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File Free State Return Online

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File Free State Return Online

File free state return online Publication 547 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. File free state return online Tax questions. File free state return online Useful Items - You may want to see: What's New Section C of Form 4684 for Ponzi-type investment schemes. File free state return online  Section C of Form 4684 is new for 2013. File free state return online You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. File free state return online Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File free state return online You do not need to complete Appendix A. File free state return online For details, see Losses from Ponzi-type investment schemes , later. File free state return online Reminders Future developments. File free state return online   For the latest information about developments related to Publication 547, such as legislation enacted after it was published, go to www. File free state return online irs. File free state return online gov/pub547. File free state return online Photographs of missing children. File free state return online  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. File free state return online Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File free state return online You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. File free state return online Introduction This publication explains the tax treatment of casualties, thefts, and losses on deposits. File free state return online A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. File free state return online A theft occurs when someone steals your property. File free state return online A loss on deposits occurs when your financial institution becomes insolvent or bankrupt. File free state return online This publication discusses the following topics. File free state return online Definitions of a casualty, theft, and loss on deposits. File free state return online How to figure the amount of your gain or loss. File free state return online How to treat insurance and other reimbursements you receive. File free state return online The deduction limits. File free state return online When and how to report a casualty or theft. File free state return online The special rules for disaster area losses. File free state return online Forms to file. File free state return online   Generally, when you have a casualty or theft, you have to file Form 4684. File free state return online You may also have to file one or more of the following forms. File free state return online Schedule A (Form 1040). File free state return online Form 1040NR, Schedule A (for nonresident aliens). File free state return online Schedule D. File free state return online Form 4797. File free state return online For details on which form to use, see How To Report Gains and Losses , later. File free state return online Condemnations. File free state return online   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Dispositions of Assets. File free state return online Workbooks for casualties and thefts. File free state return online   Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property), is available to help you make a list of your stolen or damaged personal-use property and figure your loss. File free state return online It includes schedules to help you figure the loss on your home and its contents, and your motor vehicles. File free state return online   Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, is available to help you make a list of your stolen or damaged business or income-producing property and figure your loss. File free state return online Comments and suggestions. File free state return online   We welcome your comments about this publication and your suggestions for future editions. File free state return online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. File free state return online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File free state return online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File free state return online   You can send your comments from www. File free state return online irs. File free state return online gov/formspubs/. File free state return online Click on “More Information” and then on “Comment on Tax Forms and Publications”. File free state return online   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File free state return online Ordering forms and publications. File free state return online   Visit www. File free state return online irs. File free state return online gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. File free state return online Internal Revenue Service 1201 N. File free state return online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File free state return online   If you have a tax question, check the information available on IRS. File free state return online gov or call 1-800-829-1040. File free state return online We cannot answer tax questions sent to either of the above addresses. File free state return online Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 551 Basis of Assets 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and   Theft Loss Workbook Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Form 1040NR, Schedule A Itemized Deductions (for nonresident aliens) Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts 4797 Sales of Business Property See How To Get Tax Help near the end of this publication for information about getting publications and forms. File free state return online Prev  Up  Next   Home   More Online Publications
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The USDA Center for Nutrition Policy and Promotion (CNPP) works to improve the health and well-being of Americans by developing and promoting dietary guidance that links scientific research to the nutrition needs of consumers.

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