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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

How To File 2012 State Taxes

File Taxes 2012Ez 1040 FormEfile TaxesForm 1040nr-ezFiling Tax AmendmentsFree Online State TaxesIncome Tax Forms 20112010 Tax FormsHow To File 2006 Taxes Online FreeHandrblockWww Dfas MilForm1040x2010 Form 1040File Free State Tax ReturnH&r Block Free Taxes2012 H&r Block Tax SoftwareTax Planning Us 2009 TaxesTax Form 1040aFree State Tax ReturnE-file State Taxes FreeIrs AmendmentWww H&rblockNeed To Amend 2010 Tax ReturnHow Can I File 2012 TaxesAmended Tax Return OnlineWww Irs Gov 2011 Tax FormsIrs Gov Freefile ComForm 1040 EsFile 2007 Tax Return FreeIrs Form 1040a Or 1040ezHow To Do An Amended Tax ReturnFree Turbotax For MilitaryIncome Tax Forms 1040Turbotax Military EditionTaxact20112010 Tax ReturnIncome Tax Filing ExtensionHow Do I Ammend My TaxesFree File State TaxFiling Form 1040x Electronically

How To File 2012 State Taxes

How to file 2012 state taxes 19. How to file 2012 state taxes   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. How to file 2012 state taxes Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. How to file 2012 state taxes Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. How to file 2012 state taxes No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. How to file 2012 state taxes Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. How to file 2012 state taxes Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. How to file 2012 state taxes La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. How to file 2012 state taxes Tabla 19-1. How to file 2012 state taxes Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. How to file 2012 state taxes Consulte el texto para más detalles. How to file 2012 state taxes Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. How to file 2012 state taxes Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. How to file 2012 state taxes Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. How to file 2012 state taxes Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. How to file 2012 state taxes Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. How to file 2012 state taxes Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. How to file 2012 state taxes Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. How to file 2012 state taxes Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. How to file 2012 state taxes Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. How to file 2012 state taxes Un plan calificado proporcionado por un empleador. How to file 2012 state taxes Excepciones. How to file 2012 state taxes   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. How to file 2012 state taxes Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. How to file 2012 state taxes Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). How to file 2012 state taxes Plazo razonable. How to file 2012 state taxes   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. How to file 2012 state taxes   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. How to file 2012 state taxes Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. How to file 2012 state taxes   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. How to file 2012 state taxes Período académico. How to file 2012 state taxes   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. How to file 2012 state taxes En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. How to file 2012 state taxes Estudiante que reúne los requisitos. How to file 2012 state taxes   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. How to file 2012 state taxes Matriculado por lo menos a medio tiempo. How to file 2012 state taxes   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. How to file 2012 state taxes   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. How to file 2012 state taxes No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. How to file 2012 state taxes Pariente. How to file 2012 state taxes   No puede deducir intereses sobre un préstamo que obtenga de un pariente. How to file 2012 state taxes Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. How to file 2012 state taxes ); Sus descendientes en línea directa (hijos, nietos, etc. How to file 2012 state taxes ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. How to file 2012 state taxes Plan calificado proporcionado por un empleador. How to file 2012 state taxes   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. How to file 2012 state taxes Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. How to file 2012 state taxes Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. How to file 2012 state taxes Alojamiento y comida. How to file 2012 state taxes Libros, materiales y equipo. How to file 2012 state taxes Otros gastos necesarios (tales como los de transporte). How to file 2012 state taxes Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. How to file 2012 state taxes Institución de enseñanza superior que reúne los requisitos. How to file 2012 state taxes   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. How to file 2012 state taxes Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. How to file 2012 state taxes   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. How to file 2012 state taxes   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. How to file 2012 state taxes   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. How to file 2012 state taxes La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. How to file 2012 state taxes    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. How to file 2012 state taxes Ajustes tributarios a gastos de estudios calificados. How to file 2012 state taxes   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). How to file 2012 state taxes Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. How to file 2012 state taxes Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. How to file 2012 state taxes Costo originario del préstamo. How to file 2012 state taxes   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. How to file 2012 state taxes Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. How to file 2012 state taxes Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. How to file 2012 state taxes Intereses capitalizados. How to file 2012 state taxes    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. How to file 2012 state taxes Intereses sobre líneas de crédito rotativas. How to file 2012 state taxes   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. How to file 2012 state taxes Vea Gastos de Estudios Calificados , anteriormente. How to file 2012 state taxes Intereses sobre préstamos de estudios refinanciados. How to file 2012 state taxes   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. How to file 2012 state taxes Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. How to file 2012 state taxes Pagos de intereses voluntarios. How to file 2012 state taxes   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. How to file 2012 state taxes No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. How to file 2012 state taxes Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. How to file 2012 state taxes Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. How to file 2012 state taxes Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. How to file 2012 state taxes ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. How to file 2012 state taxes Nadie más reclama una exención por usted en su declaración de impuestos. How to file 2012 state taxes Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. How to file 2012 state taxes Usted pagó intereses sobre un préstamo de estudios calificado. How to file 2012 state taxes Intereses pagados por otros. How to file 2012 state taxes   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. How to file 2012 state taxes Vea el capítulo 4 de la Publicación 970, en inglés, para más información. How to file 2012 state taxes No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). How to file 2012 state taxes ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. How to file 2012 state taxes Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). How to file 2012 state taxes No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). How to file 2012 state taxes Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. How to file 2012 state taxes ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. How to file 2012 state taxes No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. How to file 2012 state taxes Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. How to file 2012 state taxes Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. How to file 2012 state taxes Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. How to file 2012 state taxes Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. How to file 2012 state taxes No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. How to file 2012 state taxes Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. How to file 2012 state taxes Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. How to file 2012 state taxes Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). How to file 2012 state taxes No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. How to file 2012 state taxes Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . How to file 2012 state taxes La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. How to file 2012 state taxes La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. How to file 2012 state taxes Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. How to file 2012 state taxes Puede escoger la opción que le proporcione una cantidad de impuesto menor. How to file 2012 state taxes Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. How to file 2012 state taxes ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. How to file 2012 state taxes Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. How to file 2012 state taxes Pagó los gastos de estudios de un estudiante que reúne los requisitos. How to file 2012 state taxes El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. How to file 2012 state taxes Los gastos de estudios calificados se definen bajo Gastos que Califican . How to file 2012 state taxes La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . How to file 2012 state taxes Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. How to file 2012 state taxes Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. How to file 2012 state taxes Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. How to file 2012 state taxes Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). How to file 2012 state taxes Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. How to file 2012 state taxes Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. How to file 2012 state taxes S. How to file 2012 state taxes Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. How to file 2012 state taxes Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. How to file 2012 state taxes No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. How to file 2012 state taxes Tabla 19-2. How to file 2012 state taxes Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. How to file 2012 state taxes Consulte el texto de este capítulo para más detalles. How to file 2012 state taxes Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. How to file 2012 state taxes ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. How to file 2012 state taxes ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. How to file 2012 state taxes ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. How to file 2012 state taxes Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. How to file 2012 state taxes La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. How to file 2012 state taxes Pagos hechos con fondos de un préstamo. How to file 2012 state taxes   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. How to file 2012 state taxes Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. How to file 2012 state taxes Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. How to file 2012 state taxes Estudiante que se da de baja de su(s) clase(s). How to file 2012 state taxes   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). How to file 2012 state taxes Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. How to file 2012 state taxes Institución de educación que reúne los requisitos. How to file 2012 state taxes   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. How to file 2012 state taxes Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. How to file 2012 state taxes La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. How to file 2012 state taxes   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. How to file 2012 state taxes Período académico. How to file 2012 state taxes   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. How to file 2012 state taxes Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. How to file 2012 state taxes Gastos relacionados. How to file 2012 state taxes   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. How to file 2012 state taxes Gastos pagados por adelantado. How to file 2012 state taxes   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. How to file 2012 state taxes Vea Período académico, anteriormente. How to file 2012 state taxes Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. How to file 2012 state taxes No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. How to file 2012 state taxes No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. How to file 2012 state taxes Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. How to file 2012 state taxes Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). How to file 2012 state taxes En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. How to file 2012 state taxes Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. How to file 2012 state taxes Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). How to file 2012 state taxes Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. How to file 2012 state taxes Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. How to file 2012 state taxes Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. How to file 2012 state taxes Ajustes a los gastos de estudios calificados. How to file 2012 state taxes   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. How to file 2012 state taxes El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. How to file 2012 state taxes Ayuda económica para los estudios exenta de impuestos. How to file 2012 state taxes   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. How to file 2012 state taxes Vea Período académico, anteriormente. How to file 2012 state taxes   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. How to file 2012 state taxes   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. How to file 2012 state taxes Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. How to file 2012 state taxes La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. How to file 2012 state taxes    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. How to file 2012 state taxes Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. How to file 2012 state taxes   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. How to file 2012 state taxes La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). How to file 2012 state taxes   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. How to file 2012 state taxes Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. How to file 2012 state taxes Reembolsos. How to file 2012 state taxes   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. How to file 2012 state taxes Vea el capítulo 6 de la Publicación 970 para obtener más información. How to file 2012 state taxes Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. How to file 2012 state taxes Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. How to file 2012 state taxes Reembolsos recibidos en 2013. How to file 2012 state taxes   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. How to file 2012 state taxes Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. How to file 2012 state taxes   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. How to file 2012 state taxes Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. How to file 2012 state taxes   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. How to file 2012 state taxes Vea el capítulo 6 de la Publicación 970, en inglés, para más información. How to file 2012 state taxes Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. How to file 2012 state taxes   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). How to file 2012 state taxes Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. How to file 2012 state taxes Cantidades que no reducen los gastos de estudios calificados. How to file 2012 state taxes   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. How to file 2012 state taxes   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. How to file 2012 state taxes El uso de dinero no se restringe. How to file 2012 state taxes Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. How to file 2012 state taxes Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. How to file 2012 state taxes Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. How to file 2012 state taxes   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. How to file 2012 state taxes No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. How to file 2012 state taxes Cuotas íntegras o en conjunto. How to file 2012 state taxes   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. How to file 2012 state taxes Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. How to file 2012 state taxes La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. How to file 2012 state taxes Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. How to file 2012 state taxes Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). How to file 2012 state taxes Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. How to file 2012 state taxes La Tabla 19-3 resume quién puede reclamar la deducción. How to file 2012 state taxes Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. How to file 2012 state taxes Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. How to file 2012 state taxes Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. How to file 2012 state taxes Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. How to file 2012 state taxes Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. How to file 2012 state taxes Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. How to file 2012 state taxes Tabla 19-3. How to file 2012 state taxes Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. How to file 2012 state taxes Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. How to file 2012 state taxes SI su dependiente es un estudiante que reúne los requisitos y usted . How to file 2012 state taxes . How to file 2012 state taxes . How to file 2012 state taxes Y. How to file 2012 state taxes . How to file 2012 state taxes . How to file 2012 state taxes ENTONCES. How to file 2012 state taxes . How to file 2012 state taxes . How to file 2012 state taxes reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. How to file 2012 state taxes Su dependiente no puede tomar la deducción. How to file 2012 state taxes reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. How to file 2012 state taxes no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. How to file 2012 state taxes no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. How to file 2012 state taxes Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. How to file 2012 state taxes Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. How to file 2012 state taxes No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. How to file 2012 state taxes Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). How to file 2012 state taxes Educador que reúne los requisitos. How to file 2012 state taxes   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. How to file 2012 state taxes Gastos calificados. How to file 2012 state taxes   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. How to file 2012 state taxes Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. How to file 2012 state taxes Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. How to file 2012 state taxes Un gasto no tiene que ser obligatorio para considerarse necesario. How to file 2012 state taxes   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. How to file 2012 state taxes   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. How to file 2012 state taxes S. How to file 2012 state taxes Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. How to file 2012 state taxes Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. How to file 2012 state taxes Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. How to file 2012 state taxes Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. How to file 2012 state taxes Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. How to file 2012 state taxes Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. How to file 2012 state taxes Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. How to file 2012 state taxes Prev  Up  Next   Home   More Online Publications
Español

The How To File 2012 State Taxes

How to file 2012 state taxes 4. How to file 2012 state taxes   Farm Business Expenses Table of Contents What's New for 2013 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible ExpensesReasonable allocation. How to file 2012 state taxes Prepaid Farm Supplies Prepaid Livestock Feed Labor Hired Repairs and Maintenance Interest Breeding Fees Fertilizer and Lime Taxes Insurance Rent and Leasing Depreciation Business Use of Your Home Truck and Car Expenses Travel Expenses Marketing Quota Penalties Tenant House Expenses Items Purchased for Resale Other Expenses Domestic Production Activities Deduction Capital ExpensesForestation and reforestation costs. How to file 2012 state taxes Nondeductible ExpensesPersonal, Living, and Family Expenses Other Nondeductible Items Losses From Operating a FarmAt-Risk Limits Passive Activity Limits Excess Farm Loss Limit Not-for-Profit FarmingUsing the presumption later. How to file 2012 state taxes Category 1. How to file 2012 state taxes Category 2. How to file 2012 state taxes Category 3. How to file 2012 state taxes What's New for 2013 Standard mileage rate. How to file 2012 state taxes  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. How to file 2012 state taxes 5 cents. How to file 2012 state taxes See Truck and Car Expenses , later. How to file 2012 state taxes Simplified method for business use of home deduction. How to file 2012 state taxes  The IRS now provides a simplified method to determine your expenses for business use of your home. How to file 2012 state taxes For more information, see Schedule C (Form 1040), Part II, and its instructions. How to file 2012 state taxes Introduction You can generally deduct the current costs of operating your farm. How to file 2012 state taxes Current costs are expenses you do not have to capitalize or include in inventory costs. How to file 2012 state taxes However, your deduction for the cost of livestock feed and certain other supplies may be limited. How to file 2012 state taxes If you have an operating loss, you may not be able to deduct all of it. How to file 2012 state taxes Topics - This chapter discusses: Deductible expenses Domestic production activities deduction Capital expenses Nondeductible expenses Losses from operating a farm Not-for-profit farming Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home 925 Passive Activity and At-Risk Rules 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch F (Form 1040) Profit or Loss From Farming 1045 Application for Tentative Refund 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8903 Domestic Production Activities Deduction See chapter 16 for information about getting publications and forms. How to file 2012 state taxes Deductible Expenses The ordinary and necessary costs of operating a farm for profit are deductible business expenses. How to file 2012 state taxes “Ordinary” means what most farmers do and “necessary” means what is useful and helpful in farming. How to file 2012 state taxes Schedule F, Part II, lists some common farm expenses that are typically deductible. How to file 2012 state taxes This chapter discusses many of these expenses, as well as others not listed on Schedule F. How to file 2012 state taxes Reimbursed expenses. How to file 2012 state taxes   If the reimbursement is received in the same year that the expense is claimed, reduce the expense by the amount of the reimbursement. How to file 2012 state taxes If the reimbursement is received in a year after the expense is claimed, include the reimbursement amount in income. How to file 2012 state taxes See Refund or reimbursement under Income From Other Sources in chapter 3. How to file 2012 state taxes Personal and business expenses. How to file 2012 state taxes   Some expenses you pay during the tax year may be part personal and part business. How to file 2012 state taxes These may include expenses for gasoline, oil, fuel, water, rent, electricity, telephone, automobile upkeep, repairs, insurance, interest, and taxes. How to file 2012 state taxes   You must allocate these mixed expenses between their business and personal parts. How to file 2012 state taxes Generally, the personal part of these expenses is not deductible. How to file 2012 state taxes The business portion of the expenses is deductible on Schedule F. How to file 2012 state taxes Example. How to file 2012 state taxes You paid $1,500 for electricity during the tax year. How to file 2012 state taxes You used 1/3 of the electricity for personal purposes and 2/3 for farming. How to file 2012 state taxes Under these circumstances, you can deduct $1,000 (2/3 of $1,500) of your electricity expense as a farm business expense. How to file 2012 state taxes Reasonable allocation. How to file 2012 state taxes   It is not always easy to determine the business and nonbusiness parts of an expense. How to file 2012 state taxes There is no method of allocation that applies to all mixed expenses. How to file 2012 state taxes Any reasonable allocation is acceptable. How to file 2012 state taxes What is reasonable depends on the circumstances in each case. How to file 2012 state taxes Prepaid Farm Supplies Prepaid farm supplies include the following items if paid for during the year. How to file 2012 state taxes Feed, seed, fertilizer, and similar farm supplies not used or consumed during the year, but not including farm supplies that you would have consumed during the year if not for a fire, storm, flood, other casualty, disease, or drought. How to file 2012 state taxes Poultry (including egg-laying hens and baby chicks) bought for use (or for both use and resale) in your farm business. How to file 2012 state taxes However, include only the amount that would be deductible in the following year if you had capitalized the cost and deducted it ratably over the lesser of 12 months or the useful life of the poultry. How to file 2012 state taxes Poultry bought for resale and not resold during the year. How to file 2012 state taxes Deduction limit. How to file 2012 state taxes   If you use the cash method of accounting to report your income and expenses, your deduction for prepaid farm supplies in the year you pay for them may be limited to 50% of your other deductible farm expenses for the year (all Schedule F deductions except prepaid farm supplies). How to file 2012 state taxes This limit does not apply if you meet one of the exceptions described later. How to file 2012 state taxes See Chapter 2 for a discussion of the cash method of accounting. How to file 2012 state taxes   If the limit applies, you can deduct the excess cost of farm supplies other than poultry in the year you use or consume the supplies. How to file 2012 state taxes The excess cost of poultry bought for use (or for both use and resale) in your farm business is deductible in the year following the year you pay for it. How to file 2012 state taxes The excess cost of poultry bought for resale is deductible in the year you sell or otherwise dispose of that poultry. How to file 2012 state taxes Example. How to file 2012 state taxes You may not qualify for the exception described next. How to file 2012 state taxes During 2013, you bought fertilizer ($4,000), feed ($1,000), and seed ($500) for use on your farm in the following year. How to file 2012 state taxes Your total prepaid farm supplies expense for 2013 is $5,500. How to file 2012 state taxes Your other deductible farm expenses totaled $10,000 for 2013. How to file 2012 state taxes Therefore, your deduction for prepaid farm supplies cannot be more than $5,000 (50% of $10,000) for 2013. How to file 2012 state taxes The excess prepaid farm supplies expense of $500 ($5,500 − $5,000) is deductible in a later tax year when you use or consume the supplies. How to file 2012 state taxes Exceptions. How to file 2012 state taxes   This limit on the deduction for prepaid farm supplies expense does not apply if you are a farm-related taxpayer and either of the following apply. How to file 2012 state taxes Your prepaid farm supplies expense is more than 50% of your other deductible farm expenses because of a change in business operations caused by unusual circumstances. How to file 2012 state taxes Your total prepaid farm supplies expense for the preceding 3 tax years is less than 50% of your total other deductible farm expenses for those 3 tax years. How to file 2012 state taxes   You are a farm-related taxpayer if any of the following tests apply. How to file 2012 state taxes Your main home is on a farm. How to file 2012 state taxes Your principal business is farming. How to file 2012 state taxes A member of your family meets (1) or (2). How to file 2012 state taxes For this purpose, your family includes your brothers and sisters, half-brothers and half-sisters, spouse, parents, grandparents, children, grandchildren, and aunts and uncles and their children. How to file 2012 state taxes    Whether or not the deduction limit for prepaid farm supplies applies, your expenses for prepaid livestock feed may be subject to the rules for advance payment of livestock feed, discussed next. How to file 2012 state taxes Prepaid Livestock Feed If you report your income and expenses under the cash method of accounting, you cannot deduct in the year paid the cost of feed your livestock will consume in a later year unless you meet all the following tests. How to file 2012 state taxes The payment is for the purchase of feed rather than a deposit. How to file 2012 state taxes The prepayment has a business purpose and is not merely for tax avoidance. How to file 2012 state taxes Deducting the prepayment does not result in a material distortion of your income. How to file 2012 state taxes If you meet all three tests, you can deduct the prepaid feed, subject to the limit on prepaid farm supplies discussed earlier. How to file 2012 state taxes If you fail any of these tests, you can deduct the prepaid feed only in the year it is consumed. How to file 2012 state taxes This rule does not apply to the purchase of commodity futures contracts. How to file 2012 state taxes Payment for the purchase of feed. How to file 2012 state taxes   Whether a payment is for the purchase of feed or a deposit depends on the facts and circumstances in each case. How to file 2012 state taxes It is for the purchase of feed if you can show you made it under a binding commitment to accept delivery of a specific quantity of feed at a fixed price and you are not entitled, by contract or business custom, to a refund or repurchase. How to file 2012 state taxes   The following are some factors that show a payment is a deposit rather than for the purchase of feed. How to file 2012 state taxes The absence of specific quantity terms. How to file 2012 state taxes The right to a refund of any unapplied payment credit at the end of the contract. How to file 2012 state taxes The seller's treatment of the payment as a deposit. How to file 2012 state taxes The right to substitute other goods or products for those specified in the contract. How to file 2012 state taxes   A provision permitting substitution of ingredients to vary the particular feed mix to meet your livestock's current diet requirements will not suggest a deposit. How to file 2012 state taxes Further, a price adjustment to reflect market value at the date of delivery is not, by itself, proof of a deposit. How to file 2012 state taxes Business purpose. How to file 2012 state taxes   The prepayment has a business purpose only if you have a reasonable expectation of receiving some business benefit from prepaying the cost of livestock feed. How to file 2012 state taxes The following are some examples of business benefits. How to file 2012 state taxes Fixing maximum prices and securing an assured feed supply. How to file 2012 state taxes Securing preferential treatment in anticipation of a feed shortage. How to file 2012 state taxes   Other factors considered in determining the existence of a business purpose are whether the prepayment was a condition imposed by the seller and whether that condition was meaningful. How to file 2012 state taxes No material distortion of income. How to file 2012 state taxes   The following are some factors considered in determining whether deducting prepaid livestock feed materially distorts income. How to file 2012 state taxes Your customary business practice in conducting your livestock operations. How to file 2012 state taxes The expense in relation to past purchases. How to file 2012 state taxes The time of year you made the purchase. How to file 2012 state taxes The expense in relation to your income for the year. How to file 2012 state taxes Labor Hired You can deduct reasonable wages paid for regular farm labor, piecework, contract labor, and other forms of labor hired to perform your farming operations. How to file 2012 state taxes You can pay wages in cash or in noncash items such as inventory, capital assets, or assets used in your business. How to file 2012 state taxes The cost of boarding farm labor is a deductible labor cost. How to file 2012 state taxes Other deductible costs you incur for farm labor include health insurance, workers' compensation insurance, and other benefits. How to file 2012 state taxes If you must withhold social security, Medicare, and income taxes from your employees' cash wages, you can still deduct the full amount of wages before withholding. How to file 2012 state taxes See chapter 13 for more information on employment taxes. How to file 2012 state taxes Also, deduct the employer's share of the social security and Medicare taxes you must pay on your employees' wages as a farm business expense on Schedule F, line 29. How to file 2012 state taxes See Taxes , later. How to file 2012 state taxes Property for services. How to file 2012 state taxes   If you transfer property to an employee in payment for services, you can deduct as wages paid the fair market value of the property on the date of transfer. How to file 2012 state taxes If the employee pays you anything for the property, deduct as wages the fair market value of the property minus the payment by the employee for the property. How to file 2012 state taxes   Treat the wages deducted as an amount received for the property. How to file 2012 state taxes You may have a gain or loss to report if the property's adjusted basis on the date of transfer is different from its fair market value. How to file 2012 state taxes Any gain or loss has the same character the exchanged property had in your hands. How to file 2012 state taxes For more information, see chapter 8. How to file 2012 state taxes Child as an employee. How to file 2012 state taxes   You can deduct reasonable wages or other compensation you pay to your child for doing farmwork if a true employer-employee relationship exists between you and your child. How to file 2012 state taxes Include these wages in the child's income. How to file 2012 state taxes The child may have to file an income tax return. How to file 2012 state taxes These wages may also be subject to social security and Medicare taxes if your child is age 18 or older. How to file 2012 state taxes For more information, see Family Employees in chapter 13. How to file 2012 state taxes    A Form W-2, Wage and Tax Statement, should be issued to the child employee. How to file 2012 state taxes   The fact that your child spends the wages to buy clothes or other necessities you normally furnish does not prevent you from deducting your child's wages as a farm expense. How to file 2012 state taxes The amount of wages paid to the child could cause a loss of the dependency exemption depending on how the child uses the money. How to file 2012 state taxes Spouse as an employee. How to file 2012 state taxes   You can deduct reasonable wages or other compensation you pay to your spouse if a true employer-employee relationship exists between you and your spouse. How to file 2012 state taxes Wages you pay to your spouse are subject to social security and Medicare taxes. How to file 2012 state taxes For more information, see Family Employees in chapter 13. How to file 2012 state taxes Nondeductible Pay You cannot deduct wages paid for certain household work, construction work, and maintenance of your home. How to file 2012 state taxes However, those wages may be subject to the employment taxes discussed in chapter 13. How to file 2012 state taxes Household workers. How to file 2012 state taxes   Do not deduct amounts paid to persons engaged in household work, except to the extent their services are used in boarding or otherwise caring for farm laborers. How to file 2012 state taxes Construction labor. How to file 2012 state taxes   Do not deduct wages paid to hired help for the construction of new buildings or other improvements. How to file 2012 state taxes These wages are part of the cost of the building or other improvement. How to file 2012 state taxes You must capitalize them. How to file 2012 state taxes Maintaining your home. How to file 2012 state taxes   If your farm employee spends time maintaining or repairing your home, the wages and employment taxes you pay for that work are nondeductible personal expenses. How to file 2012 state taxes For example, assume you have a farm employee for the entire tax year and the employee spends 5% of the time maintaining your home. How to file 2012 state taxes The employee devotes the remaining time to work on your farm. How to file 2012 state taxes You cannot deduct 5% of the wages and employment taxes you pay for that employee. How to file 2012 state taxes Employment Credits Reduce your deduction for wages by the amount of any employment credits you claim such as the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans (Form 5884-C). How to file 2012 state taxes Repairs and Maintenance You can deduct most expenses for the repair and maintenance of your farm property. How to file 2012 state taxes Common items of repair and maintenance are repainting, replacing shingles and supports on farm buildings, and periodic or routine maintenance of trucks, tractors, and other farm machinery. How to file 2012 state taxes However, repairs to, or overhauls of, depreciable property that substantially prolong the life of the property, increase its value, or adapt it to a different use are capital expenses. How to file 2012 state taxes For example, if you repair the barn roof, the cost is deductible. How to file 2012 state taxes But if you replace the roof, it is a capital expense. How to file 2012 state taxes For more information, see Capital Expenses , later. How to file 2012 state taxes Interest You can deduct as a farm business expense interest paid on farm mortgages and other obligations you incur in your farm business. How to file 2012 state taxes Cash method. How to file 2012 state taxes   If you use the cash method of accounting, you can generally deduct interest paid during the tax year. How to file 2012 state taxes You cannot deduct interest paid with funds received from the original lender through another loan, advance, or other arrangement similar to a loan. How to file 2012 state taxes You can, however, deduct the interest when you start making payments on the new loan. How to file 2012 state taxes For more information, see Cash Method in chapter 2. How to file 2012 state taxes Prepaid interest. How to file 2012 state taxes   Under the cash method, you generally cannot deduct any interest paid before the year it is due. How to file 2012 state taxes Interest paid in advance may be deducted only in the tax year in which it is due. How to file 2012 state taxes Accrual method. How to file 2012 state taxes   If you use an accrual method of accounting, you can deduct only interest that has accrued during the tax year. How to file 2012 state taxes However, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. How to file 2012 state taxes For more information, see Accrual Method in chapter 2. How to file 2012 state taxes Allocation of interest. How to file 2012 state taxes   If you use the proceeds of a loan for more than one purpose, you must allocate the interest on that loan to each use. How to file 2012 state taxes Allocate the interest to the following categories. How to file 2012 state taxes Trade or business interest. How to file 2012 state taxes Passive activity interest. How to file 2012 state taxes Investment interest. How to file 2012 state taxes Portfolio interest. How to file 2012 state taxes Personal interest. How to file 2012 state taxes   You generally allocate interest on a loan the same way you allocate the loan proceeds. How to file 2012 state taxes You allocate loan proceeds by tracing disbursements to specific uses. How to file 2012 state taxes The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. How to file 2012 state taxes Secured loan. How to file 2012 state taxes   The allocation of loan proceeds and the related interest is generally not affected by the use of property that secures the loan. How to file 2012 state taxes Example. How to file 2012 state taxes You secure a loan with property used in your farming business. How to file 2012 state taxes You use the loan proceeds to buy a car for personal use. How to file 2012 state taxes You must allocate interest expense on the loan to personal use (purchase of the car) even though the loan is secured by farm business property. How to file 2012 state taxes If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. How to file 2012 state taxes The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. How to file 2012 state taxes However, you can choose to treat the loan as not secured by your home. How to file 2012 state taxes For more information, see Publication 936. How to file 2012 state taxes Allocation period. How to file 2012 state taxes   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. How to file 2012 state taxes The date the loan is repaid. How to file 2012 state taxes The date the loan is reallocated to another use. How to file 2012 state taxes More information. How to file 2012 state taxes   For more information on interest, see chapter 4 in Publication 535. How to file 2012 state taxes Breeding Fees You can deduct breeding fees as a farm business expense. How to file 2012 state taxes However, if you use an accrual method of accounting, you must capitalize breeding fees and allocate them to the cost basis of the calf, foal, etc. How to file 2012 state taxes For more information on who must use an accrual method of accounting, see Accrual Method Required under Accounting Methods in chapter 2. How to file 2012 state taxes Fertilizer and Lime You can deduct in the year paid or incurred the cost of fertilizer, lime, and other materials applied to farmland to enrich, neutralize, or condition it if the benefits last a year or less. How to file 2012 state taxes You can also deduct the cost of applying these materials in the year you pay or incur it. How to file 2012 state taxes However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these materials. How to file 2012 state taxes If the benefits of the fertilizer, lime, or other materials last substantially more than one year, you generally capitalize their cost and deduct a part each year the benefits last. How to file 2012 state taxes However, you can choose to deduct these expenses in the year paid or incurred. How to file 2012 state taxes If you make this choice, you will need IRS approval if you later decide to capitalize the cost of previously deducted items. How to file 2012 state taxes If you sell farmland on which fertilizer or lime has been applied and if the selling price of the land includes part or all of the cost of the fertilizer or lime, you report the sale amount attributable to the fertilizer or lime as ordinary income. How to file 2012 state taxes Farmland, for these purposes, is land used for producing crops, fruits, or other agricultural products or for sustaining livestock. How to file 2012 state taxes It does not include land you have never used previously for producing crops or sustaining livestock. How to file 2012 state taxes You cannot deduct initial land preparation costs. How to file 2012 state taxes (See Capital Expenses , later. How to file 2012 state taxes ) Include government payments you receive for lime or fertilizer in income. How to file 2012 state taxes See Fertilizer and Lime under Agricultural Program Payments in chapter 3. How to file 2012 state taxes Taxes You can deduct as a farm business expense the real estate and personal property taxes on farm business assets, such as farm equipment, animals, farmland, and farm buildings. How to file 2012 state taxes You also can deduct the social security and Medicare taxes you pay to match the amount withheld from the wages of farm employees and any federal unemployment tax you pay. How to file 2012 state taxes For information on employment taxes, see chapter 13. How to file 2012 state taxes Allocation of taxes. How to file 2012 state taxes   The taxes on the part of your farm you use as your home (including the furnishings and surrounding land not used for farming) are nonbusiness taxes. How to file 2012 state taxes You may be able to deduct these nonbusiness taxes as itemized deductions on Schedule A (Form 1040). How to file 2012 state taxes To determine the nonbusiness part, allocate the taxes between the farm assets and nonbusiness assets. How to file 2012 state taxes The allocation can be done from the assessed valuations. How to file 2012 state taxes If your tax statement does not show the assessed valuations, you can usually get them from the tax assessor. How to file 2012 state taxes State and local general sales taxes. How to file 2012 state taxes   State and local general sales taxes on nondepreciable farm business expense items are deductible as part of the cost of those items. How to file 2012 state taxes Include state and local general sales taxes imposed on the purchase of assets for use in your farm business as part of the cost you depreciate. How to file 2012 state taxes Also treat the taxes as part of your cost if they are imposed on the seller and passed on to you. How to file 2012 state taxes State and federal income taxes. How to file 2012 state taxes   Individuals cannot deduct state and federal income taxes as farm business expenses. How to file 2012 state taxes Individuals can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). How to file 2012 state taxes However, you cannot deduct federal income tax. How to file 2012 state taxes Highway use tax. How to file 2012 state taxes   You can deduct the federal use tax on highway motor vehicles paid on a truck or truck tractor used in your farm business. How to file 2012 state taxes For information on the tax itself, including information on vehicles subject to the tax, see the Instructions for Form 2290, Heavy Highway Vehicle Use Tax Return. How to file 2012 state taxes Self-employment tax deduction. How to file 2012 state taxes   You can deduct as an adjustment to income on Form 1040 one-half of your self-employment tax in figuring your adjusted gross income. How to file 2012 state taxes For more information, see chapter 12. How to file 2012 state taxes Insurance You generally can deduct the ordinary and necessary cost of insurance for your farm business as a business expense. How to file 2012 state taxes This includes premiums you pay for the following types of insurance. How to file 2012 state taxes Fire, storm, crop, theft, liability, and other insurance on farm business assets. How to file 2012 state taxes Health and accident insurance on your farm employees. How to file 2012 state taxes Workers' compensation insurance set by state law that covers any claims for job-related bodily injuries or diseases suffered by employees on your farm, regardless of fault. How to file 2012 state taxes Business interruption insurance. How to file 2012 state taxes State unemployment insurance on your farm employees (deductible as taxes if they are considered taxes under state law). How to file 2012 state taxes Insurance to secure a loan. How to file 2012 state taxes   If you take out a policy on your life or on the life of another person with a financial interest in your farm business to get or protect a business loan, you cannot deduct the premiums as a business expense. How to file 2012 state taxes In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. How to file 2012 state taxes Advance premiums. How to file 2012 state taxes   Deduct advance payments of insurance premiums only in the year to which they apply, regardless of your accounting method. How to file 2012 state taxes Example. How to file 2012 state taxes On June 28, 2013, you paid a premium of $3,000 for fire insurance on your barn. How to file 2012 state taxes The policy will cover a period of 3 years beginning on July 1, 2013. How to file 2012 state taxes Only the cost for the 6 months in 2013 is deductible as an insurance expense on your 2013 calendar year tax return. How to file 2012 state taxes Deduct $500, which is the premium for 6 months of the 36-month premium period, or 6/36 of $3,000. How to file 2012 state taxes In both 2014 and 2015, deduct $1,000 (12/36 of $3,000). How to file 2012 state taxes Deduct the remaining $500 in 2016. How to file 2012 state taxes Had the policy been effective on January 1, 2013, the deductible expense would have been $1,000 for each of the years 2013, 2014, and 2015, based on one-third of the premium used each year. How to file 2012 state taxes Business interruption insurance. How to file 2012 state taxes   Use and occupancy and business interruption insurance premiums are deductible as a business expense. How to file 2012 state taxes This insurance pays for lost profits if your business is shut down due to a fire or other cause. How to file 2012 state taxes Report any proceeds in full on Schedule F, Part I. How to file 2012 state taxes Self-employed health insurance deduction. How to file 2012 state taxes   If you are self-employed, you can deduct as an adjustment to income on Form 1040 your payments for medical, dental, and qualified long-term care insurance coverage for yourself, your spouse, and your dependents when figuring your adjusted gross income on your Form 1040. How to file 2012 state taxes Effective March 30, 2010, the insurance can also cover any child of yours under age 27 at the end of 2013, even if the child was not your dependent. How to file 2012 state taxes Generally, this deduction cannot be more than the net profit from the business under which the plan was established. How to file 2012 state taxes   If you or your spouse is also an employee of another person, you cannot take the deduction for any month in which you are eligible to participate in a subsidized health plan maintained by your employer or your spouse's employer. How to file 2012 state taxes   Generally, use the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Form 1040 to figure your deduction. How to file 2012 state taxes Include the remaining part of the insurance payment in your medical expenses on Schedule A (Form 1040) if you itemize your deductions. How to file 2012 state taxes   For more information, see Deductible Premiums in Publication 535, chapter 6. How to file 2012 state taxes Rent and Leasing If you lease property for use in your farm business, you can generally deduct the rent you pay on Schedule F. How to file 2012 state taxes However, you cannot deduct rent you pay in crop shares if you deduct the cost of raising the crops as farm expenses. How to file 2012 state taxes Advance payments. How to file 2012 state taxes   Deduct advance payments of rent only in the year to which they apply, regardless of your accounting method. How to file 2012 state taxes Farm home. How to file 2012 state taxes   If you rent a farm, do not deduct the part of the rental expense that represents the fair rental value of the farm home in which you live. How to file 2012 state taxes Lease or Purchase If you lease a farm building or equipment, you must determine whether or not the agreement must be treated as a conditional sales contract rather than a lease. How to file 2012 state taxes If the agreement is treated as a conditional sales contract, the payments under the agreement (so far as they do not represent interest or other charges) are payments for the purchase of the property. How to file 2012 state taxes Do not deduct these payments as rent, but capitalize the cost of the property and recover this cost through depreciation. How to file 2012 state taxes Conditional sales contract. How to file 2012 state taxes   Whether an agreement is a conditional sales contract depends on the intent of the parties. How to file 2012 state taxes Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. How to file 2012 state taxes No single test, or special combination of tests, always applies. How to file 2012 state taxes However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. How to file 2012 state taxes The agreement applies part of each payment toward an equity interest you will receive. How to file 2012 state taxes You get title to the property after you make a stated amount of required payments. How to file 2012 state taxes The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. How to file 2012 state taxes You pay much more than the current fair rental value of the property. How to file 2012 state taxes You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. How to file 2012 state taxes Determine this value when you make the agreement. How to file 2012 state taxes You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. How to file 2012 state taxes The agreement designates part of the payments as interest, or part of the payments can be easily recognized as interest. How to file 2012 state taxes Example. How to file 2012 state taxes You lease new farm equipment from a dealer who both sells and leases. How to file 2012 state taxes The agreement includes an option to purchase the equipment for a specified price. How to file 2012 state taxes The lease payments and the specified option price equal the sales price of the equipment plus interest. How to file 2012 state taxes Under the agreement, you are responsible for maintenance, repairs, and the risk of loss. How to file 2012 state taxes For federal income tax purposes, the agreement is a conditional sales contract. How to file 2012 state taxes You cannot deduct any of the lease payments as rent. How to file 2012 state taxes You can deduct interest, repairs, insurance, depreciation, and other expenses related to the equipment. How to file 2012 state taxes Motor vehicle leases. How to file 2012 state taxes   Special rules apply to lease agreements that have a terminal rental adjustment clause. How to file 2012 state taxes In general, this is a clause that provides for a rental price adjustment based on the amount the lessor is able to sell the vehicle for at the end of the lease. How to file 2012 state taxes If your rental agreement contains a terminal rental adjustment clause, treat the agreement as a lease if the agreement otherwise qualifies as a lease. How to file 2012 state taxes For more information, see Internal Revenue Code (IRC) section 7701(h). How to file 2012 state taxes Leveraged leases. How to file 2012 state taxes   Special rules apply to leveraged leases of equipment (arrangements in which the equipment is financed by a nonrecourse loan from a third party). How to file 2012 state taxes For more information, see Publication 535, chapter 3, and Revenue Procedure 2001-28, which begins on page 1156 of Internal Revenue Bulletin 2001-19 at www. How to file 2012 state taxes irs. How to file 2012 state taxes gov/pub/irs-irbs/irb01-19. How to file 2012 state taxes pdf. How to file 2012 state taxes Depreciation If property you acquire to use in your farm business is expected to last more than one year, you generally cannot deduct the entire cost in the year you acquire it. How to file 2012 state taxes You must recover the cost over more than one year and deduct part of it each year on Schedule F as depreciation or amortization. How to file 2012 state taxes However, you can choose to deduct part or all of the cost of certain qualifying property, up to a limit, as a section 179 deduction in the year you place it in service. How to file 2012 state taxes Depreciation, amortization, and the section 179 deduction are discussed in chapter 7. How to file 2012 state taxes Business Use of Your Home You can deduct expenses for the business use of your home if you use part of your home exclusively and regularly: As the principal place of business for any trade or business in which you engage, As a place to meet or deal with patients, clients, or customers in the normal course of your trade or business, or In connection with your trade or business, if you are using a separate structure that is not attached to your home. How to file 2012 state taxes Your home office will qualify as your principal place of business for deducting expenses for its use if you meet both of the following requirements. How to file 2012 state taxes You use it exclusively and regularly for the administrative or management activities of your trade or business. How to file 2012 state taxes You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. How to file 2012 state taxes If you use part of your home for business, you must divide the expenses of operating your home between personal and business use. How to file 2012 state taxes The IRS now provides a simplified method to determine your expenses for business use of your home. How to file 2012 state taxes For more information, see Schedule C (Form 1040), Part II, and its instructions. How to file 2012 state taxes Deduction limit. How to file 2012 state taxes   If your gross income from farming equals or exceeds your total farm expenses (including expenses for the business use of your home), you can deduct all your farm expenses. How to file 2012 state taxes But if your gross income from farming is less than your total farm expenses, your deduction for certain expenses for the use of your home in your farming business is limited. How to file 2012 state taxes   Your deduction for otherwise nondeductible expenses, such as utilities, insurance, and depreciation (with depreciation taken last), cannot be more than the gross income from farming minus the following expenses. How to file 2012 state taxes The business part of expenses you could deduct even if you did not use your home for business (such as deductible mortgage interest, real estate taxes, and casualty and theft losses). How to file 2012 state taxes Farm expenses other than expenses that relate to the use of your home. How to file 2012 state taxes If you are self-employed, do not include your deduction for half of your self-employment tax. How to file 2012 state taxes   Deductions over the current year's limit can be carried over to your next tax year. How to file 2012 state taxes They are subject to the deduction limit for the next tax year. How to file 2012 state taxes More information. How to file 2012 state taxes   See Publication 587 for more information on deducting expenses for the business use of your home. How to file 2012 state taxes Telephone expense. How to file 2012 state taxes   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. How to file 2012 state taxes However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for your farm business, are deductible business expenses. How to file 2012 state taxes Cell phone charges for calls relating to your farm business are deductible. How to file 2012 state taxes If the cell phone you use for your farm business is part of a family cell phone plan, you must allocate and deduct only the portion of the charges attributable to farm business calls. How to file 2012 state taxes Truck and Car Expenses You can deduct the actual cost of operating a truck or car in your farm business. How to file 2012 state taxes Only expenses for business use are deductible. How to file 2012 state taxes These include such items as gasoline, oil, repairs, license tags, insurance, and depreciation (subject to certain limits). How to file 2012 state taxes Standard mileage rate. How to file 2012 state taxes   Instead of using actual costs, under certain conditions you can use the standard mileage rate. How to file 2012 state taxes The standard mileage rate for each mile of business use is 56. How to file 2012 state taxes 5 cents in 2013. How to file 2012 state taxes You can use the standard mileage rate for a car or a light truck, such as a van, pickup, or panel truck, you own or lease. How to file 2012 state taxes   You cannot use the standard mileage rate if you operate five or more cars or light trucks at the same time. How to file 2012 state taxes You are not using five or more vehicles at the same time if you alternate using the vehicles (you use them at different times) for business. How to file 2012 state taxes Example. How to file 2012 state taxes Maureen owns a car and four pickup trucks that are used in her farm business. How to file 2012 state taxes Her farm employees use the trucks and she uses the car for business. How to file 2012 state taxes Maureen cannot use the standard mileage rate for the car or the trucks. How to file 2012 state taxes This is because all five vehicles are used in Maureen's farm business at the same time. How to file 2012 state taxes She must use actual expenses for all vehicles. How to file 2012 state taxes Business use percentage. How to file 2012 state taxes   You can claim 75% of the use of a car or light truck as business use without any records if you used the vehicle during most of the normal business day directly in connection with the business of farming. How to file 2012 state taxes You choose this method of substantiating business use the first year the vehicle is placed in service. How to file 2012 state taxes Once you make this choice, you may not change to another method later. How to file 2012 state taxes The following are uses directly connected with the business of farming. How to file 2012 state taxes Cultivating land. How to file 2012 state taxes Raising or harvesting any agricultural or horticultural commodity. How to file 2012 state taxes Raising, shearing, feeding, caring for, training, and managing animals. How to file 2012 state taxes Driving to the feed or supply store. How to file 2012 state taxes   If you keep records and they show that your business use was more than 75%, you may be able to claim more. How to file 2012 state taxes See Recordkeeping requirements under Travel Expenses , below. How to file 2012 state taxes More information. How to file 2012 state taxes   For more information on deductible truck and car expenses, see Publication 463, chapter 4. How to file 2012 state taxes If you pay your employees for the use of their truck or car in your farm business, see Reimbursements to employees under Travel Expenses next. How to file 2012 state taxes Travel Expenses You can deduct ordinary and necessary expenses you incur while traveling away from home for your farm business. How to file 2012 state taxes You cannot deduct lavish or extravagant expenses. How to file 2012 state taxes Usually, the location of your farm business is considered your home for tax purposes. How to file 2012 state taxes You are traveling away from home if: Your duties require you to be absent from your farm substantially longer than an ordinary work day, and You need to get sleep or rest to meet the demands of your work while away from home. How to file 2012 state taxes If you meet these requirements and can prove the time, place, and business purpose of your travel, you can deduct your ordinary and necessary travel expenses. How to file 2012 state taxes The following are some types of deductible travel expenses. How to file 2012 state taxes Air, rail, bus, and car transportation; Meals and lodging; Dry cleaning and laundry; Telephone and fax; Transportation between your hotel and your temporary work or business meeting location; and Tips for any of the above expenses. How to file 2012 state taxes Meals. How to file 2012 state taxes   You ordinarily can deduct only 50% of your business-related meals expenses. How to file 2012 state taxes You can deduct the cost of your meals while traveling on business only if your business trip is overnight or long enough to require you to stop for sleep or rest to properly perform your duties. How to file 2012 state taxes You cannot deduct any of the cost of meals if it is not necessary for you to rest, unless you meet the rules for business entertainment. How to file 2012 state taxes For information on entertainment expenses, see Publication 463, chapter 2. How to file 2012 state taxes   The expense of a meal includes amounts you spend for your food, beverages, taxes, and tips relating to the meal. How to file 2012 state taxes You can deduct either 50% of the actual cost or 50% of a standard meal allowance that covers your daily meal and incidental expenses. How to file 2012 state taxes    Recordkeeping requirements. How to file 2012 state taxes You must be able to prove your deductions for travel by adequate records or other evidence that will support your own statement. How to file 2012 state taxes Estimates or approximations do not qualify as proof of an expense. How to file 2012 state taxes   You should keep an account book or similar record, supported by adequate documentary evidence, such as receipts, that together support each element of an expense. How to file 2012 state taxes Generally, it is best to record the expense and get documentation of it at the time you pay it. How to file 2012 state taxes   If you choose to deduct a standard meal allowance rather than the actual expense, you do not have to keep records to prove amounts spent for meals and incidental items. How to file 2012 state taxes However, you must still keep records to prove the actual amount of other travel expenses, and the time, place, and business purpose of your travel. How to file 2012 state taxes More information. How to file 2012 state taxes   For detailed information on travel, recordkeeping, and the standard meal allowance, see Publication 463. How to file 2012 state taxes Reimbursements to employees. How to file 2012 state taxes   You generally can deduct reimbursements you pay to your employees for travel and transportation expenses they incur in the conduct of your business. How to file 2012 state taxes Employees may be reimbursed under an accountable or nonaccountable plan. How to file 2012 state taxes Under an accountable plan, the employee must provide evidence of expenses. How to file 2012 state taxes Under a nonaccountable plan, no evidence of expenses is required. How to file 2012 state taxes If you reimburse expenses under an accountable plan, deduct them as travel and transportation expenses. How to file 2012 state taxes If you reimburse expenses under a nonaccountable plan, you must report the reimbursements as wages on Form W-2 and deduct them as wages. How to file 2012 state taxes For more information, see Publication 535, chapter 11. How to file 2012 state taxes Marketing Quota Penalties You can deduct as Other expenses on Schedule F penalties you pay for marketing crops in excess of farm marketing quotas. How to file 2012 state taxes However, if you do not pay the penalty, but instead the purchaser of your crop deducts it from the payment to you, include in gross income only the amount you received. How to file 2012 state taxes Do not take a separate deduction for the penalty. How to file 2012 state taxes Tenant House Expenses You can deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses. How to file 2012 state taxes These costs include repairs, utilities, insurance, and depreciation. How to file 2012 state taxes The value of a dwelling you furnish to a tenant under the usual tenant-farmer arrangement is not taxable income to the tenant. How to file 2012 state taxes Items Purchased for Resale If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale. How to file 2012 state taxes You deduct this cost, including freight charges for transporting the livestock to the farm, on Schedule F, Part I. How to file 2012 state taxes However, see Chickens, seeds, and young plants , below. How to file 2012 state taxes Example. How to file 2012 state taxes You use the cash method of accounting. How to file 2012 state taxes In 2013, you buy 50 steers you will sell in 2014. How to file 2012 state taxes You cannot deduct the cost of the steers on your 2013 tax return. How to file 2012 state taxes You deduct their cost on your 2014 Schedule F, Part I. How to file 2012 state taxes Chickens, seeds, and young plants. How to file 2012 state taxes   If you are a cash method farmer, you can deduct the cost of hens and baby chicks bought for commercial egg production, or for raising and resale, as an expense on Schedule F, Part I, in the year paid if you do it consistently and it does not distort income. How to file 2012 state taxes You also can deduct the cost of seeds and young plants bought for further development and cultivation before sale as an expense on Schedule F, Part I, when paid if you do this consistently and you do not figure your income on the crop method. How to file 2012 state taxes However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these items. How to file 2012 state taxes   If you deduct the cost of chickens, seeds, and young plants as an expense, report their entire selling price as income. How to file 2012 state taxes You cannot also deduct the cost from the selling price. How to file 2012 state taxes   You cannot deduct the cost of seeds and young plants for Christmas trees and timber as an expense. How to file 2012 state taxes Deduct the cost of these seeds and plants through depletion allowances. How to file 2012 state taxes For more information, see Depletion in chapter 7. How to file 2012 state taxes   The cost of chickens and plants used as food for your family is never deductible. How to file 2012 state taxes   Capitalize the cost of plants with a preproductive period of more than 2 years, unless you can elect out of the uniform capitalization rules. How to file 2012 state taxes These rules are discussed in chapter 6. How to file 2012 state taxes Example. How to file 2012 state taxes You use the cash method of accounting. How to file 2012 state taxes In 2013, you buy 500 baby chicks to raise for resale in 2014. How to file 2012 state taxes You also buy 50 bushels of winter wheat seed in 2013 that you sow in the fall. How to file 2012 state taxes Unless you previously adopted the method of deducting these costs in the year you sell the chickens or the harvested crops, you can deduct the cost of both the baby chicks and the seed wheat in 2013. How to file 2012 state taxes Election to use crop method. How to file 2012 state taxes   If you use the crop method, you can delay deducting the cost of seeds and young plants until you sell them. How to file 2012 state taxes You must get IRS approval to use the crop method. How to file 2012 state taxes If you follow this method, deduct the cost from the selling price to determine your profit on Schedule F, Part I. How to file 2012 state taxes For more information, see Crop method under Special Methods of Accounting in chapter 2. How to file 2012 state taxes Choosing a method. How to file 2012 state taxes   You can adopt either the crop method or the cash method for deducting the cost in the first year you buy egg-laying hens, pullets, chicks, or seeds and young plants. How to file 2012 state taxes   Although you must use the same method for egg-laying hens, pullets, and chicks, you can use a different method for seeds and young plants. How to file 2012 state taxes Once you use a particular method for any of these items, use it for those items until you get IRS approval to change your method. How to file 2012 state taxes For more information, see Change in Accounting Method in chapter 2. How to file 2012 state taxes Other Expenses The following list, while not all-inclusive, shows some expenses you can deduct as other farm expenses on Schedule F, Part II. How to file 2012 state taxes These expenses must be for business purposes and  (1) paid, if you use the cash method of accounting, or (2) incurred, if you use an accrual method of accounting. How to file 2012 state taxes Accounting fees. How to file 2012 state taxes Advertising. How to file 2012 state taxes Business travel and meals. How to file 2012 state taxes Commissions. How to file 2012 state taxes Consultant fees. How to file 2012 state taxes Crop scouting expenses. How to file 2012 state taxes Dues to cooperatives. How to file 2012 state taxes Educational expenses (to maintain and improve farming skills). How to file 2012 state taxes Farm-related attorney fees. How to file 2012 state taxes Farm magazines. How to file 2012 state taxes Ginning. How to file 2012 state taxes Insect sprays and dusts. How to file 2012 state taxes Litter and bedding. How to file 2012 state taxes Livestock fees. How to file 2012 state taxes Marketing fees. How to file 2012 state taxes Milk assessment. How to file 2012 state taxes Recordkeeping expenses. How to file 2012 state taxes Service charges. How to file 2012 state taxes Small tools expected to last one year or less. How to file 2012 state taxes Stamps and stationery. How to file 2012 state taxes Subscriptions to professional, technical, and trade journals that deal with farming. How to file 2012 state taxes Tying material and containers. How to file 2012 state taxes Loan expenses. How to file 2012 state taxes   You prorate and deduct loan expenses, such as legal fees and commissions, you pay to get a farm loan over the term of the loan. How to file 2012 state taxes Tax preparation fees. How to file 2012 state taxes   You can deduct as a farm business expense on Schedule F the cost of preparing that part of your tax return relating to your farm business. How to file 2012 state taxes You may be able to deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. How to file 2012 state taxes   You also can deduct on Schedule F the amount you pay or incur in resolving tax issues relating to your farm business. How to file 2012 state taxes Domestic Production Activities Deduction Generally, you are allowed a deduction for income attributable to domestic production activities. How to file 2012 state taxes You can deduct 9% of the lesser of your qualified production activities income or your taxable income (adjusted gross income for individuals) for the tax year. How to file 2012 state taxes Your deduction is limited to 50% of the Form W-2 wages you paid for the tax year that are properly allocable to domestic production gross receipts. How to file 2012 state taxes For this purpose, Form W-2 wages do not include noncash wages paid for agricultural labor, such as compensation paid as commodities. How to file 2012 state taxes Also, excluded from Form W-2 wages are wages paid to your children under age 18 and nontaxable fringe benefits. How to file 2012 state taxes Income from cooperatives. How to file 2012 state taxes   If you receive a patronage dividend or qualified per-unit retain allocation from a cooperative which is engaged in the manufacturing, production, growth, or extraction in whole or in significant part of any agricultural or horticultural product or in the marketing of agricultural or horticultural products, your income from the cooperative can give rise to a domestic production activities deduction. How to file 2012 state taxes This deduction amount is reported on Form 1099-PATR, box 6. How to file 2012 state taxes In order for you to qualify for the deduction, the cooperative is required to send you a written notice designating your portion of the domestic production activities deduction. How to file 2012 state taxes More information. How to file 2012 state taxes   For more information on the domestic production activities deduction, see the Instructions for Form 8903. How to file 2012 state taxes Capital Expenses A capital expense is a payment, or a debt incurred, for the acquisition, improvement, or restoration of an asset that is expected to last more than one year. How to file 2012 state taxes You include the expense in the basis of the asset. How to file 2012 state taxes Uniform capitalization rules also require you to capitalize or include in inventory certain other expenses. How to file 2012 state taxes See chapters 2  and 6. How to file 2012 state taxes Capital expenses are generally not deductible, but they may be depreciable. How to file 2012 state taxes However, you can elect to deduct certain capital expenses, such as the following. How to file 2012 state taxes The cost of fertilizer, lime, etc. How to file 2012 state taxes (See Fertilizer and Lime under Deductible Expenses , earlier. How to file 2012 state taxes ) Soil and water conservation expenses. How to file 2012 state taxes (See chapter 5. How to file 2012 state taxes ) The cost of property that qualifies for a deduction under section 179. How to file 2012 state taxes (See chapter 7. How to file 2012 state taxes ) Business start-up costs. How to file 2012 state taxes (See Business start-up and organizational costs , later. How to file 2012 state taxes ) Forestation and reforestation costs. How to file 2012 state taxes (See Forestation and reforestation costs , later. How to file 2012 state taxes ) Generally, the costs of the following items, including the costs of material, hired labor, and installation, are capital expenses. How to file 2012 state taxes Land and buildings. How to file 2012 state taxes Additions, alterations, and improvements to buildings, etc. How to file 2012 state taxes Cars and trucks. How to file 2012 state taxes Equipment and machinery. How to file 2012 state taxes Fences. How to file 2012 state taxes Draft, breeding, sport, and dairy livestock. How to file 2012 state taxes Repairs to machinery, equipment, trucks, and cars that prolong their useful life, increase their value, or adapt them to different use. How to file 2012 state taxes Water wells, including drilling and equipping costs. How to file 2012 state taxes Land preparation costs, such as: Clearing land for farming, Leveling and conditioning land, Purchasing and planting trees, Building irrigation canals and ditches, Laying irrigation pipes, Installing drain tile, Modifying channels or streams, Constructing earthen, masonry, or concrete tanks, reservoirs, or dams, and Building roads. How to file 2012 state taxes Business start-up and organizational costs. How to file 2012 state taxes   You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. How to file 2012 state taxes The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. How to file 2012 state taxes Any remaining costs must be amortized. How to file 2012 state taxes See chapter 7. How to file 2012 state taxes   You elect to deduct start-up or organizational costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. How to file 2012 state taxes However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). How to file 2012 state taxes Clearly indicate the election on your amended return and write “Filed pursuant to section 301. How to file 2012 state taxes 9100-2” at the top of the amended return. How to file 2012 state taxes File the amended return at the same address you filed the original return. How to file 2012 state taxes The election applies when figuring taxable income for the current tax year and all subsequent years. How to file 2012 state taxes   You can choose to forgo the election by clearly electing to capitalize your start-up or organizational costs on an income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. How to file 2012 state taxes For more information about start-up and organizational costs, see chapter 7. How to file 2012 state taxes Crop production expenses. How to file 2012 state taxes   The uniform capitalization rules generally require you to capitalize expenses incurred in producing plants. How to file 2012 state taxes However, except for certain taxpayers required to use an accrual method of accounting, the capitalization rules do not apply to plants with a preproductive period of 2 years or less. How to file 2012 state taxes For more information, see Uniform Capitalization Rules in chapter 6. How to file 2012 state taxes Timber. How to file 2012 state taxes   Capitalize the cost of acquiring timber. How to file 2012 state taxes Do not include the cost of land in the cost of the timber. How to file 2012 state taxes You must generally capitalize direct costs incurred in reforestation. How to file 2012 state taxes However, you can elect to deduct some forestation and reforestation costs. How to file 2012 state taxes See Forestation and reforestation costs next. How to file 2012 state taxes Reforestation costs include the following. How to file 2012 state taxes Site preparation costs, such as: Girdling, Applying herbicide, Baiting rodents, and Clearing and controlling brush. How to file 2012 state taxes The cost of seed or seedlings. How to file 2012 state taxes Labor and tool expenses. How to file 2012 state taxes Depreciation on equipment used in planting or seeding. How to file 2012 state taxes Costs incurred in replanting to replace lost seedlings. How to file 2012 state taxes You can choose to capitalize certain indirect reforestation costs. How to file 2012 state taxes   These capitalized amounts are your basis for the timber. How to file 2012 state taxes Recover your basis when you sell the timber or take depletion allowances when you cut the timber. How to file 2012 state taxes See Depletion in chapter 7. How to file 2012 state taxes Forestation and reforestation costs. How to file 2012 state taxes   You can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. How to file 2012 state taxes Any remaining costs can be amortized over an 84-month period. How to file 2012 state taxes See chapter 7. How to file 2012 state taxes If you make an election to deduct or amortize qualifying reforestation costs, you should create and maintain separate timber accounts for each qualified timber property. How to file 2012 state taxes The accounts should include all reforestation treatments and the dates they were applied. How to file 2012 state taxes Any qualified timber property that is subject to the deduction or amortization election cannot be included in any other timber account for which depletion is allowed. How to file 2012 state taxes The timber account should be maintained until the timber is disposed of. How to file 2012 state taxes For more information, see Notice 2006-47, 2006-20 I. How to file 2012 state taxes R. How to file 2012 state taxes B. How to file 2012 state taxes 892, available at  www. How to file 2012 state taxes irs. How to file 2012 state taxes gov/irb/2006-20_IRB/ar11. How to file 2012 state taxes html. How to file 2012 state taxes   You elect to deduct forestation and reforestation costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the expenses were paid or incurred. How to file 2012 state taxes If you are filing Form T (Timber), Forest Activities Schedule, also complete Form T (Timber), Part IV. How to file 2012 state taxes If you are not filing Form T (Timber), attach a statement to your return with the following information. How to file 2012 state taxes The unique stand identification numbers. How to file 2012 state taxes The total number of acres reforested during the tax year. How to file 2012 state taxes The nature of the reforestation treatments. How to file 2012 state taxes The total amounts of the qualified reforestation expenditures eligible to be amortized or deducted. How to file 2012 state taxes   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). How to file 2012 state taxes Clearly indicate the election on your amended return and write “Filed pursuant to section 301. How to file 2012 state taxes 9100-2” at the top of the amended return. How to file 2012 state taxes File the amended return at the same address you filed the original return. How to file 2012 state taxes    For more information about forestation and reforestation costs, see chapter 7. How to file 2012 state taxes    For more information about timber, see Agriculture Handbook Number 731, Forest Landowners' Guide to the Federal Income Tax. How to file 2012 state taxes You can view this publication on the Internet at  www. How to file 2012 state taxes fs. How to file 2012 state taxes fed. How to file 2012 state taxes us/publications. How to file 2012 state taxes Christmas tree cultivation. How to file 2012 state taxes   If you are in the business of planting and cultivating Christmas trees to sell when they are more than 6 years old, capitalize expenses incurred for planting and stump culture and add them to the basis of the standing trees. How to file 2012 state taxes Recover these expenses as part of your adjusted basis when you sell the standing trees or as depletion allowances when you cut the trees. How to file 2012 state taxes For more information, see Timber Depletion under Depletion in chapter 7. How to file 2012 state taxes   You can deduct as business expenses the costs incurred for shearing and basal pruning of these trees. How to file 2012 state taxes Expenses incurred for silvicultural practices, such as weeding or cleaning, and noncommercial thinning are also deductible as business expenses. How to file 2012 state taxes   Capitalize the cost of land improvements, such as road grading, ditching, and fire breaks, that have a useful life beyond the tax year. How to file 2012 state taxes If the improvements do not have a determinable useful life, add their cost to the basis of the land. How to file 2012 state taxes The cost is recovered when you sell or otherwise dispose of it. How to file 2012 state taxes If the improvements have a determinable useful life, recover their cost through depreciation. How to file 2012 state taxes Capitalize the cost of equipment and other depreciable assets, such as culverts and fences, to the extent you do not use them in planting Christmas trees. How to file 2012 state taxes Recover these costs through depreciation. How to file 2012 state taxes Nondeductible Expenses You cannot deduct personal expenses and certain other items on your tax return even if they relate to your farm. How to file 2012 state taxes Personal, Living, and Family Expenses You cannot deduct certain personal, living, and family expenses as business expenses. How to file 2012 state taxes These include rent and insurance premiums paid on property used as your home, life insurance premiums on yourself or your family, the cost of maintaining cars, trucks, or horses for personal use, allowances to minor children, attorneys' fees and legal expenses incurred in personal matters, and household expenses. How to file 2012 state taxes Likewise, the cost of purchasing or raising produce or livestock consumed by you or your family is not deductible. How to file 2012 state taxes Other Nondeductible Items You cannot deduct the following items on your tax return. How to file 2012 state taxes Loss of growing plants, produce, and crops. How to file 2012 state taxes   Losses of plants, produce, and crops raised for sale are generally not deductible. How to file 2012 state taxes However, you may have a deductible loss on plants with a preproductive period of more than 2 years. How to file 2012 state taxes See chapter 11 for more information. How to file 2012 state taxes Repayment of loans. How to file 2012 state taxes   You cannot deduct the repayment of a loan. How to file 2012 state taxes However, if you use the proceeds of a loan for farm business expenses, you can deduct the interest on the loan. How to file 2012 state taxes See Interest , earlier. How to file 2012 state taxes Estate, inheritance, legacy, succession, and gift taxes. How to file 2012 state taxes   You cannot deduct estate, inheritance, legacy, succession, and gift taxes. How to file 2012 state taxes Loss of livestock. How to file 2012 state taxes   You cannot deduct as a loss the value of raised livestock that die if you deducted the cost of raising them as an expense. How to file 2012 state taxes Losses from sales or exchanges between related persons. How to file 2012 state taxes   You cannot deduct losses from sales or exchanges of property between you and certain related persons, including your spouse, brother, sister, ancestor, or lineal descendant. How to file 2012 state taxes For more information, see chapter 2 of Publication 544, Sales and Other Dispositions of Assets. How to file 2012 state taxes Cost of raising unharvested crops. How to file 2012 state taxes   You cannot deduct the cost of raising unharvested crops sold with land owned more than one year if you sell both at the same time and to the same person. How to file 2012 state taxes Add these costs to the basis of the land to determine the gain or loss on the sale. How to file 2012 state taxes For more information, see Section 1231 Gains and Losses in chapter 9. How to file 2012 state taxes Cost of unharvested crops bought with land. How to file 2012 state taxes   Capitalize the purchase price of land, including the cost allocable to unharvested crops. How to file 2012 state taxes You cannot deduct the cost of the crops at the time of purchase. How to file 2012 state taxes However, you can deduct this cost in figuring net profit or loss in the tax year you sell the crops. How to file 2012 state taxes Cost related to gifts. How to file 2012 state taxes   You cannot deduct costs related to your gifts of agricultural products or property held for sale in the ordinary course of your business. How to file 2012 state taxes The costs are not deductible in the year of the gift or any later year. How to file 2012 state taxes For example, you cannot deduct the cost of raising cattle or the cost of planting and raising unharvested wheat on parcels of land given as a gift to your children. How to file 2012 state taxes Club dues and membership fees. How to file 2012 state taxes   Generally, you cannot deduct amounts you pay or incur for membership in any club organized for business, pleasure, recreation, or any other social purpose. How to file 2012 state taxes This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. How to file 2012 state taxes Exception. How to file 2012 state taxes   The following organizations will not be treated as a club organized for business, pleasure, recreation, or other social purposes, unless one of its main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. How to file 2012 state taxes Boards of trade. How to file 2012 state taxes Business leagues. How to file 2012 state taxes Chambers of commerce. How to file 2012 state taxes Civic or public service organizations. How to file 2012 state taxes Professional associations. How to file 2012 state taxes Trade associations. How to file 2012 state taxes Real estate boards. How to file 2012 state taxes Fines and penalties. How to file 2012 state taxes   You cannot deduct fines and penalties, except penalties for exceeding marketing quotas, discussed earlier. How to file 2012 state taxes Losses From Operating a Farm If your deductible farm expenses are more than your farm income, you have a loss from the operation of your farm. How to file 2012 state taxes The amount of the loss you can deduct when figuring your taxable income may be limited. How to file 2012 state taxes To figure your deductible loss, you must apply the following limits. How to file 2012 state taxes The at-risk limits. How to file 2012 state taxes The passive activity limits. How to file 2012 state taxes The following discussions explain these limits. How to file 2012 state taxes If your deductible loss after applying these limits is more than your other income for the year, you may have a net operating loss. How to file 2012 state taxes See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. How to file 2012 state taxes If you do not carry on your farming activity to make a profit, your loss deduction may be limited by the not-for-profit rules. How to file 2012 state taxes See Not-for-Profit Farming, later. How to file 2012 state taxes At-Risk Limits The at-risk rules limit your deduction for losses from most business or income-producing activities, including farming. How to file 2012 state taxes These rules limit the losses you can deduct when figuring your taxable income. How to file 2012 state taxes The deductible loss from an activity is limited to the amount you have at risk in the activity. How to file 2012 state taxes You are at risk in any activity for: The money and adjusted basis of property you contribute to the activity, and Amounts you borrow for use in the activity if: You are personally liable for repayment, or You pledge property (other than property used in the activity) as security for the loan. How to file 2012 state taxes You are not at risk, however, for amounts you borrow for use in a farming activity from a person who has an interest in the activity (other than as a creditor) or a person related to someone (other than you) having such an interest. How to file 2012 state taxes For more information, see Publication 925. How to file 2012 state taxes Passive Activity Limits A passive activity is generally any activity involving the conduct of any trade or business in which you do not materially participate. How to file 2012 state taxes Generally, a rental activity is a passive activity. How to file 2012 state taxes If you have a passive activity, special rules limit the loss you can deduct in the tax year. How to file 2012 state taxes You generally can deduct losses from passive activities only up to income from passive activities. How to file 2012 state taxes Credits are similarly limited. How to file 2012 state taxes For more information, see Publication 925. How to file 2012 state taxes Excess Farm Loss Limit For tax years beginning after 2009, excess farm losses (defined below) are not deductible if you received certain applicable subsidies. How to file 2012 state taxes This limit applies to any farming businesses, other than a C corporation, that received a direct or counter-cyclical payment (or any payment in lieu of such payments) under title I of the Food, Conservation, and Energy Act of 2008, or from a Commodity Credit Corporation loan. How to file 2012 state taxes Your farming losses are limited to the greater of: $300,000 ($150,000 for a married person filing a separate return), or The total net farm income for the prior five tax years. How to file 2012 state taxes Farming losses from casualty losses or losses by reason of disease or drought are disregarded for purposes of figuring this limitation. How to file 2012 state taxes Also, the limitation on farm losses should be applied before the passive activity loss rules are applied. How to file 2012 state taxes For more details, see IRC section 461(j). How to file 2012 state taxes Excess farm loss. How to file 2012 state taxes   Generally, an excess farm loss is the amount of your farming loss that exceeds the amount of the limitation (as described above). How to file 2012 state taxes This loss can be determined by taking the excess of: The total deductions for the tax year from your farming businesses, over The total gross income or gain for the tax year from your farming businesses, plus the greater of: $300,000 ($150,000 for a married person filing a separate return), or The excess (if any) of the total gross income or gain from your farming businesses for the prior five tax years over the total deductions from your farming businesses for the prior five tax years. How to file 2012 state taxes   Excess farm losses that are disallowed can be carried forward to the next tax year and treated as a deduction from that year. How to file 2012 state taxes Not-for-Profit Farming If you operate a farm for profit, you can deduct all the ordinary and necessary expenses of carrying on the business of farming on Schedule F. How to file 2012 state taxes However, if you do not carry on your farming activity, or other activity you engage or invest in, to make a profit, you report the income from the activity on Form 1040, line 21, and you can deduct expenses of carrying on the activity only if you itemize your deductions on Schedule A (Form 1040). How to file 2012 state taxes Also, there is a limit on the deductions you can take. How to file 2012 state taxes You cannot use a loss from that activity to offset income from other activities. How to file 2012 state taxes Activities you do as a hobby, or mainly for sport or recreation, come under this limit. How to file 2012 state taxes An investment activity intended only to produce tax losses for the investors also comes under this limit. How to file 2012 state taxes The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. How to file 2012 state taxes It does not apply to corporations other than S corporations. How to file 2012 state taxes In determining whether you are carrying on your farming activity for profit, all the facts are taken into account. How to file 2012 state taxes No one factor alone is decisive. How to file 2012 state taxes Among the factors to consider are whether: You operate your farm in a businesslike manner; The time and effort you spend on farming indicate you intend to make it profitable; You depend on income from farming for your livelihood; Your losses are due to circumstances beyond your control or are normal in the start-up phase of farming; You change your methods of operation in an attempt to improve profitability; You, or your advisors, have the knowledge needed to carry on the farming activity as a successful business; You were successful in making a profit in similar activities in the past; You make a profit from farming in some years and the amount of profit you make; and You can expect to make a future profit from the appreciation of the assets used in the farming activity. How to file 2012 state taxes Presumption of profit. How to file 2012 state taxes   Your farming or other activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. How to file 2012 state taxes Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for profit if they produced a profit in at least 2 of the last 7 tax years, including the current year. How to file 2012 state taxes The activity must be substantially the same for each year within this period. How to file 2012 state taxes You have a profit when the gross income from an activity is more than the deductions for it. How to file 2012 state taxes   If a taxpayer dies before the end of the 5-year (or 7-year) period, the period ends on the date of the taxpayer's death. How to file 2012 state taxes   If your business or investment activity passes this 3- (or 2-) years-of-profit test, presume it is carried on for profit. How to file 2012 state taxes This means the limits discussed here do not apply. How to file 2012 state taxes You can take all your business deductions from the activity on Schedule F, even for the years that you have a loss. How to file 2012 state taxes You can rely on this presumption in every case, unless the IRS shows it is not valid. How to file 2012 state taxes   If you fail the 3- (or 2-) years-of-profit test, you still may be considered to operate your farm for profit by considering the factors listed earlier. How to file 2012 state taxes Using the presumption later. How to file 2012 state taxes   If you are starting out in farming and do not have 3 (or 2) years showing a profit, you may want to take advantage of this presumption later, after you have had the 5 (or 7) years of experience allowed by the test. How to file 2012 state taxes   You can choose to do this by filing Form 5213. How to file 2012 state taxes Filing this form postpones any determination that your farming activity is not carried on for profit until 5 (or 7) years have passed since you first started farming. How to file 2012 state taxes You must file Form 5213 within 3 years after the due date of your return for the year in which you first carried on the activity, or, if earlier, within 60 days after receiving a written notice from the IRS proposing to disallow deductions attributable to the activity. How to file 2012 state taxes   The benefit gained by making this choice is that the IRS will not immediately question whether your farming activity is engaged in for profit. How to file 2012 state taxes Accordingly, it will not limit your deductions. How to file 2012 state taxes Rather, you will gain time to earn a profit in 3 (or 2) out of the first 5 (or 7) years you carry on the farming activity. How to file 2012 state taxes If you show 3 (or 2) years of profit at the end of this period, your deductions are not limited under these rules. How to file 2012 state taxes If you do not have 3 (or 2) years of profit (and cannot otherwise show that you operated your farm for profit), the limit applies retroactively to any year in the 5-year (or 7-year) period with a loss. How to file 2012 state taxes   Filing Form 5213 automatically extends the period of limitations on any year