently and you do not figure your income on the crop method. Tax act 2012 return However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these items. Tax act 2012 return   If you deduct the cost of chickens, seeds, and young plants as an expense, report their entire selling price as income. Tax act 2012 return You cannot also deduct the cost from the selling price. Tax act 2012 return   You cannot deduct the cost of seeds and young plants for Christmas trees and timber as an expense. Tax act 2012 return Deduct the cost of these seeds and plants through depletion allowances. Tax act 2012 return For more information, see Depletion in chapter 7. Tax act 2012 return   The cost of chickens and plants used as food for your family is never deductible. Tax act 2012 return   Capitalize the cost of plants with a preproductive period of more than 2 years, unless you can elect out of the uniform capitalization rules. Tax act 2012 return These rules are discussed in chapter 6. Tax act 2012 return Example. Tax act 2012 return You use the cash method of accounting. Tax act 2012 return In 2013, you buy 500 baby chicks to raise for resale in 2014. Tax act 2012 return You also buy 50 bushels of winter wheat seed in 2013 that you sow in the fall. Tax act 2012 return Unless you previously adopted the method of deducting these costs in the year you sell the chickens or the harvested crops, you can deduct the cost of both the baby chicks and the seed wheat in 2013. Tax act 2012 return Election to use crop method. Tax act 2012 return   If you use the crop method, you can delay deducting the cost of seeds and young plants until you sell them. Tax act 2012 return You must get IRS approval to use the crop method. Tax act 2012 return If you follow this method, deduct the cost from the selling price to determine your profit on Schedule F, Part I. Tax act 2012 return For more information, see Crop method under Special Methods of Accounting in chapter 2. Tax act 2012 return Choosing a method. Tax act 2012 return   You can adopt either the crop method or the cash method for deducting the cost in the first year you buy egg-laying hens, pullets, chicks, or seeds and young plants. Tax act 2012 return   Although you must use the same method for egg-laying hens, pullets, and chicks, you can use a different method for seeds and young plants. Tax act 2012 return Once you use a particular method for any of these items, use it for those items until you get IRS approval to change your method. Tax act 2012 return For more information, see Change in Accounting Method in chapter 2. Tax act 2012 return Other Expenses The following list, while not all-inclusive, shows some expenses you can deduct as other farm expenses on Schedule F, Part II. Tax act 2012 return These expenses must be for business purposes and  (1) paid, if you use the cash method of accounting, or (2) incurred, if you use an accrual method of accounting. Tax act 2012 return Accounting fees. Tax act 2012 return Advertising. Tax act 2012 return Business travel and meals. Tax act 2012 return Commissions. Tax act 2012 return Consultant fees. Tax act 2012 return Crop scouting expenses. Tax act 2012 return Dues to cooperatives. Tax act 2012 return Educational expenses (to maintain and improve farming skills). Tax act 2012 return Farm-related attorney fees. Tax act 2012 return Farm magazines. Tax act 2012 return Ginning. Tax act 2012 return Insect sprays and dusts. Tax act 2012 return Litter and bedding. Tax act 2012 return Livestock fees. Tax act 2012 return Marketing fees. Tax act 2012 return Milk assessment. Tax act 2012 return Recordkeeping expenses. Tax act 2012 return Service charges. Tax act 2012 return Small tools expected to last one year or less. Tax act 2012 return Stamps and stationery. Tax act 2012 return Subscriptions to professional, technical, and trade journals that deal with farming. Tax act 2012 return Tying material and containers. Tax act 2012 return Loan expenses. Tax act 2012 return   You prorate and deduct loan expenses, such as legal fees and commissions, you pay to get a farm loan over the term of the loan. Tax act 2012 return Tax preparation fees. Tax act 2012 return   You can deduct as a farm business expense on Schedule F the cost of preparing that part of your tax return relating to your farm business. Tax act 2012 return You may be able to deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Tax act 2012 return   You also can deduct on Schedule F the amount you pay or incur in resolving tax issues relating to your farm business. Tax act 2012 return Domestic Production Activities Deduction Generally, you are allowed a deduction for income attributable to domestic production activities. Tax act 2012 return You can deduct 9% of the lesser of your qualified production activities income or your taxable income (adjusted gross income for individuals) for the tax year. Tax act 2012 return Your deduction is limited to 50% of the Form W-2 wages you paid for the tax year that are properly allocable to domestic production gross receipts. Tax act 2012 return For this purpose, Form W-2 wages do not include noncash wages paid for agricultural labor, such as compensation paid as commodities. Tax act 2012 return Also, excluded from Form W-2 wages are wages paid to your children under age 18 and nontaxable fringe benefits. Tax act 2012 return Income from cooperatives. Tax act 2012 return   If you receive a patronage dividend or qualified per-unit retain allocation from a cooperative which is engaged in the manufacturing, production, growth, or extraction in whole or in significant part of any agricultural or horticultural product or in the marketing of agricultural or horticultural products, your income from the cooperative can give rise to a domestic production activities deduction. Tax act 2012 return This deduction amount is reported on Form 1099-PATR, box 6. Tax act 2012 return In order for you to qualify for the deduction, the cooperative is required to send you a written notice designating your portion of the domestic production activities deduction. Tax act 2012 return More information. Tax act 2012 return   For more information on the domestic production activities deduction, see the Instructions for Form 8903. Tax act 2012 return Capital Expenses A capital expense is a payment, or a debt incurred, for the acquisition, improvement, or restoration of an asset that is expected to last more than one year. Tax act 2012 return You include the expense in the basis of the asset. Tax act 2012 return Uniform capitalization rules also require you to capitalize or include in inventory certain other expenses. Tax act 2012 return See chapters 2  and 6. Tax act 2012 return Capital expenses are generally not deductible, but they may be depreciable. Tax act 2012 return However, you can elect to deduct certain capital expenses, such as the following. Tax act 2012 return The cost of fertilizer, lime, etc. Tax act 2012 return (See Fertilizer and Lime under Deductible Expenses , earlier. Tax act 2012 return ) Soil and water conservation expenses. Tax act 2012 return (See chapter 5. Tax act 2012 return ) The cost of property that qualifies for a deduction under section 179. Tax act 2012 return (See chapter 7. Tax act 2012 return ) Business start-up costs. Tax act 2012 return (See Business start-up and organizational costs , later. Tax act 2012 return ) Forestation and reforestation costs. Tax act 2012 return (See Forestation and reforestation costs , later. Tax act 2012 return ) Generally, the costs of the following items, including the costs of material, hired labor, and installation, are capital expenses. Tax act 2012 return Land and buildings. Tax act 2012 return Additions, alterations, and improvements to buildings, etc. Tax act 2012 return Cars and trucks. Tax act 2012 return Equipment and machinery. Tax act 2012 return Fences. Tax act 2012 return Draft, breeding, sport, and dairy livestock. Tax act 2012 return Repairs to machinery, equipment, trucks, and cars that prolong their useful life, increase their value, or adapt them to different use. Tax act 2012 return Water wells, including drilling and equipping costs. Tax act 2012 return Land preparation costs, such as: Clearing land for farming, Leveling and conditioning land, Purchasing and planting trees, Building irrigation canals and ditches, Laying irrigation pipes, Installing drain tile, Modifying channels or streams, Constructing earthen, masonry, or concrete tanks, reservoirs, or dams, and Building roads. Tax act 2012 return Business start-up and organizational costs. Tax act 2012 return   You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. Tax act 2012 return The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Tax act 2012 return Any remaining costs must be amortized. Tax act 2012 return See chapter 7. Tax act 2012 return   You elect to deduct start-up or organizational costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Tax act 2012 return 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). Tax act 2012 return Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Tax act 2012 return 9100-2” at the top of the amended return. Tax act 2012 return File the amended return at the same address you filed the original return. Tax act 2012 return The election applies when figuring taxable income for the current tax year and all subsequent years. Tax act 2012 return   You can choose to forgo the election by clearly electing to capitalize your start-up or organizational costs on an income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Tax act 2012 return For more information about start-up and organizational costs, see chapter 7. Tax act 2012 return Crop production expenses. Tax act 2012 return   The uniform capitalization rules generally require you to capitalize expenses incurred in producing plants. Tax act 2012 return However, except for certain taxpayers required to use an accrual method of accounting, the capitalization rules do not apply to plants with a preproductive period of 2 years or less. Tax act 2012 return For more information, see Uniform Capitalization Rules in chapter 6. Tax act 2012 return Timber. Tax act 2012 return   Capitalize the cost of acquiring timber. Tax act 2012 return Do not include the cost of land in the cost of the timber. Tax act 2012 return You must generally capitalize direct costs incurred in reforestation. Tax act 2012 return However, you can elect to deduct some forestation and reforestation costs. Tax act 2012 return See Forestation and reforestation costs next. Tax act 2012 return Reforestation costs include the following. Tax act 2012 return Site preparation costs, such as: Girdling, Applying herbicide, Baiting rodents, and Clearing and controlling brush. Tax act 2012 return The cost of seed or seedlings. Tax act 2012 return Labor and tool expenses. Tax act 2012 return Depreciation on equipment used in planting or seeding. Tax act 2012 return Costs incurred in replanting to replace lost seedlings. Tax act 2012 return You can choose to capitalize certain indirect reforestation costs. Tax act 2012 return   These capitalized amounts are your basis for the timber. Tax act 2012 return Recover your basis when you sell the timber or take depletion allowances when you cut the timber. Tax act 2012 return See Depletion in chapter 7. Tax act 2012 return Forestation and reforestation costs. Tax act 2012 return   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. Tax act 2012 return Any remaining costs can be amortized over an 84-month period. Tax act 2012 return See chapter 7. Tax act 2012 return If you make an election to deduct or amortize qualifying reforestation costs, you should create and maintain separate timber accounts for each qualified timber property. Tax act 2012 return The accounts should include all reforestation treatments and the dates they were applied. Tax act 2012 return Any qualified timber property that is subject to the deduction or amortization election cannot be included in any other timber account for which depletion is allowed. Tax act 2012 return The timber account should be maintained until the timber is disposed of. Tax act 2012 return For more information, see Notice 2006-47, 2006-20 I. Tax act 2012 return R. Tax act 2012 return B. Tax act 2012 return 892, available at  www. Tax act 2012 return irs. Tax act 2012 return gov/irb/2006-20_IRB/ar11. Tax act 2012 return html. Tax act 2012 return   You elect to deduct forestation and reforestation costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the expenses were paid or incurred. Tax act 2012 return If you are filing Form T (Timber), Forest Activities Schedule, also complete Form T (Timber), Part IV. Tax act 2012 return If you are not filing Form T (Timber), attach a statement to your return with the following information. Tax act 2012 return The unique stand identification numbers. Tax act 2012 return The total number of acres reforested during the tax year. Tax act 2012 return The nature of the reforestation treatments. Tax act 2012 return The total amounts of the qualified reforestation expenditures eligible to be amortized or deducted. Tax act 2012 return   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). Tax act 2012 return Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Tax act 2012 return 9100-2” at the top of the amended return. Tax act 2012 return File the amended return at the same address you filed the original return. Tax act 2012 return    For more information about forestation and reforestation costs, see chapter 7. Tax act 2012 return    For more information about timber, see Agriculture Handbook Number 731, Forest Landowners' Guide to the Federal Income Tax. Tax act 2012 return You can view this publication on the Internet at  www. Tax act 2012 return fs. Tax act 2012 return fed. Tax act 2012 return us/publications. Tax act 2012 return Christmas tree cultivation. Tax act 2012 return   If you are in the business of planting and cultivating Christmas trees to sell when they are more than 6 years old, capitalize expenses incurred for planting and stump culture and add them to the basis of the standing trees. Tax act 2012 return Recover these expenses as part of your adjusted basis when you sell the standing trees or as depletion allowances when you cut the trees. Tax act 2012 return For more information, see Timber Depletion under Depletion in chapter 7. Tax act 2012 return   You can deduct as business expenses the costs incurred for shearing and basal pruning of these trees. Tax act 2012 return Expenses incurred for silvicultural practices, such as weeding or cleaning, and noncommercial thinning are also deductible as business expenses. Tax act 2012 return   Capitalize the cost of land improvements, such as road grading, ditching, and fire breaks, that have a useful life beyond the tax year. Tax act 2012 return If the improvements do not have a determinable useful life, add their cost to the basis of the land. Tax act 2012 return The cost is recovered when you sell or otherwise dispose of it. Tax act 2012 return If the improvements have a determinable useful life, recover their cost through depreciation. Tax act 2012 return Capitalize the cost of equipment and other depreciable assets, such as culverts and fences, to the extent you do not use them in planting Christmas trees. Tax act 2012 return Recover these costs through depreciation. Tax act 2012 return Nondeductible Expenses You cannot deduct personal expenses and certain other items on your tax return even if they relate to your farm. Tax act 2012 return Personal, Living, and Family Expenses You cannot deduct certain personal, living, and family expenses as business expenses. Tax act 2012 return These include rent and insurance premiums paid on property used as your home, life insurance premiums on yourself or your family, the cost of maintaining cars, trucks, or horses for personal use, allowances to minor children, attorneys' fees and legal expenses incurred in personal matters, and household expenses. Tax act 2012 return Likewise, the cost of purchasing or raising produce or livestock consumed by you or your family is not deductible. Tax act 2012 return Other Nondeductible Items You cannot deduct the following items on your tax return. Tax act 2012 return Loss of growing plants, produce, and crops. Tax act 2012 return   Losses of plants, produce, and crops raised for sale are generally not deductible. Tax act 2012 return However, you may have a deductible loss on plants with a preproductive period of more than 2 years. Tax act 2012 return See chapter 11 for more information. Tax act 2012 return Repayment of loans. Tax act 2012 return   You cannot deduct the repayment of a loan. Tax act 2012 return However, if you use the proceeds of a loan for farm business expenses, you can deduct the interest on the loan. Tax act 2012 return See Interest , earlier. Tax act 2012 return Estate, inheritance, legacy, succession, and gift taxes. Tax act 2012 return   You cannot deduct estate, inheritance, legacy, succession, and gift taxes. Tax act 2012 return Loss of livestock. Tax act 2012 return   You cannot deduct as a loss the value of raised livestock that die if you deducted the cost of raising them as an expense. Tax act 2012 return Losses from sales or exchanges between related persons. Tax act 2012 return   You cannot deduct losses from sales or exchanges of property between you and certain related persons, including your spouse, brother, sister, ancestor, or lineal descendant. Tax act 2012 return For more information, see chapter 2 of Publication 544, Sales and Other Dispositions of Assets. Tax act 2012 return Cost of raising unharvested crops. Tax act 2012 return   You cannot deduct the cost of raising unharvested crops sold with land owned more than one year if you sell both at the same time and to the same person. Tax act 2012 return Add these costs to the basis of the land to determine the gain or loss on the sale. Tax act 2012 return For more information, see Section 1231 Gains and Losses in chapter 9. Tax act 2012 return Cost of unharvested crops bought with land. Tax act 2012 return   Capitalize the purchase price of land, including the cost allocable to unharvested crops. Tax act 2012 return You cannot deduct the cost of the crops at the time of purchase. Tax act 2012 return However, you can deduct this cost in figuring net profit or loss in the tax year you sell the crops. Tax act 2012 return Cost related to gifts. Tax act 2012 return   You cannot deduct costs related to your gifts of agricultural products or property held for sale in the ordinary course of your business. Tax act 2012 return The costs are not deductible in the year of the gift or any later year. Tax act 2012 return For example, you cannot deduct the cost of raising cattle or the cost of planting and raising unharvested wheat on parcels of land given as a gift to your children. Tax act 2012 return Club dues and membership fees. Tax act 2012 return   Generally, you cannot deduct amounts you pay or incur for membership in any club organized for business, pleasure, recreation, or any other social purpose. Tax act 2012 return This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Tax act 2012 return Exception. Tax act 2012 return   The following organizations will not be treated as a club organized for business, pleasure, recreation, or other social purposes, unless one of its main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. Tax act 2012 return Boards of trade. Tax act 2012 return Business leagues. Tax act 2012 return Chambers of commerce. Tax act 2012 return Civic or public service organizations. Tax act 2012 return Professional associations. Tax act 2012 return Trade associations. Tax act 2012 return Real estate boards. Tax act 2012 return Fines and penalties. Tax act 2012 return   You cannot deduct fines and penalties, except penalties for exceeding marketing quotas, discussed earlier. Tax act 2012 return Losses From Operating a Farm If your deductible farm expenses are more than your farm income, you have a loss from the operation of your farm. Tax act 2012 return The amount of the loss you can deduct when figuring your taxable income may be limited. Tax act 2012 return To figure your deductible loss, you must apply the following limits. Tax act 2012 return The at-risk limits. Tax act 2012 return The passive activity limits. Tax act 2012 return The following discussions explain these limits. Tax act 2012 return If your deductible loss after applying these limits is more than your other income for the year, you may have a net operating loss. Tax act 2012 return See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Tax act 2012 return If you do not carry on your farming activity to make a profit, your loss deduction may be limited by the not-for-profit rules. Tax act 2012 return See Not-for-Profit Farming, later. Tax act 2012 return At-Risk Limits The at-risk rules limit your deduction for losses from most business or income-producing activities, including farming. Tax act 2012 return These rules limit the losses you can deduct when figuring your taxable income. Tax act 2012 return The deductible loss from an activity is limited to the amount you have at risk in the activity. Tax act 2012 return You are at risk in any activity for: The money and adjusted basis of property you contribute to the activity, and Amounts you borrow for use in the activity if: You are personally liable for repayment, or You pledge property (other than property used in the activity) as security for the loan. Tax act 2012 return You are not at risk, however, for amounts you borrow for use in a farming activity from a person who has an interest in the activity (other than as a creditor) or a person related to someone (other than you) having such an interest. Tax act 2012 return For more information, see Publication 925. Tax act 2012 return Passive Activity Limits A passive activity is generally any activity involving the conduct of any trade or business in which you do not materially participate. Tax act 2012 return Generally, a rental activity is a passive activity. Tax act 2012 return If you have a passive activity, special rules limit the loss you can deduct in the tax year. Tax act 2012 return You generally can deduct losses from passive activities only up to income from passive activities. Tax act 2012 return Credits are similarly limited. Tax act 2012 return For more information, see Publication 925. Tax act 2012 return Excess Farm Loss Limit For tax years beginning after 2009, excess farm losses (defined below) are not deductible if you received certain applicable subsidies. Tax act 2012 return This limit applies to any farming businesses, other than a C corporation, that received a direct or counter-cyclical payment (or any payment in lieu of such payments) under title I of the Food, Conservation, and Energy Act of 2008, or from a Commodity Credit Corporation loan. Tax act 2012 return Your farming losses are limited to the greater of: $300,000 ($150,000 for a married person filing a separate return), or The total net farm income for the prior five tax years. Tax act 2012 return Farming losses from casualty losses or losses by reason of disease or drought are disregarded for purposes of figuring this limitation. Tax act 2012 return Also, the limitation on farm losses should be applied before the passive activity loss rules are applied. Tax act 2012 return For more details, see IRC section 461(j). Tax act 2012 return Excess farm loss. Tax act 2012 return   Generally, an excess farm loss is the amount of your farming loss that exceeds the amount of the limitation (as described above). Tax act 2012 return This loss can be determined by taking the excess of: The total deductions for the tax year from your farming businesses, over The total gross income or gain for the tax year from your farming businesses, plus the greater of: $300,000 ($150,000 for a married person filing a separate return), or The excess (if any) of the total gross income or gain from your farming businesses for the prior five tax years over the total deductions from your farming businesses for the prior five tax years. Tax act 2012 return   Excess farm losses that are disallowed can be carried forward to the next tax year and treated as a deduction from that year. Tax act 2012 return Not-for-Profit Farming If you operate a farm for profit, you can deduct all the ordinary and necessary expenses of carrying on the business of farming on Schedule F. Tax act 2012 return However, if you do not carry on your farming activity, or other activity you engage or invest in, to make a profit, you report the income from the activity on Form 1040, line 21, and you can deduct expenses of carrying on the activity only if you itemize your deductions on Schedule A (Form 1040). Tax act 2012 return Also, there is a limit on the deductions you can take. Tax act 2012 return You cannot use a loss from that activity to offset income from other activities. Tax act 2012 return Activities you do as a hobby, or mainly for sport or recreation, come under this limit. Tax act 2012 return An investment activity intended only to produce tax losses for the investors also comes under this limit. Tax act 2012 return The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. Tax act 2012 return It does not apply to corporations other than S corporations. Tax act 2012 return In determining whether you are carrying on your farming activity for profit, all the facts are taken into account. Tax act 2012 return No one factor alone is decisive. Tax act 2012 return Among the factors to consider are whether: You operate your farm in a businesslike manner; The time and effort you spend on farming indicate you intend to make it profitable; You depend on income from farming for your livelihood; Your losses are due to circumstances beyond your control or are normal in the start-up phase of farming; You change your methods of operation in an attempt to improve profitability; You, or your advisors, have the knowledge needed to carry on the farming activity as a successful business; You were successful in making a profit in similar activities in the past; You make a profit from farming in some years and the amount of profit you make; and You can expect to make a future profit from the appreciation of the assets used in the farming activity. Tax act 2012 return Presumption of profit. Tax act 2012 return   Your farming or other activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. Tax act 2012 return Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for profit if they produced a profit in at least 2 of the last 7 tax years, including the current year. Tax act 2012 return The activity must be substantially the same for each year within this period. Tax act 2012 return You have a profit when the gross income from an activity is more than the deductions for it. Tax act 2012 return   If a taxpayer dies before the end of the 5-year (or 7-year) period, the period ends on the date of the taxpayer's death. Tax act 2012 return   If your business or investment activity passes this 3- (or 2-) years-of-profit test, presume it is carried on for profit. Tax act 2012 return This means the limits discussed here do not apply. Tax act 2012 return You can take all your business deductions from the activity on Schedule F, even for the years that you have a loss. Tax act 2012 return You can rely on this presumption in every case, unless the IRS shows it is not valid. Tax act 2012 return   If you fail the 3- (or 2-) years-of-profit test, you still may be considered to operate your farm for profit by considering the factors listed earlier. Tax act 2012 return Using the presumption later. Tax act 2012 return   If you are starting out in farming and do not have 3 (or 2) years showing a profit, you may want to take advantage of this presumption later, after you have had the 5 (or 7) years of experience allowed by the test. Tax act 2012 return   You can choose to do this by filing Form 5213. Tax act 2012 return Filing this form postpones any determination that your farming activity is not carried on for profit until 5 (or 7) years have passed since you first started farming. Tax act 2012 return You must file Form 5213 within 3 years after the due date of your return for the year in which you first carried on the activity, or, if earlier, within 60 days after receiving a written notice from the IRS proposing to disallow deductions attributable to the activity. Tax act 2012 return   The benefit gained by making this choice is that the IRS will not immediately question whether your farming activity is engaged in for profit. Tax act 2012 return Accordingly, it will not limit your deductions. Tax act 2012 return Rather, you will gain time to earn a profit in 3 (or 2) out of the first 5 (or 7) years you carry on the farming activity. Tax act 2012 return If you show 3 (or 2) years of profit at the end of this period, your deductions are not limited under these rules. Tax act 2012 return If you do not have 3 (or 2) years of profit (and cannot otherwise show that you operated your farm for profit), the limit applies retroactively to any year in the 5-year (or 7-year) period with a loss. Tax act 2012 return   Filing Form 5213 automatically extends the period of limitations on any year
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The Tax Act 2012 Return

Tax act 2012 return Publication 17(SP) - Introductory Material Table of Contents Qué Hay de Nuevo Recordatorios IntroductionIconos. Tax act 2012 return Para pedir formularios y publicaciones. Tax act 2012 return Preguntas sobre los impuestos. Tax act 2012 return Todo material en esta publicación puede ser reimpreso gratuitamente. Tax act 2012 return Una referencia a El Impuesto Federal sobre los Ingresos (2013) sería apropiada. Tax act 2012 return Las explicaciones y ejemplos en esta publicación representan la interpretación del Servicio de Impuestos Internos (IRS, por sus siglas en inglés) con respecto a: Leyes tributarias promulgadas por el Congreso de los Estados Unidos, Reglamentos del Departamento del Tesoro de los Estados Unidos y Decisiones de los tribunales. Tax act 2012 return Sin embargo, la información provista no abarca cada situación y no se presenta con la intención de reemplazar la ley o cambiar su significado. Tax act 2012 return Esta publicación abarca ciertos temas sobre los cuales un tribunal puede haber dictado un fallo más favorable para los contribuyentes que la interpretación hecha por el IRS. Tax act 2012 return Hasta que estas interpretaciones divergentes sean resueltas por fallos o decretos de un tribunal superior o de alguna otra manera, esta publicación continuará presentando las interpretaciones hechas por el IRS. Tax act 2012 return Todos los contribuyentes tienen derechos importantes cuando tratan con el IRS. Tax act 2012 return Estos derechos están descritos en la sección titulada Derechos del Contribuyente , al final de esta publicación. Tax act 2012 return Qué Hay de Nuevo Esta sección resume ciertos cambios tributarios importantes que entraron en vigor en el año 2013. Tax act 2012 return La mayor parte de estos cambios se abordan en más detalle en esta publicación. Tax act 2012 return Acontecimientos futuros. Tax act 2012 return  Si desea obtener la información más reciente sobre temas de ley tributaria que se explican en esta publicación, incluyendo toda información sobre legislación tributaria, acceda a www. Tax act 2012 return irs. Tax act 2012 return gov/pub17sp. Tax act 2012 return Impuesto Adicional del Medicare. Tax act 2012 return  Comenzando en el año 2013, le corresponderá un Impuesto Adicional del Medicare de 0. Tax act 2012 return 9% sobre los salarios, la compensación por jubilación ferroviaria (RRTA, por sus siglas en inglés) y el ingreso sobre el trabajo por cuenta propia que están sujetos al impuesto al Medicare. Tax act 2012 return El impuesto corresponde si estos ingresos son mayores que: $125,000, si es casado que presenta una declaración por separado, $250,000, si es casado que presenta una declaración conjunta o $200,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. Tax act 2012 return Si desea más información, vea el Formulario 8959 y sus Instrucciones, disponibles en inglés. Tax act 2012 return Impuesto sobre los ingresos netos de inversión. Tax act 2012 return  Comenzando en el año 2013, usted podría estar sujeto al impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). Tax act 2012 return Este impuesto es el 3. Tax act 2012 return 8% de la cantidad menor entre (a) su ingreso neto de inversión o (b) la cantidad en exceso de su ingreso bruto ajustado modificado sobre: $125,000, si es casado que presenta una declaración por separado, $250,000, si es casado que presenta una declaración conjunta o si es viudo calificado o $200,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. Tax act 2012 return Si desea más información, vea el Formulario 8960 y sus Instrucciones, disponibles en inglés. Tax act 2012 return Cambio en las tasas tributarias. Tax act 2012 return  La tasa tributaria mayor es de 39. Tax act 2012 return 6%. Tax act 2012 return Si desea más información, vea la Hoja de Trabajo para el Cálculo del Impuesto del Año 2013 o las Tasas Impositivas de 2013 , las cuales se encuentran al final de esta publicación. Tax act 2012 return Tasa tributaria sobre las ganancias netas de capital y dividendos calificados. Tax act 2012 return  La tasa tributaria máxima de 15% sobre las ganancias netas de capital y los dividendos calificados ha aumentado a 20% para algunos contribuyentes. Tax act 2012 return Vea el capítulo 16 . Tax act 2012 return Gastos médicos y dentales. Tax act 2012 return  Usted puede deducir solamente la parte de sus gastos médicos y dentales que sea mayor que el 10% de su ingreso bruto ajustado (7. Tax act 2012 return 5% si usted o su cónyuge tiene 65 años de edad o más). Tax act 2012 return Vea el capítulo 21 . Tax act 2012 return Aumento de la cantidad de la exención personal para determinados contribuyentes. Tax act 2012 return  La exención personal que le corresponde a usted ha aumentado a $3,900. Tax act 2012 return Pero, esta cantidad se reduce si su ingreso bruto ajustado es mayor que: $150,000, si es casado que presenta una declaración por separado, $250,000, si es soltero, $275,000, si es cabeza de familia o $300,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. Tax act 2012 return Vea el capítulo 3 . Tax act 2012 return Límite sobre las deducciones detalladas. Tax act 2012 return  Usted puede que no tenga derecho de deducir todas sus deducciones detalladas si su ingreso bruto ajustado es mayor que: $150,000, si es casado que presenta una declaración por separado, $250,000, si es soltero, $275,000, si es cabeza de familia o $300,000, si presenta la declaración utilizando cualquier otro estado civil para efectos de la declaración. Tax act 2012 return Vea el capítulo 29 . Tax act 2012 return Matrimonio entre el mismo sexo. Tax act 2012 return  Si tiene un cónyuge de su mismo sexo con quien usted se casó en un estado (o jurisdicción o país extranjero) que reconoce el matrimonio entre personas del mismo sexo, usted y su cónyuge tienen que utilizar el estado civil para efectos de la declaración de casados que presentan una declaración conjunta o casado que presenta la declaración por separado en su declaración del año 2013. Tax act 2012 return Utilice uno de estos estados civiles para efectos de la declaración aunque usted y su cónyuge en la actualidad vivan en un estado (o jurisdicción o país extranjero) en donde no se reconozca el matrimonio entre personas del mismo sexo. Tax act 2012 return Vea el capítulo 2 . Tax act 2012 return Si reúne ciertos requisitos, quizás podría presentar declaraciones enmendadas para cambiar su estado civil para efectos de la declaración para algunos años anteriores. Tax act 2012 return Si desea saber más detalles sobre declaraciones enmendadas, vea el capítulo 1 . Tax act 2012 return Cuenta flexible de ahorros para gastos médicos (FSA, por sus siglas en inglés). Tax act 2012 return  Comenzando con los años del plan después de 2012, usted no puede hacer aportaciones mediante la reducción de salarios mayores de $2,500 a cuentas flexibles de ahorros para gastos médicos (FSA, por sus siglas en inglés). Tax act 2012 return Vea el capítulo 5 . Tax act 2012 return Créditos tributarios que vencen. Tax act 2012 return  El crédito por vehículo eléctrico enchufable y la parte reembolsable del crédito del impuesto mínimo de años anteriores ha vencido. Tax act 2012 return Usted no puede reclamar ninguno de éstos en su declaración del año 2013. Tax act 2012 return Vea el capítulo 37 . Tax act 2012 return Esquemas de inversión de tipo Ponzi. Tax act 2012 return  Hay nuevas reglas sobre cómo reclamar una deducción en el Formulario 4684, en inglés, debido a una pérdida por robo por un esquema de inversión de tipo Ponzi. Tax act 2012 return Vea el capítulo 25 . Tax act 2012 return Método simplificado para la deducción por oficina en el hogar. Tax act 2012 return  Si usted puede tomar una deducción por tener una oficina en su hogar, quizás pueda utilizar un método simplificado para calcular dicha deducción. Tax act 2012 return Vea la Publicación 587, disponible en inglés. Tax act 2012 return Tarifas estándar por milla. Tax act 2012 return  Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil para uso comercial ha aumentado a 56½ centavos por milla. Tax act 2012 return Vea el capítulo 26 . Tax act 2012 return Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil por razones médicas ha aumentado a 24 centavos por milla. Tax act 2012 return Vea el capítulo 21 . Tax act 2012 return Para 2013, la tarifa estándar por milla permitida por el costo de operar su automóvil para determinar los gastos de mudanza ha aumentado a 24 centavos por milla. Tax act 2012 return Vea la Publicación 521, Moving Expenses (Gastos de mudanza), en inglés. Tax act 2012 return Recordatorios A continuación aparecen recordatorios importantes y otros asuntos que le podrían ayudar a presentar su declaración de impuestos del año 2013. Tax act 2012 return Muchos de estos asuntos se explican más adelante en esta publicación. Tax act 2012 return Anote su número de Seguro Social (SSN, por sus siglas en inglés) en la declaración. Tax act 2012 return  Anote su número de Seguro Social (SSN, por sus siglas en inglés) en el espacio correspondiente de la declaración de impuestos. Tax act 2012 return Si presentó una declaración conjunta de impuestos en el año 2012 y presenta una declaración conjunta en el año 2013 con el mismo cónyuge, escriba los nombres y números de Seguro Social en el mismo orden en que lo hizo en el año 2012. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Proteja su documentación tributaria contra el robo de identidad. Tax act 2012 return  El robo de identidad ocurre cuando otra persona usa la información personal de usted sin su autorización para cometer fraude u otros delitos. Tax act 2012 return Dicha información personal podría ser su nombre, número de Seguro Social (SSN, por sus siglas en inglés) u otra información de identificación. Tax act 2012 return Un ladrón de identidad puede usar su SSN para obtener un empleo o puede presentar una declaración de impuestos usando su SSN robado para recibir un reembolso. Tax act 2012 return Si desea más información sobre el robo de identidad e información sobre cómo reducir su riesgo al robo de identidad, vea el capítulo 1 . Tax act 2012 return Números de identificación del contribuyente. Tax act 2012 return  Tiene que proveer el número de identificación del contribuyente de cada persona por la cual reclama ciertos beneficios tributarios. Tax act 2012 return Este requisito se aplica aun en el caso en que la persona haya nacido en el año 2013. Tax act 2012 return Por lo general, este número es el número de Seguro Social de la persona. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Ingreso de fuentes en el extranjero. Tax act 2012 return  Si es ciudadano de los Estados Unidos con ingresos provenientes de fuentes en el extranjero (ingresos del extranjero), tiene que declarar todos estos ingresos en su declaración de impuestos, a menos que estén exentos conforme a las leyes estadounidenses. Tax act 2012 return Esto es cierto tanto si vive dentro como fuera de los Estados Unidos e independientemente de si recibe o no un Formulario W-2 ó 1099 del pagador extranjero. Tax act 2012 return Esto corresponde al ingreso del trabajo (como salarios y propinas) y también al ingreso no derivado del trabajo (como intereses, dividendos, ganancias de capital, pensiones, alquileres y regalías). Tax act 2012 return Si reside fuera de los Estados Unidos, es posible que pueda excluir la totalidad o parte de su ingreso del trabajo procedente de fuentes en el extranjero. Tax act 2012 return Para más detalles, vea la Publicación 54, Tax Guide for U. Tax act 2012 return S. Tax act 2012 return Citizens and Resident Aliens Abroad (Guía tributaria para ciudadanos y residentes estadounidenses en el extranjero), en inglés. Tax act 2012 return Activos financieros extranjeros. Tax act 2012 return  Si tuvo activos financieros extranjeros en el 2013, es posible que tenga que presentar el nuevo Formulario 8938 con su declaración. Tax act 2012 return Vea www. Tax act 2012 return IRS. Tax act 2012 return gov/form8938, en inglés, para más detalles. Tax act 2012 return Prórroga automática de 6 meses para presentar la declaración de impuestos. Tax act 2012 return  Puede usar el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos (o el Formulario 4868, en inglés), para obtener una prórroga automática de 6 meses para presentar su declaración de impuestos. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Incluya su número de teléfono en la declaración. Tax act 2012 return  Para resolver rápidamente cualquier pregunta que necesitemos hacerle para tramitar su declaración, nos gustaría poder llamarlo. Tax act 2012 return Anote el número de teléfono donde podamos llamarlo durante el día, al lado del espacio donde firma la declaración de impuestos y donde aparece su ocupación. Tax act 2012 return Si usted presenta una declaración conjunta, puede anotar el número de teléfono suyo o el de su cónyuge. Tax act 2012 return Pago de los impuestos. Tax act 2012 return   Puede pagar sus impuestos a través de la Internet, a través del teléfono o por medio de cheque o giro. Tax act 2012 return Puede efectuar una transferencia directa de su cuenta bancaria o utilizar una tarjeta de crédito o débito. Tax act 2012 return Si presenta su declaración electrónicamente (por medio de e-file), puede programar un pago electrónico. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Maneras más rápidas de presentar su declaración. Tax act 2012 return  El IRS ofrece maneras rápidas y fiables de presentar la información tributaria sin tener que presentar una declaración en papel. Tax act 2012 return Puede usar el sistema electrónico e-file del IRS para presentar su declaración de impuestos. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Presentación electrónica gratuita de la declaración. Tax act 2012 return  Usted quizás pueda presentar su declaración de impuestos del año 2013 por Internet sin pagar cargo alguno. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Cambio de dirección. Tax act 2012 return  Si cambia de dirección, debe notificarle al IRS. Tax act 2012 return Vea el tema titulado Cambio de Dirección , en el capítulo 1. Tax act 2012 return Reembolsos de una declaración presentada fuera de plazo. Tax act 2012 return  Si a usted se le debe un reembolso pero no presentó una declaración, por lo general tendrá que presentar su declaración dentro de 3 años a partir de la fecha en que la declaración venció (incluidas prórrogas) para obtener ese reembolso. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Declaraciones de impuestos frívolas. Tax act 2012 return  El IRS ha publicado una lista de posturas identificadas como frívolas. Tax act 2012 return La multa por presentar una declaración de impuestos frívola es de $5,000. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Reclamación errónea de reembolso o crédito. Tax act 2012 return  Quizás tenga que pagar una multa si reclama erróneamente un reembolso o crédito. Tax act 2012 return Vea el capítulo 1 . Tax act 2012 return Información sobre la Ley de Confidencialidad de Información y la Ley de Reducción de Trámites. Tax act 2012 return   La IRS Restructuring and Reform Act of 1998 (Ley de Reestructuración y Reforma del Servicio de Impuestos Internos de 1998), la Privacy Act of 1974 (Ley de Confidencialidad de Información de 1974) y la Paperwork Reduction Act of 1980 (Ley de Reducción de Trámites de 1980) requieren que, cuando le solicitemos información, le informemos primero sobre cuál es nuestro derecho legal para solicitar esa información, por qué la estamos solicitando, cómo se usará la información, qué podría suceder si no la recibimos y si su respuesta es voluntaria, necesaria para obtener un beneficio u obligatoria conforme a la ley. Tax act 2012 return Una explicación completa sobre este tema puede encontrarse en las instrucciones de los formularios. Tax act 2012 return Servicio a los contribuyentes. Tax act 2012 return  Puede hacer una cita para recibir ayuda en persona en el Centro de Ayuda al Contribuyente más conveniente en el día laborable que más le convenga. Tax act 2012 return Vea el tema titulado Cómo Obtener Ayuda con los Impuestos , al final de esta publicación. Tax act 2012 return Mandato para preparadores de impuestos sobre el sistema e-file. Tax act 2012 return  La mayoría de los preparadores de impuestos remunerados que preparan y presentan declaraciones tienen que presentar electrónicamente por medio del sistema e-file. Tax act 2012 return Puede ser que su preparador le comunique sobre este requisito y las opciones que están a disposición suya. Tax act 2012 return Inspector General del Tesoro para la Administración Tributaria. Tax act 2012 return   Si desea denunciar confidencialmente la mala conducta, ineficacia, el fraude o abuso cometido por un empleado del IRS, puede llamar al 1-800-366-4484 (1-800-877-8339 para personas sordas, con limitación auditiva o que tienen impedimentos del habla, y que usen equipo TTY/TDD). Tax act 2012 return Puede mantenerse anónimo. Tax act 2012 return Fotografías de niños desaparecidos. Tax act 2012 return  El IRS se enorgullece en colaborar con el National Center for Missing and Exploited Children (Centro Nacional de Búsqueda de Niños Desaparecidos y Explotados). Tax act 2012 return Las fotografías de niños desaparecidos que han sido seleccionadas por el Centro pueden aparacer en esta publicación en páginas que de otra manera estarían en blanco. Tax act 2012 return Usted puede ayudar a que estos niños regresen a sus hogares mirando sus fotografías y llamando al número gratuito 1-800-THE-LOST (1-800-843-5678) si reconoce a un niño. Tax act 2012 return Introduction Esta publicación abarca las reglas generales para la presentación de una declaración federal de impuestos sobre el ingreso. Tax act 2012 return La publicación complementa la información contenida en las instrucciones para el formulario de impuestos. Tax act 2012 return Igualmente explica las leyes tributarias para asegurar que usted pague sólo los impuestos que adeuda y nada más. Tax act 2012 return Cómo está organizada esta publicación. Tax act 2012 return   Esta publicación sigue de cerca el Formulario 1040, U. Tax act 2012 return S. Tax act 2012 return Individual Income Tax Return (Declaración de impuestos de los Estados Unidos sobre los ingresos personales), disponible en inglés. Tax act 2012 return Está dividida en seis partes que abarcan distintas secciones del Formulario 1040. Tax act 2012 return Cada parte está subdividida en capítulos que normalmente explican una línea del formulario. Tax act 2012 return No se preocupe si presenta el Formulario 1040A o el Formulario 1040EZ. Tax act 2012 return Todo lo que está incluido en una línea de cualquiera de ambos formularios se incluye también en el Formulario 1040. Tax act 2012 return   La tabla de contenido que aparece al comienzo de esta publicación y el índice que aparece al final le servirán de utilidad para encontrar la información que necesite. Tax act 2012 return Qué se incluye en esta publicación. Tax act 2012 return   Esta publicación comienza con las reglas para la presentación de una declaración de impuestos. Tax act 2012 return La publicación explica: Quién tiene que presentar una declaración, Qué formulario se debe utilizar para declarar los impuestos, Cuándo es la fecha de vencimiento de la declaración, Cómo presentar su declaración usando el sistema electrónico e-file y Otra información general. Tax act 2012 return Esta publicación le ayudará a identificar el estado civil para propósitos de la declaración al cual tiene derecho. Tax act 2012 return Del mismo modo, le ayudará a determinar si puede reclamar algún dependiente y si los ingresos que recibe están sujetos a impuestos. Tax act 2012 return La publicación también explica la deducción estándar, las clases de gastos que quizás pueda deducir y varios créditos que quizás pueda tomar para reducir sus impuestos. Tax act 2012 return   A lo largo de la publicación, hay ejemplos que muestran cómo se aplican las leyes tributarias en situaciones típicas. Tax act 2012 return También hay organigramas y tablas en la publicación que presentan información tributaria en una manera fácil de entender. Tax act 2012 return   Muchos de los temas que se tratan en esta publicación son explicados en mayor detalle en otras publicaciones del IRS. Tax act 2012 return Se hace referencia a dichas publicaciones y se indica si están disponibles en español o en inglés. Tax act 2012 return Iconos. Tax act 2012 return   En la publicación se utilizan pequeños símbolos gráficos, o sea iconos, para llamar su atención a información especial. Tax act 2012 return Vea la Tabla 1 , más adelante, para una explicación de cada icono usado en esta publicación. Tax act 2012 return Qué no se incluye en esta publicación. Tax act 2012 return   Algunos materiales que le podrían ser útiles no se incluyen en esta publicación pero pueden encontrarse en el folleto de instrucciones del formulario de impuestos. Tax act 2012 return Esto incluye listas que identifican lo siguiente: Dónde declarar ciertas partidas que aparecen en documentos informativos y Temas tributarios grabados (temas TeleTax). Tax act 2012 return   Si opera su propio negocio o si tiene otros ingresos del trabajo por cuenta propia, tales como del cuidado de niños o la venta de artesanía, vea las siguientes publicaciones para más información: Publicación 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) (Guía tributaria para pequeños negocios (para personas que usen el Anexo C o C-EZ)), en inglés. Tax act 2012 return Publicación 535, Business Expenses (Gastos de negocios), en inglés. Tax act 2012 return Publicación 587, Business Use of Your Home (Including Use by Daycare Providers) (Uso comercial de su vivienda (incluyendo el uso por proveedores del cuidado de niños)), en inglés. Tax act 2012 return Ayuda del IRS. Tax act 2012 return   Existen muchas maneras en que puede obtener ayuda del IRS. Tax act 2012 return Éstas se explican bajo el tema titulado Cómo Obtener Ayuda con los Impuestos , al final de esta publicación. Tax act 2012 return Comentarios y sugerencias. Tax act 2012 return   Agradeceremos sus comentarios acerca de esta publicación, así como sus sugerencias para ediciones futuras. Tax act 2012 return   Puede enviar sus comentarios a la dirección siguiente:  Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Tax act 2012 return NW, IR-6526 Washington, DC 20224   Contestamos muchas cartas por teléfono. Tax act 2012 return Por lo tanto, sería útil que incluyera en la correspondencia su número de teléfono, con el código de área, en donde nos podamos comunicar con usted durante el día. Tax act 2012 return   Usted nos puede enviar comentarios desde la página web www. Tax act 2012 return irs. Tax act 2012 return gov/formspubs, en inglés, seleccionando Comment on Tax Forms and Publications (Enviar comentarios sobre los formularios y publicaciones de impuestos), bajo la sección More Information (Información adicional). Tax act 2012 return   Aunque no le podemos contestar individualmente, agradecemos sus comentarios y sugerencias y los tendremos en cuenta para ediciones futuras de nuestros productos tributarios. Tax act 2012 return Para pedir formularios y publicaciones. Tax act 2012 return   Visite www. Tax act 2012 return irs. Tax act 2012 return gov/formspubs para descargar formularios y publicaciones, llame al 1-800-829-3676 para pedir formularios y publicaciones o escriba a la dirección indicada a continuación y recibirá una respuesta dentro de 10 días después de que nosotros recibamos su solicitud. Tax act 2012 return  Internal Revenue Service 1201 N. Tax act 2012 return Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. Tax act 2012 return   Si tiene una pregunta sobre los impuestos, verifique la información disponible en IRS. Tax act 2012 return gov/espanol o llame al 1-800-829-1040. Tax act 2012 return No podemos contestar preguntas sobre impuestos enviadas a ninguna de las dos direcciones indicadas anteriormente. Tax act 2012 return Misión del IRS. Tax act 2012 return   Proveerles a los contribuyentes de los Estados Unidos de América un servicio de la más alta calidad al ayudarles a entender y cumplir con sus responsabilidades tributarias y, a la vez, hacer cumplir las leyes tributarias de manera íntegra y justa para todos. Tax act 2012 return Tabla 1. Tax act 2012 return Leyenda de los Iconos Icono Explicación Partidas que podrían causarle problemas en particular o una alerta sobre legislaciones pendientes que podrían entrar en vigor después de que se imprima esta publicación. Tax act 2012 return Un sitio en Internet o una dirección de correo electrónico. Tax act 2012 return Una dirección que podría necesitar. Tax act 2012 return Documentos que debería mantener en su documentación personal. Tax act 2012 return Cálculos que necesite realizar o una hoja de trabajo que pueda tener que completar y conservar para sus archivos. Tax act 2012 return Un número de teléfono importante. Tax act 2012 return Información que podría necesitar. 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