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

I Need To File My 2012 Taxes

Filing A Tax AmendmentH&r Block Free Online Tax ReturnIrs.gov 1040xHow To File A 2011 Tax Return For FreeTax Forms 1040ezCan I File My 2011 Taxes Online FreeIrs Free Tax FilingTaxes 2008Free Federal And State Tax PreparationFree Tax Software Online2007 Tax Software Free Download2009 Tax FormUnited Way Free Tax PreparationBack Tax HomeLate TaxesFiling TaxesFill 1040xTax Act Online 2009Efile State TaxesEz FormFile 1040ez By PhoneMilitary Tax Calculator1040x Fillable2013 Tax Booklet 1040ezTaxes For College StudentsAmended Tax ReturnCan I File 2012 And 2013 Taxes TogetherBacktaxesIrs ProblemsFillable 1040ez 2012How Amend A Tax Return2012 1040ez FormHow To Fill Out 1040xI Need To File My 2011 Taxes For Free OnlineFree Efile State Taxes2011 Irs Forms 1040State Tax RatesFree Fed And State EfileFreestatetaxact.com2013 Colo State Tax Forms

I Need To File My 2012 Taxes

I need to file my 2012 taxes Publication 3920 - Introductory Material Table of Contents Introduction Useful Items - You may want to see: Introduction This publication explains some of the provisions of the Victims of Terrorism Tax Relief Act of 2001. I need to file my 2012 taxes Under this Act, the federal income tax liability of those killed in the following attacks is forgiven for certain tax years. I need to file my 2012 taxes The April 19, 1995, attack on the Alfred P. I need to file my 2012 taxes Murrah Federal Building (Oklahoma City attack). I need to file my 2012 taxes The September 11, 2001, attacks on the World Trade Center, the Pentagon, and United Airlines Flight 93 in Somerset County, Pennsylvania (September 11 attacks). I need to file my 2012 taxes Terrorist attacks involving anthrax occurring after September 10, 2001, and before January 1, 2002 (anthrax attacks). I need to file my 2012 taxes The Act also provides other types of relief. I need to file my 2012 taxes For example, it provides that the following amounts are not included in income. I need to file my 2012 taxes Payments from the September 11th Victim Compensation Fund of 2001. I need to file my 2012 taxes Qualified disaster relief payments made after September 10, 2001, to cover personal, family, living, or funeral expenses incurred because of a terrorist attack. I need to file my 2012 taxes Certain disability payments received in tax years ending after September 10, 2001, for injuries sustained in a terrorist attack. I need to file my 2012 taxes Death benefits paid by an employer to the survivor of an employee if the benefits are paid because the employee died as a result of a terrorist attack. I need to file my 2012 taxes Debt cancellations made after September 10, 2001, and before January 1, 2002, because an individual died as a result of the September 11 attacks or anthrax attacks. I need to file my 2012 taxes Worksheet A. I need to file my 2012 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. I need to file my 2012 taxes 1       2 Enter the total tax from the decedent's income tax return. I need to file my 2012 taxes See Table 1 on page 5 for the line number for years before 2002. I need to file my 2012 taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. I need to file my 2012 taxes (These taxes are not eligible for forgiveness. I need to file my 2012 taxes )           a Self-employment tax. I need to file my 2012 taxes 3a         b Social security and Medicare tax on tip income not reported to employer. I need to file my 2012 taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). I need to file my 2012 taxes 3c         d Tax on excess accumulation in qualified retirement plans. I need to file my 2012 taxes 3d         e Household employment taxes. I need to file my 2012 taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. I need to file my 2012 taxes 3f         g Tax on golden parachute payments. I need to file my 2012 taxes 3g       4 Add lines 3a through 3g. I need to file my 2012 taxes 4       5 Tax to be forgiven. I need to file my 2012 taxes Subtract line 4 from line 2. I need to file my 2012 taxes 5       Note. I need to file my 2012 taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. I need to file my 2012 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. I need to file my 2012 taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. I need to file my 2012 taxes The IRS will determine the amount to be refunded. I need to file my 2012 taxes Worksheet A. I need to file my 2012 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. I need to file my 2012 taxes 1       2 Enter the total tax from the decedent's income tax return. I need to file my 2012 taxes See Table 1 on page 5 for the line number for years before 2002. I need to file my 2012 taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. I need to file my 2012 taxes (These taxes are not eligible for forgiveness. I need to file my 2012 taxes )           a Self-employment tax. I need to file my 2012 taxes 3a         b Social security and Medicare tax on tip income not reported to employer. I need to file my 2012 taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). I need to file my 2012 taxes 3c         d Tax on excess accumulation in qualified retirement plans. I need to file my 2012 taxes 3d         e Household employment taxes. I need to file my 2012 taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. I need to file my 2012 taxes 3f         g Tax on golden parachute payments. I need to file my 2012 taxes 3g       4 Add lines 3a through 3g. I need to file my 2012 taxes 4       5 Tax to be forgiven. I need to file my 2012 taxes Subtract line 4 from line 2. I need to file my 2012 taxes 5       Note. I need to file my 2012 taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. I need to file my 2012 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. I need to file my 2012 taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. I need to file my 2012 taxes The IRS will determine the amount to be refunded. I need to file my 2012 taxes Useful Items - You may want to see: Publication 547 Casualties, Disasters, and Thefts 559 Survivors, Executors, and Administrators Form (and Instructions) 706 United States Estate (and Generation- Skipping Transfer) Tax Return 1040 U. I need to file my 2012 taxes S. I need to file my 2012 taxes Individual Income Tax Return 1040NR U. I need to file my 2012 taxes S. I need to file my 2012 taxes Nonresident Alien Income Tax Return 1040X Amended U. I need to file my 2012 taxes S. I need to file my 2012 taxes Individual Income Tax Return 1041 U. I need to file my 2012 taxes S. I need to file my 2012 taxes Income Tax Return for Estates and Trusts 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer 4506 Request for Copy or Transcript of Tax Form Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Small Business Tax Workshops and Webinars

Small Business Webinars

The IRS broadcasts webinars on a variety of subjects aimed at educating small business owners on issues affecting them. Online access provides the convenience of viewing webinars whenever and wherever you choose.

Visit Webinars for Small Businesses for a list of upcoming webinars.

Small Business Tax Workshops

Small Business Taxes: The Virtual Workshop is available on online to help new small business owners understand and meet their federal tax obligations.

Small business workshops, designed to help the small business owner understand and fulfill their federal tax responsibilities, are held at various locations throughout the country. Workshops are sponsored and presented by IRS partners specializing in federal tax.

Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. Although most are free, some workshops have fees paid directly to the sponsoring organization, not the IRS.

Workshops in Spanish (Talleres en español)

If you live near a state line, please look for workshops in nearby cities of the bordering state.

Rate the Small Business and Self-Employed Web Site

Page Last Reviewed or Updated: 03-Dec-2013

The I Need To File My 2012 Taxes

I need to file my 2012 taxes Publication 561 - Main Contents Table of Contents What Is Fair Market Value (FMV)?Factors. I need to file my 2012 taxes Stock. I need to file my 2012 taxes Options. I need to file my 2012 taxes Determining Fair Market Value Problems in Determining Fair Market Value Valuation of Various Kinds of PropertyHousehold Goods Used Clothing Jewelry and Gems Paintings, Antiques, and Other Objects of Art Collections Cars, Boats, and Aircraft Inventory Patents Stocks and Bonds Real Estate Interest in a Business Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Certain Life Insurance and Annuity Contracts Partial Interest in Property Not in Trust AppraisalsDeductions of More Than $5,000 Deductions of More Than $500,000 Qualified Appraisal Form 8283 Internal Revenue Service Review of Appraisals Penalty How To Get Tax HelpLow income tax clinics (LITCs). I need to file my 2012 taxes What Is Fair Market Value (FMV)? To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution. I need to file my 2012 taxes Fair market value. I need to file my 2012 taxes   Fair market value (FMV) is the price that property would sell for on the open market. I need to file my 2012 taxes It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. I need to file my 2012 taxes If you put a restriction on the use of property you donate, the FMV must reflect that restriction. I need to file my 2012 taxes Example 1. I need to file my 2012 taxes If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. I need to file my 2012 taxes Usually, such items are worth far less than what you paid for them. I need to file my 2012 taxes Example 2. I need to file my 2012 taxes If you donate land and restrict its use to agricultural purposes, you must value the land at its value for agricultural purposes, even though it would have a higher FMV if it were not restricted. I need to file my 2012 taxes Factors. I need to file my 2012 taxes   In making and supporting the valuation of property, all factors affecting value are relevant and must be considered. I need to file my 2012 taxes These include: The cost or selling price of the item, Sales of comparable properties, Replacement cost, and Opinions of experts. I need to file my 2012 taxes   These factors are discussed later. I need to file my 2012 taxes Also, see Table 1 for a summary of questions to ask as you consider each factor. I need to file my 2012 taxes Date of contribution. I need to file my 2012 taxes   Ordinarily, the date of a contribution is the date that the transfer of the property takes place. I need to file my 2012 taxes Stock. I need to file my 2012 taxes   If you deliver, without any conditions, a properly endorsed stock certificate to a qualified organization or to an agent of the organization, the date of the contribution is the date of delivery. I need to file my 2012 taxes If the certificate is mailed and received through the regular mail, it is the date of mailing. I need to file my 2012 taxes If you deliver the certificate to a bank or broker acting as your agent or to the issuing corporation or its agent, for transfer into the name of the organization, the date of the contribution is the date the stock is transferred on the books of the corporation. I need to file my 2012 taxes Options. I need to file my 2012 taxes   If you grant an option to a qualified organization to buy real property, you have not made a charitable contribution until the organization exercises the option. I need to file my 2012 taxes The amount of the contribution is the FMV of the property on the date the option is exercised minus the exercise price. I need to file my 2012 taxes Example. I need to file my 2012 taxes You grant an option to a local university, which is a qualified organization, to buy real property. I need to file my 2012 taxes Under the option, the university could buy the property at any time during a 2-year period for $40,000. I need to file my 2012 taxes The FMV of the property on the date the option is granted is $50,000. I need to file my 2012 taxes In the following tax year, the university exercises the option. I need to file my 2012 taxes The FMV of the property on the date the option is exercised is $55,000. I need to file my 2012 taxes Therefore, you have made a charitable contribution of $15,000 ($55,000, the FMV, minus $40,000, the exercise price) in the tax year the option is exercised. I need to file my 2012 taxes Determining Fair Market Value Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. I need to file my 2012 taxes Usually it is not that simple. I need to file my 2012 taxes Using such formulas, etc. I need to file my 2012 taxes , seldom results in an acceptable determination of FMV. I need to file my 2012 taxes There is no single formula that always applies when determining the value of property. I need to file my 2012 taxes This is not to say that a valuation is only guesswork. I need to file my 2012 taxes You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity. I need to file my 2012 taxes For example, donated furniture should not be evaluated at some fixed rate such as 15% of the cost of new replacement furniture. I need to file my 2012 taxes When the furniture is contributed, it may be out of style or in poor condition, therefore having little or no market value. I need to file my 2012 taxes On the other hand, it may be an antique, the value of which could not be determined by using any formula. I need to file my 2012 taxes Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. I need to file my 2012 taxes However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution. I need to file my 2012 taxes The cost or selling price is a good indication of the property's value if: The purchase or sale took place close to the valuation date in an open market, The purchase or sale was at “arm's-length,” The buyer and seller knew all relevant facts, The buyer and seller did not have to act, and The market did not change between the date of purchase or sale and the valuation date. I need to file my 2012 taxes Example. I need to file my 2012 taxes Tom Morgan, who is not a dealer in gems, bought an assortment of gems for $5,000 from a promoter. I need to file my 2012 taxes The promoter claimed that the price was “wholesale” even though he and other dealers made similar sales at similar prices to other persons who were not dealers. I need to file my 2012 taxes The promoter said that if Tom kept the gems for more than 1 year and then gave them to charity, Tom could claim a charitable deduction of $15,000, which, according to the promoter, would be the value of the gems at the time of contribution. I need to file my 2012 taxes Tom gave the gems to a qualified charity 13 months after buying them. I need to file my 2012 taxes The selling price for these gems had not changed from the date of purchase to the date he donated them to charity. I need to file my 2012 taxes The best evidence of FMV depends on actual transactions and not on some artificial estimate. I need to file my 2012 taxes The $5,000 charged Tom and others is, therefore, the best evidence of the maximum FMV of the gems. I need to file my 2012 taxes Terms of the purchase or sale. I need to file my 2012 taxes   The terms of the purchase or sale should be considered in determining FMV if they influenced the price. I need to file my 2012 taxes These terms include any restrictions, understandings, or covenants limiting the use or disposition of the property. I need to file my 2012 taxes Rate of increase or decrease in value. I need to file my 2012 taxes   Unless you can show that there were unusual circumstances, it is assumed that the increase or decrease in the value of your donated property from your cost has been at a reasonable rate. I need to file my 2012 taxes For time adjustments, an appraiser may consider published price indexes for information on general price trends, building costs, commodity costs, securities, and works of art sold at auction in arm's-length sales. I need to file my 2012 taxes Example. I need to file my 2012 taxes Bill Brown bought a painting for $10,000. I need to file my 2012 taxes Thirteen months later he gave it to an art museum, claiming a charitable deduction of $15,000 on his tax return. I need to file my 2012 taxes The appraisal of the painting should include information showing that there were unusual circumstances that justify a 50% increase in value for the 13 months Bill held the property. I need to file my 2012 taxes Arm's-length offer. I need to file my 2012 taxes   An arm's-length offer to buy the property close to the valuation date may help to prove its value if the person making the offer was willing and able to complete the transaction. I need to file my 2012 taxes To rely on an offer, you should be able to show proof of the offer and the specific amount to be paid. I need to file my 2012 taxes Offers to buy property other than the donated item will help to determine value if the other property is reasonably similar to the donated property. I need to file my 2012 taxes Sales of Comparable Properties The sales prices of properties similar to the donated property are often important in determining the FMV. I need to file my 2012 taxes The weight to be given to each sale depends on the following. I need to file my 2012 taxes The degree of similarity between the property sold and the donated property. I need to file my 2012 taxes The time of the sale—whether it was close to the valuation date. I need to file my 2012 taxes The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act. I need to file my 2012 taxes The conditions of the market in which the sale was made—whether unusually inflated or deflated. I need to file my 2012 taxes The comparable sales method of valuing real estate is explained later under Valuation of Various Kinds of Property. I need to file my 2012 taxes Example 1. I need to file my 2012 taxes Mary Black, who is not a book dealer, paid a promoter $10,000 for 500 copies of a single edition of a modern translation of the Bible. I need to file my 2012 taxes The promoter had claimed that the price was considerably less than the “retail” price, and gave her a statement that the books had a total retail value of $30,000. I need to file my 2012 taxes The promoter advised her that if she kept the Bibles for more than 1 year and then gave them to a qualified organization, she could claim a charitable deduction for the “retail” price of $30,000. I need to file my 2012 taxes Thirteen months later she gave all the Bibles to a church that she selected from a list provided by the promoter. I need to file my 2012 taxes At the time of her donation, wholesale dealers were selling similar quantities of Bibles to the general public for $10,000. I need to file my 2012 taxes The FMV of the Bibles is $10,000, the price at which similar quantities of Bibles were being sold to others at the time of the contribution. I need to file my 2012 taxes Example 2. I need to file my 2012 taxes The facts are the same as in Example 1, except that the promoter gave Mary Black a second option. I need to file my 2012 taxes The promoter said that if Mary wanted a charitable deduction within 1 year of the purchase, she could buy the 500 Bibles at the “retail” price of $30,000, paying only $10,000 in cash and giving a promissory note for the remaining $20,000. I need to file my 2012 taxes The principal and interest on the note would not be due for 12 years. I need to file my 2012 taxes According to the promoter, Mary could then, within 1 year of the purchase, give the Bibles to a qualified organization and claim the full $30,000 retail price as a charitable contribution. I need to file my 2012 taxes She purchased the Bibles under the second option and, 3 months later, gave them to a church, which will use the books for church purposes. I need to file my 2012 taxes At the time of the gift, the promoter was selling similar lots of Bibles for either $10,000 or $30,000. I need to file my 2012 taxes The difference between the two prices was solely at the discretion of the buyer. I need to file my 2012 taxes The promoter was a willing seller for $10,000. I need to file my 2012 taxes Therefore, the value of Mary's contribution of the Bibles is $10,000, the amount at which similar lots of Bibles could be purchased from the promoter by members of the general public. I need to file my 2012 taxes Replacement Cost The cost of buying, building, or manufacturing property similar to the donated item should be considered in determining FMV. I need to file my 2012 taxes However, there must be a reasonable relationship between the replacement cost and the FMV. I need to file my 2012 taxes The replacement cost is the amount it would cost to replace the donated item on the valuation date. I need to file my 2012 taxes Often there is no relationship between the replacement cost and the FMV. I need to file my 2012 taxes If the supply of the donated property is more or less than the demand for it, the replacement cost becomes less important. I need to file my 2012 taxes To determine the replacement cost of the donated property, find the “estimated replacement cost new. I need to file my 2012 taxes ” Then subtract from this figure an amount for depreciation due to the physical condition and obsolescence of the donated property. I need to file my 2012 taxes You should be able to show the relationship between the depreciated replacement cost and the FMV, as well as how you arrived at the “estimated replacement cost new. I need to file my 2012 taxes ” Opinions of Experts Generally, the weight given to an expert's opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate, depends on the knowledge and competence of the expert and the thoroughness with which the opinion is supported by experience and facts. I need to file my 2012 taxes For an expert's opinion to deserve much weight, the facts must support the opinion. I need to file my 2012 taxes For additional information, see Appraisals, later. I need to file my 2012 taxes Table 1. I need to file my 2012 taxes Factors That Affect FMV IF the factor you are considering is. I need to file my 2012 taxes . I need to file my 2012 taxes . I need to file my 2012 taxes THEN you should ask these questions. I need to file my 2012 taxes . I need to file my 2012 taxes . I need to file my 2012 taxes     cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution? Was any increase or decrease in value, as compared to your cost, at a reasonable rate? Do the terms of purchase or sale limit what can be done with the property? Was there an arm's-length offer to buy the property close to the valuation date?     sales of comparable properties How similar is the property sold to the property donated? How close is the date of sale to the valuation date? Was the sale at arm's-length? What was the condition of the market at the time of sale?     replacement cost What would it cost to replace the donated property? Is there a reasonable relationship between replacement cost and FMV? Is the supply of the donated property more or less than the demand for it?     opinions of experts Is the expert knowledgeable and competent? Is the opinion thorough and supported by facts and experience? Problems in Determining Fair Market Value There are a number of problems in determining the FMV of donated property. I need to file my 2012 taxes Unusual Market Conditions The sale price of the property itself in an arm's-length transaction in an open market is often the best evidence of its value. I need to file my 2012 taxes When you rely on sales of comparable property, the sales must have been made in an open market. I need to file my 2012 taxes If those sales were made in a market that was artificially supported or stimulated so as not to be truly representative, the prices at which the sales were made will not indicate the FMV. I need to file my 2012 taxes For example, liquidation sale prices usually do not indicate the FMV. I need to file my 2012 taxes Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. I need to file my 2012 taxes Selection of Comparable Sales Using sales of comparable property is an important method for determining the FMV of donated property. I need to file my 2012 taxes However, the amount of weight given to a sale depends on the degree of similarity between the comparable and the donated properties. I need to file my 2012 taxes The degree of similarity must be close enough so that this selling price would have been given consideration by reasonably well-informed buyers or sellers of the property. I need to file my 2012 taxes Example. I need to file my 2012 taxes You give a rare, old book to your former college. I need to file my 2012 taxes The book is a third edition and is in poor condition because of a missing back cover. I need to file my 2012 taxes You discover that there was a sale for $300, near the valuation date, of a first edition of the book that was in good condition. I need to file my 2012 taxes Although the contents are the same, the books are not at all similar because of the different editions and their physical condition. I need to file my 2012 taxes Little consideration would be given to the selling price of the $300 property by knowledgeable buyers or sellers. I need to file my 2012 taxes Future Events You may not consider unexpected events happening after your donation of property in making the valuation. I need to file my 2012 taxes You may consider only the facts known at the time of the gift, and those that could be reasonably expected at the time of the gift. I need to file my 2012 taxes Example. I need to file my 2012 taxes You give farmland to a qualified charity. I need to file my 2012 taxes The transfer provides that your mother will have the right to all income and full use of the property for her life. I need to file my 2012 taxes Even though your mother dies 1 week after the transfer, the value of the property on the date it is given is its present value, subject to the life interest as estimated from actuarial tables. I need to file my 2012 taxes You may not take a higher deduction because the charity received full use and possession of the land only 1 week after the transfer. I need to file my 2012 taxes Using Past Events to Predict the Future A common error is to rely too much on past events that do not fairly reflect the probable future earnings and FMV. I need to file my 2012 taxes Example. I need to file my 2012 taxes You give all your rights in a successful patent to your favorite charity. I need to file my 2012 taxes Your records show that before the valuation date there were three stages in the patent's history of earnings. I need to file my 2012 taxes First, there was rapid growth in earnings when the invention was introduced. I need to file my 2012 taxes Then, there was a period of high earnings when the invention was being exploited. I need to file my 2012 taxes Finally, there was a decline in earnings when competing inventions were introduced. I need to file my 2012 taxes The entire history of earnings may be relevant in estimating the future earnings. I need to file my 2012 taxes However, the appraiser must not rely too much on the stage of rapid growth in earnings, or of high earnings. I need to file my 2012 taxes The market conditions at those times do not represent the condition of the market at the valuation date. I need to file my 2012 taxes What is most significant is the trend of decline in earnings up to the valuation date. I need to file my 2012 taxes For more information about donations of patents, see Patents, later. I need to file my 2012 taxes Valuation of Various Kinds of Property This section contains information on determining the FMV of ordinary kinds of donated property. I need to file my 2012 taxes For information on appraisals, see Appraisals, later. I need to file my 2012 taxes Household Goods The FMV of used household goods, such as furniture, appliances, and linens, is usually much lower than the price paid when new. I need to file my 2012 taxes Such used property may have little or no market value because of its worn condition. I need to file my 2012 taxes It may be out of style or no longer useful. I need to file my 2012 taxes You cannot take a deduction for household goods donated after August 17, 2006, unless they are in good used condition or better. I need to file my 2012 taxes A household good that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. I need to file my 2012 taxes See Deduction over $500 for certain clothing or household items, later. I need to file my 2012 taxes If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art. I need to file my 2012 taxes Used Clothing Used clothing and other personal items are usually worth far less than the price you paid for them. I need to file my 2012 taxes Valuation of items of clothing does not lend itself to fixed formulas or methods. I need to file my 2012 taxes The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value. I need to file my 2012 taxes You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. I need to file my 2012 taxes An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. I need to file my 2012 taxes See Deduction over $500 for certain clothing or household items, later. I need to file my 2012 taxes For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return. I need to file my 2012 taxes Jewelry and Gems Jewelry and gems are of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. I need to file my 2012 taxes The appraisal should describe, among other things, the style of the jewelry, the cut and setting of the gem, and whether it is now in fashion. I need to file my 2012 taxes If not in fashion, the possibility of having the property redesigned, recut, or reset should be reported in the appraisal. I need to file my 2012 taxes The stone's coloring, weight, cut, brilliance, and flaws should be reported and analyzed. I need to file my 2012 taxes Sentimental personal value has no effect on FMV. I need to file my 2012 taxes But if the jewelry was owned by a famous person, its value might increase. I need to file my 2012 taxes Paintings, Antiques, and Other Objects of Art Your deduction for contributions of paintings, antiques, and other objects of art, should be supported by a written appraisal from a qualified and reputable source, unless the deduction is $5,000 or less. I need to file my 2012 taxes Examples of information that should be included in appraisals of art objects—paintings in particular—are found later under Qualified Appraisal. I need to file my 2012 taxes Art valued at $20,000 or more. I need to file my 2012 taxes   If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the signed appraisal to your return. I need to file my 2012 taxes For individual objects valued at $20,000 or more, a photograph of a size and quality fully showing the object, preferably an 8 x 10 inch color photograph or a color transparency no smaller than 4 x 5 inches, must be provided upon request. I need to file my 2012 taxes Art valued at $50,000 or more. I need to file my 2012 taxes   If you donate an item of art that has been appraised at $50,000 or more, you can request a Statement of Value for that item from the IRS. I need to file my 2012 taxes You must request the statement before filing the tax return that reports the donation. I need to file my 2012 taxes Your request must include the following. I need to file my 2012 taxes A copy of a qualified appraisal of the item. I need to file my 2012 taxes See Qualified Appraisal, later. I need to file my 2012 taxes A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to your request regarding one, two, or three items of art. I need to file my 2012 taxes Add $250 for each item in excess of three. I need to file my 2012 taxes A completed Form 8283, Section B. I need to file my 2012 taxes The location of the IRS territory that has examination responsibility for your return. I need to file my 2012 taxes If your request lacks essential information, you will be notified and given 30 days to provide the missing information. I need to file my 2012 taxes   Send your request to: Internal Revenue Service Attention: Art Appraisal (C:AP:ART) P. I need to file my 2012 taxes O. I need to file my 2012 taxes Box 27720 McPherson Station Washington, DC 20038 Refunds. I need to file my 2012 taxes   You can withdraw your request for a Statement of Value at any time before it is issued. I need to file my 2012 taxes However, the IRS will not refund the user fee if you do. I need to file my 2012 taxes   If the IRS declines to issue a Statement of Value in the interest of efficient tax administration, the IRS will refund the user fee. I need to file my 2012 taxes Authenticity. I need to file my 2012 taxes   The authenticity of the donated art must be determined by the appraiser. I need to file my 2012 taxes Physical condition. I need to file my 2012 taxes   Important items in the valuation of antiques and art are physical condition and extent of restoration. I need to file my 2012 taxes These have a significant effect on the value and must be fully reported in an appraisal. I need to file my 2012 taxes An antique in damaged condition, or lacking the “original brasses,” may be worth much less than a similar piece in excellent condition. I need to file my 2012 taxes Art appraisers. I need to file my 2012 taxes   More weight will usually be given to an appraisal prepared by an individual specializing in the kind and price range of the art being appraised. I need to file my 2012 taxes Certain art dealers or appraisers specialize, for example, in old masters, modern art, bronze sculpture, etc. I need to file my 2012 taxes Their opinions on the authenticity and desirability of such art would usually be given more weight than the opinions of more generalized art dealers or appraisers. I need to file my 2012 taxes They can report more recent comparable sales to support their opinion. I need to file my 2012 taxes   To identify and locate experts on unique, specialized items or collections, you may wish to use the current Official Museum Directory of the American Association of Museums. I need to file my 2012 taxes It lists museums both by state and by category. I need to file my 2012 taxes   To help you locate a qualified appraiser for your donation, you may wish to ask an art historian at a nearby college or the director or curator of a local museum. I need to file my 2012 taxes The Yellow Pages often list specialized art and antique dealers, auctioneers, and art appraisers. I need to file my 2012 taxes You may be able to find a qualified appraiser on the Internet. I need to file my 2012 taxes You may also contact associations of dealers for guidance. I need to file my 2012 taxes Collections Since many kinds of hobby collections may be the subject of a charitable donation, it is not possible to discuss all of the possible collectibles in this publication. I need to file my 2012 taxes Most common are rare books, autographs, sports memorabilia, dolls, manuscripts, stamps, coins, guns, phonograph records, and natural history items. I need to file my 2012 taxes Many of the elements of valuation that apply to paintings and other objects of art, discussed earlier, also apply to miscellaneous collections. I need to file my 2012 taxes Reference material. I need to file my 2012 taxes   Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. I need to file my 2012 taxes When using one of these price guides, you must use the current edition at the date of contribution. I need to file my 2012 taxes However, these sources are not always reliable indicators of FMV and should be supported by other evidence. I need to file my 2012 taxes   For example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. I need to file my 2012 taxes The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. I need to file my 2012 taxes The appraiser must analyze the reference material, and recognize and make adjustments for misleading entries. I need to file my 2012 taxes If you are donating a valuable collection, you should get an appraisal. I need to file my 2012 taxes If your donation appears to be of little value, you may be able to make a satisfactory valuation using reference materials available at a state, city, college, or museum library. I need to file my 2012 taxes Stamp collections. I need to file my 2012 taxes   Most libraries have catalogs or other books that report the publisher's estimate of values. I need to file my 2012 taxes Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. I need to file my 2012 taxes Stamp dealers generally know the value of their merchandise and are able to prepare satisfactory appraisals of valuable collections. I need to file my 2012 taxes Coin collections. I need to file my 2012 taxes   Many catalogs and other reference materials show the writer's or publisher's opinion of the value of coins on or near the date of the publication. I need to file my 2012 taxes Like many other collectors' items, the value of a coin depends on the demand for it, its age, and its rarity. I need to file my 2012 taxes Another important factor is the coin's condition. I need to file my 2012 taxes For example, there is a great difference in the value of a coin that is in mint condition and a similar coin that is only in good condition. I need to file my 2012 taxes   Catalogs usually establish a category for coins, based on their physical condition—mint or uncirculated, extremely fine, very fine, fine, very good, good, fair, or poor—with a different valuation for each category. I need to file my 2012 taxes Books. I need to file my 2012 taxes   The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences between the comparable sales and the item being evaluated. I need to file my 2012 taxes This is difficult to do and, except for a collection of little value, should be done by a specialized appraiser. I need to file my 2012 taxes Within the general category of literary property, there are dealers who specialize in certain areas, such as Americana, foreign imports, Bibles, and scientific books. I need to file my 2012 taxes Modest value of collection. I need to file my 2012 taxes   If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV. I need to file my 2012 taxes   A book that is very old, or very rare, is not necessarily valuable. I need to file my 2012 taxes There are many books that are very old or rare, but that have little or no market value. I need to file my 2012 taxes Condition of book. I need to file my 2012 taxes   The condition of a book may have a great influence on its value. I need to file my 2012 taxes Collectors are interested in items that are in fine, or at least good, condition. I need to file my 2012 taxes When a book has a missing page, a loose binding, tears, stains, or is otherwise in poor condition, its value is greatly lowered. I need to file my 2012 taxes Other factors. I need to file my 2012 taxes   Some other factors in the valuation of a book are the kind of binding (leather, cloth, paper), page edges, and illustrations (drawings and photographs). I need to file my 2012 taxes Collectors usually want first editions of books. I need to file my 2012 taxes However, because of changes or additions, other editions are sometimes worth as much as, or more than, the first edition. I need to file my 2012 taxes Manuscripts, autographs, diaries, and similar items. I need to file my 2012 taxes   When these items are handwritten, or at least signed by famous people, they are often in demand and are valuable. I need to file my 2012 taxes The writings of unknowns also may be of value if they are of unusual historical or literary importance. I need to file my 2012 taxes Determining the value of such material is difficult. I need to file my 2012 taxes For example, there may be a great difference in value between two diaries that were kept by a famous person—one kept during childhood and the other during a later period in his or her life. I need to file my 2012 taxes The appraiser determines a value in these cases by applying knowledge and judgment to such factors as comparable sales and conditions. I need to file my 2012 taxes Signatures. I need to file my 2012 taxes   Signatures, or sets of signatures, that were cut from letters or other papers usually have little or no value. I need to file my 2012 taxes But complete sets of the signatures of U. I need to file my 2012 taxes S. I need to file my 2012 taxes presidents are in demand. I need to file my 2012 taxes Cars, Boats, and Aircraft If you donate a car, a boat, or an aircraft to a charitable organization, its FMV must be determined. I need to file my 2012 taxes Certain commercial firms and trade organizations publish monthly or seasonal guides for different regions of the country, containing complete dealer sale prices or dealer average prices for recent model years. I need to file my 2012 taxes Prices are reported for each make, model, and year. I need to file my 2012 taxes These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. I need to file my 2012 taxes The prices are not “official,” and these publications are not considered an appraisal of any specific donated property. I need to file my 2012 taxes But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. I need to file my 2012 taxes These publications are sometimes available from public libraries or at a bank, credit union, or finance company. I need to file my 2012 taxes You can also find pricing information about used cars on the Internet. I need to file my 2012 taxes An acceptable measure of the FMV of a donated car, boat, or airplane is an amount not in excess of the price listed in a used vehicle pricing guide for a private party sale, not the dealer retail value, of a similar vehicle. I need to file my 2012 taxes However, the FMV may be less than that amount if the vehicle has engine trouble, body damage, high mileage, or any type of excessive wear. I need to file my 2012 taxes The FMV of a donated vehicle is the same as the price listed in a used vehicle pricing guide for a private party sale only if the guide lists a sales price for a vehicle that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated vehicle. I need to file my 2012 taxes Example. I need to file my 2012 taxes You donate a used car in poor condition to a local high school for use by students studying car repair. I need to file my 2012 taxes A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. I need to file my 2012 taxes However, the guide shows the price for a private party sale of the car is only $750. I need to file my 2012 taxes The FMV of the car is considered to be no more than $750. I need to file my 2012 taxes Boats. I need to file my 2012 taxes   Except for inexpensive small boats, the valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value. I need to file my 2012 taxes More information. I need to file my 2012 taxes   Your deduction for a donated car, boat, or airplane generally is limited to the gross proceeds from its sale by the qualified organization. I need to file my 2012 taxes This rule applies if the claimed value of the donated vehicle is more than $500. I need to file my 2012 taxes In certain cases, you can deduct the vehicle's FMV. I need to file my 2012 taxes For details, see Publication 526. I need to file my 2012 taxes Inventory If you donate any inventory item to a charitable organization, the amount of your deductible contribution generally is the FMV of the item, minus any gain you would have realized if you had sold the item at its FMV on the date of the gift. I need to file my 2012 taxes For more information, see Publication 526. I need to file my 2012 taxes Patents To determine the FMV of a patent, you must take into account, among other factors: Whether the patented technology has been made obsolete by other technology; Any restrictions on the donee's use of, or ability to transfer, the patented technology; and The length of time remaining before the patent expires. I need to file my 2012 taxes However, your deduction for a donation of a patent or other intellectual property is its FMV, minus any gain you would have realized if you had sold the property at its FMV on the date of the gift. I need to file my 2012 taxes Generally, this means your deduction is the lesser of the property's FMV or its basis. I need to file my 2012 taxes For details, see Publication 526. I need to file my 2012 taxes Stocks and Bonds The value of stocks and bonds is the FMV of a share or bond on the valuation date. I need to file my 2012 taxes See Date of contribution, earlier, under What Is Fair Market Value (FMV). I need to file my 2012 taxes Selling prices on valuation date. I need to file my 2012 taxes   If there is an active market for the contributed stocks or bonds on a stock exchange, in an over-the-counter market, or elsewhere, the FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. I need to file my 2012 taxes For example, if the highest selling price for a share was $11, and the lowest $9, the average price is $10. I need to file my 2012 taxes You get the average price by adding $11 and $9 and dividing the sum by 2. I need to file my 2012 taxes No sales on valuation date. I need to file my 2012 taxes   If there were no sales on the valuation date, but there were sales within a reasonable period before and after the valuation date, you determine FMV by taking the average price between the highest and lowest sales prices on the nearest date before and on the nearest date after the valuation date. I need to file my 2012 taxes Then you weight these averages in inverse order by the respective number of trading days between the selling dates and the valuation date. I need to file my 2012 taxes Example. I need to file my 2012 taxes   On the day you gave stock to a qualified organization, there were no sales of the stock. I need to file my 2012 taxes Sales of the stock nearest the valuation date took place two trading days before the valuation date at an average selling price of $10 and three trading days after the valuation date at an average selling price of $15. I need to file my 2012 taxes The FMV on the valuation date was $12, figured as follows: [(3 x $10) + (2 x $15)] ÷ 5 = $12 Listings on more than one stock exchange. I need to file my 2012 taxes   Stocks or bonds listed on more than one stock exchange are valued based on the prices of the exchange on which they are principally dealt. I need to file my 2012 taxes This applies if these prices are published in a generally available listing or publication of general circulation. I need to file my 2012 taxes If this is not applicable, and the stocks or bonds are reported on a composite listing of combined exchanges in a publication of general circulation, use the composite list. I need to file my 2012 taxes See also Unavailable prices or closely held corporation, later. I need to file my 2012 taxes Bid and asked prices on valuation date. I need to file my 2012 taxes   If there were no sales within a reasonable period before and after the valuation date, the FMV is the average price between the bona fide bid and asked prices on the valuation date. I need to file my 2012 taxes Example. I need to file my 2012 taxes Although there were no sales of Blue Corporation stock on the valuation date, bona fide bid and asked prices were available on that date of $14 and $16, respectively. I need to file my 2012 taxes The FMV is $15, the average price between the bid and asked prices. I need to file my 2012 taxes No prices on valuation date. I need to file my 2012 taxes   If there were no prices available on the valuation date, you determine FMV by taking the average prices between the bona fide bid and asked prices on the closest trading date before and after the valuation date. I need to file my 2012 taxes Both dates must be within a reasonable period. I need to file my 2012 taxes Then you weight these averages in inverse order by the respective number of trading days between the bid and asked dates and the valuation date. I need to file my 2012 taxes Example. I need to file my 2012 taxes On the day you gave stock to a qualified organization, no prices were available. I need to file my 2012 taxes Bona fide bid and asked prices 3 days before the valuation date were $10 and 2 days after the valuation date were $15. I need to file my 2012 taxes The FMV on the valuation date is $13, figured as follows: [(2 x $10) + (3 x $15)] ÷ 5 = $13 Prices only before or after valuation date, but not both. I need to file my 2012 taxes   If no selling prices or bona fide bid and asked prices are available on a date within a reasonable period before the valuation date, but are available on a date within a reasonable period after the valuation date, or vice versa, then the average price between the highest and lowest of such available prices may be treated as the value. I need to file my 2012 taxes Large blocks of stock. I need to file my 2012 taxes   When a large block of stock is put on the market, it may lower the selling price of the stock if the supply is greater than the demand. I need to file my 2012 taxes On the other hand, market forces may exist that will afford higher prices for large blocks of stock. I need to file my 2012 taxes Because of the many factors to be considered, determining the value of large blocks of stock usually requires the help of experts specializing in underwriting large quantities of securities, or in trading in the securities of the industry of which the particular company is a part. I need to file my 2012 taxes Unavailable prices or closely held corporation. I need to file my 2012 taxes   If selling prices or bid and asked prices are not available, or if securities of a closely held corporation are involved, determine the FMV by considering the following factors. I need to file my 2012 taxes For bonds, the soundness of the security, the interest yield, the date of maturity, and other relevant factors. I need to file my 2012 taxes For shares of stock, the company's net worth, prospective earning power and dividend-paying capacity, and other relevant factors. I need to file my 2012 taxes Other factors. I need to file my 2012 taxes   Other relevant factors include: The nature and history of the business, especially its recent history, The goodwill of the business, The economic outlook in the particular industry, The company's position in the industry, its competitors, and its management, and The value of securities of corporations engaged in the same or similar business. I need to file my 2012 taxes For preferred stock, the most important factors are its yield, dividend coverage, and protection of its liquidation preference. I need to file my 2012 taxes   You should keep complete financial and other information on which the valuation is based. I need to file my 2012 taxes This includes copies of reports of examinations of the company made by accountants, engineers, or any technical experts on or close to the valuation date. I need to file my 2012 taxes Restricted securities. I need to file my 2012 taxes   Some classes of stock cannot be traded publicly because of restrictions imposed by the Securities and Exchange Commission, or by the corporate charter or a trust agreement. I need to file my 2012 taxes These restricted securities usually trade at a discount in relation to freely traded securities. I need to file my 2012 taxes   To arrive at the FMV of restricted securities, factors that you must consider include the resale provisions found in the restriction agreements, the relative negotiating strengths of the buyer and seller, and the market experience of freely traded securities of the same class as the restricted securities. I need to file my 2012 taxes Real Estate Because each piece of real estate is unique and its valuation is complicated, a detailed appraisal by a professional appraiser is necessary. I need to file my 2012 taxes The appraiser must be thoroughly trained in the application of appraisal principles and theory. I need to file my 2012 taxes In some instances the opinions of equally qualified appraisers may carry unequal weight, such as when one appraiser has a better knowledge of local conditions. I need to file my 2012 taxes The appraisal report must contain a complete description of the property, such as street address, legal description, and lot and block number, as well as physical features, condition, and dimensions. I need to file my 2012 taxes The use to which the property is put, zoning and permitted uses, and its potential use for other higher and better uses are also relevant. I need to file my 2012 taxes In general, there are three main approaches to the valuation of real estate. I need to file my 2012 taxes An appraisal may require the combined use of two or three methods rather than one method only. I need to file my 2012 taxes 1. I need to file my 2012 taxes Comparable Sales The comparable sales method compares the donated property with several similar properties that have been sold. I need to file my 2012 taxes The selling prices, after adjustments for differences in date of sale, size, condition, and location, would then indicate the estimated FMV of the donated property. I need to file my 2012 taxes If the comparable sales method is used to determine the value of unimproved real property (land without significant buildings, structures, or any other improvements that add to its value), the appraiser should consider the following factors when comparing the potential comparable property and the donated property: Location, size, and zoning or use restrictions, Accessibility and road frontage, and available utilities and water rights, Riparian rights (right of access to and use of the water by owners of land on the bank of a river) and existing easements, rights-of-way, leases, etc. I need to file my 2012 taxes , Soil characteristics, vegetative cover, and status of mineral rights, and Other factors affecting value. I need to file my 2012 taxes For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor's appraised FMV. I need to file my 2012 taxes The comparable selling prices must be adjusted to account for differences between the sale property and the donated property. I need to file my 2012 taxes Because differences of opinion may arise between appraisers as to the degree of comparability and the amount of the adjustment considered necessary for comparison purposes, an appraiser should document each item of adjustment. I need to file my 2012 taxes Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property. I need to file my 2012 taxes 2. I need to file my 2012 taxes Capitalization of Income This method capitalizes the net income from the property at a rate that represents a fair return on the particular investment at the particular time, considering the risks involved. I need to file my 2012 taxes The key elements are the determination of the income to be capitalized and the rate of capitalization. I need to file my 2012 taxes 3. I need to file my 2012 taxes Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. I need to file my 2012 taxes Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is reasonable to assume that an informed buyer will not pay more for the real estate than it would cost to reproduce a similar property. I need to file my 2012 taxes Of course, this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. I need to file my 2012 taxes Generally, this method serves to support the value determined from other methods. I need to file my 2012 taxes When the replacement cost method is applied to improved realty, the land and improvements are valued separately. I need to file my 2012 taxes The replacement cost of a building is figured by considering the materials, the quality of workmanship, and the number of square feet or cubic feet in the building. I need to file my 2012 taxes This cost represents the total cost of labor and material, overhead, and profit. I need to file my 2012 taxes After the replacement cost has been figured, consideration must be given to the following factors: Physical deterioration—the wear and tear on the building itself, Functional obsolescence—usually in older buildings with, for example, inadequate lighting, plumbing, or heating, small rooms, or a poor floor plan, and Economic obsolescence—outside forces causing the whole area to become less desirable. I need to file my 2012 taxes Interest in a Business The FMV of any interest in a business, whether a sole proprietorship or a partnership, is the amount that a willing buyer would pay for the interest to a willing seller after consideration of all relevant factors. I need to file my 2012 taxes The relevant factors to be considered in valuing the business are: The FMV of the assets of the business, The demonstrated earnings capacity of the business, based on a review of past and current earnings, and The other factors used in evaluating corporate stock, if they apply. I need to file my 2012 taxes The value of the goodwill of the business should also be taken into consideration. I need to file my 2012 taxes You should keep complete financial and other information on which you base the valuation. I need to file my 2012 taxes This includes copies of reports of examinations of the business made by accountants, engineers, or any technical experts on or close to the valuation date. I need to file my 2012 taxes Annuities, Interests for Life or Terms of Years, Remainders, and Reversions The value of these kinds of property is their present value, except in the case of annuities under contracts issued by companies regularly engaged in their sale. I need to file my 2012 taxes The valuation of these commercial annuity contracts and of insurance policies is discussed later under Certain Life Insurance and Annuity Contracts. I need to file my 2012 taxes To determine present value, you must know the applicable interest rate and use actuarial tables. I need to file my 2012 taxes Interest rate. I need to file my 2012 taxes   The applicable interest rate varies. I need to file my 2012 taxes It is announced monthly in a news release and published in the Internal Revenue Bulletin as a Revenue Ruling. I need to file my 2012 taxes The interest rate to use is under the heading “Rate Under Section 7520” for a given month and year. I need to file my 2012 taxes You can call the IRS office at 1-800-829-1040 to obtain this rate. I need to file my 2012 taxes Actuarial tables. I need to file my 2012 taxes   You need to refer to actuarial tables to determine a qualified interest in the form of an annuity, any interest for life or a term of years, or any remainder interest to a charitable organization. I need to file my 2012 taxes   Use the valuation tables set forth in IRS Publications 1457, Actuarial Values (Book Aleph), and 1458, Actuarial Values (Book Beth). I need to file my 2012 taxes Both of these publications provide tables containing actuarial factors to be used in determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest. I need to file my 2012 taxes For qualified charitable transfers, you can use the factor for the month in which you made the contribution or for either of the 2 months preceding that month. I need to file my 2012 taxes   Publication 1457 also contains actuarial factors for computing the value of a remainder interest in a charitable remainder annuity trust and a pooled income fund. I need to file my 2012 taxes Publication 1458 contains the factors for valuing the remainder interest in a charitable remainder unitrust. I need to file my 2012 taxes You can download Publications 1457 and 1458 from www. I need to file my 2012 taxes irs. I need to file my 2012 taxes gov. I need to file my 2012 taxes In addition, they are available for purchase via the website of the U. I need to file my 2012 taxes S. I need to file my 2012 taxes Government Printing Office, by phone at (202) 512-1800, or by mail from the: Superintendent of Documents P. I need to file my 2012 taxes O. I need to file my 2012 taxes Box 371954 Pittsburgh, PA 15250-7954 Tables containing actuarial factors for transfers to pooled income funds may also be found in Income Tax Regulation 1. I need to file my 2012 taxes 642(c)-6(e)(6), transfers to charitable remainder unitrusts in Regulation 1. I need to file my 2012 taxes 664-4(e), and other transfers in Regulation 20. I need to file my 2012 taxes 2031-7(d)(6). I need to file my 2012 taxes Special factors. I need to file my 2012 taxes   If you need a special factor for an actual transaction, you can request a letter ruling. I need to file my 2012 taxes Be sure to include the date of birth of each person the duration of whose life may affect the value of the interest. I need to file my 2012 taxes Also include copies of the relevant instruments. I need to file my 2012 taxes IRS charges a user fee for providing special factors. I need to file my 2012 taxes   For more information about requesting a ruling, see Revenue Procedure 2006-1 (or annual update), 2006-1 I. I need to file my 2012 taxes R. I need to file my 2012 taxes B. I need to file my 2012 taxes 1. I need to file my 2012 taxes Revenue Procedure 2006-1 is available at www. I need to file my 2012 taxes irs. I need to file my 2012 taxes gov/irb/2006-01_IRB/ar06. I need to file my 2012 taxes html. I need to file my 2012 taxes   For information on the circumstances under which a charitable deduction may be allowed for the donation of a partial interest in property not in trust, see Partial Interest in Property Not in Trust, later. I need to file my 2012 taxes Certain Life Insurance and Annuity Contracts The value of an annuity contract or a life insurance policy issued by a company regularly engaged in the sale of such contracts or policies is the amount that company would charge for a comparable contract. I need to file my 2012 taxes But if the donee of a life insurance policy may reasonably be expected to cash the policy rather than hold it as an investment, then the FMV is the cash surrender value rather than the replacement cost. I need to file my 2012 taxes If an annuity is payable under a combination annuity contract and life insurance policy (for example, a retirement income policy with a death benefit) and there was no insurance element when it was transferred to the charity, the policy is treated as an annuity contract. I need to file my 2012 taxes Partial Interest in Property Not in Trust Generally, no deduction is allowed for a charitable contribution, not made in trust, of less than your entire interest in property. I need to file my 2012 taxes However, this does not apply to a transfer of less than your entire interest if it is a transfer of: A remainder interest in your personal residence or farm, An undivided part of your entire interest in property, or A qualified conservation contribution. I need to file my 2012 taxes Remainder Interest in Real Property The amount of the deduction for a donation of a remainder interest in real property is the FMV of the remainder interest at the time of the contribution. I need to file my 2012 taxes To determine this value, you must know the FMV of the property on the date of the contribution. I need to file my 2012 taxes Multiply this value by the appropriate factor. I need to file my 2012 taxes Publications 1457 and 1458 contain these factors. I need to file my 2012 taxes You must make an adjustment for depreciation or depletion using the factors shown in Publication 1459, Actuarial Values (Book Gimel). I need to file my 2012 taxes You can use the factors for the month in which you made the contribution or for either of the two months preceding that month. I need to file my 2012 taxes See the earlier discussion on Annuities, Interests for Life or Terms of Years, Remainders, and Reversions. I need to file my 2012 taxes You can download Publication 1459 from www. I need to file my 2012 taxes irs. I need to file my 2012 taxes gov. I need to file my 2012 taxes For this purpose, the term “depreciable property” means any property subject to wear and tear or obsolescence, even if not used in a trade or business or for the production of income. I need to file my 2012 taxes If the remainder interest includes both depreciable and nondepreciable property, for example a house and land, the FMV must be allocated between each kind of property at the time of the contribution. I need to file my 2012 taxes This rule also applies to a gift of a remainder interest that includes property that is part depletable and part not depletable. I need to file my 2012 taxes Take into account depreciation or depletion only for the property that is subject to depreciation or depletion. I need to file my 2012 taxes For more information, see section 1. I need to file my 2012 taxes 170A-12 of the Income Tax Regulations. I need to file my 2012 taxes Undivided Part of Your Entire Interest A contribution of an undivided part of your entire interest in property must consist of a part of each and every substantial interest or right you own in the property. I need to file my 2012 taxes It must extend over the entire term of your interest in the property. I need to file my 2012 taxes For example, you are entitled to the income from certain property for your life (life estate) and you contribute 20% of that life estate to a qualified organization. I need to file my 2012 taxes You can claim a deduction for the contribution if you do not have any other interest in the property. I need to file my 2012 taxes To figure the value of a contribution involving a partial interest, see Publication 1457. I need to file my 2012 taxes If the only interest you own in real property is a remainder interest and you transfer part of that interest to a qualified organization, see the previous discussion on valuation of a remainder interest in real property. I need to file my 2012 taxes Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. I need to file my 2012 taxes Qualified organization. I need to file my 2012 taxes   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charitable, religious, scientific, literary, educational, etc. I need to file my 2012 taxes , organization, or An organization that is controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. I need to file my 2012 taxes The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. I need to file my 2012 taxes Conservation purposes. I need to file my 2012 taxes   Your contribution must be made only for one of the following conservation purposes. I need to file my 2012 taxes Preserving land areas for outdoor recreation by, or for the education of, the general public. I need to file my 2012 taxes Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. I need to file my 2012 taxes Preserving open space, including farmland and forest land, if it yields a significant public benefit. I need to file my 2012 taxes It must be either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. I need to file my 2012 taxes Preserving a historically important land area or a certified historic structure. I need to file my 2012 taxes There must be some visual public access to the property. I need to file my 2012 taxes Factors used in determining the type and amount of public access required include the historical significance of the property, the remoteness or accessibility of the site, and the extent to which intrusions on the privacy of individuals living on the property would be unreasonable. I need to file my 2012 taxes Building in registered historic district. I need to file my 2012 taxes   A contribution after July 25, 2006, of a qualified real property interest that is an easement or other restriction on the exterior of a building in a registered historic district is deductible only if it meets all of the following three conditions. I need to file my 2012 taxes The restriction must preserve the entire exterior of the building and must prohibit any change to the exterior of the building that is inconsistent with its historical character. I need to file my 2012 taxes You and the organization receiving the contribution must enter into a written agreement certifying, that the organization is a qualified organization and that it has the resources and commitment to maintain the property as donated. I need to file my 2012 taxes If you make the contribution in a tax year beginning after August 17, 2006, you must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. I need to file my 2012 taxes   If you make this type of contribution after February 12, 2007, and claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. I need to file my 2012 taxes See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. I need to file my 2012 taxes Qualified real property interest. I need to file my 2012 taxes   This is any of the following interests in real property. I need to file my 2012 taxes Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). I need to file my 2012 taxes A remainder interest. I need to file my 2012 taxes A restriction (granted in perpetuity) on the use that may be made of the real property. I need to file my 2012 taxes Valuation. I need to file my 2012 taxes   A qualified real property interest described in (1) should be valued in a manner that is consistent with the type of interest transferred. I need to file my 2012 taxes If you transferred all the interest in the property, the FMV of the property is the amount of the contribution. I need to file my 2012 taxes If you do not transfer the mineral interest, the FMV of the surface rights in the property is the amount of the contribution. I need to file my 2012 taxes   If you owned only a remainder interest or an income interest (life estate), see Undivided Part of Your Entire Interest, earlier. I need to file my 2012 taxes If you owned the entire property but transferred only a remainder interest (item (2)), see Remainder Interest in Real Property, earlier. I need to file my 2012 taxes   In determining the value of restrictions, you should take into account the selling price in arm's-length transactions of other properties that have comparable restrictions. I need to file my 2012 taxes If there are no comparable sales, the restrictions are valued indirectly as the difference between the FMVs of the property involved before and after the grant of the restriction. I need to file my 2012 taxes   The FMV of the property before contribution of the restriction should take into account not only current use but the likelihood that the property, without the restriction, would be developed. I need to file my 2012 taxes You should also consider any zoning, conservation, or historical preservation laws that would restrict development. I need to file my 2012 taxes Granting an easement may increase, rather than reduce, the value of property, and in such a situation no deduction would be allowed. I need to file my 2012 taxes Example. I need to file my 2012 taxes   You own 10 acres of farmland. I need to file my 2012 taxes Similar land in the area has an FMV of $2,000 an acre. I need to file my 2012 taxes However, land in the general area that is restricted solely to farm use has an FMV of $1,500 an acre. I need to file my 2012 taxes Your county wants to preserve open space and prevent further development in your area. I need to file my 2012 taxes   You grant to the county an enforceable open space easement in perpetuity on 8 of the 10 acres, restricting its use to farmland. I need to file my 2012 taxes The value of this easement is $4,000, determined as follows: FMV of the property before granting easement:   $2,000 × 10 acres $20,000 FMV of the property after granting easement:   $1,500 × 8 acres $12,000   $2,000 × 2 acres 4,000 16,000 Value of easement   $4,000   If you later transfer in fee your remaining interest in the 8 acres to another qualified organization, the FMV of your remaining interest is the FMV of the 8 acres reduced by the FMV of the easement granted to the first organization. I need to file my 2012 taxes More information. I need to file my 2012 taxes   For more information about qualified conservation contributions, see Publication 526. I need to file my 2012 taxes Appraisals Appraisals are not necessary for items of property for which you claim a deduction of $5,000 or less. I need to file my 2012 taxes (There is one exception, described next, for certain clothing and household items. I need to file my 2012 taxes ) However, you generally will need an appraisal for donated property for which you claim a deduction of more than $5,000. I need to file my 2012 taxes There are exceptions. I need to file my 2012 taxes See Deductions of More Than $5,000, later. I need to file my 2012 taxes The weight given an appraisal depends on the completeness of the report, the qualifications of the appraiser, and the appraiser's demonstrated knowledge of the donated property. I need to file my 2012 taxes An appraisal must give all the facts on which to base an intelligent judgment of the value of the property. I need to file my 2012 taxes The appraisal will not be given much weight if: All the factors that apply are not considered, The opinion is not supported with facts, such as purchase price and comparable sales, or The opinion is not consistent with known facts. I need to file my 2012 taxes The appraiser's opinion is never more valid than the facts on which it is based; without these facts it is simply a guess. I need to file my 2012 taxes The opinion of a person claiming to be an expert is not binding on the Internal Revenue Service. I need to file my 2012 taxes All facts associated with the donation must be considered. I need to file my 2012 taxes Deduction over $500 for certain clothing or household items. I need to file my 2012 taxes   You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. I need to file my 2012 taxes See Household Goods and Used Clothing, earlier. I need to file my 2012 taxes Cost of appraisals. I need to file my 2012 taxes   You may not take a charitable contribution deduction for fees you pay for appraisals of your donated property. I need to file my 2012 taxes However, these fees may qualify as a miscellaneous deduction, subject to the 2% limit, on Schedule A (Form 1040) if paid to determine the amount allowable as a charitable contribution. I need to file my 2012 taxes Deductions of More Than $5,000 Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return. I need to file my 2012 taxes There are exceptions, discussed later. I need to file my 2012 taxes You should keep the appraiser's report with your written records. I need to file my 2012 taxes Records are discussed in Publication 526. I need to file my 2012 taxes The phrase “similar items” means property of the same generic category or type (whether or not donated to the same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing, jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or silver. I need to file my 2012 taxes For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively, your claimed deduction is more than $5,000 for these books. I need to file my 2012 taxes You must get a qualified appraisal of the books and for each school you must attach a fully completed Form 8283, Section B, to your tax return. I need to file my 2012 taxes Exceptions. I need to file my 2012 taxes   You do not need an appraisal if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane) for which your deduction is limited to the gross proceeds from its sale, Qualified intellectual property, such as a patent, Certain publicly traded securities described next, Inventory and other property donated by a corporation that are “qualified contributions” for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A) of the Internal Revenue Code, or Stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. I need to file my 2012 taxes   Although an appraisal is not required for the types of property just listed, you must provide certain information about a donation of any of these types of property on Form 8283. I need to file my 2012 taxes Publicly traded securities. I need to file my 2012 taxes   Even if your claimed deduction is more than $5,000, neither a qualified appraisal nor Section B of Form 8283 is required for publicly traded securities that are: Listed on a stock exchange in which quotations are published on a daily basis, Regularly traded in a national or regional over-the-counter market for which published quotations are available, or Shares of an open-end investment company (mutual fund) for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States. I need to file my 2012 taxes Publicly traded securities that meet these requirements must be reported on Form 8283, Section A. I need to file my 2012 taxes   A qualified appraisal is not required, but Form 8283, Section B, Parts I and IV, must be completed, for an issue of a security that does not meet the requirements just listed but does meet these requirements: The issue is regularly traded during the computation period (defined later) in a market for which there is an “interdealer quotation system” (defined later), The issuer or agent computes the “average trading price” (defined later) for the same issue for the computation period, The average trading price and total volume of the issue during the computation period are published in a newspaper of general circulation throughout the United States, not later than the last day of the month following the end of the calendar quarter in which the computation period ends, The issuer or agent keeps books and records that list for each transaction during the computation period the date of settlement of the transaction, the name and address of the broker or dealer making the market in which the transaction occurred, and the trading price and volume, and The issuer or agent permits the Internal Revenue Service to review the books and records described in item (4) with respect to transactions during the computation period upon receiving reasonable notice. I need to file my 2012 taxes   An interdealer quotation system is any system of general circulation to brokers and dealers that regularly disseminates quotations of obligations by two or more identified brokers or dealers who are not related to either the issuer or agent who computes the average trading price of the security. I need to file my 2012 taxes A quotation sheet prepared and distributed by a broker or dealer in the regular course of business and containing only quotations of that broker or dealer is not an interdealer quotation system. I need to file my 2012 taxes   The average trading price is the average price of all transactions (weighted by volume), other than original issue or redemption transactions, conducted through a United States office of a broker or dealer who maintains a market in the issue of the security during the computation period. I need to file my 2012 taxes Bid and asked quotations are not taken into account. I need to file my 2012 taxes   The computation period is weekly during October through December and monthly during January through September. I need to file my 2012 taxes The weekly computation periods during October through December begin with the first Monday in October and end with the first Sunday following the last Monday in December. I need to file my 2012 taxes Nonpublicly traded stock. I need to file my 2012 taxes   If you contribute nonpublicly traded stock, for which you claim a deduction of $10,000 or less, a qualified appraisal is not required. I need to file my 2012 taxes However, you must attach Form 8283 to your tax return, with Section B, Parts I and IV, completed. I need to file my 2012 taxes Deductions of More Than $500,000 If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal of the property to your return. I need to file my 2012 taxes This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property. I need to file my 2012 taxes If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach the appraisal is due to reasonable cause and not to willful neglect. I need to file my 2012 taxes Qualified Appraisal Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. I need to file my 2012 taxes You must also complete Form 8283, Section B, and attach it to your tax return. I need to file my 2012 taxes See Deductions of More Than $5,000, earlier. I need to file my 2012 taxes A qualified appraisal is an appraisal document that: Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal standards, Meets the relevant requirements of Regulations section 1. I need to file my 2012 taxes 170A-13(c)(3) and Notice 2006-96, 2006-46 I. I need to file my 2012 taxes R. I need to file my 2012 taxes B. I need to file my 2012 taxes 902 (available at www. I need to file my 2012 taxes irs. I need to file my 2012 taxes gov/irb/2006-46_IRB/ar13. I need to file my 2012 taxes html), Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property, Does not involve a prohibited appraisal fee, and Includes certain information (covered later). I need to file my 2012 taxes You must receive the qualified appraisal before the due date, including extensions, of the return on which a charitable contribution deduction is first claimed for the donated property. I need to file my 2012 taxes If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed. I need to file my 2012 taxes Form 8283, Section B, must be attached to your tax return. I need to file my 2012 taxes Generally, you do not need to attach the qualified appraisal itself, but you should keep a copy as long as it may be relevant under the tax law. I need to file my 2012 taxes There are four exceptions. I need to file my 2012 taxes If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the appraisal. I need to file my 2012 taxes See Paintings, Antiques, and Other Objects of Art, earlier. I need to file my 2012 taxes If you claim a deduction of more than $500,000 for a donation of property, you must attach the appraisal. I need to file my 2012 taxes See Deductions of More Than $500,000, earlier. I need to file my 2012 taxes If you claim a deduction of more than $500 for an article of clothing, or a household item, that is not in good used condition or better, that you donated after August 17, 2006, you must attach the appraisal. I need to file my 2012 taxes See Deduction over $500 for certain clothing or household items, earlier. I need to file my 2012 taxes If you claim a deduction in a tax year beginning after August 17, 2006, for an easement or other restriction on the exterior of a building in a historic district, you must attach the appraisal. I need to file my 2012 taxes See Building in registered historic district, earlier. I need to file my 2012 taxes Prohibited appraisal fee. I need to file my 2012 taxes   Generally, no part of the fee arrangement for a qualified appraisal can be based on a percentage of the appraised value of the property. I need to file my 2012 taxes If a fee arrangement is based on what is allowed as a deduction, after Internal Revenue Service examination or otherwise, it is treated as a fee based on a percentage of appraised value. I need to file my 2012 taxes However, appraisals are not disqualified when an otherwise prohi