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Free 2011 Tax Forms

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Free 2011 Tax Forms

Free 2011 tax forms Publication 542 - Main Content Table of Contents Businesses Taxed as CorporationsPersonal services. Free 2011 tax forms Employee-owners. Free 2011 tax forms Other rules. Free 2011 tax forms Other rules. Free 2011 tax forms Property Exchanged for StockNonqualified preferred stock. Free 2011 tax forms Liabilities. Free 2011 tax forms Election to reduce basis. Free 2011 tax forms Capital Contributions Filing and Paying Income TaxesIncome Tax Return Penalties Estimated Tax U. Free 2011 tax forms S. Free 2011 tax forms Real Property Interest Accounting MethodsSection 481(a) adjustment. Free 2011 tax forms Accounting Periods Recordkeeping Income, Deductions, and Special ProvisionsCosts of Going Into Business Related Persons Income From Qualifying Shipping Activities Election to Expense Qualified Refinery Property Deduction to Comply With EPA Sulfur Regulations Energy-Efficient Commercial Building Property Deduction Corporate Preference Items Dividends-Received Deduction Extraordinary Dividends Below-Market Loans Charitable Contributions Capital Losses Net Operating Losses At-Risk Limits Passive Activity Limits Figuring TaxTax Rate Schedule Alternative Minimum Tax (AMT) Credits Recapture Taxes Accumulated Earnings Tax Distributions to ShareholdersMoney or Property Distributions Distributions of Stock or Stock Rights Constructive Distributions Reporting Dividends and Other Distributions How To Get Tax Help Businesses Taxed as Corporations The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996. Free 2011 tax forms Business formed before 1997. Free 2011 tax forms   A business formed before 1997 and taxed as a corporation under the old rules will generally continue to be taxed as a corporation. Free 2011 tax forms Business formed after 1996. Free 2011 tax forms   The following businesses formed after 1996 are taxed as corporations. Free 2011 tax forms A business formed under a federal or state law that refers to it as a corporation, body corporate, or body politic. Free 2011 tax forms A business formed under a state law that refers to it as a joint-stock company or joint-stock association. Free 2011 tax forms An insurance company. Free 2011 tax forms Certain banks. Free 2011 tax forms A business wholly owned by a state or local government. Free 2011 tax forms A business specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). Free 2011 tax forms Certain foreign businesses. Free 2011 tax forms Any other business that elects to be taxed as a corporation. Free 2011 tax forms For example, a limited liability company (LLC) can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. Free 2011 tax forms For more information about LLCs, see Publication 3402, Taxation of Limited Liability Companies. Free 2011 tax forms S corporations. Free 2011 tax forms   Some corporations may meet the qualifications for electing to be S corporations. Free 2011 tax forms For information on S corporations, see the instructions for Form 1120S, U. Free 2011 tax forms S. Free 2011 tax forms Income Tax Return for an S Corporation. Free 2011 tax forms Personal service corporations. Free 2011 tax forms   A corporation is a personal service corporation if it meets all of the following requirements. Free 2011 tax forms Its principal activity during the “testing period” is performing personal services (defined later). Free 2011 tax forms Generally, the testing period for any tax year is the prior tax year. Free 2011 tax forms If the corporation has just been formed, the testing period begins on the first day of its tax year and ends on the earlier of: The last day of its tax year, or The last day of the calendar year in which its tax year begins. Free 2011 tax forms Its employee-owners substantially perform the services in (1), above. Free 2011 tax forms This requirement is met if more than 20% of the corporation's compensation cost for its activities of performing personal services during the testing period is for personal services performed by employee-owners. Free 2011 tax forms Its employee-owners own more than 10% of the fair market value of its outstanding stock on the last day of the testing period. Free 2011 tax forms Personal services. Free 2011 tax forms   Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts. Free 2011 tax forms Employee-owners. Free 2011 tax forms   A person is an employee-owner of a personal service corporation if both of the following apply. Free 2011 tax forms He or she is an employee of the corporation or performs personal services for, or on behalf of, the corporation (even if he or she is an independent contractor for other purposes) on any day of the testing period. Free 2011 tax forms He or she owns any stock in the corporation at any time during the testing period. Free 2011 tax forms Other rules. Free 2011 tax forms   For other rules that apply to personal service corporations see Accounting Periods, later. Free 2011 tax forms Closely held corporations. Free 2011 tax forms   A corporation is closely held if all of the following apply. Free 2011 tax forms It is not a personal service corporation. Free 2011 tax forms At any time during the last half of the tax year, more than 50% of the value of its outstanding stock is, directly or indirectly, owned by or for five or fewer individuals. Free 2011 tax forms “Individual” includes certain trusts and private foundations. Free 2011 tax forms Other rules. Free 2011 tax forms   For the at-risk rules that apply to closely held corporations, seeAt-Risk Limits, later. Free 2011 tax forms Property Exchanged for Stock If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. Free 2011 tax forms This rule applies both to individuals and to groups who transfer property to a corporation. Free 2011 tax forms It also applies whether the corporation is being formed or is already operating. Free 2011 tax forms It does not apply in the following situations. Free 2011 tax forms The corporation is an investment company. Free 2011 tax forms You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors. Free 2011 tax forms The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt. Free 2011 tax forms Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. Free 2011 tax forms For more information, see section 1. Free 2011 tax forms 351-3 of the Regulations. Free 2011 tax forms Control of a corporation. Free 2011 tax forms   To be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock. Free 2011 tax forms Example 1. Free 2011 tax forms You and Bill Jones buy property for $100,000. Free 2011 tax forms You both organize a corporation when the property has a fair market value of $300,000. Free 2011 tax forms You transfer the property to the corporation for all its authorized capital stock, which has a par value of $300,000. Free 2011 tax forms No gain is recognized by you, Bill, or the corporation. Free 2011 tax forms Example 2. Free 2011 tax forms You and Bill transfer the property with a basis of $100,000 to a corporation in exchange for stock with a fair market value of $300,000. Free 2011 tax forms This represents only 75% of each class of stock of the corporation. Free 2011 tax forms The other 25% was already issued to someone else. Free 2011 tax forms You and Bill recognize a taxable gain of $200,000 on the transaction. Free 2011 tax forms Services rendered. Free 2011 tax forms   The term property does not include services rendered or to be rendered to the issuing corporation. Free 2011 tax forms The value of stock received for services is income to the recipient. Free 2011 tax forms Example. Free 2011 tax forms You transfer property worth $35,000 and render services valued at $3,000 to a corporation in exchange for stock valued at $38,000. Free 2011 tax forms Right after the exchange, you own 85% of the outstanding stock. Free 2011 tax forms No gain is recognized on the exchange of property. Free 2011 tax forms However, you recognize ordinary income of $3,000 as payment for services you rendered to the corporation. Free 2011 tax forms Property of relatively small value. Free 2011 tax forms   The term property does not include property of a relatively small value when it is compared to the value of stock and securities already owned or to be received for services by the transferor if the main purpose of the transfer is to qualify for the nonrecognition of gain or loss by other transferors. Free 2011 tax forms   Property transferred will not be considered to be of relatively small value if its fair market value is at least 10% of the fair market value of the stock and securities already owned or to be received for services by the transferor. Free 2011 tax forms Stock received in disproportion to property transferred. Free 2011 tax forms   If a group of transferors exchange property for corporate stock, each transferor does not have to receive stock in proportion to his or her interest in the property transferred. Free 2011 tax forms If a disproportionate transfer takes place, it will be treated for tax purposes in accordance with its true nature. Free 2011 tax forms It may be treated as if the stock were first received in proportion and then some of it used to make gifts, pay compensation for services, or satisfy the transferor's obligations. Free 2011 tax forms Money or other property received. Free 2011 tax forms   If, in an otherwise nontaxable exchange of property for corporate stock, you also receive money or property other than stock, you may have to recognize gain. Free 2011 tax forms You must recognize gain only up to the amount of money plus the fair market value of the other property you receive. Free 2011 tax forms The rules for figuring the recognized gain in this situation generally follow those for a partially nontaxable exchange discussed in Publication 544 under Like-Kind Exchanges. Free 2011 tax forms If the property you give up includes depreciable property, the recognized gain may have to be reported as ordinary income from depreciation. Free 2011 tax forms See chapter 3 of Publication 544. Free 2011 tax forms No loss is recognized. Free 2011 tax forms Nonqualified preferred stock. Free 2011 tax forms   Nonqualified preferred stock is treated as property other than stock. Free 2011 tax forms Generally, it is preferred stock with any of the following features. Free 2011 tax forms The holder has the right to require the issuer or a related person to redeem or buy the stock. Free 2011 tax forms The issuer or a related person is required to redeem or buy the stock. Free 2011 tax forms The issuer or a related person has the right to redeem or buy the stock and, on the issue date, it is more likely than not that the right will be exercised. Free 2011 tax forms The dividend rate on the stock varies with reference to interest rates, commodity prices, or similar indices. Free 2011 tax forms For a detailed definition of nonqualified preferred stock, see section 351(g)(2) of the Internal Revenue Code. Free 2011 tax forms Liabilities. Free 2011 tax forms   If the corporation assumes your liabilities, the exchange generally is not treated as if you received money or other property. Free 2011 tax forms There are two exceptions to this treatment. Free 2011 tax forms If the liabilities the corporation assumes are more than your adjusted basis in the property you transfer, gain is recognized up to the difference. Free 2011 tax forms However, if the liabilities assumed give rise to a deduction when paid, such as a trade account payable or interest, no gain is recognized. Free 2011 tax forms If there is no good business reason for the corporation to assume your liabilities, or if your main purpose in the exchange is to avoid federal income tax, the assumption is treated as if you received money in the amount of the liabilities. Free 2011 tax forms For more information on the assumption of liabilities, see section 357(d) of the Internal Revenue Code. Free 2011 tax forms Example. Free 2011 tax forms You transfer property to a corporation for stock. Free 2011 tax forms Immediately after the transfer, you control the corporation. Free 2011 tax forms You also receive $10,000 in the exchange. Free 2011 tax forms Your adjusted basis in the transferred property is $20,000. Free 2011 tax forms The stock you receive has a fair market value (FMV) of $16,000. Free 2011 tax forms The corporation also assumes a $5,000 mortgage on the property for which you are personally liable. Free 2011 tax forms Gain is realized as follows. Free 2011 tax forms FMV of stock received $16,000 Cash received 10,000 Liability assumed by corporation 5,000 Total received $31,000 Minus: Adjusted basis of property transferred 20,000 Realized gain $11,000   The liability assumed is not treated as money or other property. Free 2011 tax forms The recognized gain is limited to $10,000, the cash received. Free 2011 tax forms Loss on exchange. Free 2011 tax forms   If you have a loss from an exchange and own, directly or indirectly, more than 50% of the corporation's stock, you cannot deduct the loss. Free 2011 tax forms For more information, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Free 2011 tax forms Basis of stock or other property received. Free 2011 tax forms   The basis of the stock you receive is generally the adjusted basis of the property you transfer. Free 2011 tax forms Increase this amount by any amount treated as a dividend, plus any gain recognized on the exchange. Free 2011 tax forms Decrease this amount by any cash you received, the fair market value of any other property you received, and any loss recognized on the exchange. Free 2011 tax forms Also decrease this amount by the amount of any liability the corporation or another party to the exchange assumed from you, unless payment of the liability gives rise to a deduction when paid. Free 2011 tax forms    Further decreases may be required when the corporation or another party to the exchange assumes from you a liability that gives rise to a deduction when paid, if the basis of the stock would otherwise be higher than its fair market value on the date of the exchange. Free 2011 tax forms This rule does not apply if the entity assuming the liability acquired either substantially all of the assets or the trade or business with which the liability is associated. Free 2011 tax forms The basis of any other property you receive is its fair market value on the date of the trade. Free 2011 tax forms Basis of property transferred. Free 2011 tax forms   A corporation that receives property from you in exchange for its stock generally has the same basis you had in the property, increased by any gain you recognized on the exchange. Free 2011 tax forms However, the increase for the gain recognized may be limited. Free 2011 tax forms For more information, see section 362 of the Internal Revenue Code. Free 2011 tax forms Election to reduce basis. Free 2011 tax forms   In a section 351 transaction, if the adjusted basis of the property transferred exceeds the property's fair market value, the transferor and transferee may make an irrevocable election to treat the basis of the stock received by the transferor as having a basis equal to the fair market value of the property transferred. Free 2011 tax forms The transferor and transferee make this election by attaching a statement to their tax returns filed by the due date (including extensions) for the tax year in which the transaction occurred. Free 2011 tax forms However, if the transferor makes the election by including the certification provided in Notice 2005-70, 2005-41, I. Free 2011 tax forms R. Free 2011 tax forms B. Free 2011 tax forms 694, on or with its tax return filed by the due date (including extensions), then no election need be made by the transferee. Free 2011 tax forms    For more information on making this election, see section 362(e)(2)(C) of the Internal Revenue Code, and Notice 2005-70. Free 2011 tax forms Capital Contributions This section explains the tax treatment of contributions from shareholders and nonshareholders. Free 2011 tax forms Paid-in capital. Free 2011 tax forms   Contributions to the capital of a corporation, whether or not by shareholders, are paid-in capital. Free 2011 tax forms These contributions are not taxable to the corporation. Free 2011 tax forms Basis. Free 2011 tax forms   The corporation's basis of property contributed to capital by a shareholder is the same as the basis the shareholder had in the property, increased by any gain the shareholder recognized on the exchange. Free 2011 tax forms However, the increase for the gain recognized may be limited. Free 2011 tax forms For more information, see Basis of property transferred, above, and section 362 of the Internal Revenue Code. Free 2011 tax forms   The basis of property contributed to capital by a person other than a shareholder is zero. Free 2011 tax forms   If a corporation receives a cash contribution from a person other than a shareholder, the corporation must reduce the basis of any property acquired with the contribution during the 12-month period beginning on the day it received the contribution by the amount of the contribution. Free 2011 tax forms If the amount contributed is more than the cost of the property acquired, then reduce, but not below zero, the basis of the other properties held by the corporation on the last day of the 12-month period in the following order. Free 2011 tax forms Depreciable property. Free 2011 tax forms Amortizable property. Free 2011 tax forms Property subject to cost depletion but not to percentage depletion. Free 2011 tax forms All other remaining properties. Free 2011 tax forms   Reduce the basis of property in each category to zero before going on to the next category. Free 2011 tax forms   There may be more than one piece of property in each category. Free 2011 tax forms Base the reduction of the basis of each property on the following ratio:   Basis of each piece of property   Bases of all properties (within that category) If the corporation wishes to make this adjustment in some other way, it must get IRS approval. Free 2011 tax forms The corporation files a request for approval with its income tax return for the tax year in which it receives the contribution. Free 2011 tax forms Filing and Paying Income Taxes The federal income tax is a pay-as-you-go tax. Free 2011 tax forms A corporation generally must make estimated tax payments as it earns or receives income during its tax year. Free 2011 tax forms After the end of the year, the corporation must file an income tax return. Free 2011 tax forms This section will help you determine when and how to pay and file corporate income taxes. Free 2011 tax forms For certain corporations affected by Presidentially declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. Free 2011 tax forms The IRS may also forgive the interest and penalties on any underpaid tax for the length of any extension. Free 2011 tax forms For more information, visit www. Free 2011 tax forms irs. Free 2011 tax forms gov/newsroom/article/0,,id=108362. Free 2011 tax forms 00. Free 2011 tax forms Income Tax Return This section will help you determine when and how to report a corporation's income tax. Free 2011 tax forms Who must file. Free 2011 tax forms   Unless exempt under section 501 of the Internal Revenue Code, all domestic corporations in existence for any part of a tax year (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Free 2011 tax forms Which form to file. Free 2011 tax forms   A corporation generally must file Form 1120, U. Free 2011 tax forms S. Free 2011 tax forms Corporation Income Tax Return, to report its income, gains, losses, deductions, credits, and to figure its income tax liability. Free 2011 tax forms Certain organizations and entities must file special returns. Free 2011 tax forms For more information, see Special Returns for Certain Organizations, in the Instructions for Form 1120. Free 2011 tax forms Electronic filing. Free 2011 tax forms   Corporations can generally electronically file (e-file) Form 1120 and certain related forms, schedules, and attachments. Free 2011 tax forms Certain corporations with total assets of $10 million or more, that file at least 250 returns a year must e-file Form 1120. Free 2011 tax forms However, in certain instances, these corporations can request a waiver. Free 2011 tax forms For more information regarding electronic filing, visit www. Free 2011 tax forms irs. Free 2011 tax forms gov/efile. Free 2011 tax forms When to file. Free 2011 tax forms   Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of its tax year. Free 2011 tax forms A new corporation filing a short-period return must generally file by the 15th day of the 3rd month after the short period ends. Free 2011 tax forms A corporation that has dissolved must generally file by the 15th day of the 3rd month after the date it dissolved. Free 2011 tax forms Example 1. Free 2011 tax forms A corporation's tax year ends December 31. Free 2011 tax forms It must file its income tax return by March 15th. Free 2011 tax forms Example 2. Free 2011 tax forms A corporation's tax year ends June 30. Free 2011 tax forms It must file its income tax return by September 15th. Free 2011 tax forms   If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. Free 2011 tax forms Extension of time to file. Free 2011 tax forms   File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, to request an extension of time to file a corporation income tax return. Free 2011 tax forms The IRS will grant the extension if you complete the form properly, file it, and pay any tax due by the original due date for the return. Free 2011 tax forms   Form 7004 does not extend the time for paying the tax due on the return. Free 2011 tax forms Interest, and possibly penalties, will be charged on any part of the final tax due not shown as a balance due on Form 7004. Free 2011 tax forms The interest is figured from the original due date of the return to the date of payment. Free 2011 tax forms   For more information, see the instructions for Form 7004. Free 2011 tax forms How to pay your taxes. Free 2011 tax forms   A corporation must pay its tax due in full no later than the 15th day of the 3rd month after the end of its tax year. Free 2011 tax forms Electronic Federal Tax Payment System (EFTPS). Free 2011 tax forms   Corporations generally must use EFTPS to make deposits of all tax liabilities (including social security, Medicare, withheld income, excise, and corporate income taxes). Free 2011 tax forms For more information on EFTPS and enrollment, visit www. Free 2011 tax forms eftps. Free 2011 tax forms gov or call 1-800-555-4477. Free 2011 tax forms Also see Publication 966, The Secure Way to Pay Your Federal Taxes. Free 2011 tax forms Note. Free 2011 tax forms Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used to make federal tax deposits. Free 2011 tax forms Penalties Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. Free 2011 tax forms Do not attach an explanation when the corporation's return is filed. Free 2011 tax forms See the instructions for your income tax return. Free 2011 tax forms Late filing of return. Free 2011 tax forms    A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. Free 2011 tax forms If the corporation is charged a penalty for late payment of tax (discussed next) for the same period of time, the penalty for late filing is reduced by the amount of the penalty for late payment. Free 2011 tax forms The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $100. Free 2011 tax forms The penalty will not be imposed if the corporation can show the failure to file on time was due to a reasonable cause. Free 2011 tax forms Late payment of tax. Free 2011 tax forms    A corporation that does not pay the tax when due may be penalized ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. Free 2011 tax forms The penalty will not be imposed if the corporation can show that the failure to pay on time was due to a reasonable cause. Free 2011 tax forms Trust fund recovery penalty. Free 2011 tax forms   If income, social security, and Medicare taxes that a corporation must withhold from employee wages are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Free 2011 tax forms The penalty is the full amount of the unpaid trust fund tax. Free 2011 tax forms This penalty may apply to you if these unpaid taxes cannot be immediately collected from the business. Free 2011 tax forms   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying these taxes, and who acted willfully in not doing so. Free 2011 tax forms   A responsible person can be an officer or employee of a corporation, an accountant, or a volunteer director/trustee. Free 2011 tax forms A responsible person also may include one who signs checks for the corporation or otherwise has authority to cause the spending of business funds. Free 2011 tax forms   Willfully means voluntarily, consciously, and intentionally. Free 2011 tax forms A responsible person acts willfully if the person knows the required actions are not taking place. Free 2011 tax forms   For more information on withholding and paying these taxes, see Publication 15 (Circular E), Employer's Tax Guide, and Publication 51, (Circular A), Agricultural Employer's Tax Guide. Free 2011 tax forms Other penalties. Free 2011 tax forms   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. Free 2011 tax forms See sections 6662, 6662A, and 6663 of the Internal Revenue Code. Free 2011 tax forms Estimated Tax Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. Free 2011 tax forms If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. Free 2011 tax forms This section will explain how to avoid this penalty. Free 2011 tax forms When to pay estimated tax. Free 2011 tax forms   Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. Free 2011 tax forms Example 1. Free 2011 tax forms Your corporation's tax year ends December 31. Free 2011 tax forms Installment payments are due on April 15, June 15, September 15, and December 15. Free 2011 tax forms Example 2. Free 2011 tax forms Your corporation's tax year ends June 30. Free 2011 tax forms Installment payments are due on October 15, December 15, March 15, and June 15. Free 2011 tax forms   If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day. Free 2011 tax forms How to figure each required installment. Free 2011 tax forms   Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated tax. Free 2011 tax forms You will generally use one of the following two methods to figure each required installment. Free 2011 tax forms You should use the method that yields the smallest installment payments. Free 2011 tax forms Note. Free 2011 tax forms In these discussions, “return” generally refers to the corporation's original return. Free 2011 tax forms However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. Free 2011 tax forms Method 1. Free 2011 tax forms   Each required installment is 25% of the income tax the corporation will show on its return for the current year. Free 2011 tax forms Method 2. Free 2011 tax forms   Each required installment is 25% of the income tax shown on the corporation's return for the previous year. Free 2011 tax forms   To use Method 2: The corporation must have filed a return for the previous year, The return must have been for a full 12 months, and The return must have shown a positive tax liability (not zero). Free 2011 tax forms Also, if the corporation is a large corporation, it can use Method 2 to figure the first installment only. Free 2011 tax forms   See the Instructions for Form 1120-W, for the definition of a large corporation and other special rules for large corporations. Free 2011 tax forms Other methods. Free 2011 tax forms   If a corporation's income is expected to vary during the year because, for example, its business is seasonal, it may be able to lower the amount of one or more required installments by using one or both of the following methods. Free 2011 tax forms The annualized income installment method. Free 2011 tax forms The adjusted seasonal installment method. Free 2011 tax forms Use Schedule A of Form 1120-W to determine if using one or both of these methods will lower the amount of any required installments. Free 2011 tax forms Refiguring required installments. Free 2011 tax forms   If after the corporation figures and deposits its estimated tax it finds that its tax liability for the year will be more or less than originally estimated, it may have to refigure its required installments to see if an underpayment penalty may apply. Free 2011 tax forms An immediate catchup payment should be made to reduce any penalty resulting from the underpayment of any earlier installments. Free 2011 tax forms Underpayment penalty. Free 2011 tax forms   If the corporation does not pay a required installment of estimated tax by its due date, it may be subject to a penalty. Free 2011 tax forms The penalty is figured separately for each installment due date. Free 2011 tax forms The corporation may owe a penalty for an earlier due date, even if it paid enough tax later to make up the underpayment. Free 2011 tax forms This is true even if the corporation is due a refund when its return is filed. Free 2011 tax forms Form 2220. Free 2011 tax forms   Use Form 2220, Underpayment of Estimated Tax by Corporations, to determine if a corporation is subject to the penalty for underpayment of estimated tax and to figure the amount of the penalty. Free 2011 tax forms   If the corporation is charged a penalty, the amount of the penalty depends on the following three factors. Free 2011 tax forms The amount of the underpayment. Free 2011 tax forms The period during which the underpayment was due and unpaid. Free 2011 tax forms The interest rate for underpayments published quarterly by the IRS in the Internal Revenue Bulletin. Free 2011 tax forms   A corporation generally does not have to file Form 2220 with its income tax return because the IRS will figure any penalty and bill the corporation. Free 2011 tax forms However, even if the corporation does not owe a penalty, complete and attach the form to the corporation's tax return if any of the following apply. Free 2011 tax forms The annualized income installment method was used to figure any required installment. Free 2011 tax forms The adjusted seasonal installment method was used to figure any required installment. Free 2011 tax forms The corporation is a large corporation figuring its first required installment based on the prior year's tax. Free 2011 tax forms How to pay estimated tax. Free 2011 tax forms   A corporation is generally required to use EFTPS to pay its taxes. Free 2011 tax forms See Electronic Federal Tax Payment System (EFTPS), earlier. Free 2011 tax forms Also see the Instructions for Form 1120-W. Free 2011 tax forms Quick refund of overpayments. Free 2011 tax forms   A corporation that has overpaid its estimated tax for the tax year may be able to apply for a quick refund. Free 2011 tax forms Use Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund of an overpayment of estimated tax. Free 2011 tax forms A corporation can apply for a quick refund if the overpayment is: At least 10% of its expected tax liability, and At least $500. Free 2011 tax forms Use Form 4466 to figure the corporation's expected tax liability and the overpayment of estimated tax. Free 2011 tax forms File Form 4466 before the 16th day of the 3rd month after the end of the tax year, but before the corporation files its income tax return. Free 2011 tax forms Do not file Form 4466 before the end of the corporation's tax year. Free 2011 tax forms An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. Free 2011 tax forms The IRS will act on the form within 45 days from the date you file it. Free 2011 tax forms U. Free 2011 tax forms S. Free 2011 tax forms Real Property Interest If a domestic corporation acquires a U. Free 2011 tax forms S. Free 2011 tax forms real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. Free 2011 tax forms The amount paid includes cash, the fair market value of other property, and any assumed liability. Free 2011 tax forms If a domestic corporation distributes a U. Free 2011 tax forms S. Free 2011 tax forms real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. Free 2011 tax forms A corporation that fails to withhold may be liable for the tax, and any penalties and interest that apply. Free 2011 tax forms For more information, see section 1445 of the Internal Revenue Code; Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U. Free 2011 tax forms S. Free 2011 tax forms Withholding Tax Return for Dispositions by Foreign Persons of U. Free 2011 tax forms S. Free 2011 tax forms Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Free 2011 tax forms S. Free 2011 tax forms Real Property Interests. Free 2011 tax forms Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. Free 2011 tax forms Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. Free 2011 tax forms In all cases, the method used must clearly show taxable income. Free 2011 tax forms Generally, permissible methods include: Cash, Accrual, or Any other method authorized by the Internal Revenue Code. Free 2011 tax forms Accrual method. Free 2011 tax forms   Generally, a corporation (other than a qualified personal service corporation) must use the accrual method of accounting if its average annual gross receipts exceed $5 million. Free 2011 tax forms A corporation engaged in farming operations also must use the accrual method. Free 2011 tax forms   If inventories are required, the accrual method generally must be used for sales and purchases of merchandise. Free 2011 tax forms However, qualifying taxpayers and eligible businesses of qualifying small business taxpayers are excepted from using the accrual method for eligible trades or businesses and may account for inventoriable items as materials and supplies that are not incidental. Free 2011 tax forms   Under the accrual method, an amount is includable in income when: All the events have occurred that fix the right to receive the income, which is the earliest of the date: The required performance takes place, Payment is due, or Payment is received; and The amount can be determined with reasonable accuracy. Free 2011 tax forms   Generally, an accrual basis taxpayer can deduct accrued expenses in the tax year when: All events that determine the liability have occurred, The amount of the liability can be figured with reasonable accuracy, and Economic performance takes place with respect to the expense. Free 2011 tax forms   There are exceptions to the economic performance rule for certain items, including recurring expenses. Free 2011 tax forms See section 461(h) of the Internal Revenue Code and the related regulations for the rules for determining when economic performance takes place. Free 2011 tax forms Nonaccrual experience method. Free 2011 tax forms   Accrual method corporations are not required to maintain accruals for certain amounts from the performance of services that, on the basis of their experience, will not be collected, if: The services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting; or The corporation's average annual gross receipts for the 3 prior tax years does not exceed $5 million. Free 2011 tax forms   This provision does not apply if interest is required to be paid on the amount or if there is any penalty for failure to pay the amount timely. Free 2011 tax forms Percentage of completion method. Free 2011 tax forms   Long-term contracts (except for certain real property construction contracts) must generally be accounted for using the percentage of completion method described in section 460 of the Internal Revenue Code. Free 2011 tax forms Mark-to-market accounting method. Free 2011 tax forms   Generally, dealers in securities must use the mark-to-market accounting method described in section 475 of the Internal Revenue Code. Free 2011 tax forms Under this method any security held by a dealer as inventory must be included in inventory at its FMV. Free 2011 tax forms Any security not held as inventory at the close of the tax year is treated as sold at its FMV on the last business day of the tax year. Free 2011 tax forms Any gain or loss must be taken into account in determining gross income. Free 2011 tax forms The gain or loss taken into account is treated as ordinary gain or loss. Free 2011 tax forms   Dealers in commodities and traders in securities and commodities can elect to use the mark-to-market accounting method. Free 2011 tax forms Change in accounting method. Free 2011 tax forms   A corporation can change its method of accounting used to report taxable income (for income as a whole or for the treatment of any material item). Free 2011 tax forms The corporation must file Form 3115, Application for Change in Accounting Method. Free 2011 tax forms For more information, see Form 3115 and Publication 538. Free 2011 tax forms Section 481(a) adjustment. Free 2011 tax forms   The corporation may have to make an adjustment under section 481(a) of the Internal Revenue Code to prevent amounts of income or expense from being duplicated or omitted. Free 2011 tax forms The section 481(a) adjustment period is generally 1 year for a net negative adjustment and 4 years for a net positive adjustment. Free 2011 tax forms However, a corporation can elect to use a 1-year adjustment period if the net section 481(a) adjustment for the change is less than $25,000. Free 2011 tax forms The corporation must complete the appropriate lines of Form 3115 to make the election. Free 2011 tax forms See the Instructions for Form 3115. Free 2011 tax forms Accounting Periods A corporation must figure its taxable income on the basis of a tax year. Free 2011 tax forms A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. Free 2011 tax forms Generally, corporations can use either a calendar year or a fiscal year as its tax year. Free 2011 tax forms Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. Free 2011 tax forms For more information, see Publication 538. Free 2011 tax forms Personal service corporation. Free 2011 tax forms   A personal service corporation must use a calendar year as its tax year unless: It elects to use a 52–53 week tax year that ends with reference to the calendar year; It can establish a business purpose for a different tax year and obtains approval of the IRS. Free 2011 tax forms See Form 1128, Application To Adopt, Change, or Retain a Tax Year, and Publication 538; or It elects under section 444 of the Internal Revenue Code to have a tax year other than a calendar year. Free 2011 tax forms Use Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, to make the election. Free 2011 tax forms   If a personal service corporation makes a section 444 election, its deduction for certain amounts paid to employee-owners may be limited. Free 2011 tax forms See Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), to figure the maximum deduction. Free 2011 tax forms Change of tax year. Free 2011 tax forms   Generally, a corporation must get the consent of the IRS before changing its tax year by filing Form 1128. Free 2011 tax forms However, under certain conditions, a corporation can change its tax year without getting the consent. Free 2011 tax forms For more information, see Form 1128 and Publication 538. Free 2011 tax forms Recordkeeping A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. Free 2011 tax forms Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. Free 2011 tax forms Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property. Free 2011 tax forms The corporation should keep copies of all filed returns. Free 2011 tax forms They help in preparing future and amended returns and in the calculation of earnings and profits. Free 2011 tax forms Income, Deductions, and Special Provisions Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. Free 2011 tax forms However, the following special provisions apply only to corporations. Free 2011 tax forms Costs of Going Into Business When you go into business, treat all costs you incur to get your business started as capital expenses. Free 2011 tax forms However, a corporation can elect to deduct a limited amount of start-up or organizational costs. Free 2011 tax forms Any costs not deducted can be amortized. Free 2011 tax forms Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. Free 2011 tax forms Organizational costs are the direct costs of creating the corporation. Free 2011 tax forms For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. Free 2011 tax forms Also see, Publication 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization. Free 2011 tax forms Related Persons A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. Free 2011 tax forms Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. Free 2011 tax forms If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. Free 2011 tax forms These rules also deny the deduction of losses on the sale or exchange of property between related persons. Free 2011 tax forms Related persons. Free 2011 tax forms   For purposes of this rule, the following persons are related to a corporation. Free 2011 tax forms Another corporation, that is a member of the same controlled group (as defined in section 267(f) of the Internal Revenue Code). Free 2011 tax forms An individual who owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. Free 2011 tax forms A trust fiduciary, when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. Free 2011 tax forms An S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Free 2011 tax forms A partnership, if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. Free 2011 tax forms Any employee-owner, if the corporation is a personal service corporation (see Personal service corporation, earlier), regardless of the amount of stock owned by the employee-owner. Free 2011 tax forms Ownership of stock. Free 2011 tax forms   To determine whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following apply. Free 2011 tax forms Stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, is treated as being owned proportionately by or for its shareholders, partners, or beneficiaries. Free 2011 tax forms An individual is treated as owning the stock owned, directly or indirectly, by or for the individual's family. Free 2011 tax forms Family includes only brothers and sisters (including half brothers and half sisters), a spouse, ancestors, and lineal descendants. Free 2011 tax forms Any individual owning (other than by applying (2), above) stock in a corporation, is treated as also owning the stock owned directly or indirectly by that individual's partner. Free 2011 tax forms To apply (1), (2), or (3), above, stock constructively owned by a person under (1) is treated as actually owned by that person. Free 2011 tax forms But stock constructively owned by an individual under (2) or (3) is not treated as actually owned by the individual for applying either (2) or (3) to make another person the constructive owner of that stock. Free 2011 tax forms Reallocation of income and deductions. Free 2011 tax forms   Where it is necessary to clearly show income or prevent tax evasion, the IRS can reallocate gross income, deductions, credits, or allowances between two or more organizations, trades, or businesses owned or controlled directly, or indirectly, by the same interests. Free 2011 tax forms Complete liquidations. Free 2011 tax forms   The disallowance of losses from the sale or exchange of property between related persons does not apply to liquidating distributions. Free 2011 tax forms More information. Free 2011 tax forms   For more information about the related person rules, see Publication 544. Free 2011 tax forms Income From Qualifying Shipping Activities A corporation may make an election to be taxed on its notional shipping income at the highest corporate tax rate. Free 2011 tax forms If a corporation makes this election it may exclude income from qualifying shipping activities from gross income. Free 2011 tax forms Also if the election is made, the corporation generally may not claim any loss, deduction, or credit with respect to qualifying shipping activities. Free 2011 tax forms A corporation making this election may also elect to defer gain on the disposition of a qualifying vessel. Free 2011 tax forms A corporation uses Form 8902, Alternative Tax on Qualifying Shipping Activities, to make the election and figure the alternative tax. Free 2011 tax forms For more information regarding the election, see Form 8902. Free 2011 tax forms Election to Expense Qualified Refinery Property A corporation can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct 50% of the cost of qualified refinery property (defined in section 179C(c) of the Internal Revenue Code), placed in service before January 1, 2014. Free 2011 tax forms The deduction is allowed for the year in which the property is placed in service. Free 2011 tax forms A subchapter T cooperative can make an irrevocable election on its return by the due date (including extensions) to allocate this deduction to its owners based on their ownership interest. Free 2011 tax forms For more information, see section 179C of the Internal Revenue Code and the related Regulations. Free 2011 tax forms Deduction to Comply With EPA Sulfur Regulations A small business refiner can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct up to 75% of qualified costs paid or incurred to comply with the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency (EPA). Free 2011 tax forms A subchapter T cooperative can make an irrevocable election on its return filed by the due date (including extensions) to allocate the deduction to its owners based on their ownership interest. Free 2011 tax forms For more information, see sections 45H and 179B of the Internal Revenue Code and the related Regulations. Free 2011 tax forms Energy-Efficient Commercial Building Property Deduction A corporation can claim a deduction for costs associated with energy-efficient commercial building property, placed in service before January 1, 2014. Free 2011 tax forms In order to qualify for the deduction: The costs must be associated with depreciable or amortizable property in a Standard 90. Free 2011 tax forms 1-2001 domestic building; The property must be either a part of the interior lighting system, the heating, cooling, ventilation and hot water system, or the building envelope (defined in section 179D(c)(1)(C) of the Internal Revenue Code); and The property must be installed as part of a plan to reduce the total annual energy and power costs of the building by 50% or more. Free 2011 tax forms The deduction is limited to $1. Free 2011 tax forms 80 per square foot of the building less the total amount of deductions taken for this property in prior tax years. Free 2011 tax forms Other rules and limitations apply. Free 2011 tax forms The corporation must reduce the basis of any property by any deduction taken. Free 2011 tax forms The deduction is subject to recapture if the corporation fails to fully implement an energy savings plan. Free 2011 tax forms For more information, see section 179D of the Internal Revenue Code. Free 2011 tax forms Also see Notice 2006-52, 2006-26 I. Free 2011 tax forms R. Free 2011 tax forms B. Free 2011 tax forms 1175, clarified and amplified by Notice 2008-40, 2008-14 I. Free 2011 tax forms R. Free 2011 tax forms B. Free 2011 tax forms 725, and any successor. Free 2011 tax forms Corporate Preference Items A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. Free 2011 tax forms These items are known as corporate preference items and they include the following. Free 2011 tax forms Gain on the disposition of section 1250 property. Free 2011 tax forms For more information, see section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. Free 2011 tax forms Percentage depletion for iron ore and coal (including lignite). Free 2011 tax forms For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Publication 535. Free 2011 tax forms Amortization of pollution control facilities. Free 2011 tax forms For more information, see Pollution Control Facilities in chapter 8 of Publication 535 and section 291(a)(5) of the Internal Revenue Code. Free 2011 tax forms Mineral exploration and development costs. Free 2011 tax forms For more information, see Exploration Costs and Development Costs in chapter 7 of Publication 535. Free 2011 tax forms For more information on corporate preference items, see section 291 of the Internal Revenue Code. Free 2011 tax forms Dividends-Received Deduction A corporation can deduct a percentage of certain dividends received during its tax year. Free 2011 tax forms This section discusses the general rules that apply. Free 2011 tax forms The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. Free 2011 tax forms For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return. Free 2011 tax forms Dividends from domestic corporations. Free 2011 tax forms   A corporation can deduct, within certain limits, 70% of the dividends received if the corporation receiving the dividend owns less than 20% of the corporation distributing the dividend. Free 2011 tax forms If the corporation owns 20% or more of the distributing corporation's stock, it can, subject to certain limits, deduct 80% of the dividends received. Free 2011 tax forms Ownership. Free 2011 tax forms   Determine ownership, for these rules, by the amount of voting power and value of the paying corporation's stock (other than certain preferred stock) the receiving corporation owns. Free 2011 tax forms Small business investment companies. Free 2011 tax forms   Small business investment companies can deduct 100% of the dividends received from taxable domestic corporations. Free 2011 tax forms Dividends from regulated investment companies. Free 2011 tax forms   Regulated investment company dividends received are subject to certain limits. Free 2011 tax forms Capital gain dividends received from a regulated investment company do not qualify for the deduction. Free 2011 tax forms For more information, see section 854 of the Internal Revenue Code. Free 2011 tax forms No deduction allowed for certain dividends. Free 2011 tax forms   Corporations cannot take a deduction for dividends received from the following entities. Free 2011 tax forms A real estate investment trust (REIT). Free 2011 tax forms A corporation exempt from tax under section 501 or 521 of the Internal Revenue Code either for the tax year of the distribution or the preceding tax year. Free 2011 tax forms A corporation whose stock was held less than 46 days during the 91-day period beginning 45 days before the stock became ex-dividend with respect to the dividend. Free 2011 tax forms Ex-dividend means the holder has no rights to the dividend. Free 2011 tax forms A corporation whose preferred stock was held less than 91 days during the 181-day period beginning 90 days before the stock became ex-dividend with respect to the dividend if the dividends received are for a period or periods totaling more than 366 days. Free 2011 tax forms Any corporation, if your corporation is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. Free 2011 tax forms Dividends on deposits. Free 2011 tax forms   Dividends on deposits or withdrawable accounts in domestic building and loan associations, mutual savings banks, cooperative banks, and similar organizations are interest, not dividends. Free 2011 tax forms They do not qualify for this deduction. Free 2011 tax forms Limit on deduction for dividends. Free 2011 tax forms   The total deduction for dividends received or accrued is generally limited (in the following order) to: 80% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from 20%-owned corporations, then 70% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from less-than-20%-owned corporations (reducing taxable income by the total dividends received from 20%-owned corporations). Free 2011 tax forms Figuring the limit. Free 2011 tax forms   In figuring the limit, determine taxable income without the following items. Free 2011 tax forms The net operating loss deduction. Free 2011 tax forms The domestic production activities deduction. Free 2011 tax forms The deduction for dividends received. Free 2011 tax forms Any adjustment due to the nontaxable part of an extraordinary dividend (see Extraordinary Dividends, below). Free 2011 tax forms Any capital loss carryback to the tax year. Free 2011 tax forms Effect of net operating loss. Free 2011 tax forms   If a corporation has a net operating loss (NOL) for a tax year, the limit of 80% (or 70%) of taxable income does not apply. Free 2011 tax forms To determine whether a corporation has an NOL, figure the dividends-received deduction without the 80% (or 70%) of taxable income limit. Free 2011 tax forms Example 1. Free 2011 tax forms A corporation loses $25,000 from operations. Free 2011 tax forms It receives $100,000 in dividends from a 20%-owned corporation. Free 2011 tax forms Its taxable income is $75,000 ($100,000 – $25,000) before the deduction for dividends received. Free 2011 tax forms If it claims the full dividends-received deduction of $80,000 ($100,000 × 80%) and combines it with an operations loss of $25,000, it will have an NOL of ($5,000). Free 2011 tax forms Therefore, the 80% of taxable income limit does not apply. Free 2011 tax forms The corporation can deduct the full $80,000. Free 2011 tax forms Example 2. Free 2011 tax forms Assume the same facts as in Example 1, except that the corporation only loses $15,000 from operations. Free 2011 tax forms Its taxable income is $85,000 before the deduction for dividends received. Free 2011 tax forms After claiming the dividends-received deduction of $80,000 ($100,000 × 80%), its taxable income is $5,000. Free 2011 tax forms Because the corporation will not have an NOL after applying a full dividends-received deduction, its allowable dividends-received deduction is limited to 80% of its taxable income, or $68,000 ($85,000 × 80%). Free 2011 tax forms Extraordinary Dividends If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. Free 2011 tax forms The nontaxed part is any dividends-received deduction allowable for the dividends. Free 2011 tax forms Extraordinary dividend. Free 2011 tax forms   An extraordinary dividend is any dividend on stock that equals or exceeds a certain percentage of the corporation's adjusted basis in the stock. Free 2011 tax forms The percentages are: 5% for stock preferred as to dividends, or 10% for other stock. Free 2011 tax forms Treat all dividends received that have ex-dividend dates within an 85-consecutive-day period as one dividend. Free 2011 tax forms Treat all dividends received that have ex-dividend dates within a 365-consecutive-day period as extraordinary dividends if the total of the dividends exceeds 20% of the corporation's adjusted basis in the stock. Free 2011 tax forms Disqualified preferred stock. Free 2011 tax forms   Any dividend on disqualified preferred stock is treated as an extraordinary dividend regardless of the period of time the corporation held the stock. Free 2011 tax forms   Disqualified preferred stock is any stock preferred as to dividends if any of the following apply. Free 2011 tax forms The stock when issued has a dividend rate that declines (or can reasonably be expected to decline) in the future. Free 2011 tax forms The issue price of the stock exceeds its liquidation rights or stated redemption price. Free 2011 tax forms The stock is otherwise structured to avoid the rules for extraordinary dividends and to enable corporate shareholders to reduce tax through a combination of dividends-received deductions and loss on the disposition of the stock. Free 2011 tax forms   These rules apply to stock issued after July 10, 1989, unless it was issued under a written binding contract in effect on that date, and thereafter, before the issuance of the stock. Free 2011 tax forms More information. Free 2011 tax forms   For more information on extraordinary dividends, see section 1059 of the Internal Revenue Code. Free 2011 tax forms Below-Market Loans If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest. Free 2011 tax forms A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Free 2011 tax forms A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following: A loan in exchange for a note that requires payment of interest at the applicable federal rate, and An additional payment in an amount equal to the forgone interest. Free 2011 tax forms Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. Free 2011 tax forms Foregone interest. Free 2011 tax forms   For any period, forgone interest is equal to: The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Free 2011 tax forms See Below-market loans, in chapter 4 of Publication 535 for more information. Free 2011 tax forms Charitable Contributions A corporation can claim a limited deduction for charitable contributions made in cash or other property. Free 2011 tax forms The contribution is deductible if made to, or for the use of, a qualified organization. Free 2011 tax forms For more information on qualified organizations, see Publication 526, Charitable Contributions. Free 2011 tax forms Also see, Exempt Organizations Select Check (EO Select Check) at www. Free 2011 tax forms irs. Free 2011 tax forms gov/charities, the on-line search tool for finding information on organizations eligible to receive tax-deductible contributions. Free 2011 tax forms Note. Free 2011 tax forms You cannot take a deduction if any of the net earnings of an organization receiving contributions benefit any private shareholder or individual. Free 2011 tax forms Cash method corporation. Free 2011 tax forms   A corporation using the cash method of accounting deducts contributions in the tax year paid. Free 2011 tax forms Accrual method corporation. Free 2011 tax forms   A corporation using an accrual method of accounting can choose to deduct unpaid contributions for the tax year the board of directors authorizes them if it pays them by the 15th day of the 3rd month after the close of that tax year. Free 2011 tax forms Make the choice by reporting the contribution on the corporation's return for the tax year. Free 2011 tax forms A declaration stating that the board of directors adopted the resolution during the tax year must accompany the return. Free 2011 tax forms The declaration must include the date the resolution was adopted. Free 2011 tax forms Limitations on deduction. Free 2011 tax forms   A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. Free 2011 tax forms Figure taxable income for this purpose without the following. Free 2011 tax forms The deduction for charitable contributions. Free 2011 tax forms The dividends-received deduction. Free 2011 tax forms The deduction allowed under section 249 of the Internal Revenue Code. Free 2011 tax forms The domestic production activities deduction. Free 2011 tax forms Any net operating loss carryback to the tax year. Free 2011 tax forms Any capital loss carryback to the tax year. Free 2011 tax forms Farmers and ranchers. Free 2011 tax forms    Corporations that are farmers and ranchers should see section 170(b)(2) of the Internal Revenue Code for special rules that may affect the deduction limit. Free 2011 tax forms Carryover of excess contributions. Free 2011 tax forms   You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. Free 2011 tax forms You lose any excess not used within that period. Free 2011 tax forms For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. Free 2011 tax forms Any excess not used in 2015 is lost. Free 2011 tax forms Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). Free 2011 tax forms You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover. Free 2011 tax forms Cash contributions. Free 2011 tax forms   A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. Free 2011 tax forms The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. Free 2011 tax forms Keep the record of the contribution with the other corporate records. Free 2011 tax forms Do not attach the records to the corporation's return. Free 2011 tax forms For more information on cash contributions, see Publication 526. Free 2011 tax forms Gifts of $250 or more. Free 2011 tax forms   Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. Free 2011 tax forms The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. Free 2011 tax forms The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. Free 2011 tax forms Keep the acknowledgement with other corporate records. Free 2011 tax forms Do not attach the acknowledgement to the return. Free 2011 tax forms Contributions of property other than cash. Free 2011 tax forms   If a corporation (other than a closely-held or a personal service corporation) claims a deduction of more than $500 for contributions of property other than cash, a schedule describing the property and the method used to determine its fair market value must be attached to the corporation's return. Free 2011 tax forms In addition the corporation should keep a record of: The approximate date and manner of acquisition of the donated property and The cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. Free 2011 tax forms   Closely held and personal service corporations must complete and attach Form 8283, Noncash Charitable Contributions, to their returns if they claim a deduction of more than $500 for non-cash contributions. Free 2011 tax forms For all other corporations, if the deduction claimed for donated property exceeds $5,000, complete Form 8283 and attach it to the corporation's return. Free 2011 tax forms   A corporation must obtain a qualified appraisal for all deductions of property claimed in excess of $5,000. Free 2011 tax forms A qualified appraisal is not required for the donation of cash, publicly traded securities, inventory, and any qualified vehicles sold by a donee organization without any significant intervening use or material improvement. Free 2011 tax forms The appraisal should be maintained with other corporate records and only attached to the corporation's return when the deduction claimed exceeds $500,000; $20,000 for donated art work. Free 2011 tax forms   See Form 8283 for more information. Free 2011 tax forms Qualified conservation contributions. Free 2011 tax forms   If a corporation makes a qualified conservation contribution, the corporation must provide information regarding the legal interest being donated, the fair market value of the underlying property before and after the donation, and a description of the conservation purpose for which the property will be used. Free 2011 tax forms For more information, see section 170(h) of the Internal Revenue Code. Free 2011 tax forms Contributions of used vehicles. Free 2011 tax forms   A corporation is allowed a deduction for the contribution of used motor vehicles, boats, and airplanes. Free 2011 tax forms The deduction is limited, and other special rules apply. Free 2011 tax forms For more information, see Publication 526. Free 2011 tax forms Reduction for contributions of certain property. Free 2011 tax forms   For a charitable contribution of property, the corporation must reduce the contribution by the sum of: The ordinary income and short-term capital gain that would have resulted if the property were sold at its FMV and For certain contributions, the long-term capital gain that would have resulted if the property were sold at its FMV. Free 2011 tax forms   The reduction for the long-term capital gain applies to: Contributions of tangible personal property for use by an exempt organization for a purpose or function unrelated to the basis for its exemption; Contributions of any property to or for the use of certain private foundations except for stock for which market quotations are readily available; and Contributions of any patent, certain copyrights, trademark, trade name, trade secret, know-how, software (that is a section 197 intangible), or similar property, or applications or registrations of such property. Free 2011 tax forms Larger deduction. Free 2011 tax forms   A corporation (other than an S corporation) may be able to claim a deduction equal to the lesser of (a) the basis of the donated inventory or property plus one-half of the inventory or property's appreciation (gain if the donated inventory or property was sold at fair market value on the date of the donation), or (b) two times basis of the donated inventory or property. Free 2011 tax forms This deduction may be allowed for certain contributions of: Certain inventory and other property made to a donee organization and used solely for the care of the ill, the needy, and infants. Free 2011 tax forms Scientific property constructed by the corporation (other than an S corporation, personal holding company, or personal service corporation) and donated no later than 2 years after substantial completion of the construction. Free 2011 tax forms The property must be donated to a qualified organization and its original use must be by the donee for research, experimentation, or research training within the United States in the area of physical or biological science. Free 2011 tax forms Computer technology and equipment acquired or constructed and donated no later than 3 years after either acquisition or substantial completion of construction to an educational organization for educational purposes within the United States. Free 2011 tax forms Contributions to organizations conducting lobbying activities. Free 2011 tax forms   Contributions made to an organization that conducts lobbying activities are not deductible if: The lobbying activities relate to matters of direct financial interest to the donor's trade or business and The principal purpose of the contribution was to avoid federal income tax by obtaining a deduction for activities that would have been nondeductible under the lobbying expense rules if conducted directly by the donor. Free 2011 tax forms More information. Free 2011 tax forms   For more information on charitable contributions, including substantiation and recordkeeping requirements, see section 170 of the Internal Revenue Code, the related regulations, and Publication 526. Free 2011 tax forms Capital Losses A corporation can deduct capital losses only up to the amount of its capital gains. Free 2011 tax forms In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. Free 2011 tax forms Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years. Free 2011 tax forms A capital loss is carried to other years in the following order. Free 2011 tax forms 3 years prior to the loss year. Free 2011 tax forms 2 years prior to the loss year. Free 2011 tax forms 1 year prior to the loss year. Free 2011 tax forms Any loss remaining is carried forward for 5 years. Free 2011 tax forms When you carry a net capital loss to another tax year, treat it as a short-term loss. Free 2011 tax forms It does not retain its original identity as long term or short term. Free 2011 tax forms Example. Free 2011 tax forms A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. Free 2011 tax forms The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. Free 2011 tax forms The corporation treats this $6,000 as a short-term loss when carried back or forward. Free 2011 tax forms The corporation carries the $6,000 short-term loss back 3 years. Free 2011 tax forms In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. Free 2011 tax forms It subtracts the $6,000 short-term loss first from the net short-term gain. Free 2011 tax forms This results in a net capital gain for year 1 of $7,000. Free 2011 tax forms This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000. Free 2011 tax forms S corporation status. Free 2011 tax forms   A corporation may not carry a capital loss from, or to, a year for which it is an S corporation. Free 2011 tax forms Rules for carryover and carryback. Free 2011 tax forms   When carrying a capital loss from one year to another, the following rules apply. Free 2011 tax forms When figuring the current year's net capital loss, you cannot combine it with a capital loss carried from another year. Free 2011 tax forms In other words, you can carry capital losses only to years that would otherwise have a total net capital gain. Free 2011 tax forms If you carry capital losses from 2 or more years to the same year, deduct the loss from the earliest year first. Free 2011 tax forms You cannot use a capital loss carried from another year to produce or increase a net operating loss in the year to which you carry it back. Free 2011 tax forms Refunds. Free 2011 tax forms   When you carry back a capital loss to an earlier tax year, refigure your tax for that year. Free 2011 tax forms If your corrected tax is less than the tax you originally owed, use either Form 1139, Corporate Application for Tentative Refund, or Form 1120X, Amended U. Free 2011 tax forms S. Free 2011 tax forms Corporation Income Tax Return, to apply for a refund. Free 2011 tax forms Form 1139. Free 2011 tax forms    A corporation can get a refund faster by using Form 1139. Free 2011 tax forms It cannot file Form 1139 before filing the return for the corporation's capital loss year, but it must file Form 1139 no later than 1 year after the year it sustains the capital loss. Free 2011 tax forms Form 1120X. Free 2011 tax forms   If the corporation does not file Form 1139, it must file Form 1120X to apply for a refund. Free 2011 tax forms The corporation must file the Form 1120X within 3 years of the due date, includin
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Understanding your CP21B Notice

We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the toll free number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully ― it shows the area(s) of your tax return that changed, e.g., Schedule A.
  • If you agree with the notice, you don't need to do anything.
  • Contact us if you disagree with the change(s) we made.
  • Correct the copy of your tax return that you kept for your records.
  • Be sure to report any interest we paid you on your tax return for this year.

You may want to...


Answers to Common Questions

What if I don't receive my refund in 2-3 weeks?
If you don't owe other taxes or debts we're required to collect, such as child support, and 3 weeks have lapsed, call us at the toll-free number listed on the top right corner of your notice.

Will I receive information about the interest that I need to report on my next tax return?
If you were paid $10 or more in interest, you'll receive a Form 1099-INT from IRS by January 31st of next year. Please note, even if the interest amount paid to you is less than $10, you must report this amount on your tax return.

The notice says "We made the changes you requested to your 2006 Form 1040 to adjust your..." but I don't remember sending any change to IRS. How can I find out what IRS received to initiate this change?
Please contact us at the number listed on the top right corner of your notice for specific information about your tax return.

What if I need to make another correction to my account?
You'll need to file Form 1040X, Amended U.S. Individual Income Tax Return.

What if I have tried to get answers and after contacting IRS several times have not been successful?
Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059.

What if I think I’m a victim of identity theft?
Please contact us at the number listed on the top right corner of your notice. Refer to the IRS Identity Theft resource page for more information.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 26-Feb-2014

The Free 2011 Tax Forms

Free 2011 tax forms Index A Adjusted basis defined, Adjusted basis defined. Free 2011 tax forms Administrative or management activities, Administrative or management activities. Free 2011 tax forms Assistance (see Tax help) Attorneys, Place To Meet Patients, Clients, or Customers B Business expenses not for use of home, Business expenses not for use of your home. Free 2011 tax forms Business furniture and equipment, Business Furniture and Equipment Business percentage, Business Percentage Business use of the home requirements (see Qualifying for a deduction) C Carryover of expenses, Carryover of unallowed expenses. Free 2011 tax forms Casualty losses, Casualty losses. Free 2011 tax forms Child and Adult Care Food Program reimbursements, Meals. Free 2011 tax forms Computer Listed property, Listed Property D Daycare facilities, Daycare Facility, Standard meal and snack rates. Free 2011 tax forms (see also Family daycare providers) Eligible children for standard meal and snack rates, Standard meal and snack rates. Free 2011 tax forms Exceptions for regular use requirement, Daycare Facility Family daycare, Standard meal and snack rates. Free 2011 tax forms Family daycare provider, Standard meal and snack rates. Free 2011 tax forms Meals, Meals. Free 2011 tax forms , Standard meal and snack rates. Free 2011 tax forms Regular use, Daycare Facility Standard meal and snack rates, Meals. Free 2011 tax forms , Standard meal and snack rates. Free 2011 tax forms Deduction limit, Deduction Limit Deduction requirements Employee use, Additional tests for employee use. Free 2011 tax forms Exceptions to exclusive use, Exceptions to Exclusive Use Exclusive use, Exclusive Use More than one trade or business, More Than One Trade or Business Place to meet clients, Place To Meet Patients, Clients, or Customers Principal place of business, Principal Place of Business Regular use, Regular Use Separate structure, Separate Structure Storage of inventory or product samples, Storage of inventory or product samples. Free 2011 tax forms Trade or business use, Trade or Business Use Deductions Figuring, Figuring the Deduction, Part 2—Figure Your Allowable Deduction Limit, Deduction Limit Part-year use, Part-year use. Free 2011 tax forms Qualifying for, Qualifying for a Deduction, Separate Structure Rental to employer, Rental to employer. Free 2011 tax forms Unreimbursed partnership expenses, Deducting unreimbursed partnership expenses. Free 2011 tax forms Using Actual Expenses, Using Actual Expenses Dentists, Place To Meet Patients, Clients, or Customers Depreciation, Property Bought for Business Use 5-year property, Depreciation 7-year property, Depreciation Adjusted basis, Adjusted basis defined. Free 2011 tax forms Fair market value, Fair market value defined. Free 2011 tax forms Figuring depreciation for the current year, Figuring the depreciation deduction for the current year. Free 2011 tax forms Furniture and equipment, Business Furniture and Equipment, Depreciation Home, Depreciating Your Home Nonresidential real property, Figuring the depreciation deduction for the current year. Free 2011 tax forms Percentage table for 39-year nonresidential real property, Depreciation table. Free 2011 tax forms Permanent improvements, Permanent improvements. Free 2011 tax forms , Depreciating permanent improvements. Free 2011 tax forms Depreciation of home, Depreciating Your Home Basis adjustment, Basis Adjustment MACRS (Table 2), Depreciation table. Free 2011 tax forms Property bought for business use, Depreciation Sale or exchange of home, Depreciation Doctors, Place To Meet Patients, Clients, or Customers E Employee use of home, Additional tests for employee use. Free 2011 tax forms Employees Adequately accounting to employer, Adequately accounting to employer. Free 2011 tax forms Casualty losses, Casualty losses. Free 2011 tax forms Mortgage interest, Deductible mortgage interest. Free 2011 tax forms Other expenses, Other expenses. Free 2011 tax forms Real estate taxes, Real estate taxes. Free 2011 tax forms Exclusive use, Exclusive Use Expenses Casualty losses, Casualty losses. Free 2011 tax forms Direct, Actual Expenses Indirect, Actual Expenses Insurance, Insurance. Free 2011 tax forms Mortgage interest, Deductible mortgage interest. Free 2011 tax forms , Qualified mortgage insurance premiums. Free 2011 tax forms Real estate taxes, Real estate taxes. Free 2011 tax forms Related to tax-exempt income, Expenses related to tax-exempt income. Free 2011 tax forms Rent, Rent. Free 2011 tax forms Repairs, Repairs. Free 2011 tax forms Security system, Security system. Free 2011 tax forms Telephone, Telephone. Free 2011 tax forms Types of, Actual Expenses Unrelated, Actual Expenses Utilities and services, Utilities and services. Free 2011 tax forms Where to deduct, Where To Deduct F Fair market value, Fair market value defined. Free 2011 tax forms Family daycare providers Meal and snack log (Exhibit A), Standard meal and snack rates. Free 2011 tax forms Standard meal and snack rates, Standard meal and snack rates. Free 2011 tax forms Standard meal and snack rates (Table 3), Standard meal and snack rates. Free 2011 tax forms Figuring the deduction Business percentage, Business Percentage Deduction limit, Deduction Limit Form, Useful Items - You may want to see:, Self-Employed Persons, Real estate taxes. Free 2011 tax forms 1040, Schedule F, Casualty losses. Free 2011 tax forms 2106, Employees 4562, Reporting and recordkeeping requirements. Free 2011 tax forms 4684, Casualty losses. Free 2011 tax forms 8829, Actual Expenses, Casualty losses. Free 2011 tax forms , Business Percentage, Daycare Facility W-2 Reimbursed expenses, Employees Free tax services, Free help with your tax return. Free 2011 tax forms Furniture and equipment, Business Furniture and Equipment H Help (see Tax help) Home Business percentage, Business Percentage Depreciation, Depreciating Your Home Sale of, Sale or Exchange of Your Home Home expenses, Can you deduct business use of, Figure A, , Principal Place of Business I Improvements (see Permanent improvements) Insurance, Insurance. Free 2011 tax forms Inventory, storage of, Storage of inventory or product samples. Free 2011 tax forms L Listed property Computers, Listed Property Defined, Listed Property Employee requirements, Employee. Free 2011 tax forms Reporting and recordkeeping requirements, Reporting and recordkeeping requirements. Free 2011 tax forms Years following the year placed in service, Years following the year placed in service. Free 2011 tax forms M MACRS percentage table 39-year nonresidential real property, Depreciation table. Free 2011 tax forms Meals, Meals. Free 2011 tax forms Meeting with patients, clients, or customers on premises, Place To Meet Patients, Clients, or Customers More than one place of business, More than one place of business. Free 2011 tax forms More than one trade or business, More Than One Trade or Business More-than-50%-use test, More-than-50%-use test. Free 2011 tax forms Mortgage interest, Deductible mortgage interest. Free 2011 tax forms , Qualified mortgage insurance premiums. Free 2011 tax forms P Partners, Partners Partnership expenses, unreimbursed, Deducting unreimbursed partnership expenses. Free 2011 tax forms Permanent improvements, Permanent improvements. Free 2011 tax forms , Depreciating permanent improvements. Free 2011 tax forms Personal property converted to business use, Personal Property Converted to Business Use Place of business, more than one, More than one place of business. Free 2011 tax forms Principal place of business, Principal Place of Business Product samples, Storage of inventory or product samples. Free 2011 tax forms Property bought for business use Depreciation, Depreciation Section 179 deduction, Property Bought for Business Use, Section 179 Deduction Property converted to business use, Personal, Personal Property Converted to Business Use Publications, Useful Items - You may want to see: (see Tax help) Q Qualifying for a deduction, Qualifying for a Deduction R Real estate taxes, Real estate taxes. Free 2011 tax forms Recordkeeping, Recordkeeping Recordkeeping requirements Business furniture and equipment, Reporting and recordkeeping requirements. Free 2011 tax forms Family daycare provider meal and snack log (Exhibit A), Standard meal and snack rates. Free 2011 tax forms Regular use, Regular Use Reminders, Reminders Rent, Rent. Free 2011 tax forms Repairs, Repairs. Free 2011 tax forms Reporting requirements Business furniture and equipment, Reporting and recordkeeping requirements. Free 2011 tax forms S Sale or exchange of your home, Sale or Exchange of Your Home Basis adjustment, Basis Adjustment Depreciation taken, Depreciation Ownership and use tests, Ownership and use tests. Free 2011 tax forms Section 179, Section 179 Deduction Furniture and equipment, Business Furniture and Equipment, Listed Property Listed property, Business Furniture and Equipment, Listed Property Personal property converted to business use, Personal Property Converted to Business Use Property bought for business use, Property Bought for Business Use Security system, Security system. Free 2011 tax forms Self-employed persons Deduction of expenses, Self-Employed Persons Separate structure, Separate Structure Simplified Method Actual expenses and depreciation of your home, Actual expenses and depreciation of your home. Free 2011 tax forms Allowable area, Allowable area. Free 2011 tax forms Business expenses not related to use of the home, Business expenses not related to use of the home. Free 2011 tax forms Electing the simplified method, Electing the Simplified Method More than one home, More than one home. Free 2011 tax forms More than one qualified business use, More than one qualified business use. Free 2011 tax forms Shared use, Shared use. Free 2011 tax forms Expenses deductible without regard to business use, Expenses deductible without regard to business use. Free 2011 tax forms No carryover of unallowed expenses, No deduction of carryover of actual expenses. Free 2011 tax forms Simplified amount, Simplified Amount Space used regularly for daycare, Space used regularly for daycare. Free 2011 tax forms Using the simplified method, Using the Simplified Method Standard meal and snack rates, Standard meal and snack rates. Free 2011 tax forms Storage of inventory, Storage of inventory or product samples. Free 2011 tax forms T Tables and figures MACRS Depreciation of home (Table 2), Depreciation table. Free 2011 tax forms Qualifying for deduction (Figure A), Standard meal and snack rates (Table 3), Table 3. Free 2011 tax forms Standard Meal and Snack Rates1 Types of expenses (Table 1), Actual Expenses Tax help, How To Get Tax Help Telephone, Telephone. Free 2011 tax forms Trade or business use, Trade or Business Use TTY/TDD information, How To Get Tax Help Types of expenses, Actual Expenses U Utilities, Utilities and services. Free 2011 tax forms W Where to deduct expenses, Where To Deduct Employees, Employees Self-employed, Self-Employed Persons Worksheets Area Adjustment Worksheet (for simplified method), Area Adjustment Worksheet (for simplified method) Worksheets to figure the deduction for business use of your home (simplified method), Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Daycare facility worksheet (for simplified method), Daycare Facility Worksheet (for simplified method) Simplified method worksheet, Simplified Method Worksheet Prev  Up     Home   More Online Publications