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H&rblock 3. H&rblock   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. H&rblock Dual use of assets or facilities. H&rblock Exploitation of exempt functions. H&rblock ExamplesExceptions. H&rblock Excluded Trade or Business ActivitiesQualified sponsorship payment. H&rblock Advertising. H&rblock Exception for contingent payments. H&rblock Exception for periodicals. H&rblock Exception for conventions and trade shows. H&rblock Legal definition. H&rblock Legal where played. H&rblock No for-profit games where played. H&rblock Unrelated business income. H&rblock   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. H&rblock   Certain trade or business activities are not treated as an unrelated trade or business. H&rblock See Excluded Trade or Business Activities, later. H&rblock Trade or business. H&rblock   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. H&rblock An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. H&rblock   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. H&rblock Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. H&rblock Regularly conducted. H&rblock   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. H&rblock   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. H&rblock The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. H&rblock However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. H&rblock Not substantially related. H&rblock    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). H&rblock Whether an activity contributes importantly depends in each case on the facts involved. H&rblock   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. H&rblock For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. H&rblock The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. H&rblock   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. H&rblock Selling of products of exempt functions. H&rblock   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. H&rblock Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. H&rblock   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. H&rblock For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. H&rblock But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. H&rblock , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. H&rblock Dual use of assets or facilities. H&rblock   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. H&rblock The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. H&rblock   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. H&rblock The theater is a principal feature of the museum and operates continuously while the museum is open to the public. H&rblock If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. H&rblock   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. H&rblock Exploitation of exempt functions. H&rblock   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. H&rblock When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. H&rblock Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. H&rblock   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. H&rblock Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. H&rblock Sales commissions. H&rblock   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. H&rblock Artists' facilities. H&rblock   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. H&rblock These two activities do not contribute importantly to accomplishing the organization's exempt purpose. H&rblock Therefore, they are unrelated trades or businesses. H&rblock Membership list sales. H&rblock   An exempt educational organization regularly sells membership mailing lists to business firms. H&rblock This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. H&rblock Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. H&rblock Hospital facilities. H&rblock   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. H&rblock The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. H&rblock The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. H&rblock   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. H&rblock These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. H&rblock Book publishing. H&rblock   An exempt organization engages primarily in activities that further its exempt purposes. H&rblock It also owns the publication rights to a book that does not relate to any of its exempt purposes. H&rblock The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. H&rblock These activities constitute a trade or business regularly conducted. H&rblock Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. H&rblock   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. H&rblock See Royalties under Exclusions in chapter 4. H&rblock School handicraft shop. H&rblock   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. H&rblock The students are paid a percentage of the sales price. H&rblock In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. H&rblock The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. H&rblock Although many local participants are former students of the school, any qualified person may participate in the program. H&rblock The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. H&rblock School facilities. H&rblock   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. H&rblock During the summer, the school operates a tennis club open to the general public. H&rblock Employees of the school run the club, including collecting membership fees and scheduling court time. H&rblock   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. H&rblock The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. H&rblock   In both situations, the exempt purpose is the advancement of education. H&rblock Furnishing tennis facilities in the manner described does not further that exempt purpose. H&rblock These activities are unrelated trades or businesses. H&rblock However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. H&rblock See Rents under Exclusions in chapter 4. H&rblock Services provided with lease. H&rblock   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. H&rblock Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. H&rblock It also provides dressing room, linen, and stadium security services for the professional team. H&rblock   Leasing of the stadium is an unrelated trade or business. H&rblock In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. H&rblock Therefore, the income from this lease is rent from real property and unrelated business taxable income. H&rblock Broadcasting rights. H&rblock   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. H&rblock Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. H&rblock An athletic program is considered an integral part of the educational process of a university. H&rblock   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. H&rblock Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. H&rblock Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. H&rblock   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. H&rblock The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. H&rblock   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. H&rblock The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. H&rblock Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. H&rblock Yearbook advertising. H&rblock   An exempt organization receives income from the sale of advertising in its annual yearbook. H&rblock The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. H&rblock This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. H&rblock This advertising activity is an unrelated trade or business. H&rblock Pet boarding and grooming services. H&rblock   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. H&rblock These activities do not contribute importantly to its purpose of preventing cruelty to animals. H&rblock Museum eating facilities. H&rblock   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. H&rblock Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. H&rblock The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. H&rblock Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. H&rblock Halfway house workshop. H&rblock   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. H&rblock The profits are applied to the operating costs of the halfway house. H&rblock The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. H&rblock Travel tour programs. H&rblock   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. H&rblock Example 1. H&rblock A tax-exempt university alumni association provides a travel tour program for its members and their families. H&rblock The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. H&rblock It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. H&rblock The organization provides an employee for each tour as a tour leader. H&rblock There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. H&rblock By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. H&rblock Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. H&rblock Therefore, the sale of the travel tours is an unrelated trade or business. H&rblock Example 2. H&rblock A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. H&rblock These tours are conducted by teachers and others certified by the state board of education. H&rblock The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. H&rblock A tour's study program consists of instruction on subjects related to the location being visited on the tour. H&rblock Each tour group brings along a library of material related to the subjects being studied on the tour. H&rblock During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. H&rblock Examinations are given at the end of each tour. H&rblock The state board of education awards academic credit for tour participation. H&rblock Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. H&rblock Insurance programs. H&rblock   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. H&rblock Exceptions. H&rblock   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. H&rblock Magazine publishing. H&rblock   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. H&rblock   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. H&rblock This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. H&rblock   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. H&rblock Directory of members. H&rblock   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. H&rblock Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. H&rblock The directory contains no commercial advertisement and is sold only to the organization's members. H&rblock   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. H&rblock Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. H&rblock The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. H&rblock This directory differs from the publication discussed next because of its noncommercial characteristics. H&rblock Sales of advertising space. H&rblock   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. H&rblock The journal is distributed without charge, mainly to the organization's members. H&rblock   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. H&rblock Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. H&rblock A business firm identified in a separate space is further identified in an Index of Advertisers. H&rblock   The organization solicits advertising by personal contacts. H&rblock Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. H&rblock The organization also solicits advertising in form letters appealing for corporate and personal contributions. H&rblock   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. H&rblock Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. H&rblock Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. H&rblock However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. H&rblock In that case, other factors should also be considered in determining whether a commercial benefit can be expected. H&rblock Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. H&rblock   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. H&rblock However, the purchaser of a listing cannot expect more than an inconsequential benefit. H&rblock Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. H&rblock Publishing legal notices. H&rblock   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. H&rblock The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. H&rblock The state designated the bar association's journal as the place to publish the required notices. H&rblock   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. H&rblock Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. H&rblock Therefore, the advertising income is unrelated trade or business income. H&rblock   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. H&rblock This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. H&rblock Therefore, the publishing of legal notices does not constitute an unrelated trade or business. H&rblock Museum greeting card sales. H&rblock    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. H&rblock Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. H&rblock The cards contain appropriate greetings and are personalized on request. H&rblock   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. H&rblock It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. H&rblock As a result, a large number of cards are sold at a significant profit. H&rblock   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. H&rblock The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. H&rblock The cards may encourage more people to visit the museum itself to share in its educational programs. H&rblock The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. H&rblock Therefore, these sales activities are not an unrelated trade or business. H&rblock Museum shop. H&rblock   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. H&rblock   The shop also rents originals or reproductions of paintings contained in its collection. H&rblock All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. H&rblock   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. H&rblock   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. H&rblock The same is true for the sale of literature relating to art. H&rblock Therefore, these sales activities are not an unrelated trade or business. H&rblock   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. H&rblock The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. H&rblock Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. H&rblock Therefore, these sales are an unrelated trade or business. H&rblock Business league's parking and bus services. H&rblock   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. H&rblock It also operates, as an insubstantial part of its activities, a park and shop plan. H&rblock   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. H&rblock The merchants cannot offer free or discount parking or bus fares to their customers. H&rblock   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. H&rblock Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. H&rblock   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. H&rblock That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. H&rblock   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. H&rblock This provides a particular service to individual members of the organization and does not further its exempt purpose. H&rblock Therefore, operating the park and shop plan is an unrelated trade or business. H&rblock Youth residence. H&rblock   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. H&rblock The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. H&rblock The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. H&rblock The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. H&rblock Health club program. H&rblock   An exempt charitable organization's purpose is to provide for the welfare of young people. H&rblock The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. H&rblock Nominal annual dues are charged for membership in the organization and use of the facilities. H&rblock   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. H&rblock The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. H&rblock   The health club program is in addition to the general physical fitness program of the organization. H&rblock Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. H&rblock Miniature golf course. H&rblock   An exempt youth welfare organization operates a miniature golf course that is open to the general public. H&rblock The course, which is managed by salaried employees, is substantially similar to commercial courses. H&rblock The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. H&rblock   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. H&rblock Sales of hearing aids. H&rblock   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. H&rblock This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. H&rblock It is not an unrelated trade or business. H&rblock Nonpatient laboratory testing. H&rblock   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. H&rblock However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. H&rblock Selling endorsements. H&rblock   An exempt scientific organization enjoys an excellent reputation in the field of biological research. H&rblock It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. H&rblock Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. H&rblock Accordingly, the sale of endorsements is an unrelated trade or business. H&rblock Sponsoring entertainment events. H&rblock   An exempt university has a regular faculty and a regularly enrolled student body. H&rblock During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. H&rblock Members of the general public also are admitted. H&rblock The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. H&rblock Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. H&rblock Therefore, the activity is not an unrelated trade or business. H&rblock Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. H&rblock Volunteer workforce. H&rblock   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. H&rblock Example 1. H&rblock A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. H&rblock Example 2. H&rblock A volunteer fire company conducts weekly public dances. H&rblock Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. H&rblock However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. H&rblock Convenience of members. H&rblock   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. H&rblock For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. H&rblock Qualified sponsorship activities. H&rblock   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. H&rblock Qualified sponsorship payment. H&rblock   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. H&rblock “Use or acknowledgment” does not include advertising the sponsor's products or services. H&rblock The organization's activities include all its activities, whether or not related to its exempt purposes. H&rblock   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. H&rblock   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. H&rblock Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. H&rblock Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. H&rblock   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. H&rblock   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. H&rblock For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. H&rblock Advertising. H&rblock   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. H&rblock For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. H&rblock   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. H&rblock   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. H&rblock In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. H&rblock Exception for contingent payments. H&rblock   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. H&rblock However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. H&rblock Exception for periodicals. H&rblock   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. H&rblock For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. H&rblock It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). H&rblock   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. H&rblock See Sales of advertising space under Examples, earlier in this chapter. H&rblock Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. H&rblock Exception for conventions and trade shows. H&rblock   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. H&rblock The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. H&rblock Selling donated merchandise. H&rblock   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. H&rblock For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. H&rblock Employee association sales. H&rblock   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. H&rblock This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. H&rblock Bingo games. H&rblock   Certain bingo games are not included in the term “unrelated trade or business. H&rblock ” To qualify for this exclusion, the bingo game must meet the following requirements. H&rblock It meets the legal definition of bingo. H&rblock It is legal where it is played. H&rblock It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. H&rblock Legal definition. H&rblock   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. H&rblock   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. H&rblock For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. H&rblock Legal where played. H&rblock   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. H&rblock The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. H&rblock No for-profit games where played. H&rblock   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. H&rblock Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. H&rblock Example. H&rblock Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. H&rblock In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. H&rblock Several for-profit organizations conduct nightly games. H&rblock Y conducts weekly bingo games in city S, while X conducts weekly games in county R. H&rblock Since state law confines the for-profit organizations to city S, local jurisdiction controls. H&rblock Y's bingo games conducted in city S are an unrelated trade or business. H&rblock However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. H&rblock Gambling activities other than bingo. H&rblock   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. H&rblock Pole rentals. H&rblock   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). H&rblock A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. H&rblock For this purpose, the term rental includes any sale of the right to use the pole (or other structure). H&rblock Distribution of low cost articles. H&rblock   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. H&rblock This applies to organizations described in section 501 that are eligible to receive charitable contributions. H&rblock   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. H&rblock   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. H&rblock The maximum cost of a low cost article is $9. H&rblock 70 for 2011. H&rblock The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. H&rblock Exchange or rental of member lists. H&rblock   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. H&rblock Hospital services. H&rblock   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. H&rblock This exclusion applies only to services described in section 501(e)(1)(A). H&rblock Public entertainment activity. H&rblock   An unrelated trade or business does not include a qualified public entertainment activity. H&rblock A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. H&rblock   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. H&rblock   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. H&rblock Its conducting qualified public entertainment activities will not affect determination of its exempt status. H&rblock Convention or trade show activity. H&rblock   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. H&rblock   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. H&rblock   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). H&rblock The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. H&rblock   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. H&rblock For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. H&rblock    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. H&rblock The trade show itself must be a qualified convention and trade show activity. H&rblock The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. H&rblock Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. H&rblock Prev  Up  Next   Home   More Online Publications
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Effect of Sequestration on the Alternative Minimum Tax Credit for Corporations

Pursuant to the requirements of the Balanced Budget and Emergency Deficit Reduction Act of 1985, as amended, refund payments issued to corporations claiming refundable prior year minimum tax liability, are subject to sequestration. This means that refund payments processed on or after October 1, 2013 and on or before September 30, 2014 will be reduced by the fiscal year 2014 sequestration rate of 7.2 percent, irrespective of when the original or amended tax return was received by the Service. The sequestration reduction rate will be applied unless and until a law is enacted that cancels or otherwise impacts the sequester, at which time the sequestration reduction rate is subject to change.

A corporation that can claim an additional first-year depreciation deduction under section 168(k) can choose instead to accelerate the use of its prior year minimum tax credits, treating the accelerated credits as refundable credits.  Corporations making this section 168(k)(4) election and claiming a refund of prior year minimum tax credits should complete Form 8827.  These corporations will be notified that a portion of their requested refund was subject to the sequester reduction.

Corporations making the section 168(k)(4) election but not claiming a refund of prior year minimum tax credits are not subject to this reduction. 

Page Last Reviewed or Updated: 30-Sep-2013

The H&rblock

H&rblock Index Symbols (ITIN), Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). H&rblock 10% tax for early withdrawal from IRA or retirement plan (see Early withdrawal from deferred interest account, subheading: Tax on) 10-year tax option, 10-Year Tax Option 401(k) plans Tax treatment of contributions, Elective deferrals. H&rblock 403(b) plans Rollovers, Rollovers, Rollover From Employer's Plan Into an IRA, Rollover from a qualified retirement plan into a Roth IRA. H&rblock 457 plans (see Section 457 deferred compensation plans) 529 plans (see Qualified tuition programs) 59 rule, Age 59½ rule. H&rblock 60 day rule, Time limit for making a rollover contribution. H&rblock 70 rule, Age 70½ rule. H&rblock , Nonresident alien spouse. H&rblock A Abandonment of home, Abandonment. H&rblock Abortion Deductibility as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Abroad, citizens traveling or working, Employees of foreign governments or international organizations. H&rblock , Foreign Employer, Travel Outside the United States, Travel Primarily for Business (see also Citizens outside U. H&rblock S. H&rblock ) (see also Foreign employment) Absence, temporary, Temporary absences. H&rblock , Temporary absences. H&rblock Accelerated death benefits, Accelerated Death Benefits, Exclusion for terminal illness. H&rblock Accident insurance, Accident or Health Plan Cafeteria plans, Cafeteria plans. H&rblock Long-term care, Long-term care coverage. H&rblock , Long-Term Care Insurance Contracts Accidental death benefits, Accidental death benefits. H&rblock Accidents, car, Deductible losses. H&rblock Value determination, Car value. H&rblock Willful negligence or intentional act as cause, Nondeductible losses. H&rblock Accountable plans for employee reimbursements, Accountable Plans, Related to employer. H&rblock Accountants Basis to include fees of, Cost Basis CPA review courses, Bar or CPA Review Course Accounting methods, Accounting Methods Accrual method (see Accrual method taxpayers) Cash method (see Cash method taxpayers) Change of Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation. H&rblock Accounting periods, Accounting Periods Calendar year, When Do I Have To File?, Accounting Periods, Accounting period. H&rblock Change in, standard deduction not allowed, Persons not eligible for the standard deduction. H&rblock Fiscal year, Accounting Periods, Fiscal year taxpayers. H&rblock , Fiscal Years Fringe benefits, Accounting period. H&rblock Accrual method taxpayers, Accrual method. H&rblock Taxes paid during tax year, deduction of, You must pay the tax during your tax year. H&rblock Accumulation distribution of trusts Tax on, Other taxes. H&rblock Accuracy-related penalties, Accuracy-related penalty. H&rblock Acknowledgment, Acknowledgment. H&rblock Activities not for profit, Activity not for profit. H&rblock Address, Name and Address Change of, Change of Address Foreign, Foreign address. H&rblock P. H&rblock O. H&rblock box, P. H&rblock O. H&rblock box. H&rblock Address, filing, Where To File Adjusted basis, Adjusted Basis, Postponed gain from sale of home. H&rblock Decreases to basis, Decreases to Basis Depreciation, Depreciation and section 179 deduction. H&rblock Easements, Easements. H&rblock Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures. H&rblock Gifts, Property Received as a Gift Home sale (see Sale of home) Improvements, Improvements. H&rblock Increases to basis, Increases to Basis Local assessments, Assessments for local improvements. H&rblock Sales of property, Adjusted basis. H&rblock Section 179 deduction, Depreciation and section 179 deduction. H&rblock Adjusted gross income (AGI) Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use? Retirement savings contribution credit, Special Rules Adjustments, Adjustments and tax preference items. H&rblock Administrators, estate (see Executors and administrators) Adopted child, Exception for adopted child. H&rblock , Adopted child. H&rblock , Adopted child. H&rblock , Taxpayer identification numbers for adoptees. H&rblock Earned income credit, Adopted child. H&rblock Adoption, Adoption Credit, Child with special needs. H&rblock ATIN, Adoption taxpayer identification number (ATIN). H&rblock , Adoption taxpayer identification number (ATIN). H&rblock Child tax credit, Adopted child. H&rblock (see also Child tax credit) Credits, Personal Expenses Married filing separately, Special Rules Taking, When to take the credit. H&rblock Employer assistance, Adoption Assistance Exception for adopted child, Exception for adopted child. H&rblock Exemption for child, Personal Expenses Expenses not deductible Foster care prior to, no charitable deduction, Foster parents. H&rblock No charitable deduction for, Personal Expenses Foreign child, Foreign child. H&rblock Medical and dental expenses of adopted child, Qualifying Child Taxpayer identification number, Adoption taxpayer identification number (ATIN). H&rblock , Taxpayer identification numbers for aliens. H&rblock Taxpayer identification numbers (TINs), Adoption taxpayer identification number (ATIN). H&rblock Age Children's investments (see Children, subheading: Investment income of child under age 18) Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply. H&rblock Gross income and filing requirements (Table 1-1), Introduction IRAs Contribution cutoff at age 70, Age 70½ rule. H&rblock Distribution prior to age 59, Age 59½ rule. H&rblock Distribution required at age 70, IRA owners. H&rblock , Excess Accumulations (Insufficient Distributions) Pension distributions required at age 70, Age 70½. H&rblock Retirement plan recipients over age 75, Who must use the General Rule. H&rblock Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets? Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Age test, Age Test (see Qualifying child) Agents, Losses on sales or trades of property. H&rblock (see also Fiduciaries) Income paid to, Payment to an agent. H&rblock Signing return, When someone can sign for you. H&rblock AGI (see Adjusted gross income (AGI)) Agricultural workers (see Farmers) (see Farmworkers) Agriculture (see Farming) Aircraft Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. H&rblock Airline club dues Not entertainment expenses, Club dues and membership fees. H&rblock Airplanes, donations of, Cars, boats, and airplanes. H&rblock Airport transportation Business-related travel expense, Table 26-1. H&rblock Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&rblock Alaska Standard meal allowance, Standard meal allowance for areas outside the continental United States. H&rblock Alaska Permanent Fund dividends, Alaska Permanent Fund dividend. H&rblock Child's dividends, Child's Alaska Permanent Fund dividends. H&rblock Income from, You can use Form 1040EZ if all of the following apply. H&rblock , You can use Form 1040A if all of the following apply. H&rblock , Alaska Permanent Fund dividends. H&rblock Investment income not to include, Investment income. H&rblock Alaska Unemployment Compensation Fund, Contributions to state benefit funds. H&rblock Alcohol rehabilitation centers Deductibility of medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Alcoholic beverages IRA prohibited transactions in, Collectibles. H&rblock Aliens, Individual taxpayer identification number (ITIN) for aliens. H&rblock , Not earned income. H&rblock Dual-status (see Dual-status taxpayers) Filing required, Aliens Nonresident (see Nonresident aliens) Resident (see Resident aliens) Alimony, Alimony, Introduction, Spouse or former spouse. H&rblock , Payments not alimony. H&rblock , Payments to a third party. H&rblock , Life insurance premiums. H&rblock , Payments for jointly-owned home. H&rblock , Mortgage payments. H&rblock , Taxes and insurance. H&rblock , Other payments to a third party. H&rblock , Instruments Executed After 1984, Exception for instruments executed before 1985. H&rblock , Alimony requirements. H&rblock , Cash payment requirement. H&rblock , Payments to a third party. H&rblock , Payments designated as not alimony. H&rblock , Spouses cannot be members of the same household. H&rblock , Liability for payments after death of recipient spouse. H&rblock , Substitute payments. H&rblock , How To Deduct Alimony Paid, How To Report Alimony Received, Recapture Rule, Including the recapture in income. H&rblock , Deducting the recapture. H&rblock Definition of, Introduction Mortgage payments Interest deduction, Divorced or separated individuals. H&rblock Reporting of income, Alimony. H&rblock Alternative filing methods Electronic (see E-file ) Alternative minimum tax (AMT), Alternative Minimum Tax (AMT) Child's tax, figuring of, Alternative minimum tax. H&rblock Exempt-interest dividends, Alternative minimum tax treatment. H&rblock Filing requirements (Table 1-3), Figuring tax. H&rblock Incentive stock option, You can use Form 1040A if all of the following apply. H&rblock Nonrefundable credit for prior year tax, Nonrefundable Credit for Prior Year Minimum Tax Alternative motor vehicle credit, Alternative Motor Vehicle Credit, Amount of credit. H&rblock Ambulance service personnel Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Amended returns, Amended Returns and Claims for Refund, Form 1040X. H&rblock , Filing Form 1040X. H&rblock (see also Form 1040X) Itemized deduction, change to standard deduction, Changing your mind. H&rblock Standard deduction, change to itemized deductions, Changing your mind. H&rblock American citizens abroad, U. H&rblock S. H&rblock Citizens and Resident Aliens Living Abroad (see also Citizens outside U. H&rblock S. H&rblock ) Employment (see Foreign employment) American Indians (see Indians) American opportunity credit Tuition deduction and, Who Cannot Claim the Deduction American Samoa Income from, Individuals With Income From U. H&rblock S. H&rblock Possessions Amortization Bond premiums, treatment of, Amortization of bond premium. H&rblock AMT (see Alternative minimum tax (AMT)) Annuities, Rollovers (see also Rollovers) Cost computation, Cost (Investment in the Contract) Decedent's unrecovered investment in, Form W-2. H&rblock Early distributions from, Tax on Early Distributions Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts. H&rblock , Additional exceptions for nonqualified annuity contracts. H&rblock Estimated tax, Withholding and estimated tax. H&rblock Exclusion limit, Exclusion limit. H&rblock General Rule Annuity starting before November 19, 1996, Annuity starting before November 19, 1996. H&rblock Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule. H&rblock Purchased annuities, Purchased annuities. H&rblock Survivor's annuity, Survivors of retirees. H&rblock Guaranteed payments, Guaranteed payments. H&rblock IRAs as, Kinds of traditional IRAs. H&rblock Joint return, Joint return. H&rblock Loans from plan, Loans. H&rblock Lump-sum distributions, Lump-Sum Distributions Multiple plan benefits, More than one program. H&rblock , More than one annuity. H&rblock Partly taxable payments, Partly taxable payments. H&rblock Purchased annuities, Purchased annuities. H&rblock Reporting of, How To Report Retirement annuities, Retirement Plans, Pensions, and Annuities (see also Retirement plans) Rollovers, Rollovers Sale of, Sale of Annuity Gain as ordinary income, Tax-free exchange. H&rblock Simplified method to calculate tax-free part of annuity payment, Simplified Method Survivor's annuity, Survivors of retirees. H&rblock Worksheet for computation, How to use the Simplified Method. H&rblock Survivor annuities, Survivors and Beneficiaries Trade of insurance policies and annuities, Insurance policies and annuities. H&rblock Unrecovered investment, Unrecovered Investment in Annuity Withholding, Form W-2. H&rblock , Pensions and Annuities, Withholding and estimated tax. H&rblock Annulled marriages Filing status, Annulled marriages. H&rblock Anthrax incidents (see Terrorist attacks) Antiques (see Collectibles) Appliances Deterioration and damage, not casualty loss, Progressive deterioration. H&rblock Appraisal fees, Appraisal Fees Donated property, Appraisal Fees Not deductible as interest, Amounts charged for services. H&rblock Real estate transactions, when required by lender, Settlement costs. H&rblock Appraisals Casualty or theft losses, Appraisal. H&rblock , Costs of photographs and appraisals. H&rblock Archer MSAs, Medical savings accounts (MSAs). H&rblock Contributions, Archer MSA contributions. H&rblock Medical expenses paid for decedent from, Decedent Not deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Armed forces, Types of Qualified Organizations, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Armed Forces reservists. H&rblock (see also Reservists) (see also Veterans' organizations) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. H&rblock Dependency allotments, Armed Forces dependency allotments. H&rblock Disability pay, Disability. H&rblock Disability pensions, Military and Government Disability Pensions GI Bill benefits, Tuition payments and allowances under the GI Bill. H&rblock Military, Military uniforms. H&rblock Military quarters allotments, Tax-exempt military quarters allowances. H&rblock Naval officers on permanent duty aboard ship, Members of the Armed Forces. H&rblock Permanent duty overseas, Members of the Armed Forces. H&rblock Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. H&rblock , Ministers' and military housing allowance. H&rblock Rehabilitative program payments, Veterans' benefits. H&rblock Reserves, Armed Forces reservists traveling more than 100 miles from home. H&rblock Retirees' pay Taxable income, Military retirement pay. H&rblock Uniforms, Military uniforms. H&rblock Wages, Military Armed Forces Retiree's pay withholding, Military retirees. H&rblock Art works As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. H&rblock Capital gains or losses from sale or trade of, Investment interest deducted. H&rblock Artists, performing (see Performing artists) Assessments, local (see Local assessments) Assistance (see Tax help) Assistance, tax (see Tax help) Assumption of mortgage, Assumption of mortgage. H&rblock Fees not included in basis, Settlement costs. H&rblock At-risk rules Rental property, At-Risk Rules Athletic events Charitable contributions, amount deductible, Athletic events. H&rblock ATIN (Adoption taxpayer identification number), Adoption taxpayer identification number (ATIN). H&rblock Attachment of wages, Garnisheed wages. H&rblock Attachments to return, Attachments Attorneys Bar review courses, Bar or CPA Review Course Attorneys' fees, Legal Expenses, Personal Legal Expenses Basis to include, Cost Basis Social security and railroad retirement benefits, deductions for, Legal expenses. H&rblock Title to property, for preparation, filing, etc. H&rblock , Settlement costs. H&rblock Audits Travel expense records, If your return is examined. H&rblock Auto insurance Medical expenses covered by, not deductible, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Automatic extension of time to file, Automatic Extension, When to file. H&rblock Form 4868, E-file options. H&rblock Automatic investment services Holding period, determination of, Automatic investment service. H&rblock Awards (see Prizes and awards) Away-from-home travel (see Travel and transportation expenses) B Babysitting, Babysitting. H&rblock Back pay, award for, Back pay awards. H&rblock Emotional distress damages under title VII of Civil Rights Act of 1964, Court awards and damages. H&rblock Backup withholding, Backup Withholding, Backup withholding. H&rblock , Backup withholding. H&rblock Dividend income, Backup withholding. H&rblock , Reporting tax withheld. H&rblock Penalties, Penalties. H&rblock Bad debts Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt. H&rblock Reporting on Schedule D (Form 1040), How to report. H&rblock Claim for refund, Exceptions for special types of refunds. H&rblock , Filing a claim for refund. H&rblock Nonbusiness, Nonbusiness Bad Debts Recovery, Recoveries Reporting of, How to report bad debts. H&rblock Short-term capital loss, How to report bad debts. H&rblock When deductible, When deductible. H&rblock Baggage Business-related travel expense, Table 26-1. H&rblock Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&rblock Balance due, Refund or balance due. H&rblock Bankruptcy Canceled debt not deemed to be income, Excluded debt. H&rblock Financial institution's bankruptcy causing deductible loss, Loss on Deposits Reporting of, Loss on deposits. H&rblock Banks Automatic investment service, determination of holding period, Automatic investment service. H&rblock IRAs with, When and How Can a Traditional IRA Be Opened? Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. H&rblock Money market accounts, Money Market Funds Bar associations Charitable contributions to, Contributions to Nonqualified Organizations Bar employees Tips (see Tip income) Bar review courses, Bar or CPA Review Course Bargain sales As charitable contributions, Bargain sales. H&rblock Basis of purchase, Bargain purchases. H&rblock Barter income, Bartering Definition of bartering, Bartering Form 1099-B, Form 1099-B from barter exchange. H&rblock Basis Adjusted basis, Adjusted Basis Allocation between business and personal use, Introduction Bad debts, Basis in bad debt required. H&rblock Bargain purchases, Bargain purchases. H&rblock Bonds, Stocks and Bonds, Bond premium. H&rblock Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. H&rblock , Partly taxable. H&rblock Definition of, Introduction Gifts, Property Received as a Gift Home sales (see Sale of home) Improvements to real estate, Improvements. H&rblock Involuntary conversion, Involuntary Conversions Like-kind exchanges, Basis of property received. H&rblock Other than cost, Basis Other Than Cost, Tax-exempt obligations. H&rblock , No gain or loss. H&rblock Points not to be included, Settlement costs. H&rblock , Points. H&rblock Property received for services, Property Received for Services Real estate, Real Property Restricted property, Restricted property. H&rblock Stock or stock rights, Basis. H&rblock Tax-exempt obligations Bonds, Tax-exempt obligations. H&rblock Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Beetles Damage or destruction to trees and plants, when casualty loss, Progressive deterioration. H&rblock Beneficiaries, Beneficiary of an estate or trust. H&rblock , Rollover by surviving spouse. H&rblock , Estate and trust income. H&rblock , Losses. H&rblock (see also Estate beneficiaries) (see also Trust beneficiaries) Bequests, Estate and trust income. H&rblock , Losses. H&rblock , Gifts and inheritances. H&rblock , Income from property received as a gift. H&rblock (see also Estate beneficiaries) (see also Gifts) (see also Inheritance) Bicycle Fringe benefit, Qualified bicycle commuting. H&rblock Bingo, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Contributions From Which You Benefit Birth control pills, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Birth of child, Death or birth of child. H&rblock Head of household, qualifying person to file as, Death or birth. H&rblock , Death or birth. H&rblock Social security number to be obtained, Born and died in 2013. H&rblock Birth of dependent, Death or birth. H&rblock Blackmail Losses due to, Theft Blind persons Exemption from withholding, Age 65 or older or blind. H&rblock Guide dogs, deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Impairment-related work expenses, deduction for, Impairment-Related Work Expenses Standard deduction for, Introduction, Higher Standard Deduction for Blindness Blood banks No charitable deduction for blood donations to, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Value of Time or Services Blue books to determine fair market value, Cars, boats, and airplanes. H&rblock Boats Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. H&rblock Donations of, Cars, boats, and airplanes. H&rblock Body scan, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Bona fide business purpose Travel expenses, Bona fide business purpose. H&rblock Work-related education, Qualifying Work-Related Education Bonds Adjusted basis for, Stocks and Bonds Amortization of premium, Amortization of bond premium. H&rblock , Amortizable Premium on Taxable Bonds As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds. H&rblock Convertible bonds, Convertible stocks and bonds. H&rblock Discounted Capital gain or loss, Discounted Debt Instruments Issued at discount, Original Issue Discount (OID) Market discount bonds, Market discount bonds. H&rblock Original issue discount, Original Issue Discount (OID) Redemption of, Redemption or retirement of bonds. H&rblock Retirement of, Retirement bonds. H&rblock , Redemption or retirement of bonds. H&rblock Sale of, Bonds Sold Between Interest Dates Savings, U. H&rblock S. H&rblock Savings Bonds, Series HH bonds. H&rblock , Series EE and series I bonds. H&rblock Sold at premium, computation of adjusted basis, Bond premium. H&rblock State or local government, tax-exempt, Tax-exempt state and local government bonds. H&rblock Tax-exempt, State or Local Government Obligations Bonuses, Supplemental Wages, Bonuses and awards. H&rblock , Employee awards or bonuses. H&rblock Bookkeeping (see Recordkeeping requirements) Books to determine fair market value, Car value. H&rblock Borrowed funds, Loans. H&rblock , Items You Cannot Deduct (see also Loans) Used for charitable contributions, deduction for, Borrowed funds. H&rblock Bottled water, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Boy Scouts Charitable contributions to, Examples. H&rblock , Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check Braille books, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Breach of contract Damages as income, Court awards and damages. H&rblock employment, Damages for Breach of Employment Contract Breast pump and supplies, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Bribes, Bribes. H&rblock , List of Nondeductible Expenses Brokers Form 1099-B, Sales and Trades IRAs with, When and How Can a Traditional IRA Be Opened? Commissions, Brokers' commissions. H&rblock , Brokers' commissions. H&rblock Receiving dividends, reporting on Form 1099-MISC, Form 1099-MISC. H&rblock Burglary Losses due to, Theft Burial expenses, List of Nondeductible Expenses (see Funerals) Business associates, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. H&rblock Business expenses, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Job search expenses, Job interview expenses. H&rblock Meal expenses (see Meal and lodging expenses) Reimbursements, Expense allowances. H&rblock , Allowances and reimbursements. H&rblock Returning excess for business expenses, Returning Excess Reimbursements Returning excess business expenses, Expense allowances. H&rblock Travel (see Travel and transportation expenses) Work-related education, What Expenses Can Be Deducted Business organizations Charitable contributions to, Contributions to Nonqualified Organizations Business property As gift, adjusted basis for, Business property. H&rblock Basis for depreciation, Basis for depreciation. H&rblock Property use changed to, adjusted basis for, Property Changed From Personal to Business or Rental Use Sales or exchanges Like-kind exchanges, Like-kind exchanges. H&rblock Business tax credits Claim for refund, Exceptions for special types of refunds. H&rblock Business use of home, Home Office C Cafeteria plans, Cafeteria plans. H&rblock Calendar year taxpayers Accounting periods, When Do I Have To File?, Accounting Periods, Accounting period. H&rblock Filing due date, When Do I Have To File? California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds. H&rblock Campaign contributions, Campaign contributions. H&rblock , Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Presidential Election Campaign Fund, Presidential Election Campaign Fund Campaign expenses, Campaign Expenses Canada Resident of, Citizen or Resident Test, Child in Canada or Mexico. H&rblock Cancellation of debt, Canceled Debts Exceptions to treatment as income, Exceptions Candidates for public office Contributions to, no charitable deduction for, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Capital assets Coal and iron ore, Coal and iron ore. H&rblock Definition of, Capital Assets and Noncapital Assets Capital expenses, Capital expenses. H&rblock Capital gains or losses, Capital Gains and Losses, How to report and postpone gain. H&rblock , Reporting Gains and Losses Bad debts as short-term capital loss, How to report bad debts. H&rblock Carryover of, Long-term gains and losses. H&rblock , Capital loss carryover. H&rblock Worksheet, Figuring your carryover. H&rblock Character of gain, Capital Gains and Losses Character of loss, Capital Gains and Losses Child's distributions and dividends, reporting of, Child's capital gain distributions. H&rblock , Capital gain distributions and qualified dividends. H&rblock Collectibles, Investment interest deducted. H&rblock Deductions, Capital Losses Limit on, Limit on deduction. H&rblock Distributions, Money Market Funds Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply. H&rblock , How To Report Dividend Income Form 8949, Reporting Gains and Losses Hobbies, sales from collections, Hobby losses. H&rblock Holding period, determination of, Holding Period How to report, Reporting Capital Gains and Losses Installment sales and, Installment sales. H&rblock Lump-sum distributions from pensions and annuities, Capital Gain Treatment Mutual funds paying, Capital Gain Distributions Net capital gain, Capital Gains and Losses, Long-term gains and losses. H&rblock , Capital Gain Tax Rates Included as investment income, Choosing to include net capital gain. H&rblock Net long-term capital loss, Long-term gains and losses. H&rblock Sale of personal items, Sale of personal items. H&rblock Sale or trade of property held more than 1 year, Long-term or short-term. H&rblock , Long-term gains and losses. H&rblock Schedule D, Reporting Gains and Losses , Reporting Capital Gains and Losses Section 1250 gains from sale of real property, Capital Gains and Losses, Unrecaptured section 1250 gain. H&rblock State or local government bonds, tax-exempt, Tax-exempt state and local government bonds. H&rblock Tax rates, Capital Gain Tax Rates Total net gain, Total net gain or loss. H&rblock Total net loss, Total net gain or loss. H&rblock Undistributed gains, Long-term gains and losses. H&rblock Credit for tax on, Undistributed capital gains of mutual funds and REITs. H&rblock , Credit for Tax on Undistributed Capital Gain Car expenses, Car expenses. H&rblock Car pools, Car pools. H&rblock , Car pools. H&rblock Carrybacks Business tax credit carrybacks, Exceptions for special types of refunds. H&rblock Carryovers Capital loss, Long-term gains and losses. H&rblock , Capital loss carryover. H&rblock Worksheet, Figuring your carryover. H&rblock Investment interest, Limit on Deduction Cars, Transportation, Transporting school children. H&rblock , Car Expenses and Other Employee Business Expenses, Car Expenses (see also Standard mileage rates) (see also Travel and transportation) Accidents resulting in casualty loss, Deductible losses. H&rblock Value determination, Car value. H&rblock Willful negligence or intentional act as cause, Nondeductible losses. H&rblock Actual expenses, Car Expenses, Actual Car Expenses Advertising displays on, Advertising display on car. H&rblock Allowances from employers, Per Diem and Car Allowances As capital assets, Capital Assets and Noncapital Assets Blue book to determine fair market value, Cars, boats, and airplanes. H&rblock Books to determine fair market value, Car value. H&rblock Business and personal use, allocation between, Business and personal use. H&rblock , Separating expenses. H&rblock Business-related travel expenses, Table 26-1. H&rblock Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&rblock Car pools, Car pools. H&rblock Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. H&rblock Charitable organization service, use for, Car expenses. H&rblock Depreciation, Depreciation and section 179 deductions. H&rblock Donations of, Cars, boats, and airplanes. H&rblock Fixed and variable rate (FAVR), Fixed and variable rate (FAVR). H&rblock Form 2106 or 2106-EZ, how to fill out, Car expenses. H&rblock Hauling tools or instruments, Hauling tools or instruments. H&rblock Interest on loans, not deductible, Personal Interest Leased vehicles, Leasing a car. H&rblock Medical transportation, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock , Transportation, Car expenses. H&rblock Parking (see Parking fees) Personal property taxes on, deduction of, Personal Property Taxes Reporting of, How To Report Table 26-3 showing forms to be used, Per diem allowance more than federal rate. H&rblock Sale, trade-in, or other disposition, Sale, Trade-In, or Other Disposition Section 179 deductions, Depreciation and section 179 deductions. H&rblock Work-related education, transportation for, Using your car. H&rblock Cash Dividends paid as, Introduction Rebates, Cash rebates. H&rblock Sales of property for, Payment of cash. H&rblock Cash contributions, records to keep, Cash Contributions Cash method taxpayers, Cash method. H&rblock Bad debts, Basis in bad debt required. H&rblock Points, deduction of, Deduction Allowed in Year Paid Real estate transactions, tax allocation, Division of real estate taxes between buyers and sellers. H&rblock Taxes paid during tax year, deduction of, You must pay the tax during your tax year. H&rblock Worthless securities and negotiable promissory notes, Worthless securities. H&rblock Cash rebates, Cash rebates. H&rblock Casualties, Home destroyed or condemned. H&rblock Casualty insurance Premiums not in property basis, Settlement costs. H&rblock Reimbursements from, Casualty insurance and other reimbursements. H&rblock Casualty losses, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL). H&rblock , Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Adjusted basis in property, Casualty and theft losses. H&rblock , Involuntary Conversions, Adjusted Basis, Adjustments to basis. H&rblock Amount of loss, Figuring a Loss Appraisals, Appraisal. H&rblock , Costs of photographs and appraisals. H&rblock Bank deposit, loss due to bank's insolvency or bankruptcy, Casualty loss or ordinary loss. H&rblock Costs Cleaning up or making repairs, Cost of cleaning up or making repairs. H&rblock Photographs and appraisals, Costs of photographs and appraisals. H&rblock Deductible losses, Deductible losses. H&rblock $100 rule, $100 Rule When to take (Table 25-2), Gains more than losses. H&rblock Deduction limits, Deduction Limits For personal property (Table 25-1), Actual reimbursement same as expected. H&rblock Definition of casualty, Casualty Disasters, Employer's emergency disaster fund. H&rblock , Disaster relief. H&rblock (see also Disaster relief) Employer's emergency disaster fund, Employer's emergency disaster fund. H&rblock Fair market value of property, Decrease in Fair Market Value Form 4684 to be filed, Forms to file. H&rblock Insurance proceeds, treatment of, Insurance and Other Reimbursements Net operating losses, Net operating loss (NOL). H&rblock Nondeductible losses, Deductible losses. H&rblock Proof of loss, Casualty loss proof. H&rblock Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes. H&rblock Reimbursement, Insurance and Other Reimbursements Reporting of gain or loss, When To Report Gains and Losses, Losses. H&rblock , How To Report Gains and Losses Single casualty on multiple properties, Single Casualty on Multiple Properties Cemeteries Charitable contributions to, Types of Qualified Organizations Certificate, mortgage credit, Who qualifies. H&rblock Certificates of deposit (CDs), Certificates of deposit (CDs). H&rblock , Individual Retirement Arrangements (IRAs) (see also Individual retirement arrangements (IRAs)) Chambers of commerce Charitable contributions to, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Entertainment expenses for attending meetings, Trade association meetings. H&rblock Change of address, Change of Address Change of name, Name change. H&rblock , Name changed. H&rblock Chaplains Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Charitable contributions, Contributions, Introduction, Organizations That Qualify To Receive Deductible Contributions, Types of Qualified Organizations, Contributions You Can Deduct, Contributions From Which You Benefit, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Token items. H&rblock , Written statement. H&rblock , Contributions You Cannot Deduct, Contributions to Individuals, Contributions to Nonqualified Organizations, Contributions From Which You Benefit, Contributions of Property, Determining Fair Market Value, Large quantities. H&rblock , Giving Property That Has Decreased in Value, Giving Property That Has Increased in Value, Ordinary income property. H&rblock , Capital gain property. H&rblock , Amount of deduction — general rule. H&rblock , Bargain sales. H&rblock , When To Deduct, Time of making contribution. H&rblock , Noncash Contributions, Additional records. H&rblock , How To Report Gifts to reduce public debt, Gift To Reduce Debt Held by the Public Charitable distributions, qualified, Qualified charitable distributions (QCD). H&rblock Charity benefit events Deduction amount for charitable contributions, Charity benefit events. H&rblock Check-writing fees, Check-Writing Fees on Personal Account Checklists Medical and dental expense deductions (Table 21-1), Medicare A. H&rblock Checks As charitable contributions, Checks. H&rblock Canceled checks as evidence of travel expenses, Canceled check. H&rblock Constructive receipt of, Check received or available. H&rblock Child Foster child, Rule 10. H&rblock You Cannot Be a Qualifying Child of Another Taxpayer, Rule 13. H&rblock You Cannot Be a Qualifying Child of Another Taxpayer Married child, Married child. H&rblock Child and dependent care credit, You can use Form 1040A if all of the following apply. H&rblock Due diligence, Getting the information. H&rblock Earned income, Earned income. H&rblock Full-time student, Rule for student-spouse or spouse not able to care for self. H&rblock Married filing separately, Special Rules Payments to relatives, Payments to Relatives or Dependents Child born alive, Child born alive. H&rblock Child care, You can use Form 1040A if all of the following apply. H&rblock Babysitting, Babysitting. H&rblock Care providers, Childcare providers. H&rblock Expenses, Child care expenses. H&rblock Nursing care for healthy baby, not deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Child custody, Custodial parent and noncustodial parent. H&rblock Child support, Child support payments. H&rblock Alimony, difference from, Payments not alimony. H&rblock , Alimony requirements. H&rblock , Child support. H&rblock Child tax credit, Who Should File, You can use Form 1040A if all of the following apply. H&rblock , Child tax credit. H&rblock , Child Tax Credit Additional credit, Additional Child Tax Credit Amount of credit, Amount of Credit Claiming, procedure for, Claiming the Credit Limits, Special Rules, Limits on the Credit Modified adjusted gross income, Modified AGI. H&rblock Married filing separately, Special Rules Qualifying child, Qualifying Child Child, qualifying, Qualifying Child Childcare Credit, Child and Dependent Care Credit Provider Taxpayer identification number, Provider Identification Test Children, Adoption Assistance, Personal Expenses (see also Adoption) Additional credit on child tax credit, Additional Child Tax Credit Adoption (see Adopted child) Babysitters, Babysitting. H&rblock Birth of child Head of household, qualifying person to file as, Death or birth. H&rblock , Death or birth. H&rblock Social security number to be obtained, Born and died in 2013. H&rblock Care providers, Childcare providers. H&rblock (see also Child care) Child's tax, figuring of, Step 3. H&rblock Figuring the Child's Tax (Form 8615, Part III) Alternative minimum tax, Alternative minimum tax. H&rblock Credit for, Who Should File, You can use Form 1040A if all of the following apply. H&rblock (see also Child and dependent care credit) (see also Child tax credit) Custody of, Custodial parent and noncustodial parent. H&rblock Death of child Head of household, qualifying person to file as, Death or birth. H&rblock , Death or birth. H&rblock Deductions, Line 2 (deductions). H&rblock Dividends of (see this heading: Investment income of child under age 18) Earnings of, Child's earnings. H&rblock Filing requirements, Child's earnings. H&rblock As dependents (Table 1-2), Do I Have To File a Return? Gifts to, Income from property given to a child. H&rblock , Income from property received as a gift. H&rblock Inclusion of child's income on parent's return (Figure 31-A), Penalty for underpayment of estimated tax. H&rblock Income, calculation of, Figuring Child's Income Capital gains distributions, Capital gain distributions and qualified dividends. H&rblock Investment income of, Tax on unearned income of certain children. H&rblock Investment income of child under age 18 Dependent filing requirements (Table 1-2), Do I Have To File a Return? Interest and dividends, Certain Children Under Age 19 or Full-Time Students Parents' election to report on Form 1040, Certain Children Under Age 19 or Full-Time Students, Investment income of child reported on parent's return. H&rblock Kidnapped, Kidnapped child. H&rblock , Kidnapped child. H&rblock Net unearned income, figuring of, Step 1. H&rblock Figuring the Child's Net Unearned Income (Form 8615, Part I) Nontaxable income, Nontaxable income. H&rblock Property received as gift, income from, Income from property received as a gift. H&rblock Signing return, parent for child, Spouse unable to sign. H&rblock Standard deduction for, Introduction, Standard Deduction for Dependents Stillborn, Stillborn child. H&rblock Support of (see Child support) Tax credit (see Child tax credit) Tentative tax figured at parent's tax rate, Step 2. H&rblock Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Transporting school children, Transporting school children. H&rblock Unearned income of, Tax on unearned income of certain children. H&rblock Unearned income of certain children, Introduction Form 8615, use of (Figure 31-B), Parental information, providing of, Providing Parental Information (Form 8615, lines A–C) Parents' election to report on Form 1040, Parent's Election To Report Child's Interest and Dividends Trust income, Trust income. H&rblock Unearned income defined, Unearned income defined. H&rblock Chronic illness Accelerated payment of life insurance proceeds (see Accelerated death benefits) Long-term care (see Long-term care insurance contracts) Church employees Filing requirements (Table 1-3), Figuring tax. H&rblock Churches, temples, etc. H&rblock Charitable contributions to, Examples. H&rblock , Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check Convention delegates, deduction of unreimbursed expenses, Conventions. H&rblock Citizen or resident test, Citizen or Resident Test Citizens outside U. H&rblock S. H&rblock Business travel outside U. H&rblock S. H&rblock , Travel Outside the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons Self-employed persons, Exception 1 - No substantial control. H&rblock Standard meal allowance, Standard meal allowance for areas outside the continental United States. H&rblock Earned income exclusion, Reminders Employment (see Foreign employment) Extension of time to file, Individuals Outside the United States Filing requirements, U. H&rblock S. H&rblock Citizens and Resident Aliens Living Abroad Withholding from IRA distributions, IRA distributions delivered outside the United States. H&rblock Civic associations Charitable contributions to, Contributions to Nonqualified Organizations Contributions to, no charitable deduction for, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check Civil defense organizations Charitable contributions to, Examples. H&rblock Civil service retirement benefits, Civil service retirement benefits. H&rblock Civil suits, Court awards and damages. H&rblock (see also Damages from lawsuits) Civil tax penalties (see Penalties) Clergy, Ministers. H&rblock Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions to Individuals Housing, Clergy Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. H&rblock , Ministers' and military housing allowance. H&rblock Life insurance proceeds when chaplain died in line of duty, Public Safety Officer Killed in the Line of Duty Pensions, Pension. H&rblock Special income rules, Clergy Clerical help, deductibility of, Clerical Help and Office Rent Clients, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. H&rblock Closing costs Real property transactions, Settlement costs. H&rblock Sale of home, Settlement fees or closing costs. H&rblock Clothing Military, Military uniforms. H&rblock Moth damage, not casualty loss, Progressive deterioration. H&rblock Uniforms Charitable organization requiring, deduction for cost and upkeep of, Uniforms. H&rblock Used clothing, charitable deduction for fair market value, Used clothing and household items. H&rblock work, Work Clothes and Uniforms Club dues and membership fees Entertainment expenses, Club dues and membership fees. H&rblock Co-owners Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement. H&rblock Coal and iron ore, Coal and iron ore. H&rblock Coins (see Collectibles) Collectibles As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. H&rblock Gains or losses from sale or trade of, Investment interest deducted. H&rblock IRA investment in, Investment in Collectibles, Exception. H&rblock College professor Research expenses, Research Expenses of a College Professor Colleges and universities Charitable contributions to, Examples. H&rblock , Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check Athletic events, amount deductible, Athletic events. H&rblock Education costs, Qualified tuition programs (QTPs). H&rblock (see also Qualified tuition programs) Employer-provided educational assistance, Qualified Education Expenses (see also Educational assistance) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. H&rblock Commission drivers Deduction of expenses, Statutory employees. H&rblock Commissions, Supplemental Wages Advance, Advance commissions and other earnings. H&rblock IRAs with brokers, Brokers' commissions. H&rblock , Brokers' commissions. H&rblock Property basis to include when buyer pays, Settlement costs. H&rblock Sharing of (kickbacks), Kickbacks. H&rblock Unearned, deduction for repayment of, Advance commissions and other earnings. H&rblock Commodities Derivative financial instruments, Capital Assets and Noncapital Assets Common law marriage, Considered married. H&rblock Communist organizations Charitable contributions to, Contributions to Nonqualified Organizations Community property, Community income. H&rblock , Community property. H&rblock Alimony, difference from, Payments not alimony. H&rblock IRAs, Community property laws. H&rblock Married filing separately, Community property states. H&rblock Medical and dental expenses, Community property states. H&rblock Commuting expenses, Commuting expenses. H&rblock , Commuting Expenses Employer-provided commuter vehicle, Commuter highway vehicle. H&rblock Compensation, Wages, Salaries, and Other Earnings (see also Wages and salaries) Defined for IRA purposes, What is compensation? Defined for Roth IRA purposes, Compensation. H&rblock Employee, Employee Compensation Miscellaneous compensation, Miscellaneous Compensation Nonemployee, Nonemployee compensation. H&rblock Unemployment, Unemployment compensation. H&rblock Computation of tax, Computations Equal amounts, Equal amounts. H&rblock Negative amounts, Negative amounts. H&rblock Rounding off dollars, Rounding off dollars. H&rblock Computer, Depreciation on Computers Condemnation of property, Home destroyed or condemned. H&rblock , Condemnations. H&rblock Basis computation, Involuntary Conversions Disaster areas, government-ordered demolition of unsafe home, Deductible losses. H&rblock Period of ownership and use, Previous home destroyed or condemned. H&rblock Confidential information Privacy Act and paperwork reduction information, Reminders Travel expenses and, Confidential information. H&rblock Constructive receipt of income, Constructive receipt. H&rblock , Payment to an agent. H&rblock , Constructive receipt. H&rblock Contributions, Gift To Reduce Debt Held by the Public, Campaign contributions. H&rblock , Contributions, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations, How To Report (see also Campaign contributions) (see also Charitable contributions) Nontaxable combat pay, Nontaxable combat pay. H&rblock Political, Political Contributions Reservist repayments, Qualified reservist repayments. H&rblock Retirement (see specific type of plan ) Controlled corporations Nontaxable stock purchase of, Property for stock of a controlled corporation. H&rblock Related party transactions, Losses on sales or trades of property. H&rblock Convenience fees, Credit or Debit Card Convenience Fees Conventions Delegates Deduction of unreimbursed expenses, Conventions. H&rblock Travel expenses, Conventions Travel expenses, Conventions Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions. H&rblock Conversion (see specific retirement or IRA plan ) Convertible stocks and bonds, Convertible stocks and bonds. H&rblock Cooperative housing Dwelling unit used as home, Introduction Mortgage interest statements, Form 1098, Mortgage Interest Statement Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation. H&rblock Sale or trade of Form 1099-S to report, Form 1099-S transactions. H&rblock Period of ownership and use, Cooperative apartment. H&rblock Cooperatives Patronage dividends, Patronage dividends. H&rblock Copyrights, Capital Assets and Noncapital Assets Infringement damages, Court awards and damages. H&rblock Royalties, Royalties Corporations, S Corporation Income (see also S corporations) Controlled corporations, Property for stock of a controlled corporation. H&rblock , Losses on sales or trades of property. H&rblock Director fees as self-employment income, Corporate director. H&rblock Reorganizations and nontaxable trade of stock, Corporate reorganizations. H&rblock Corrections (see Errors) Cosmetic surgery Not deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Cosmetics Not deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. H&rblock , Partly taxable. H&rblock Cost-of-living allowances, Government cost-of-living allowances. H&rblock Country clubs Charitable contributions to, Contributions to Nonqualified Organizations Dues Charitable deduction not allowed, Table 24-1. H&rblock Examples of Charitable Contributions—A Quick Check, Membership fees or dues. H&rblock Entertainment expense deduction not allowed, Club dues and membership fees. H&rblock Coupon bonds, Coupon bonds. H&rblock Court awards and damages (see Damages from lawsuits) Cousin, Cousin. H&rblock Coverdell ESAs Additional tax on, Other taxes. H&rblock CPAs (see Accountants) Credit cards Annual fees, not deductible, Items You Cannot Deduct Benefits, taxability of insurance, Credit card insurance. H&rblock Charitable contributions charged to, Credit card. H&rblock Finance charges, not deductible, Personal Interest Payment of taxes, Reminders Credit for child and dependent care expenses, Credit for child and dependent care expenses. H&rblock , Credit for child and dependent care expenses. H&rblock Credit for prior year minimum tax Nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Credit for the elderly or the disabled, Credit for the elderly or the disabled. H&rblock , Credit for the elderly or the disabled. H&rblock Credit or debit cards Payment of taxes, E-file and pay by credit or debit card or by direct transfer from your bank account. H&rblock Credit reports Costs not included in property basis, Settlement costs. H&rblock Fees for, not deductible, Items You Cannot Deduct Credit to holders of tax credit bonds, Credit to Holders of Tax Credit Bonds Credits, Credits. H&rblock , Earned income credit. H&rblock , Credit for child and dependent care expenses. H&rblock , Credit for the elderly or the disabled. H&rblock , Earned income credit. H&rblock , Credit for child and dependent care expenses. H&rblock , Credit for the elderly or the disabled. H&rblock , Earned income credit. H&rblock Alternative motor vehicle, Alternative Motor Vehicle Credit American opportunity, Special Rules Build America bonds (see Credit to holders of tax credit bonds) Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs. H&rblock , Credit for Tax on Undistributed Capital Gain Child and dependent care, Child and Dependent Care Credit (see Child and dependent care credit) Child tax (see Child tax credit) Clean renewable energy bonds (see Credit to holders of tax credit bonds) Earned income, Earned Income Credit (EIC) (see Earned income credit) Elderly or the disabled, Credit for the Elderly or the Disabled Excess withholding, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Foreign tax, Foreign Tax Credit Health coverage, Health Coverage Tax Credit Lifetime learning (see Lifetime learning credit) Mortgage interest, Mortgage Interest Credit Nonrefundable credits, Nonrefundable Credits Plug-in electric drive motor vehicle, Plug-in Electric Drive Motor Vehicle Credit Prior year minimum tax (AMT), nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Qualified energy conservation bonds (see Credit to holders of tax credit bonds) Qualified school construction bonds (see Credit to holders of tax credit bonds) Qualified zone academy bonds (see Credit to holders of tax credit bonds) Refundable credits, Refundable Credits Residential energy, Residential Energy Credits Retirement savings contribution, Retirement Savings Contributions Credit (Saver's Credit) Cremation Not deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Criminal prosecutions Travel expenses for federal staff, Exception for federal crime investigations or prosecutions. H&rblock Cruises Travel expenses when incidental business activities, Trip Primarily for Personal Reasons Work-related education, deduction of expenses, Cruises and conventions. H&rblock Custodial fees, Investment Fees and Expenses Custody of child, Custodial parent and noncustodial parent. H&rblock Customers, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. H&rblock D Daily allowance (see Per diem) Damage to property, Nonbusiness Casualty and Theft Losses (see also Casualty losses) Disasters, Employer's emergency disaster fund. H&rblock , Disaster relief. H&rblock (see also Disaster relief) Damages, Damages for Breach of Employment Contract Damages from lawsuits, Court awards and damages. H&rblock Medical expenses as part of settlement, Damages for Personal Injuries Dating your return, Signatures Daycare centers, You can use Form 1040A if all of the following apply. H&rblock , Childcare providers. H&rblock , Care outside your home. H&rblock (see also Child and dependent care credit) (see also Child care) De minimis benefits, De Minimis (Minimal) Benefits Deadlines (see Due dates) Death (see Decedents) Death benefits Accelerated, Accelerated Death Benefits, Exclusion for terminal illness. H&rblock Life insurance proceeds (see Life insurance) Public safety officers who died or were killed in line of duty, tax exclusion, Public Safety Officer Killed in the Line of Duty Death of child, Death or birth of child. H&rblock Death of dependent, Death or birth. H&rblock Debt instruments (see Bonds or Notes) Debts, Exceptions for special types of refunds. H&rblock , Recoveries (see also Bad debts) Canceled (see Cancellation of debt) Nonrecourse, Mortgage relief upon sale or other disposition. H&rblock Paid by another, Debts paid for you. H&rblock Payoff of debt included in sales transaction, Debt paid off. H&rblock Public, gifts to reduce, Gift To Reduce Debt Held by the Public Recourse, Mortgage relief upon sale or other disposition. H&rblock Refund offset against, Refunds. H&rblock , Offset against debts. H&rblock Deceased taxpayers (see Decedents) Decedents, Surviving Spouses, Executors, Administrators, and Legal Representatives (see also Executors and administrators) Capital loss of, Decedent's capital loss. H&rblock Deceased spouse, Surviving Spouses, Executors, Administrators, and Legal Representatives Personal exemption, Death of spouse. H&rblock Due dates, Filing for a decedent. H&rblock Filing requirements, Surviving Spouses, Executors, Administrators, and Legal Representatives Funeral expenses, Contributions to Individuals Medical and dental expenses, Decedent Savings bonds, Decedents. H&rblock Spouse's death, Spouse died during the year. H&rblock , Spouse died. H&rblock Standard deduction, Decedent's final return. H&rblock Transfer of property at death, Other property transactions. H&rblock Declaration of rights of taxpayers IRS request for information, Reminders Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. H&rblock Deductions, Special Rules, Personal Exemptions and Dependents, Your Own Exemption, Recoveries, Nonbusiness Bad Debts, How to report bad debts. H&rblock , Capital Losses , Introduction, Standard Deduction, Points, Treatment by buyer. H&rblock , Meals and Incidental Expenses, Entertainment Expenses (see also Bad debts) (see also Capital losses) (see also Entertainment expenses) (see also Personal exemption) (see also Points) (see also Recovery of amounts previously deducted) (see also Standard deduction) Alimony, deductible by payer, How To Deduct Alimony Paid Casualty losses, Casualty and Theft Losses of Income-Producing Property (see Capital losses) Changing claim after filing, need to amend, Amended Returns and Claims for Refund Charitable contributions, Contributions, How To Report (see also Charitable contributions) Dental expenses (see Medical and dental expenses) Depreciation, Depreciation and section 179 deduction. H&rblock Educator expenses, Educator Expenses Estate, Excess Deductions of an Estate Fee-basis government officials, Special Rules Impairment-related work expenses, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. H&rblock Interest (see Interest payments) Investment expenses, Investment expenses. H&rblock IRA contributions (see Individual retirement arrangements (IRAs)) Itemizing (see Itemized deductions) Long-term care insurance contracts, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Medical expenses (see Medical and dental expenses) Mortgage interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. H&rblock (see Mortgages) Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply. H&rblock Pass-through entities, Indirect Deductions of Pass-Through Entities Penalties, no deduction permitted, Penalties. H&rblock Performing artists' expenses, Expenses of certain performing artists. H&rblock Prepaid insurance premiums, Prepaid insurance premiums. H&rblock Prescription medicines, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Rental expenses, When to deduct. H&rblock Repayments, Repayments Section 179 deductions Adjustment to basis for, Depreciation and section 179 deduction. H&rblock Car expenses, Depreciation and section 179 deductions. H&rblock Self-employed persons Health insurance premiums, Health Insurance Costs for Self-Employed Persons Social security and railroad retirement benefits, Deductions Related to Your Benefits Standard deduction, Standard Deduction, Married persons who filed separate returns. H&rblock Stop-smoking programs, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Student loan interest deduction (see Student loans) Theft loss, Casualty and Theft Losses of Income-Producing Property Transportation expenses (see Travel and transportation expenses) Union dues (see Labor unions) Work-related education, What Expenses Can Be Deducted Deeds Preparation costs for, Amounts charged for services. H&rblock Recording fees, basis to include, Real estate taxes. H&rblock Deferred annuity contracts (see Annuities) Deferred compensation Limit, Elective deferrals. H&rblock Nonqualified plans, Nonqualified deferred compensation plans. H&rblock Deferred compensation plans (see Retirement plans) Delinquent taxes Real estate transactions, tax allocation, Real estate taxes for prior years. H&rblock Delivery services, Private delivery services. H&rblock Business-related travel expense, Table 26-1. H&rblock Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&rblock Demutualization of life insurance companies, Demutualization of life insurance companies. H&rblock Dental expenses (see Medical and dental expenses) Dentures Deductibility as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Dependent care Benefits, Dependent care benefits. H&rblock , Dependent Care Benefits Center, Dependent care center. H&rblock Credit for, Child and Dependent Care Credit Dependent taxpayer test, Dependent Taxpayer Test Dependents, Who Should File, You can use Form 1040A if all of the following apply. H&rblock , Exception for adopted child. H&rblock , Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). H&rblock (see also Child tax credit) Birth of, Death or birth. H&rblock Born and died within year, Exception. H&rblock , Born and died in 2013. H&rblock Death of, Death or birth. H&rblock Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent? Disabled dependent care expenses, deduction for, Disabled Dependent Care Expenses Exemption for, Exemptions for Dependents Filing requirements, Child's earnings. H&rblock Earned income, unearned income, and gross income levels (Table 1-2), Do I Have To File a Return? Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Medical and dental expenses, Dependent Qualifying child, Qualifying Child, Qualifying Child Qualifying relative, Qualifying Relative, Qualifying Child Social security number, Dependent's SSN. H&rblock Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN). H&rblock , Taxpayer identification numbers for aliens. H&rblock Alien dependents, Born and died in 2013. H&rblock Standard deduction for, Standard Deduction for Dependents Travel expenses for, Travel expenses for another individual. H&rblock Tuition deduction for, Who Can Claim a Dependent's Expenses Dependents not allowed to claim dependents, Dependent Taxpayer Test Depletion allowance, Depletion. H&rblock Deposits, Fees and deposits. H&rblock Loss on, Loss on Deposits Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. H&rblock Depreciation Adjustment to basis for, Depreciation and section 179 deduction. H&rblock Cars, Depreciation and section 179 deductions. H&rblock Change of use of property, Basis for depreciation. H&rblock Computer, Depreciation on Computers Correcting amount claimed, Claiming the correct amount of depreciation. H&rblock Form 4562 Rental property depreciation, Depreciation Home computer, Depreciation on Home Computer Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets Real property Gain from disposition of property, Depreciation after May 6, 1997. H&rblock Land, no depreciation of, Land. H&rblock Rental property, Depreciation. H&rblock , Depreciation Designated Roth Account Defined. H&rblock , Designated Roth accounts. H&rblock Designated Roth account, Designated Roth accounts. H&rblock , Designated Roth accounts. H&rblock Destroyed records, Destroyed records. H&rblock Diaper service, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Differential wage payments, Differential wage payments. H&rblock Differential wages Wages for reservists Military reserves, Differential wage payments. H&rblock Direct deposit of refunds, Refunds Directors' fees, Corporate director. H&rblock Disabilities, persons with, Qualifying Person Test, Physically or mentally not able to care for oneself. H&rblock , Credit for the Elderly or the Disabled (see also Elderly or the disabled) Accrued leave payment, Accrued leave payment. H&rblock Armed forces, Disability. H&rblock Blind (see Blind persons) Cafeteria plans, Cafeteria plans. H&rblock Credit for (see Elderly or disabled, credit for) Dependent who is disabled, deduction for care expenses, Disabled Dependent Care Expenses Guide dogs, deductible as medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Impairment-related work expenses of, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. H&rblock Work-related education, Impairment-Related Work Expenses Insurance costs, Cost paid by you. H&rblock Military and government pensions, Military and Government Disability Pensions Public assistance benefits, Persons with disabilities. H&rblock Reporting of disability pension income, Disability Pensions Retirement, pensions, and profit-sharing plans, Sickness and Injury Benefits, Retirement and profit-sharing plans. H&rblock Signing of return by court-appointed representative, Court-appointed, conservator, or other fiduciary. H&rblock Social security and railroad retirement benefits, deductions for, Disability payments. H&rblock Special school or home for, deductibility of medical expense, Table 21-1. H&rblock Medical and Dental Expenses Checklist. H&rblock See Publication 502 for more information about these and other expenses. H&rblock Terrorist attack as cause of injury, disability payments excluded from taxation, Disability pensions. H&rblock Workers' compensation, Workers' Compensation Disability Income, Disability income. H&rblock Disability benefits Earned income credit, Form 4029. H&rblock Disability insurance payments Earned income credit, Disability insurance payments. H&rblock Disability, permanent and total disability, Permanent and total disability. H&rblock Disabled Child, Permanently and totally disabled. H&rblock Dependent, Disabled dependent working at sheltered workshop. H&rblock Disaster Assistance Act of 1988 Withholding, Federal Payments Disaster relief, Terrorist attack or military action. H&rblock , Disaster relief payments. H&rblock , Disaster relief. H&rblock (see also Terrorist attacks) Cash gifts to victims, Cash gifts. H&rblock Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. H&rblock Unemployment assistance, Types of unemployment compensation. H&rblock Employer's emergency disaster fund, Employer's emergency disaster fund. H&rblock Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses. H&rblock Grants or payments, Disaster relief grants. H&rblock Replacement of lost or destroyed property, Disaster relief. H&rblock Discharge of qualified principal residence indebtedness, Discharges of qualified principal residence indebtedness. H&rblock , Adjusted Basis Disclosure statement, Disclosure statement. H&rblock Discount, bonds and notes issued at, Original Issue Discount (OID) Discounted debt instruments Capital gain or loss, Discounted Debt Instruments Discounts Employee discounts, effect on basis, Bargain purchases. H&rblock Distributions, Eligible rollover distributions. H&rblock (see also Rollovers) Early (see Early withdrawal from deferred interest account) Liquidating distributions, Liquidating Distributions Lump sum (see Lump-sum distributions) Nondividend distributions, Nondividend Distributions Qualified charitable, Qualified charitable distributions (QCD). H&rblock Qualified reservist, Qualified reservist distributions. H&rblock Required minimum distributions, Required distributions. H&rblock , Required distributions. H&rblock , When Must You Withdraw IRA Assets? (Required Minimum Distributions) (see also Individual retirement arrangements (IRAs)) (see also Pensions) Return of capital, Nondividend Distributions District of Columbia First-time homebuyer credit, Decreases to basis. H&rblock Dividends, Dividends and Other Distributions, Form 1099-DIV. H&rblock , More information. H&rblock (see also Form 1099-DIV) Alaska Permanent Fund (see Alaska Permanent Fund dividends) As stock dividends and stock rights, Distributions of Stock and Stock Rights Backup withholding, Backup withholding. H&rblock Beneficiary of estate or trust receiving, Beneficiary of an estate or trust. H&rblock Buying more stock with, Dividends Used to Buy More Stock Defined, Introduction Exempt-interest dividends, Other Distributions Expenses related to, deduction of, Expenses related to dividend income. H&rblock Fees to collect, Fees to Collect Interest and Dividends Foreign income, Reminder Holding period, determination of, Stock dividends. H&rblock Insurance dividends, Dividends on insurance policies. H&rblock Money market funds, Money Market Funds Nominees receiving on behalf of another, Nominees. H&rblock Nondividend distributions, Nondividend Distributions Ordinary dividends, Ordinary Dividends Patronage dividends, Patronage dividends. H&rblock Qualified, Qualified Dividends, Qualified dividends. H&rblock Real estate investment trusts (REITs) paying, Capital Gain Distributions Redemption treated as, Dividend versus sale or trade. H&rblock Reinvestment plans, Dividends Used to Buy More Stock Reporting of, How To Report Dividend Income As interest, Introduction Scrip dividends, Scrip dividends. H&rblock Sold stock, Dividends on stock sold. H&rblock Stockholder debts when canceled as, Stockholder debt. H&rblock Veterans' insurance, Dividends on veterans' insurance. H&rblock Divorced parents, Children of divorced or separated parents (or parents who live apart). H&rblock , Applying this special rule to divorced or separated parents (or parents who live apart). H&rblock Divorced taxpayers, Alimony. H&rblock (see also Alimony) Child and dependent care credit, Child of divorced or separated parents or parents living apart. H&rblock Child custody, Custodial parent and noncustodial parent. H&rblock Definition of divorce instrument for purposes of alimony, Divorce or separation instrument. H&rblock Estimated tax payments, Divorced Taxpayers Filing status, Divorced persons. H&rblock , Divorced persons. H&rblock IRAs, Kay Bailey Hutchison Spousal IRA. H&rblock , Transfers Incident to Divorce Medical and dental expenses of children of, Child of divorced or separated parents. H&rblock Mortgage interest, payment as alimony, Divorced or separated individuals. H&rblock Personal exemption, Divorced or separated spouse. H&rblock Real estate taxes, allocation of, Divorced individuals. H&rblock Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Use of home after divorce, Use of home after divorce. H&rblock Doctors' bills (see Medical and dental expenses) Documentary evidence Recordkeeping requirements, Documentary evidence. H&rblock Domestic help Withholding, Household workers. H&rblock Domestic help, no exemption for, Housekeepers, maids, or servants. H&rblock