Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Amended Tax Form 2012

Easy Tax Forms2010 New Car Tax CreditState Taxes Free E FileIncome Tax Form 1040ez2011 Irs Forms PublicationsHow Do I File An Amended Tax Return For 2010Amended 1040x InstructionsFederal Income Tax Ez Form2011 Tax ReturnsHow To Refile Your Taxes1040ez Form For 2013Online Tax Filing 2012Efile 1040nr Ez 540nr ShortFederal Tax Amendment Form2012 Irs Form 1040ezEfileFree File Federal And State TaxesIrs 1040ez File OnlineAmending TaxForm 1040x Amended Us Individual Income Tax ReturnTax CutForm1040ezHr Block Tax Free File Online FederalFiling Free State Taxes OnlineFree State Income TaxEztaxIrs Tax Extentions2012 Tax Forms IrsPrint Free 1040ez Tax Form20131040ez2011 Federal Tax FormsHow To File An Amendment On TaxesAmend 2012 Tax Return OnlineFile State Tax Return OnlineHow Do I File An Amended Return For 2012Free Taxes FilingFederal Income Tax ReturnFiling 2006 TaxesIrs Free File Using Form 1040 EzFree State Turbo Tax 2012

Amended Tax Form 2012

Amended tax form 2012 Publication 969 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Environmental Management (Energy Department)

The Environmental Management Office is tasked with cleaning up sites associated with nuclear weapons testing and government sponsored nuclear energy research.

Contact the Agency or Department

Website: Environmental Management (Energy Department)

Contact In-Person: Cleanup Project Sites

Phone Number: (202) 287-5591

The Amended Tax Form 2012

Amended tax form 2012 3. Amended tax form 2012   Rent Expense Table of Contents Introduction Topics - This chapter discusses: RentConditional sales contract. Amended tax form 2012 Leveraged leases. Amended tax form 2012 Leveraged leases of limited-use property. Amended tax form 2012 Taxes on Leased Property Cost of Getting a Lease Improvements by Lessee Capitalizing Rent Expenses Introduction This chapter discusses the tax treatment of rent or lease payments you make for property you use in your business but do not own. Amended tax form 2012 It also discusses how to treat other kinds of payments you make that are related to your use of this property. Amended tax form 2012 These include payments you make for taxes on the property. Amended tax form 2012 Topics - This chapter discusses: The definition of rent Taxes on leased property The cost of getting a lease Improvements by the lessee Capitalizing rent expenses Rent Rent is any amount you pay for the use of property you do not own. Amended tax form 2012 In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. Amended tax form 2012 If you have or will receive equity in or title to the property, the rent is not deductible. Amended tax form 2012 Unreasonable rent. Amended tax form 2012   You cannot take a rental deduction for unreasonable rent. Amended tax form 2012 Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Amended tax form 2012 Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Amended tax form 2012 Rent is not unreasonable just because it is figured as a percentage of gross sales. Amended tax form 2012 For examples of related persons, see Related persons in chapter 2, Publication 544. Amended tax form 2012 Rent on your home. Amended tax form 2012   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Amended tax form 2012 You must meet the requirements for business use of your home. Amended tax form 2012 For more information, see Business use of your home in chapter 1. Amended tax form 2012 Rent paid in advance. Amended tax form 2012   Generally, rent paid in your trade or business is deductible in the year paid or accrued. Amended tax form 2012 If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Amended tax form 2012 You can deduct the rest of your payment only over the period to which it applies. Amended tax form 2012 Example 1. Amended tax form 2012 You are a calendar year taxpayer and you leased a building for 5 years beginning July 1. Amended tax form 2012 Your rent is $12,000 per year. Amended tax form 2012 You paid the first year's rent ($12,000) on June 30. Amended tax form 2012 You can deduct only $6,000 (6/12 × $12,000) for the rent that applies to the first year. Amended tax form 2012 Example 2. Amended tax form 2012 You are a calendar year taxpayer. Amended tax form 2012 Last January you leased property for 3 years for $6,000 a year. Amended tax form 2012 You paid the full $18,000 (3 × $6,000) during the first year of the lease. Amended tax form 2012 Each year you can deduct only $6,000, the part of the lease that applies to that year. Amended tax form 2012 Canceling a lease. Amended tax form 2012   You generally can deduct as rent an amount you pay to cancel a business lease. Amended tax form 2012 Lease or purchase. Amended tax form 2012   There may be instances in which you must determine whether your payments are for rent or for the purchase of the property. Amended tax form 2012 You must first determine whether your agreement is a lease or a conditional sales contract. Amended tax form 2012 Payments made under a conditional sales contract are not deductible as rent expense. Amended tax form 2012 Conditional sales contract. Amended tax form 2012   Whether an agreement is a conditional sales contract depends on the intent of the parties. Amended tax form 2012 Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. Amended tax form 2012 No single test, or special combination of tests, always applies. Amended tax form 2012 However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. Amended tax form 2012 The agreement applies part of each payment toward an equity interest you will receive. Amended tax form 2012 You get title to the property after you make a stated amount of required payments. Amended tax form 2012 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. Amended tax form 2012 You pay much more than the current fair rental value of the property. Amended tax form 2012 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. Amended tax form 2012 Determine this value when you make the agreement. Amended tax form 2012 You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. Amended tax form 2012 The agreement designates part of the payments as interest, or that part is easy to recognize as interest. Amended tax form 2012 Leveraged leases. Amended tax form 2012   Leveraged lease transactions may not be considered leases. Amended tax form 2012 Leveraged leases generally involve three parties: a lessor, a lessee, and a lender to the lessor. Amended tax form 2012 Usually the lease term covers a large part of the useful life of the leased property, and the lessee's payments to the lessor are enough to cover the lessor's payments to the lender. Amended tax form 2012   If you plan to take part in what appears to be a leveraged lease, you may want to get an advance ruling. Amended tax form 2012 Revenue Procedure 2001-28 on page 1156 of Internal Revenue Bulletin 2001-19 contains the guidelines the IRS will use to determine if a leveraged lease is a lease for federal income tax purposes. Amended tax form 2012 Revenue Procedure 2001-29 on page 1160 of the same Internal Revenue Bulletin provides the information required to be furnished in a request for an advance ruling on a leveraged lease transaction. Amended tax form 2012 Internal Revenue Bulletin 2001-19 is available at www. Amended tax form 2012 irs. Amended tax form 2012 gov/pub/irs-irbs/irb01-19. Amended tax form 2012 pdf. Amended tax form 2012   In general, Revenue Procedure 2001-28 provides that, for advance ruling purposes only, the IRS will consider the lessor in a leveraged lease transaction to be the owner of the property and the transaction to be a valid lease if all the factors in the revenue procedure are met, including the following. Amended tax form 2012 The lessor must maintain a minimum unconditional “at risk” equity investment in the property (at least 20% of the cost of the property) during the entire lease term. Amended tax form 2012 The lessee may not have a contractual right to buy the property from the lessor at less than fair market value when the right is exercised. Amended tax form 2012 The lessee may not invest in the property, except as provided by Revenue Procedure 2001-28. Amended tax form 2012 The lessee may not lend any money to the lessor to buy the property or guarantee the loan used by the lessor to buy the property. Amended tax form 2012 The lessor must show that it expects to receive a profit apart from the tax deductions, allowances, credits, and other tax attributes. Amended tax form 2012   The IRS may charge you a user fee for issuing a tax ruling. Amended tax form 2012 For more information, see Revenue Procedure 2014-1 available at  www. Amended tax form 2012 irs. Amended tax form 2012 gov/irb/2014-1_IRB/ar05. Amended tax form 2012 html. Amended tax form 2012 Leveraged leases of limited-use property. Amended tax form 2012   The IRS will not issue advance rulings on leveraged leases of so-called limited-use property. Amended tax form 2012 Limited-use property is property not expected to be either useful to or usable by a lessor at the end of the lease term except for continued leasing or transfer to a lessee. Amended tax form 2012 See Revenue Procedure 2001-28 for examples of limited-use property and property that is not limited-use property. Amended tax form 2012 Leases over $250,000. Amended tax form 2012   Special rules are provided for certain leases of tangible property. Amended tax form 2012 The rules apply if the lease calls for total payments of more than $250,000 and any of the following apply. Amended tax form 2012 Rents increase during the lease. Amended tax form 2012 Rents decrease during the lease. Amended tax form 2012 Rents are deferred (rent is payable after the end of the calendar year following the calendar year in which the use occurs and the rent is allocated). Amended tax form 2012 Rents are prepaid (rent is payable before the end of the calendar year preceding the calendar year in which the use occurs and the rent is allocated). Amended tax form 2012 These rules do not apply if your lease specifies equal amounts of rent for each month in the lease term and all rent payments are due in the calendar year to which the rent relates (or in the preceding or following calendar year). Amended tax form 2012   Generally, if the special rules apply, you must use an accrual method of accounting (and time value of money principles) for your rental expenses, regardless of your overall method of accounting. Amended tax form 2012 In addition, in certain cases in which the IRS has determined that a lease was designed to achieve tax avoidance, you must take rent and stated or imputed interest into account under a constant rental accrual method in which the rent is treated as accruing ratably over the entire lease term. Amended tax form 2012 For details, see section 467 of the Internal Revenue Code. Amended tax form 2012 Taxes on Leased Property If you lease business property, you can deduct as additional rent any taxes you have to pay to or for the lessor. Amended tax form 2012 When you can deduct these taxes as additional rent depends on your accounting method. Amended tax form 2012 Cash method. Amended tax form 2012   If you use the cash method of accounting, you can deduct the taxes as additional rent only for the tax year in which you pay them. Amended tax form 2012 Accrual method. Amended tax form 2012   If you use an accrual method of accounting, you can deduct taxes as additional rent for the tax year in which you can determine all the following. Amended tax form 2012 That you have a liability for taxes on the leased property. Amended tax form 2012 How much the liability is. Amended tax form 2012 That economic performance occurred. Amended tax form 2012   The liability and amount of taxes are determined by state or local law and the lease agreement. Amended tax form 2012 Economic performance occurs as you use the property. Amended tax form 2012 Example 1. Amended tax form 2012 Oak Corporation is a calendar year taxpayer that uses an accrual method of accounting. Amended tax form 2012 Oak leases land for use in its business. Amended tax form 2012 Under state law, owners of real property become liable (incur a lien on the property) for real estate taxes for the year on January 1 of that year. Amended tax form 2012 However, they do not have to pay these taxes until July 1 of the next year (18 months later) when tax bills are issued. Amended tax form 2012 Under the terms of the lease, Oak becomes liable for the real estate taxes in the later year when the tax bills are issued. Amended tax form 2012 If the lease ends before the tax bill for a year is issued, Oak is not liable for the taxes for that year. Amended tax form 2012 Oak cannot deduct the real estate taxes as rent until the tax bill is issued. Amended tax form 2012 This is when Oak's liability under the lease becomes fixed. Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1 except that, according to the terms of the lease, Oak becomes liable for the real estate taxes when the owner of the property becomes liable for them. Amended tax form 2012 As a result, Oak will deduct the real estate taxes as rent on its tax return for the earlier year. Amended tax form 2012 This is the year in which Oak's liability under the lease becomes fixed. Amended tax form 2012 Cost of Getting a Lease You may either enter into a new lease with the lessor of the property or get an existing lease from another lessee. Amended tax form 2012 Very often when you get an existing lease from another lessee, you must pay the previous lessee money to get the lease, besides having to pay the rent on the lease. Amended tax form 2012 If you get an existing lease on property or equipment for your business, you generally must amortize any amount you pay to get that lease over the remaining term of the lease. Amended tax form 2012 For example, if you pay $10,000 to get a lease and there are 10 years remaining on the lease with no option to renew, you can deduct $1,000 each year. Amended tax form 2012 The cost of getting an existing lease of tangible property is not subject to the amortization rules for section 197 intangibles discussed in chapter 8. Amended tax form 2012 Option to renew. Amended tax form 2012   The term of the lease for amortization includes all renewal options plus any other period for which you and the lessor reasonably expect the lease to be renewed. Amended tax form 2012 However, this applies only if less than 75% of the cost of getting the lease is for the term remaining on the purchase date (not including any period for which you may choose to renew, extend, or continue the lease). Amended tax form 2012 Allocate the lease cost to the original term and any option term based on the facts and circumstances. Amended tax form 2012 In some cases, it may be appropriate to make the allocation using a present value computation. Amended tax form 2012 For more information, see Regulations section 1. Amended tax form 2012 178-1(b)(5). Amended tax form 2012 Example 1. Amended tax form 2012 You paid $10,000 to get a lease with 20 years remaining on it and two options to renew for 5 years each. Amended tax form 2012 Of this cost, you paid $7,000 for the original lease and $3,000 for the renewal options. Amended tax form 2012 Because $7,000 is less than 75% of the total $10,000 cost of the lease (or $7,500), you must amortize the $10,000 over 30 years. Amended tax form 2012 That is the remaining life of your present lease plus the periods for renewal. Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1, except that you paid $8,000 for the original lease and $2,000 for the renewal options. Amended tax form 2012 You can amortize the entire $10,000 over the 20-year remaining life of the original lease. Amended tax form 2012 The $8,000 cost of getting the original lease was not less than 75% of the total cost of the lease (or $7,500). Amended tax form 2012 Cost of a modification agreement. Amended tax form 2012   You may have to pay an additional “rent” amount over part of the lease period to change certain provisions in your lease. Amended tax form 2012 You must capitalize these payments and amortize them over the remaining period of the lease. Amended tax form 2012 You cannot deduct the payments as additional rent, even if they are described as rent in the agreement. Amended tax form 2012 Example. Amended tax form 2012 You are a calendar year taxpayer and sign a 20-year lease to rent part of a building starting on January 1. Amended tax form 2012 However, before you occupy it, you decide that you really need less space. Amended tax form 2012 The lessor agrees to reduce your rent from $7,000 to $6,000 per year and to release the excess space from the original lease. Amended tax form 2012 In exchange, you agree to pay an additional rent amount of $3,000, payable in 60 monthly installments of $50 each. Amended tax form 2012   You must capitalize the $3,000 and amortize it over the 20-year term of the lease. Amended tax form 2012 Your amortization deduction each year will be $150 ($3,000 ÷ 20). Amended tax form 2012 You cannot deduct the $600 (12 × $50) that you will pay during each of the first 5 years as rent. Amended tax form 2012 Commissions, bonuses, and fees. Amended tax form 2012   Commissions, bonuses, fees, and other amounts you pay to get a lease on property you use in your business are capital costs. Amended tax form 2012 You must amortize these costs over the term of the lease. Amended tax form 2012 Loss on merchandise and fixtures. Amended tax form 2012   If you sell at a loss merchandise and fixtures that you bought solely to get a lease, the loss is a cost of getting the lease. Amended tax form 2012 You must capitalize the loss and amortize it over the remaining term of the lease. Amended tax form 2012 Improvements by Lessee If you add buildings or make other permanent improvements to leased property, depreciate the cost of the improvements using the modified accelerated cost recovery system (MACRS). Amended tax form 2012 Depreciate the property over its appropriate recovery period. Amended tax form 2012 You cannot amortize the cost over the remaining term of the lease. Amended tax form 2012 If you do not keep the improvements when you end the lease, figure your gain or loss based on your adjusted basis in the improvements at that time. Amended tax form 2012 For more information, see the discussion of MACRS in Publication 946, How To Depreciate Property. Amended tax form 2012 Assignment of a lease. Amended tax form 2012   If a long-term lessee who makes permanent improvements to land later assigns all lease rights to you for money and you pay the rent required by the lease, the amount you pay for the assignment is a capital investment. Amended tax form 2012 If the rental value of the leased land increased since the lease began, part of your capital investment is for that increase in the rental value. Amended tax form 2012 The rest is for your investment in the permanent improvements. Amended tax form 2012   The part that is for the increased rental value of the land is a cost of getting a lease, and you amortize it over the remaining term of the lease. Amended tax form 2012 You can depreciate the part that is for your investment in the improvements over the recovery period of the property as discussed earlier, without regard to the lease term. Amended tax form 2012 Capitalizing Rent Expenses Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Amended tax form 2012 Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Amended tax form 2012 You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Amended tax form 2012 Indirect costs include amounts incurred for renting or leasing equipment, facilities, or land. Amended tax form 2012 Uniform capitalization rules. Amended tax form 2012   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Amended tax form 2012 Produce real property or tangible personal property. Amended tax form 2012 For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Amended tax form 2012 Acquire property for resale. Amended tax form 2012 However, these rules do not apply to the following property. Amended tax form 2012 Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Amended tax form 2012 Property you produce if you meet either of the following conditions. Amended tax form 2012 Your indirect costs of producing the property are $200,000 or less. Amended tax form 2012 You use the cash method of accounting and do not account for inventories. Amended tax form 2012 Example 1. Amended tax form 2012 You rent construction equipment to build a storage facility. Amended tax form 2012 If you are subject to the uniform capitalization rules, you must capitalize as part of the cost of the building the rent you paid for the equipment. Amended tax form 2012 You recover your cost by claiming a deduction for depreciation on the building. Amended tax form 2012 Example 2. Amended tax form 2012 You rent space in a facility to conduct your business of manufacturing tools. Amended tax form 2012 If you are subject to the uniform capitalization rules, you must include the rent you paid to occupy the facility in the cost of the tools you produce. Amended tax form 2012 More information. Amended tax form 2012   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Amended tax form 2012 Prev  Up  Next   Home   More Online Publications