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2010 Tax Form

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2010 Tax Form

2010 tax form 9. 2010 tax form   Depletion Table of Contents Introduction Topics - This chapter discusses: Who Can Claim Depletion? Mineral PropertyCost Depletion Percentage Depletion Oil and Gas Wells Mines and Geothermal Deposits Lessor's Gross Income TimberTimber units. 2010 tax form Depletion unit. 2010 tax form Introduction Depletion is the using up of natural resources by mining, drilling, quarrying stone, or cutting timber. 2010 tax form The depletion deduction allows an owner or operator to account for the reduction of a product's reserves. 2010 tax form There are two ways of figuring depletion: cost depletion and percentage depletion. 2010 tax form For mineral property, you generally must use the method that gives you the larger deduction. 2010 tax form For standing timber, you must use cost depletion. 2010 tax form Topics - This chapter discusses: Who can claim depletion Mineral property Timber Who Can Claim Depletion? If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. 2010 tax form More than one person can have an economic interest in the same mineral deposit or timber. 2010 tax form In the case of leased property, the depletion deduction is divided between the lessor and the lessee. 2010 tax form You have an economic interest if both the following apply. 2010 tax form You have acquired by investment any interest in mineral deposits or standing timber. 2010 tax form You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment. 2010 tax form A contractual relationship that allows you an economic or monetary advantage from products of the mineral deposit or standing timber is not, in itself, an economic interest. 2010 tax form A production payment carved out of, or retained on the sale of, mineral property is not an economic interest. 2010 tax form Individuals, corporations, estates, and trusts who claim depletion deductions may be liable for alternative minimum tax. 2010 tax form Basis adjustment for depletion. 2010 tax form   You must reduce the basis of your property by the depletion allowed or allowable, whichever is greater. 2010 tax form Mineral Property Mineral property includes oil and gas wells, mines, and other natural deposits (including geothermal deposits). 2010 tax form For this purpose, the term “property” means each separate interest you own in each mineral deposit in each separate tract or parcel of land. 2010 tax form You can treat two or more separate interests as one property or as separate properties. 2010 tax form See section 614 of the Internal Revenue Code and the related regulations for rules on how to treat separate mineral interests. 2010 tax form There are two ways of figuring depletion on mineral property. 2010 tax form Cost depletion. 2010 tax form Percentage depletion. 2010 tax form Generally, you must use the method that gives you the larger deduction. 2010 tax form However, unless you are an independent producer or royalty owner, you generally cannot use percentage depletion for oil and gas wells. 2010 tax form See Oil and Gas Wells , later. 2010 tax form Cost Depletion To figure cost depletion you must first determine the following. 2010 tax form The property's basis for depletion. 2010 tax form The total recoverable units of mineral in the property's natural deposit. 2010 tax form The number of units of mineral sold during the tax year. 2010 tax form Basis for depletion. 2010 tax form   To figure the property's basis for depletion, subtract all the following from the property's adjusted basis. 2010 tax form Amounts recoverable through: Depreciation deductions, Deferred expenses (including deferred exploration and development costs), and Deductions other than depletion. 2010 tax form The residual value of land and improvements at the end of operations. 2010 tax form The cost or value of land acquired for purposes other than mineral production. 2010 tax form Adjusted basis. 2010 tax form   The adjusted basis of your property is your original cost or other basis, plus certain additions and improvements, and minus certain deductions such as depletion allowed or allowable and casualty losses. 2010 tax form Your adjusted basis can never be less than zero. 2010 tax form See Publication 551, Basis of Assets, for more information on adjusted basis. 2010 tax form Total recoverable units. 2010 tax form   The total recoverable units is the sum of the following. 2010 tax form The number of units of mineral remaining at the end of the year (including units recovered but not sold). 2010 tax form The number of units of mineral sold during the tax year (determined under your method of accounting, as explained next). 2010 tax form   You must estimate or determine recoverable units (tons, pounds, ounces, barrels, thousands of cubic feet, or other measure) of mineral products using the current industry method and the most accurate and reliable information you can obtain. 2010 tax form You must include ores and minerals that are developed, in sight, blocked out, or assured. 2010 tax form You must also include probable or prospective ores or minerals that are believed to exist based on good evidence. 2010 tax form But see Elective safe harbor for owners of oil and gas property , later. 2010 tax form Number of units sold. 2010 tax form   You determine the number of units sold during the tax year based on your method of accounting. 2010 tax form Use the following table to make this determination. 2010 tax form    IF you  use . 2010 tax form . 2010 tax form . 2010 tax form THEN the units sold during the year are . 2010 tax form . 2010 tax form . 2010 tax form The cash method of accounting The units sold for which you receive payment during the tax year (regardless of the year of sale). 2010 tax form An accrual method of accounting The units sold based on your inventories and method of accounting for inventory. 2010 tax form   The number of units sold during the tax year does not include any for which depletion deductions were allowed or allowable in earlier years. 2010 tax form Figuring the cost depletion deduction. 2010 tax form   Once you have figured your property's basis for depletion, the total recoverable units, and the number of units sold during the tax year, you can figure your cost depletion deduction by taking the following steps. 2010 tax form Step Action Result 1 Divide your property's basis for depletion by total recoverable units. 2010 tax form Rate per unit. 2010 tax form 2 Multiply the rate per unit by units sold during the tax year. 2010 tax form Cost depletion deduction. 2010 tax form You must keep accounts for the depletion of each property and adjust these accounts each year for units sold and depletion claimed. 2010 tax form Elective safe harbor for owners of oil and gas property. 2010 tax form   Instead of using the method described earlier to determine the total recoverable units, you can use an elective safe harbor. 2010 tax form If you choose the elective safe harbor, the total recoverable units equal 105% of a property's proven reserves (both developed and undeveloped). 2010 tax form For details, see Revenue Procedure 2004-19 on page 563 of Internal Revenue Bulletin 2004-10, available at www. 2010 tax form irs. 2010 tax form gov/pub/irs-irbs/irb04-10. 2010 tax form pdf. 2010 tax form   To make the election, attach a statement to your timely filed (including extensions) original return for the first tax year for which the safe harbor is elected. 2010 tax form The statement must indicate that you are electing the safe harbor provided by Revenue Procedure 2004-19. 2010 tax form The election, if made, is effective for the tax year in which it is made and all later years. 2010 tax form It cannot be revoked for the tax year in which it is elected, but may be revoked in a later year. 2010 tax form Once revoked, it cannot be re-elected for the next 5 years. 2010 tax form Percentage Depletion To figure percentage depletion, you multiply a certain percentage, specified for each mineral, by your gross income from the property during the tax year. 2010 tax form The rates to be used and other rules for oil and gas wells are discussed later under Independent Producers and Royalty Owners and under Natural Gas Wells . 2010 tax form Rates and other rules for percentage depletion of other specific minerals are found later in Mines and Geothermal Deposits . 2010 tax form Gross income. 2010 tax form   When figuring percentage depletion, subtract from your gross income from the property the following amounts. 2010 tax form Any rents or royalties you paid or incurred for the property. 2010 tax form The part of any bonus you paid for a lease on the property allocable to the product sold (or that otherwise gives rise to gross income) for the tax year. 2010 tax form A bonus payment includes amounts you paid as a lessee to satisfy a production payment retained by the lessor. 2010 tax form   Use the following fraction to figure the part of the bonus you must subtract. 2010 tax form No. 2010 tax form of units sold in the tax year Recoverable units from the property × Bonus Payments For oil and gas wells and geothermal deposits, more information about the definition of gross income from the property is under Oil and Gas Wells , later. 2010 tax form For other property, more information about the definition of gross income from the property is under Mines and Geothermal Deposits , later. 2010 tax form Taxable income limit. 2010 tax form   The percentage depletion deduction generally cannot be more than 50% (100% for oil and gas property) of your taxable income from the property figured without the depletion deduction and the domestic production activities deduction. 2010 tax form   Taxable income from the property means gross income from the property minus all allowable deductions (except any deduction for depletion or domestic production activities) attributable to mining processes, including mining transportation. 2010 tax form These deductible items include, but are not limited to, the following. 2010 tax form Operating expenses. 2010 tax form Certain selling expenses. 2010 tax form Administrative and financial overhead. 2010 tax form Depreciation. 2010 tax form Intangible drilling and development costs. 2010 tax form Exploration and development expenditures. 2010 tax form Deductible taxes (see chapter 5), but not taxes that you capitalize or take as a credit. 2010 tax form Losses sustained. 2010 tax form   The following rules apply when figuring your taxable income from the property for purposes of the taxable income limit. 2010 tax form Do not deduct any net operating loss deduction from the gross income from the property. 2010 tax form Corporations do not deduct charitable contributions from the gross income from the property. 2010 tax form If, during the year, you dispose of an item of section 1245 property that was used in connection with mineral property, reduce any allowable deduction for mining expenses by the part of any gain you must report as ordinary income that is allocable to the mineral property. 2010 tax form See section 1. 2010 tax form 613-5(b)(1) of the regulations for information on how to figure the ordinary gain allocable to the property. 2010 tax form Oil and Gas Wells You cannot claim percentage depletion for an oil or gas well unless at least one of the following applies. 2010 tax form You are either an independent producer or a royalty owner. 2010 tax form The well produces natural gas that is either sold under a fixed contract or produced from geopressured brine. 2010 tax form If you are an independent producer or royalty owner, see Independent Producers and Royalty Owners , next. 2010 tax form For information on the depletion deduction for wells that produce natural gas that is either sold under a fixed contract or produced from geopressured brine, see Natural Gas Wells , later. 2010 tax form Independent Producers and Royalty Owners If you are an independent producer or royalty owner, you figure percentage depletion using a rate of 15% of the gross income from the property based on your average daily production of domestic crude oil or domestic natural gas up to your depletable oil or natural gas quantity. 2010 tax form However, certain refiners, as explained next, and certain retailers and transferees of proven oil and gas properties, as explained next, cannot claim percentage depletion. 2010 tax form For information on figuring the deduction, see Figuring percentage depletion , later. 2010 tax form Refiners who cannot claim percentage depletion. 2010 tax form   You cannot claim percentage depletion if you or a related person refine crude oil and you and the related person refined more than 75,000 barrels on any day during the tax year based on average (rather than actual) daily refinery runs for the tax year. 2010 tax form The average daily refinery run is computed by dividing total refinery runs for the tax year by the total number of days in the tax year. 2010 tax form Related person. 2010 tax form   You and another person are related persons if either of you holds a significant ownership interest in the other person or if a third person holds a significant ownership interest in both of you. 2010 tax form For example, a corporation, partnership, estate, or trust and anyone who holds a significant ownership interest in it are related persons. 2010 tax form A partnership and a trust are related persons if one person holds a significant ownership interest in each of them. 2010 tax form For purposes of the related person rules, significant ownership interest means direct or indirect ownership of 5% or more in any one of the following. 2010 tax form The value of the outstanding stock of a corporation. 2010 tax form The interest in the profits or capital of a partnership. 2010 tax form The beneficial interests in an estate or trust. 2010 tax form Any interest owned by or for a corporation, partnership, trust, or estate is considered to be owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries. 2010 tax form Retailers who cannot claim percentage depletion. 2010 tax form   You cannot claim percentage depletion if both the following apply. 2010 tax form You sell oil or natural gas or their by-products directly or through a related person in any of the following situations. 2010 tax form Through a retail outlet operated by you or a related person. 2010 tax form To any person who is required under an agreement with you or a related person to use a trademark, trade name, or service mark or name owned by you or a related person in marketing or distributing oil, natural gas, or their by-products. 2010 tax form To any person given authority under an agreement with you or a related person to occupy any retail outlet owned, leased, or controlled by you or a related person. 2010 tax form The combined gross receipts from sales (not counting resales) of oil, natural gas, or their by-products by all retail outlets taken into account in (1) are more than $5 million for the tax year. 2010 tax form   For the purpose of determining if this rule applies, do not count the following. 2010 tax form Bulk sales (sales in very large quantities) of oil or natural gas to commercial or industrial users. 2010 tax form Bulk sales of aviation fuels to the Department of Defense. 2010 tax form Sales of oil or natural gas or their by-products outside the United States if none of your domestic production or that of a related person is exported during the tax year or the prior tax year. 2010 tax form Related person. 2010 tax form   To determine if you and another person are related persons, see Related person under Refiners who cannot claim percentage depletion, earlier. 2010 tax form Sales through a related person. 2010 tax form   You are considered to be selling through a related person if any sale by the related person produces gross income from which you may benefit because of your direct or indirect ownership interest in the person. 2010 tax form   You are not considered to be selling through a related person who is a retailer if all the following apply. 2010 tax form You do not have a significant ownership interest in the retailer. 2010 tax form You sell your production to persons who are not related to either you or the retailer. 2010 tax form The retailer does not buy oil or natural gas from your customers or persons related to your customers. 2010 tax form There are no arrangements for the retailer to acquire oil or natural gas you produced for resale or made available for purchase by the retailer. 2010 tax form Neither you nor the retailer knows of or controls the final disposition of the oil or natural gas you sold or the original source of the petroleum products the retailer acquired for resale. 2010 tax form Transferees who cannot claim percentage depletion. 2010 tax form   You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. 2010 tax form For a definition of the term “transfer,” see section 1. 2010 tax form 613A-7(n) of the regulations. 2010 tax form For a definition of the term “interest in proven oil or gas property,” see section 1. 2010 tax form 613A-7(p) of the regulations. 2010 tax form Figuring percentage depletion. 2010 tax form   Generally, as an independent producer or royalty owner, you figure your percentage depletion by computing your average daily production of domestic oil or gas and comparing it to your depletable oil or gas quantity. 2010 tax form If your average daily production does not exceed your depletable oil or gas quantity, you figure your percentage depletion by multiplying the gross income from the oil or gas property (defined later) by 15%. 2010 tax form If your average daily production of domestic oil or gas exceeds your depletable oil or gas quantity, you must make an allocation as explained later under Average daily production. 2010 tax form   In addition, there is a limit on the percentage depletion deduction. 2010 tax form See Taxable income limit , later. 2010 tax form Average daily production. 2010 tax form   Figure your average daily production by dividing your total domestic production of oil or gas for the tax year by the number of days in your tax year. 2010 tax form Partial interest. 2010 tax form   If you have a partial interest in the production from a property, figure your share of the production by multiplying total production from the property by your percentage of interest in the revenues from the property. 2010 tax form   You have a partial interest in the production from a property if you have a net profits interest in the property. 2010 tax form To figure the share of production for your net profits interest, you must first determine your percentage participation (as measured by the net profits) in the gross revenue from the property. 2010 tax form To figure this percentage, you divide the income you receive for your net profits interest by the gross revenue from the property. 2010 tax form Then multiply the total production from the property by your percentage participation to figure your share of the production. 2010 tax form Example. 2010 tax form Javier Robles owns oil property in which Pablo Olmos owns a 20% net profits interest. 2010 tax form During the year, the property produced 10,000 barrels of oil, which Javier sold for $200,000. 2010 tax form Javier had expenses of $90,000 attributable to the property. 2010 tax form The property generated a net profit of $110,000 ($200,000 − $90,000). 2010 tax form Pablo received income of $22,000 ($110,000 × . 2010 tax form 20) for his net profits interest. 2010 tax form Pablo determined his percentage participation to be 11% by dividing $22,000 (the income he received) by $200,000 (the gross revenue from the property). 2010 tax form Pablo determined his share of the oil production to be 1,100 barrels (10,000 barrels × 11%). 2010 tax form Depletable oil or natural gas quantity. 2010 tax form   Generally, your depletable oil quantity is 1,000 barrels. 2010 tax form Your depletable natural gas quantity is 6,000 cubic feet multiplied by the number of barrels of your depletable oil quantity that you choose to apply. 2010 tax form If you claim depletion on both oil and natural gas, you must reduce your depletable oil quantity (1,000 barrels) by the number of barrels you use to figure your depletable natural gas quantity. 2010 tax form Example. 2010 tax form You have both oil and natural gas production. 2010 tax form To figure your depletable natural gas quantity, you choose to apply 360 barrels of your 1000-barrel depletable oil quantity. 2010 tax form Your depletable natural gas quantity is 2. 2010 tax form 16 million cubic feet of gas (360 × 6000). 2010 tax form You must reduce your depletable oil quantity to 640 barrels (1000 − 360). 2010 tax form If you have production from marginal wells, see section 613A(c)(6) of the Internal Revenue Code to figure your depletable oil or natural gas quantity. 2010 tax form Also, see Notice 2012-50, available at www. 2010 tax form irs. 2010 tax form gov/irb/2012–31_IRB/index. 2010 tax form html. 2010 tax form Business entities and family members. 2010 tax form   You must allocate the depletable oil or gas quantity among the following related persons in proportion to each entity's or family member's production of domestic oil or gas for the year. 2010 tax form Corporations, trusts, and estates if 50% or more of the beneficial interest is owned by the same or related persons (considering only persons that own at least 5% of the beneficial interest). 2010 tax form You and your spouse and minor children. 2010 tax form A related person is anyone mentioned in the related persons discussion under Nondeductible loss in chapter 2 of Publication 544, except that for purposes of this allocation, item (1) in that discussion includes only an individual, his or her spouse, and minor children. 2010 tax form Controlled group of corporations. 2010 tax form   Members of the same controlled group of corporations are treated as one taxpayer when figuring the depletable oil or natural gas quantity. 2010 tax form They share the depletable quantity. 2010 tax form A controlled group of corporations is defined in section 1563(a) of the Internal Revenue Code, except that, for this purpose, the stock ownership requirement in that definition is “more than 50%” rather than “at least 80%. 2010 tax form ” Gross income from the property. 2010 tax form   For purposes of percentage depletion, gross income from the property (in the case of oil and gas wells) is the amount you receive from the sale of the oil or gas in the immediate vicinity of the well. 2010 tax form If you do not sell the oil or gas on the property, but manufacture or convert it into a refined product before sale or transport it before sale, the gross income from the property is the representative market or field price (RMFP) of the oil or gas, before conversion or transportation. 2010 tax form   If you sold gas after you removed it from the premises for a price that is lower than the RMFP, determine gross income from the property for percentage depletion purposes without regard to the RMFP. 2010 tax form   Gross income from the property does not include lease bonuses, advance royalties, or other amounts payable without regard to production from the property. 2010 tax form Average daily production exceeds depletable quantities. 2010 tax form   If your average daily production for the year is more than your depletable oil or natural gas quantity, figure your allowance for depletion for each domestic oil or natural gas property as follows. 2010 tax form Figure your average daily production of oil or natural gas for the year. 2010 tax form Figure your depletable oil or natural gas quantity for the year. 2010 tax form Figure depletion for all oil or natural gas produced from the property using a percentage depletion rate of 15%. 2010 tax form Multiply the result figured in (3) by a fraction, the numerator of which is the result figured in (2) and the denominator of which is the result figured in (1). 2010 tax form This is your depletion allowance for that property for the year. 2010 tax form Taxable income limit. 2010 tax form   If you are an independent producer or royalty owner of oil and gas, your deduction for percentage depletion is limited to the smaller of the following. 2010 tax form 100% of your taxable income from the property figured without the deduction for depletion and the deduction for domestic production activities under section 199 of the Internal Revenue Code. 2010 tax form For a definition of taxable income from the property, see Taxable income limit , earlier, under Mineral Property. 2010 tax form 65% of your taxable income from all sources, figured without the depletion allowance, the deduction for domestic production activities, any net operating loss carryback, and any capital loss carryback. 2010 tax form You can carry over to the following year any amount you cannot deduct because of the 65%-of-taxable-income limit. 2010 tax form Add it to your depletion allowance (before applying any limits) for the following year. 2010 tax form Partnerships and S Corporations Generally, each partner or S corporation shareholder, and not the partnership or S corporation, figures the depletion allowance separately. 2010 tax form (However, see Electing large partnerships must figure depletion allowance , later. 2010 tax form ) Each partner or shareholder must decide whether to use cost or percentage depletion. 2010 tax form If a partner or shareholder uses percentage depletion, he or she must apply the 65%-of-taxable-income limit using his or her taxable income from all sources. 2010 tax form Partner's or shareholder's adjusted basis. 2010 tax form   The partnership or S corporation must allocate to each partner or shareholder his or her share of the adjusted basis of each oil or gas property held by the partnership or S corporation. 2010 tax form The partnership or S corporation makes the allocation as of the date it acquires the oil or gas property. 2010 tax form   Each partner's share of the adjusted basis of the oil or gas property generally is figured according to that partner's interest in partnership capital. 2010 tax form However, in some cases, it is figured according to the partner's interest in partnership income. 2010 tax form   The partnership or S corporation adjusts the partner's or shareholder's share of the adjusted basis of the oil and gas property for any capital expenditures made for the property and for any change in partnership or S corporation interests. 2010 tax form Recordkeeping. 2010 tax form Each partner or shareholder must separately keep records of his or her share of the adjusted basis in each oil and gas property of the partnership or S corporation. 2010 tax form The partner or shareholder must reduce his or her adjusted basis by the depletion allowed or allowable on the property each year. 2010 tax form The partner or shareholder must use that reduced adjusted basis to figure cost depletion or his or her gain or loss if the partnership or S corporation disposes of the property. 2010 tax form Reporting the deduction. 2010 tax form   Information that you, as a partner or shareholder, use to figure your depletion deduction on oil and gas properties is reported by the partnership or S corporation on Schedule K-1 (Form 1065) or on Schedule K-1 (Form 1120S). 2010 tax form Deduct oil and gas depletion for your partnership or S corporation interest on Schedule E (Form 1040). 2010 tax form The depletion deducted on Schedule E is included in figuring income or loss from rental real estate or royalty properties. 2010 tax form The instructions for Schedule E explain where to report this income or loss and whether you need to file either of the following forms. 2010 tax form Form 6198, At-Risk Limitations. 2010 tax form Form 8582, Passive Activity Loss Limitations. 2010 tax form Electing large partnerships must figure depletion allowance. 2010 tax form   An electing large partnership, rather than each partner, generally must figure the depletion allowance. 2010 tax form The partnership figures the depletion allowance without taking into account the 65-percent-of-taxable-income limit and the depletable oil or natural gas quantity. 2010 tax form Also, the adjusted basis of a partner's interest in the partnership is not affected by the depletion allowance. 2010 tax form   An electing large partnership is one that meets both the following requirements. 2010 tax form The partnership had 100 or more partners in the preceding year. 2010 tax form The partnership chooses to be an electing large partnership. 2010 tax form Disqualified persons. 2010 tax form   An electing large partnership does not figure the depletion allowance of its partners that are disqualified persons. 2010 tax form Disqualified persons must figure it themselves, as explained earlier. 2010 tax form   All the following are disqualified persons. 2010 tax form Refiners who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). 2010 tax form Retailers who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). 2010 tax form Any partner whose average daily production of domestic crude oil and natural gas is more than 500 barrels during the tax year in which the partnership tax year ends. 2010 tax form Average daily production is discussed earlier. 2010 tax form Natural Gas Wells You can use percentage depletion for a well that produces natural gas that is either Sold under a fixed contract, or Produced from geopressured brine. 2010 tax form Natural gas sold under a fixed contract. 2010 tax form   Natural gas sold under a fixed contract qualifies for a percentage depletion rate of 22%. 2010 tax form This is domestic natural gas sold by the producer under a contract that does not provide for a price increase to reflect any increase in the seller's tax liability because of the repeal of percentage depletion for gas. 2010 tax form The contract must have been in effect from February 1, 1975, until the date of sale of the gas. 2010 tax form Price increases after February 1, 1975, are presumed to take the increase in tax liability into account unless demonstrated otherwise by clear and convincing evidence. 2010 tax form Natural gas from geopressured brine. 2010 tax form   Qualified natural gas from geopressured brine is eligible for a percentage depletion rate of 10%. 2010 tax form This is natural gas that is both the following. 2010 tax form Produced from a well you began to drill after September 1978 and before 1984. 2010 tax form Determined in accordance with section 503 of the Natural Gas Policy Act of 1978 to be produced from geopressured brine. 2010 tax form Mines and Geothermal Deposits Certain mines, wells, and other natural deposits, including geothermal deposits, qualify for percentage depletion. 2010 tax form Mines and other natural deposits. 2010 tax form   For a natural deposit, the percentage of your gross income from the property that you can deduct as depletion depends on the type of deposit. 2010 tax form   The following is a list of the percentage depletion rates for the more common minerals. 2010 tax form DEPOSITS RATE Sulphur, uranium, and, if from deposits in the United States, asbestos, lead ore, zinc ore, nickel ore, and mica 22% Gold, silver, copper, iron ore, and certain oil shale, if from deposits in the United States 15% Borax, granite, limestone, marble, mollusk shells, potash, slate, soapstone, and carbon dioxide produced from a well 14% Coal, lignite, and sodium chloride 10% Clay and shale used or sold for use in making sewer pipe or bricks or used or sold for use as sintered or burned lightweight aggregates 7½% Clay used or sold for use in making drainage and roofing tile, flower pots, and kindred products, and gravel, sand, and stone (other than stone used or sold for use by a mine owner or operator as dimension or ornamental stone) 5%   You can find a complete list of minerals and their percentage depletion rates in section 613(b) of the Internal Revenue Code. 2010 tax form Corporate deduction for iron ore and coal. 2010 tax form   The percentage depletion deduction of a corporation for iron ore and coal (including lignite) is reduced by 20% of: The percentage depletion deduction for the tax year (figured without this reduction), minus The adjusted basis of the property at the close of the tax year (figured without the depletion deduction for the tax year). 2010 tax form Gross income from the property. 2010 tax form   For property other than a geothermal deposit or an oil or gas well, gross income from the property means the gross income from mining. 2010 tax form Mining includes all the following. 2010 tax form Extracting ores or minerals from the ground. 2010 tax form Applying certain treatment processes described later. 2010 tax form Transporting ores or minerals (generally, not more than 50 miles) from the point of extraction to the plants or mills in which the treatment processes are applied. 2010 tax form Excise tax. 2010 tax form   Gross income from mining includes the separately stated excise tax received by a mine operator from the sale of coal to compensate the operator for the excise tax the mine operator must pay to finance black lung benefits. 2010 tax form Extraction. 2010 tax form   Extracting ores or minerals from the ground includes extraction by mine owners or operators of ores or minerals from the waste or residue of prior mining. 2010 tax form This does not apply to extraction from waste or residue of prior mining by the purchaser of the waste or residue or the purchaser of the rights to extract ores or minerals from the waste or residue. 2010 tax form Treatment processes. 2010 tax form   The processes included as mining depend on the ore or mineral mined. 2010 tax form To qualify as mining, the treatment processes must be applied by the mine owner or operator. 2010 tax form For a listing of treatment processes considered as mining, see section 613(c)(4) of the Internal Revenue Code and the related regulations. 2010 tax form Transportation of more than 50 miles. 2010 tax form   If the IRS finds that the ore or mineral must be transported more than 50 miles to plants or mills to be treated because of physical and other requirements, the additional authorized transportation is considered mining and included in the computation of gross income from mining. 2010 tax form    If you wish to include transportation of more than 50 miles in the computation of gross income from mining, request an advance ruling from the IRS. 2010 tax form Include in the request the facts about the physical and other requirements that prevented the construction and operation of the plant within 50 miles of the point of extraction. 2010 tax form For more information about requesting an advance ruling, see Revenue Procedure 2013-1, available at www. 2010 tax form irs. 2010 tax form gov/irb/2013-01_IRB/ar11. 2010 tax form html. 2010 tax form Disposal of coal or iron ore. 2010 tax form   You cannot take a depletion deduction for coal (including lignite) or iron ore mined in the United States if both the following apply. 2010 tax form You disposed of it after holding it for more than 1 year. 2010 tax form You disposed of it under a contract under which you retain an economic interest in the coal or iron ore. 2010 tax form Treat any gain on the disposition as a capital gain. 2010 tax form Disposal to related person. 2010 tax form   This rule does not apply if you dispose of the coal or iron ore to one of the following persons. 2010 tax form A related person (as listed in chapter 2 of Publication 544). 2010 tax form A person owned or controlled by the same interests that own or control you. 2010 tax form Geothermal deposits. 2010 tax form   Geothermal deposits located in the United States or its possessions qualify for a percentage depletion rate of 15%. 2010 tax form A geothermal deposit is a geothermal reservoir of natural heat stored in rocks or in a watery liquid or vapor. 2010 tax form For percentage depletion purposes, a geothermal deposit is not considered a gas well. 2010 tax form   Figure gross income from the property for a geothermal steam well in the same way as for oil and gas wells. 2010 tax form See Gross income from the property , earlier, under Oil and Gas Wells. 2010 tax form Percentage depletion on a geothermal deposit cannot be more than 50% of your taxable income from the property. 2010 tax form Lessor's Gross Income In the case of leased property, the depletion deduction is divided between the lessor and the lessee. 2010 tax form A lessor's gross income from the property that qualifies for percentage depletion usually is the total of the royalties received from the lease. 2010 tax form Bonuses and advanced royalties. 2010 tax form   Bonuses and advanced royalties are payments a lessee makes before production to a lessor for the grant of rights in a lease or for minerals, gas, or oil to be extracted from leased property. 2010 tax form If you are the lessor, your income from bonuses and advanced royalties received is subject to an allowance for depletion, as explained in the next two paragraphs. 2010 tax form Figuring cost depletion. 2010 tax form   To figure cost depletion on a bonus, multiply your adjusted basis in the property by a fraction, the numerator of which is the bonus and the denominator of which is the total bonus and royalties expected to be received. 2010 tax form To figure cost depletion on advanced royalties, use the computation explained earlier under Cost Depletion , treating the number of units for which the advanced royalty is received as the number of units sold. 2010 tax form Figuring percentage depletion. 2010 tax form   In the case of mines, wells, and other natural deposits other than gas, oil, or geothermal property, you may use the percentage rates discussed earlier under Mines and Geothermal Deposits . 2010 tax form Any bonus or advanced royalty payments are generally part of the gross income from the property to which the rates are applied in making the calculation. 2010 tax form However, for oil, gas, or geothermal property, gross income does not include lease bonuses, advanced royalties, or other amounts payable without regard to production from the property. 2010 tax form Ending the lease. 2010 tax form   If you receive a bonus on a lease that ends or is abandoned before you derive any income from mineral extraction, include in income the depletion deduction you took. 2010 tax form Do this for the year the lease ends or is abandoned. 2010 tax form Also increase your adjusted basis in the property to restore the depletion deduction you previously subtracted. 2010 tax form   For advanced royalties, include in income the depletion claimed on minerals for which the advanced royalties were paid if the minerals were not produced before the lease ended. 2010 tax form Include this amount in income for the year the lease ends. 2010 tax form Increase your adjusted basis in the property by the amount you include in income. 2010 tax form Delay rentals. 2010 tax form   These are payments for deferring development of the property. 2010 tax form Since delay rentals are ordinary rent, they are ordinary income that is not subject to depletion. 2010 tax form These rentals can be avoided by either abandoning the lease, beginning development operations, or obtaining production. 2010 tax form Timber You can figure timber depletion only by the cost method. 2010 tax form Percentage depletion does not apply to timber. 2010 tax form Base your depletion on your cost or other basis in the timber. 2010 tax form Your cost does not include the cost of land or any amounts recoverable through depreciation. 2010 tax form Depletion takes place when you cut standing timber. 2010 tax form You can figure your depletion deduction when the quantity of cut timber is first accurately measured in the process of exploitation. 2010 tax form Figuring cost depletion. 2010 tax form   To figure your cost depletion allowance, you multiply the number of timber units cut by your depletion unit. 2010 tax form Timber units. 2010 tax form   When you acquire timber property, you must make an estimate of the quantity of marketable timber that exists on the property. 2010 tax form You measure the timber using board feet, log scale, cords, or other units. 2010 tax form If you later determine that you have more or less units of timber, you must adjust the original estimate. 2010 tax form   The term “timber property” means your economic interest in standing timber in each tract or block representing a separate timber account. 2010 tax form Depletion unit. 2010 tax form   You figure your depletion unit each year by taking the following steps. 2010 tax form Determine your cost or adjusted basis of the timber on hand at the beginning of the year. 2010 tax form Adjusted basis is defined under Cost Depletion in the discussion on Mineral Property. 2010 tax form Add to the amount determined in (1) the cost of any timber units acquired during the year and any additions to capital. 2010 tax form Figure the number of timber units to take into account by adding the number of timber units acquired during the year to the number of timber units on hand in the account at the beginning of the year and then adding (or subtracting) any correction to the estimate of the number of timber units remaining in the account. 2010 tax form Divide the result of (2) by the result of (3). 2010 tax form This is your depletion unit. 2010 tax form Example. 2010 tax form You bought a timber tract for $160,000 and the land was worth as much as the timber. 2010 tax form Your basis for the timber is $80,000. 2010 tax form Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 ÷ 1,000). 2010 tax form If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF × $80). 2010 tax form When to claim depletion. 2010 tax form   Claim your depletion allowance as a deduction in the year of sale or other disposition of the products cut from the timber, unless you choose to treat the cutting of timber as a sale or exchange (explained below). 2010 tax form Include allowable depletion for timber products not sold during the tax year the timber is cut as a cost item in the closing inventory of timber products for the year. 2010 tax form The inventory is your basis for determining gain or loss in the tax year you sell the timber products. 2010 tax form Example. 2010 tax form The facts are the same as in the previous example except that you sold only half of the timber products in the cutting year. 2010 tax form You would deduct $20,000 of the $40,000 depletion that year. 2010 tax form You would add the remaining $20,000 depletion to your closing inventory of timber products. 2010 tax form Electing to treat the cutting of timber as a sale or exchange. 2010 tax form   You can elect, under certain circumstances, to treat the cutting of timber held for more than 1 year as a sale or exchange. 2010 tax form You must make the election on your income tax return for the tax year to which it applies. 2010 tax form If you make this election, subtract the adjusted basis for depletion from the fair market value of the timber on the first day of the tax year in which you cut it to figure the gain or loss on the cutting. 2010 tax form You generally report the gain as long-term capital gain. 2010 tax form The fair market value then becomes your basis for figuring your ordinary gain or loss on the sale or other disposition of the products cut from the timber. 2010 tax form For more information, see Timber in chapter 2 of Publication 544, Sales and Other Dispositions of Assets. 2010 tax form   You may revoke an election to treat the cutting of timber as a sale or exchange without IRS's consent. 2010 tax form The prior election (and revocation) is disregarded for purposes of making a subsequent election. 2010 tax form See Form T (Timber), Forest Activities Schedule, for more information. 2010 tax form Form T. 2010 tax form   Complete and attach Form T (Timber) to your income tax return if you claim a deduction for timber depletion, choose to treat the cutting of timber as a sale or exchange, or make an outright sale of timber. 2010 tax form Prev  Up  Next   Home   More 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The 2010 Tax Form

2010 tax form 18. 2010 tax form   Appendix This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One. 2010 tax form Model Certificate A   STATEMENT OF SUBSEQUENT SELLER     1. 2010 tax form                 Name, address, and employer identification number of seller in subsequent sale             2. 2010 tax form                 Name, address, and employer identification number of the buyer in subsequent sale             3. 2010 tax form         Date and location of subsequent sale             4. 2010 tax form         Volume and type of taxable fuel sold               The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in     connection with Seller's purchase of the taxable fuel described in this statement. 2010 tax form       Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying     schedules and statements, and, to the best of Seller's knowledge and belief, they are true, correct and complete. 2010 tax form                   Signature and date signed                   Printed or typed name of person signing this report                   Title—   Model Certificate B   FIRST TAXPAYER'S REPORT   1. 2010 tax form                     First Taxpayer's name, address and employer identification number     2. 2010 tax form                     Name, address, and employer identification number of the buyer of the taxable fuel subject to tax     3. 2010 tax form           Date and location of removal, entry, or sale       4. 2010 tax form           Volume and type of taxable fuel removed, entered or sold     5. 2010 tax form Check type of taxable event:         Removal from refinery         Entry into United States         Bulk transfer from terminal by unregistered position holder       Bulk transfer not received at an approved terminal       Sale within the bulk transfer/terminal system       Removal at the terminal rack         Removal or sale by the blender                   6. 2010 tax form           Amount of federal excise tax paid on account of the removal, entry, or sale                   The undersigned taxpayer (“Taxpayer”) has not received, and will not claim, a credit with respect to, or a refund of, the tax     on the taxable fuel to which this form relates. 2010 tax form       Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying     schedules and statements, and to the best of Taxpayer's knowledge and belief, they are true, correct and complete. 2010 tax form             Signature and date signed               Printed or typed name of person signing this report               Title     Model Certificate C   NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT                           Name, address, and employer identification number of person receiving certificate       The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered     by the Internal Revenue Service with registration number and that Registrant's registration has not     been revoked or suspended by the Internal Revenue Service. 2010 tax form                 Registrant understands that the fraudulent use of this certificate may subject Registrant and all parties making such     fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form                       Signature and date signed                         Printed or typed name of person signing                         Title of person signing                         Name of Registrant                         Employer identification number                         Address of Registrant     Model Certificate D   CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE     (To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code. 2010 tax form )                 Name, address, and employer identification number of seller       The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:       The gasoline blendstocks to which this certificate relates will not be used to produce finished gasoline. 2010 tax form       This certificate applies to the following (complete as applicable):       If this is a single purchase certificate, check here and enter:     1. 2010 tax form Invoice or delivery ticket number       2. 2010 tax form (number of gallons) of(type of gasoline blendstocks)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:     1. 2010 tax form Effective date       2. 2010 tax form Expiration date       (period not to exceed 1 year after the effective date)       3. 2010 tax form Type (or types) of gasoline blendstocks     4. 2010 tax form Buyer's account or order number         Buyer will not claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks     covered by this certificate. 2010 tax form         Buyer will provide a new certificate to the seller if any information in this certificate changes. 2010 tax form       If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a     certificate from the purchaser stating that the gasoline blendstocks will not be used to produce finished gasoline and otherwise complies with the conditions of §48. 2010 tax form 4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations. 2010 tax form       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. 2010 tax form       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 2010 tax form     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free. 2010 tax form       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form             Signature and date signed               Printed or typed name of person signing               Title of person signing               Name of Buyer               Employer identification number               Address of Buyer     Model Certificate G   CERTIFICATE OF REGISTERED FEEDSTOCK USER     (To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue Code. 2010 tax form )         (Buyer) certifies the following under penalties of perjury:       Name of buyer         Buyer is a registered feedstock user with registration number . 2010 tax form Buyer's registration has not been revoked     or suspended. 2010 tax form         The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose. 2010 tax form                 This certificate applies to percent of Buyer's purchases from (name, address, and employer     identification number of seller) as follows (complete as applicable):       1. 2010 tax form A single purchase on invoice or delivery ticket number . 2010 tax form                 2. 2010 tax form All purchases between (effective date) and (expiration date) (period not to exceed     one year after the effective date) under account or order number(s) . 2010 tax form If this certificate applies only to Buyer's     purchases for certain locations, check here and list the locations. 2010 tax form                                   If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale. 2010 tax form                 Buyer will provide a new certificate to the seller if any information in this certificate changes. 2010 tax form                 If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration. 2010 tax form                 Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of     this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form             Printed or typed name of person signing               Title of person signing               Employer identification number               Address of Buyer               Signature and date signed     Model Certificate J   CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE     (To support tax-free sales of CNG under section 4041 of the Internal Revenue Code. 2010 tax form )                                         Name, address, and employer identification number of seller                   (“Buyer”) certifies the following under penalties of perjury:     Name of buyer                     The CNG to which this certificate relates will be used in a nontaxable use. 2010 tax form       This certificate applies to the following (complete as applicable):               If this is a single purchase certificate, check here and enter:       1. 2010 tax form Invoice or delivery ticket number       2. 2010 tax form (Gasoline gallon equivalents)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:         1. 2010 tax form Effective date         2. 2010 tax form Expiration date         (period not to exceed 1 year after the effective date)         3. 2010 tax form Buyer's account or order number       Buyer will not claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates. 2010 tax form       Buyer will provide a new certificate to the seller if any information in this certificate changes. 2010 tax form       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. 2010 tax form       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 2010 tax form     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn     from a purchaser to which Buyer sells CNG tax free. 2010 tax form       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form             Printed or typed name of person signing               Title of person signing             Employer identification number               Address of Buyer               Signature and date signed     Model Certificate K   CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR     COMMERCIAL AVIATION OR NONTAXABLE USE     (To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082. 2010 tax form )           Name, address, and employer identification number of position holder       The undersigned aircraft operator (“Buyer”) hereby certifies the following under the penalties of perjury:       The kerosene for use in aviation to which this certificate relates is purchased (check one): for     use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixed-wing air ambulance uses; for use other than as a fuel in the propulsion engine of an aircraft; for the exclusive use of a qualified blood collector organization; for the exclusive use of a nonprofit educational organization; for the exclusive use of a state; for use in an aircraft owned by an aircraft museum; for use in military aircraft; or for use in commercial aviation (other than foreign trade). 2010 tax form       With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation     (other than foreign trade), Buyer's registration number is. 2010 tax form Buyer's registration has not been suspended or revoked by the Internal Revenue Service. 2010 tax form       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. 2010 tax form Invoice or delivery ticket number       2. 2010 tax form Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. 2010 tax form Effective date       2. 2010 tax form Expiration date (period not to exceed 1 year after the effective date)       3. 2010 tax form Buyer's account number       Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes. 2010 tax form       If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation     (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government. 2010 tax form       If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use     stated above, Buyer will be liable for tax. 2010 tax form       Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the     fuel purchased under this certificate was used. 2010 tax form     Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 2010 tax form     If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. 2010 tax form       The fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate     to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver L WAIVER FOR USE BY ULTIMATE PURCHASERS OF KEROSENE FOR CERTAIN USES IN AVIATION (To support vendor's claim for a credit or payment under § 6427(l)(4)(C)(i) of the Internal Revenue Code. 2010 tax form )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 2010 tax form The kerosene to which this waiver relates is purchased for — (check one):       1. 2010 tax form □ Use on a farm for farming purposes,       2. 2010 tax form □ Use in foreign trade (reciprocal benefits required for foreign registered airlines),       3. 2010 tax form □ Use in certain helicopter and fixed-wing air ambulance uses,       4. 2010 tax form □ The exclusive use of a qualified blood collector organization,       5. 2010 tax form □ The exclusive use of a nonprofit educational organization,       6. 2010 tax form □ Use in an aircraft owned by an aircraft museum,       7. 2010 tax form □ Use in military aircraft, or       8. 2010 tax form □ Use in commercial aviation (other than foreign trade). 2010 tax form     B. 2010 tax form This waiver applies to the following (complete as applicable):       This is a single purchase waiver:           1. 2010 tax form Invoice or delivery ticket number           2. 2010 tax form Number of gallons       This is a waiver covering all purchases under a specified account or order number:           1. 2010 tax form Effective date           2. 2010 tax form Expiration date (period not to exceed 1 year after the effective date)           3. 2010 tax form Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. 2010 tax form       If Buyer uses the kerosene for use in aviation to which this waiver relates for a use other than the use stated above, Buyer will be liable for tax. 2010 tax form       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the kerosene for use in aviation used in a nontaxable use. 2010 tax form       Buyer acknowledges that it has not and will not claim any credit or payment for the kerosene for use in aviation to which this waiver relates. 2010 tax form       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate M   CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL     ORGANIZATION USE     (To support vendor's claim for a credit or payment under § 6416(a)(4) of the Internal Revenue Code. 2010 tax form )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       Buyer will use the gasoline or aviation gasoline to which this certificate relates (check one):     For the exclusive use of a state or local government; or     For the exclusive use of a nonprofit educational organization. 2010 tax form       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. 2010 tax form Invoice or delivery ticket number       2. 2010 tax form Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. 2010 tax form Effective date       2. 2010 tax form Expiration date (period not to exceed 1 year after the effective date)       3. 2010 tax form Buyer's account number       Buyer will provide a new certificate to the vendor if any information in this certificate changes. 2010 tax form       Buyer understands that by signing this certificate, Buyer gives up its right to claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. 2010 tax form       Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. 2010 tax form       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver N   WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR     KEROSENE USED IN INTERCITY BUS TRANSPORTATION     (To support vendor's claim for a credit or payment under § 6427 of the Internal Revenue Code. 2010 tax form )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation. 2010 tax form       This waiver applies to the following (complete as applicable):     This is a single purchase waiver:       1. 2010 tax form Invoice or delivery ticket number       2. 2010 tax form Number of gallons     This is a waiver covering all purchases under a specified account or order number:       1. 2010 tax form Effective date       2. 2010 tax form Expiration date (period not to exceed 1 year after the effective date)       3. 2010 tax form Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. 2010 tax form       If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax. 2010 tax form       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the diesel fuel or kerosene used in intercity bus transportation. 2010 tax form       Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates. 2010 tax form       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate O   CERTIFICATE FOR BIODIESEL     Certificate Identification Number:     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. 2010 tax form )     The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury:   1. 2010 tax form             Producer's name, address, and employer identification number (EIN)   2. 2010 tax form             Name, address, and EIN of person buying the biodiesel from Producer   3. 2010 tax form       Date and location of sale to buyer   4. 2010 tax form This certificate applies to gallons of biodiesel. 2010 tax form   5. 2010 tax form Producer certifies that the biodiesel to which this certificate relates is:       % Agri-biodiesel (derived solely from virgin oils)       % Biodiesel other than agri-biodiesel       This certificate applies to the following sale:       Invoice or delivery ticket number       Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate)       Total number of certificates issued for that invoice or delivery ticket number   6. 2010 tax form             Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)   7. 2010 tax form Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate). 2010 tax form       Producer is registered as a biodiesel producer with registration number . 2010 tax form  Producer's registration has not been suspended or revoked by the Internal Revenue Service. 2010 tax form       Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U. 2010 tax form S. 2010 tax form C. 2010 tax form 7545). 2010 tax form       Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Model Certificate P CERTIFICATE OF STATE USE (To support vendor's claim for credit or payment under section 6427 of the Internal Revenue Code. 2010 tax form )               Name, Address, and Employer Identification Number of Vendor     The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:     A. 2010 tax form Buyer will use the diesel fuel or kerosene to which this certificate relates for the exclusive use of a state or local government, or the District of Columbia. 2010 tax form     B. 2010 tax form This certificate applies to the following (complete as applicable):       1. 2010 tax form   If this is a single purchase certificate, check here □ and enter:           a. 2010 tax form Invoice or delivery ticket number           b. 2010 tax form Number of gallons       2. 2010 tax form   If this is a certificate covering all purchases under a specified account or order number, check here □  and enter:           a. 2010 tax form Effective date           b. 2010 tax form Expiration date   (period not to exceed 1 year after effective date)           c. 2010 tax form Buyer's account or order number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. 2010 tax form     ▪ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a purpose other than stated in the certificate, Buyer will be liable for any tax. 2010 tax form     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this certificate relates. 2010 tax form     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate Q CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN NONEXEMPT, NONCOMMERCIAL AVIATION (To support vendor's claim for credit or payment under section 6427(l)(4)(C)(ii) of the Internal Revenue Code. 2010 tax form )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 2010 tax form The kerosene to which this certificate relates is purchased for a nonexempt use in noncommercial aviation. 2010 tax form     B. 2010 tax form This certificate applies to the following (complete as applicable):       1. 2010 tax form   If this is a single purchase certificate, check here □ and enter:           a. 2010 tax form Invoice or delivery ticket number           b. 2010 tax form Number of gallons       2. 2010 tax form   This is a certificate covering all purchases under a specified account or order number:           a. 2010 tax form Effective date           b. 2010 tax form Expiration date   (period not to exceed 1 year after effective date)           c. 2010 tax form Buyer's account number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. 2010 tax form     ▪ If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer will be liable for tax. 2010 tax form     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate R CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL ORGANIZATION (To support credit card issuer's claim for credit, refund, or payment under section 6416(a)(4)(B) or section 6427(l)(5)(D) of the Internal Revenue Code. 2010 tax form )               Name, Address, and Employer Identification Number of Credit Card Issuer. 2010 tax form     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 2010 tax form Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or     B. 2010 tax form Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational organization. 2010 tax form     C. 2010 tax form This certificate applies to all purchases made with the credit card identified below during the period specified:           a. 2010 tax form Effective date of certificate           b. 2010 tax form Expiration date of certificate   (period not to exceed 2 years after effective date)           c. 2010 tax form Buyer's account number     ▪ Buyer will provide a new certificate to the credit card issuer if any information in this certificate changes. 2010 tax form     ▪ Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. 2010 tax form     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. 2010 tax form     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Statement S   STATEMENT OF BIODIESEL RESELLER     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. 2010 tax form )     The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury:   1. 2010 tax form                   Reseller's name, address, and employer identification number (EIN)   2. 2010 tax form                   Name, address, and EIN of Reseller's buyer   3. 2010 tax form       Date and location of sale to buyer   4. 2010 tax form Volume of biodiesel sold   5. 2010 tax form Certificate Identification Number on the Certificate for Biodiesel       Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false. 2010 tax form       Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn. 2010 tax form       Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. 2010 tax form           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Prev  Up  Next   Home   More Online Publications