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Taxact Online 2010

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Taxact Online 2010

Taxact online 2010 1. Taxact online 2010   Overview of Depreciation Table of Contents Introduction Useful Items - You may want to see: What Property Can Be Depreciated?Property You Own Property Used in Your Business or Income-Producing Activity Property Having a Determinable Useful Life Property Lasting More Than One Year What Property Cannot Be Depreciated?Land Excepted Property When Does Depreciation Begin and End?Placed in Service Idle Property Cost or Other Basis Fully Recovered Retired From Service What Method Can You Use To Depreciate Your Property?Property You Placed in Service Before 1987 Property Owned or Used in 1986 Intangible Property Corporate or Partnership Property Acquired in a Nontaxable Transfer Election To Exclude Property From MACRS What Is the Basis of Your Depreciable Property?Cost as Basis Other Basis Adjusted Basis How Do You Treat Repairs and Improvements? Do You Have To File Form 4562? How Do You Correct Depreciation Deductions?Filing an Amended Return Changing Your Accounting Method Introduction Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. Taxact online 2010 It is an allowance for the wear and tear, deterioration, or obsolescence of the property. Taxact online 2010 This chapter discusses the general rules for depreciating property and answers the following questions. Taxact online 2010 What property can be depreciated? What property cannot be depreciated? When does depreciation begin and end? What method can you use to depreciate your property? What is the basis of your depreciable property? How do you treat repairs and improvements? Do you have to file Form 4562? How do you correct depreciation deductions? Useful Items - You may want to see: Publication 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization See chapter 6 for information about getting publications and forms. Taxact online 2010 What Property Can Be Depreciated? You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment. Taxact online 2010 You also can depreciate certain intangible property, such as patents, copyrights, and computer software. Taxact online 2010 To be depreciable, the property must meet all the following requirements. Taxact online 2010 It must be property you own. Taxact online 2010 It must be used in your business or income-producing activity. Taxact online 2010 It must have a determinable useful life. Taxact online 2010 It must be expected to last more than one year. Taxact online 2010 The following discussions provide information about these requirements. Taxact online 2010 Property You Own To claim depreciation, you usually must be the owner of the property. Taxact online 2010 You are considered as owning property even if it is subject to a debt. Taxact online 2010 Example 1. Taxact online 2010 You made a down payment to purchase rental property and assumed the previous owner's mortgage. Taxact online 2010 You own the property and you can depreciate it. Taxact online 2010 Example 2. Taxact online 2010 You bought a new van that you will use only for your courier business. Taxact online 2010 You will be making payments on the van over the next 5 years. Taxact online 2010 You own the van and you can depreciate it. Taxact online 2010 Leased property. Taxact online 2010   You can depreciate leased property only if you retain the incidents of ownership in the property (explained below). Taxact online 2010 This means you bear the burden of exhaustion of the capital investment in the property. Taxact online 2010 Therefore, if you lease property from someone to use in your trade or business or for the production of income, you generally cannot depreciate its cost because you do not retain the incidents of ownership. Taxact online 2010 You can, however, depreciate any capital improvements you make to the property. Taxact online 2010 See How Do You Treat Repairs and Improvements later in this chapter and Additions and Improvements under Which Recovery Period Applies in chapter 4. Taxact online 2010   If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. Taxact online 2010 However, if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased, you cannot depreciate the cost of the property. Taxact online 2010 Incidents of ownership. Taxact online 2010   Incidents of ownership in property include the following. Taxact online 2010 The legal title to the property. Taxact online 2010 The legal obligation to pay for the property. Taxact online 2010 The responsibility to pay maintenance and operating expenses. Taxact online 2010 The duty to pay any taxes on the property. Taxact online 2010 The risk of loss if the property is destroyed, condemned, or diminished in value through obsolescence or exhaustion. Taxact online 2010 Life tenant. Taxact online 2010   Generally, if you hold business or investment property as a life tenant, you can depreciate it as if you were the absolute owner of the property. Taxact online 2010 However, see Certain term interests in property under Excepted Property, later. Taxact online 2010 Cooperative apartments. Taxact online 2010   If you are a tenant-stockholder in a cooperative housing corporation and use your cooperative apartment in your business or for the production of income, you can depreciate your stock in the corporation, even though the corporation owns the apartment. Taxact online 2010   Figure your depreciation deduction as follows. Taxact online 2010 Figure the depreciation for all the depreciable real property owned by the corporation in which you have a proprietary lease or right of tenancy. Taxact online 2010 If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. Taxact online 2010 Multiply your cost per share by the total number of outstanding shares, including any shares held by the corporation. Taxact online 2010 Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. Taxact online 2010 Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. Taxact online 2010 Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. Taxact online 2010 Divide the number of your shares of stock by the total number of outstanding shares, including any shares held by the corporation. Taxact online 2010 Multiply the result of (2) by the percentage you figured in (3). Taxact online 2010 This is your depreciation on the stock. Taxact online 2010   Your depreciation deduction for the year cannot be more than the part of your adjusted basis in the stock of the corporation that is allocable to your business or income-producing property. Taxact online 2010 You must also reduce your depreciation deduction if only a portion of the property is used in a business or for the production of income. Taxact online 2010 Example. Taxact online 2010 You figure your share of the cooperative housing corporation's depreciation to be $30,000. Taxact online 2010 Your adjusted basis in the stock of the corporation is $50,000. Taxact online 2010 You use one half of your apartment solely for business purposes. Taxact online 2010 Your depreciation deduction for the stock for the year cannot be more than $25,000 (½ of $50,000). Taxact online 2010 Change to business use. Taxact online 2010   If you change your cooperative apartment to business use, figure your allowable depreciation as explained earlier. Taxact online 2010 The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. Taxact online 2010 The fair market value of the property on the date you change your apartment to business use. Taxact online 2010 This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. Taxact online 2010 The corporation's adjusted basis in the property on that date. Taxact online 2010 Do not subtract depreciation when figuring the corporation's adjusted basis. Taxact online 2010   If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1), above. Taxact online 2010 The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. Taxact online 2010   For a discussion of fair market value and adjusted basis, see Publication 551. Taxact online 2010 Property Used in Your Business or Income-Producing Activity To claim depreciation on property, you must use it in your business or income-producing activity. Taxact online 2010 If you use property to produce income (investment use), the income must be taxable. Taxact online 2010 You cannot depreciate property that you use solely for personal activities. Taxact online 2010 Partial business or investment use. Taxact online 2010   If you use property for business or investment purposes and for personal purposes, you can deduct depreciation based only on the business or investment use. Taxact online 2010 For example, you cannot deduct depreciation on a car used only for commuting, personal shopping trips, family vacations, driving children to and from school, or similar activities. Taxact online 2010    You must keep records showing the business, investment, and personal use of your property. Taxact online 2010 For more information on the records you must keep for listed property, such as a car, see What Records Must Be Kept in chapter 5. Taxact online 2010    Although you can combine business and investment use of property when figuring depreciation deductions, do not treat investment use as qualified business use when determining whether the business-use requirement for listed property is met. Taxact online 2010 For information about qualified business use of listed property, see What Is the Business-Use Requirement in chapter 5. Taxact online 2010 Office in the home. Taxact online 2010   If you use part of your home as an office, you may be able to deduct depreciation on that part based on its business use. Taxact online 2010 For information about depreciating your home office, see Publication 587. Taxact online 2010 Inventory. Taxact online 2010   You cannot depreciate inventory because it is not held for use in your business. Taxact online 2010 Inventory is any property you hold primarily for sale to customers in the ordinary course of your business. Taxact online 2010   If you are a rent-to-own dealer, you may be able to treat certain property held in your business as depreciable property rather than as inventory. Taxact online 2010 See Rent-to-own dealer under Which Property Class Applies Under GDS in chapter 4. Taxact online 2010   In some cases, it is not clear whether property is held for sale (inventory) or for use in your business. Taxact online 2010 If it is unclear, examine carefully all the facts in the operation of the particular business. Taxact online 2010 The following example shows how a careful examination of the facts in two similar situations results in different conclusions. Taxact online 2010 Example. Taxact online 2010 Maple Corporation is in the business of leasing cars. Taxact online 2010 At the end of their useful lives, when the cars are no longer profitable to lease, Maple sells them. Taxact online 2010 Maple does not have a showroom, used car lot, or individuals to sell the cars. Taxact online 2010 Instead, it sells them through wholesalers or by similar arrangements in which a dealer's profit is not intended or considered. Taxact online 2010 Maple can depreciate the leased cars because the cars are not held primarily for sale to customers in the ordinary course of business, but are leased. Taxact online 2010 If Maple buys cars at wholesale prices, leases them for a short time, and then sells them at retail prices or in sales in which a dealer's profit is intended, the cars are treated as inventory and are not depreciable property. Taxact online 2010 In this situation, the cars are held primarily for sale to customers in the ordinary course of business. Taxact online 2010 Containers. Taxact online 2010   Generally, containers for the products you sell are part of inventory and you cannot depreciate them. Taxact online 2010 However, you can depreciate containers used to ship your products if they have a life longer than one year and meet the following requirements. Taxact online 2010 They qualify as property used in your business. Taxact online 2010 Title to the containers does not pass to the buyer. Taxact online 2010   To determine if these requirements are met, consider the following questions. Taxact online 2010 Does your sales contract, sales invoice, or other type of order acknowledgment indicate whether you have retained title? Does your invoice treat the containers as separate items? Do any of your records state your basis in the containers? Property Having a Determinable Useful Life To be depreciable, your property must have a determinable useful life. Taxact online 2010 This means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Taxact online 2010 Property Lasting More Than One Year To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service. Taxact online 2010 Example. Taxact online 2010 You maintain a library for use in your profession. Taxact online 2010 You can depreciate it. Taxact online 2010 However, if you buy technical books, journals, or information services for use in your business that have a useful life of one year or less, you cannot depreciate them. Taxact online 2010 Instead, you deduct their cost as a business expense. Taxact online 2010 What Property Cannot Be Depreciated? Certain property cannot be depreciated. Taxact online 2010 This includes land and certain excepted property. Taxact online 2010 Land You cannot depreciate the cost of land because land does not wear out, become obsolete, or get used up. Taxact online 2010 The cost of land generally includes the cost of clearing, grading, planting, and landscaping. Taxact online 2010 Although you cannot depreciate land, you can depreciate certain land preparation costs, such as landscaping costs, incurred in preparing land for business use. Taxact online 2010 These costs must be so closely associated with other depreciable property that you can determine a life for them along with the life of the associated property. Taxact online 2010 Example. Taxact online 2010 You constructed a new building for use in your business and paid for grading, clearing, seeding, and planting bushes and trees. Taxact online 2010 Some of the bushes and trees were planted right next to the building, while others were planted around the outer border of the lot. Taxact online 2010 If you replace the building, you would have to destroy the bushes and trees right next to it. Taxact online 2010 These bushes and trees are closely associated with the building, so they have a determinable useful life. Taxact online 2010 Therefore, you can depreciate them. Taxact online 2010 Add your other land preparation costs to the basis of your land because they have no determinable life and you cannot depreciate them. Taxact online 2010 Excepted Property Even if the requirements explained in the preceding discussions are met, you cannot depreciate the following property. Taxact online 2010 Property placed in service and disposed of in the same year. Taxact online 2010 Determining when property is placed in service is explained later. Taxact online 2010 Equipment used to build capital improvements. Taxact online 2010 You must add otherwise allowable depreciation on the equipment during the period of construction to the basis of your improvements. Taxact online 2010 See Uniform Capitalization Rules in Publication 551. Taxact online 2010 Section 197 intangibles. Taxact online 2010 You must amortize these costs. Taxact online 2010 Section 197 intangibles are discussed in detail in Chapter 8 of Publication 535. Taxact online 2010 Intangible property, such as certain computer software, that is not section 197 intangible property, can be depreciated if it meets certain requirements. Taxact online 2010 See Intangible Property , later. Taxact online 2010 Certain term interests. Taxact online 2010 Certain term interests in property. Taxact online 2010   You cannot depreciate a term interest in property created or acquired after July 27, 1989, for any period during which the remainder interest is held, directly or indirectly, by a person related to you. Taxact online 2010 A term interest in property means a life interest in property, an interest in property for a term of years, or an income interest in a trust. Taxact online 2010 Related persons. Taxact online 2010   For a description of related persons, see Related Persons, later. Taxact online 2010 For this purpose, however, treat as related persons only the relationships listed in items (1) through (10) of that discussion and substitute “50%” for “10%” each place it appears. Taxact online 2010 Basis adjustments. Taxact online 2010   If you would be allowed a depreciation deduction for a term interest in property except that the holder of the remainder interest is related to you, you generally must reduce your basis in the term interest by any depreciation or amortization not allowed. Taxact online 2010   If you hold the remainder interest, you generally must increase your basis in that interest by the depreciation not allowed to the term interest holder. Taxact online 2010 However, do not increase your basis for depreciation not allowed for periods during which either of the following situations applies. Taxact online 2010 The term interest is held by an organization exempt from tax. Taxact online 2010 The term interest is held by a nonresident alien individual or foreign corporation, and the income from the term interest is not effectively connected with the conduct of a trade or business in the United States. Taxact online 2010 Exceptions. Taxact online 2010   The above rules do not apply to the holder of a term interest in property acquired by gift, bequest, or inheritance. Taxact online 2010 They also do not apply to the holder of dividend rights that were separated from any stripped preferred stock if the rights were purchased after April 30, 1993, or to a person whose basis in the stock is determined by reference to the basis in the hands of the purchaser. Taxact online 2010 When Does Depreciation Begin and End? You begin to depreciate your property when you place it in service for use in your trade or business or for the production of income. Taxact online 2010 You stop depreciating property either when you have fully recovered your cost or other basis or when you retire it from service, whichever happens first. Taxact online 2010 Placed in Service You place property in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. Taxact online 2010 Even if you are not using the property, it is in service when it is ready and available for its specific use. Taxact online 2010 Example 1. Taxact online 2010 Donald Steep bought a machine for his business. Taxact online 2010 The machine was delivered last year. Taxact online 2010 However, it was not installed and operational until this year. Taxact online 2010 It is considered placed in service this year. Taxact online 2010 If the machine had been ready and available for use when it was delivered, it would be considered placed in service last year even if it was not actually used until this year. Taxact online 2010 Example 2. Taxact online 2010 On April 6, Sue Thorn bought a house to use as residential rental property. Taxact online 2010 She made several repairs and had it ready for rent on July 5. Taxact online 2010 At that time, she began to advertise it for rent in the local newspaper. Taxact online 2010 The house is considered placed in service in July when it was ready and available for rent. Taxact online 2010 She can begin to depreciate it in July. Taxact online 2010 Example 3. Taxact online 2010 James Elm is a building contractor who specializes in constructing office buildings. Taxact online 2010 He bought a truck last year that had to be modified to lift materials to second-story levels. Taxact online 2010 The installation of the lifting equipment was completed and James accepted delivery of the modified truck on January 10 of this year. Taxact online 2010 The truck was placed in service on January 10, the date it was ready and available to perform the function for which it was bought. Taxact online 2010 Conversion to business use. Taxact online 2010   If you place property in service in a personal activity, you cannot claim depreciation. Taxact online 2010 However, if you change the property's use to use in a business or income-producing activity, then you can begin to depreciate it at the time of the change. Taxact online 2010 You place the property in service in the business or income-producing activity on the date of the change. Taxact online 2010 Example. Taxact online 2010 You bought a home and used it as your personal home several years before you converted it to rental property. Taxact online 2010 Although its specific use was personal and no depreciation was allowable, you placed the home in service when you began using it as your home. Taxact online 2010 You can begin to claim depreciation in the year you converted it to rental property because its use changed to an income-producing use at that time. Taxact online 2010 Idle Property Continue to claim a deduction for depreciation on property used in your business or for the production of income even if it is temporarily idle (not in use). Taxact online 2010 For example, if you stop using a machine because there is a temporary lack of a market for a product made with that machine, continue to deduct depreciation on the machine. Taxact online 2010 Cost or Other Basis Fully Recovered You stop depreciating property when you have fully recovered your cost or other basis. Taxact online 2010 You recover your basis when your section 179 and allowed or allowable depreciation deductions equal your cost or investment in the property. Taxact online 2010 See What Is the Basis of Your Depreciable Property , later. Taxact online 2010 Retired From Service You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. Taxact online 2010 You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events. Taxact online 2010 You sell or exchange the property. Taxact online 2010 You convert the property to personal use. Taxact online 2010 You abandon the property. Taxact online 2010 You transfer the property to a supplies or scrap account. Taxact online 2010 The property is destroyed. Taxact online 2010 If you included the property in a general asset account, see How Do You Use General Asset Accounts in chapter 4 for the rules that apply when you dispose of that property. Taxact online 2010 What Method Can You Use To Depreciate Your Property? You must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate most property. Taxact online 2010 MACRS is discussed in chapter 4. Taxact online 2010 You cannot use MACRS to depreciate the following property. Taxact online 2010 Property you placed in service before 1987. Taxact online 2010 Certain property owned or used in 1986. Taxact online 2010 Intangible property. Taxact online 2010 Films, video tapes, and recordings. Taxact online 2010 Certain corporate or partnership property acquired in a nontaxable transfer. Taxact online 2010 Property you elected to exclude from MACRS. Taxact online 2010 The following discussions describe the property listed above and explain what depreciation method should be used. Taxact online 2010 Property You Placed in Service Before 1987 You cannot use MACRS for property you placed in service before 1987 (except property you placed in service after July 31, 1986, if MACRS was elected). Taxact online 2010 Property placed in service before 1987 must be depreciated under the methods discussed in Publication 534. Taxact online 2010 For a discussion of when property is placed in service, see When Does Depreciation Begin and End , earlier. Taxact online 2010 Use of real property changed. Taxact online 2010   You generally must use MACRS to depreciate real property that you acquired for personal use before 1987 and changed to business or income-producing use after 1986. Taxact online 2010 Improvements made after 1986. Taxact online 2010   You must treat an improvement made after 1986 to property you placed in service before 1987 as separate depreciable property. Taxact online 2010 Therefore, you can depreciate that improvement as separate property under MACRS if it is the type of property that otherwise qualifies for MACRS depreciation. Taxact online 2010 For more information about improvements, see How Do You Treat Repairs and Improvements , later and Additions and Improvements under Which Recovery Period Applies in chapter 4. Taxact online 2010 Property Owned or Used in 1986 You may not be able to use MACRS for property you acquired and placed in service after 1986 if any of the situations described below apply. Taxact online 2010 If you cannot use MACRS, the property must be depreciated under the methods discussed in Publication 534. Taxact online 2010 For the following discussions, do not treat property as owned before you placed it in service. Taxact online 2010 If you owned property in 1986 but did not place it in service until 1987, you do not treat it as owned in 1986. Taxact online 2010 Personal property. Taxact online 2010   You cannot use MACRS for personal property (section 1245 property) in any of the following situations. Taxact online 2010 You or someone related to you owned or used the property in 1986. Taxact online 2010 You acquired the property from a person who owned it in 1986 and as part of the transaction the user of the property did not change. Taxact online 2010 You lease the property to a person (or someone related to this person) who owned or used the property in 1986. Taxact online 2010 You acquired the property in a transaction in which: The user of the property did not change, and The property was not MACRS property in the hands of the person from whom you acquired it because of (2) or (3) above. Taxact online 2010 Real property. Taxact online 2010   You generally cannot use MACRS for real property (section 1250 property) in any of the following situations. Taxact online 2010 You or someone related to you owned the property in 1986. Taxact online 2010 You lease the property to a person who owned the property in 1986 (or someone related to that person). Taxact online 2010 You acquired the property in a like-kind exchange, involuntary conversion, or repossession of property you or someone related to you owned in 1986. Taxact online 2010 MACRS applies only to that part of your basis in the acquired property that represents cash paid or unlike property given up. Taxact online 2010 It does not apply to the carried-over part of the basis. Taxact online 2010 Exceptions. Taxact online 2010   The rules above do not apply to the following. Taxact online 2010 Residential rental property or nonresidential real property. Taxact online 2010 Any property if, in the first tax year it is placed in service, the deduction under the Accelerated Cost Recovery System (ACRS) is more than the deduction under MACRS using the half-year convention. Taxact online 2010 For information on how to figure depreciation under ACRS, see Publication 534. Taxact online 2010 Property that was MACRS property in the hands of the person from whom you acquired it because of (2) above. Taxact online 2010 Related persons. Taxact online 2010   For this purpose, the following are related persons. Taxact online 2010 An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. Taxact online 2010 A corporation and an individual who directly or indirectly owns more than 10% of the value of the outstanding stock of that corporation. Taxact online 2010 Two corporations that are members of the same controlled group. Taxact online 2010 A trust fiduciary and a corporation if more than 10% of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. Taxact online 2010 The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Taxact online 2010 The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. Taxact online 2010 A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. Taxact online 2010 Two S corporations, and an S corporation and a regular corporation, if the same persons own more than 10% of the value of the outstanding stock of each corporation. Taxact online 2010 A corporation and a partnership if the same persons own both of the following. Taxact online 2010 More than 10% of the value of the outstanding stock of the corporation. Taxact online 2010 More than 10% of the capital or profits interest in the partnership. Taxact online 2010 The executor and beneficiary of any estate. Taxact online 2010 A partnership and a person who directly or indirectly owns more than 10% of the capital or profits interest in the partnership. Taxact online 2010 Two partnerships, if the same persons directly or indirectly own more than 10% of the capital or profits interest in each. Taxact online 2010 The related person and a person who is engaged in trades or businesses under common control. Taxact online 2010 See section 52(a) and 52(b) of the Internal Revenue Code. Taxact online 2010 When to determine relationship. Taxact online 2010   You must determine whether you are related to another person at the time you acquire the property. Taxact online 2010   A partnership acquiring property from a terminating partnership must determine whether it is related to the terminating partnership immediately before the event causing the termination. Taxact online 2010 For this rule, a terminating partnership is one that sells or exchanges, within 12 months, 50% or more of its total interest in partnership capital or profits. Taxact online 2010 Constructive ownership of stock or partnership interest. Taxact online 2010   To determine whether a person directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership, apply the following rules. Taxact online 2010 Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Taxact online 2010 However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more of the value of the stock of the corporation. Taxact online 2010 An individual is considered to own the stock or partnership interest directly or indirectly owned by or for the individual's family. Taxact online 2010 An individual who owns, except by applying rule (2), any stock in a corporation is considered to own the stock directly or indirectly owned by or for the individual's partner. Taxact online 2010 For purposes of rules (1), (2), or (3), stock or a partnership interest considered to be owned by a person under rule (1) is treated as actually owned by that person. Taxact online 2010 However, stock or a partnership interest considered to be owned by an individual under rule (2) or (3) is not treated as owned by that individual for reapplying either rule (2) or (3) to make another person considered to be the owner of the same stock or partnership interest. Taxact online 2010 Intangible Property Generally, if you can depreciate intangible property, you usually use the straight line method of depreciation. Taxact online 2010 However, you can choose to depreciate certain intangible property under the income forecast method (discussed later). Taxact online 2010 You cannot depreciate intangible property that is a section 197 intangible or that otherwise does not meet all the requirements discussed earlier under What Property Can Be Depreciated. Taxact online 2010 Straight Line Method This method lets you deduct the same amount of depreciation each year over the useful life of the property. Taxact online 2010 To figure your deduction, first determine the adjusted basis, salvage value, and estimated useful life of your property. Taxact online 2010 Subtract the salvage value, if any, from the adjusted basis. Taxact online 2010 The balance is the total depreciation you can take over the useful life of the property. Taxact online 2010 Divide the balance by the number of years in the useful life. Taxact online 2010 This gives you your yearly depreciation deduction. Taxact online 2010 Unless there is a big change in adjusted basis or useful life, this amount will stay the same throughout the time you depreciate the property. Taxact online 2010 If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. Taxact online 2010 Example. Taxact online 2010 In April, Frank bought a patent for $5,100 that is not a section 197 intangible. Taxact online 2010 He depreciates the patent under the straight line method, using a 17-year useful life and no salvage value. Taxact online 2010 He divides the $5,100 basis by 17 years to get his $300 yearly depreciation deduction. Taxact online 2010 He only used the patent for 9 months during the first year, so he multiplies $300 by 9/12 to get his deduction of $225 for the first year. Taxact online 2010 Next year, Frank can deduct $300 for the full year. Taxact online 2010 Patents and copyrights. Taxact online 2010   If you can depreciate the cost of a patent or copyright, use the straight line method over the useful life. Taxact online 2010 The useful life of a patent or copyright is the lesser of the life granted to it by the government or the remaining life when you acquire it. Taxact online 2010 However, if the patent or copyright becomes valueless before the end of its useful life, you can deduct in that year any of its remaining cost or other basis. Taxact online 2010 Computer software. Taxact online 2010   Computer software is generally a section 197 intangible and cannot be depreciated if you acquired it in connection with the acquisition of assets constituting a business or a substantial part of a business. Taxact online 2010   However, computer software is not a section 197 intangible and can be depreciated, even if acquired in connection with the acquisition of a business, if it meets all of the following tests. Taxact online 2010 It is readily available for purchase by the general public. Taxact online 2010 It is subject to a nonexclusive license. Taxact online 2010 It has not been substantially modified. Taxact online 2010   If the software meets the tests above, it may also qualify for the section 179 deduction and the special depreciation allowance, discussed later. Taxact online 2010 If you can depreciate the cost of computer software, use the straight line method over a useful life of 36 months. Taxact online 2010    Tax-exempt use property subject to a lease. Taxact online 2010   The useful life of computer software leased under a lease agreement entered into after March 12, 2004, to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership), cannot be less than 125% of the lease term. Taxact online 2010 Certain created intangibles. Taxact online 2010   You can amortize certain intangibles created on or after December 31, 2003, over a 15-year period using the straight line method and no salvage value, even though they have a useful life that cannot be estimated with reasonable accuracy. Taxact online 2010 For example, amounts paid to acquire memberships or privileges of indefinite duration, such as a trade association membership, are eligible costs. Taxact online 2010   The following are not eligible. Taxact online 2010 Any intangible asset acquired from another person. Taxact online 2010 Created financial interests. Taxact online 2010 Any intangible asset that has a useful life that can be estimated with reasonable accuracy. Taxact online 2010 Any intangible asset that has an amortization period or limited useful life that is specifically prescribed or prohibited by the Code, regulations, or other published IRS guidance. Taxact online 2010 Any amount paid to facilitate an acquisition of a trade or business, a change in the capital structure of a business entity, and certain other transactions. Taxact online 2010   You must also increase the 15-year safe harbor amortization period to a 25-year period for certain intangibles related to benefits arising from the provision, production, or improvement of real property. Taxact online 2010 For this purpose, real property includes property that will remain attached to the real property for an indefinite period of time, such as roads, bridges, tunnels, pavements, and pollution control facilities. Taxact online 2010 Income Forecast Method You can choose to use the income forecast method instead of the straight line method to depreciate the following depreciable intangibles. Taxact online 2010 Motion picture films or video tapes. Taxact online 2010 Sound recordings. Taxact online 2010 Copyrights. Taxact online 2010 Books. Taxact online 2010 Patents. Taxact online 2010 Under the income forecast method, each year's depreciation deduction is equal to the cost of the property, multiplied by a fraction. Taxact online 2010 The numerator of the fraction is the current year's net income from the property, and the denominator is the total income anticipated from the property through the end of the 10th taxable year following the taxable year the property is placed in service. Taxact online 2010 For more information, see section 167(g) of the Internal Revenue Code. Taxact online 2010 Films, video tapes, and recordings. Taxact online 2010   You cannot use MACRS for motion picture films, video tapes, and sound recordings. Taxact online 2010 For this purpose, sound recordings are discs, tapes, or other phonorecordings resulting from the fixation of a series of sounds. Taxact online 2010 You can depreciate this property using either the straight line method or the income forecast method. Taxact online 2010 Participations and residuals. Taxact online 2010   You can include participations and residuals in the adjusted basis of the property for purposes of computing your depreciation deduction under the income forecast method. Taxact online 2010 The participations and residuals must relate to income to be derived from the property before the end of the 10th taxable year after the property is placed in service. Taxact online 2010 For this purpose, participations and residuals are defined as costs which by contract vary with the amount of income earned in connection with the property. Taxact online 2010   Instead of including these amounts in the adjusted basis of the property, you can deduct the costs in the taxable year that they are paid. Taxact online 2010 Videocassettes. Taxact online 2010   If you are in the business of renting videocassettes, you can depreciate only those videocassettes bought for rental. Taxact online 2010 If the videocassette has a useful life of one year or less, you can currently deduct the cost as a business expense. Taxact online 2010 Corporate or Partnership Property Acquired in a Nontaxable Transfer MACRS does not apply to property used before 1987 and transferred after 1986 to a corporation or partnership (except property the transferor placed in service after July 31, 1986, if MACRS was elected) to the extent its basis is carried over from the property's adjusted basis in the transferor's hands. Taxact online 2010 You must continue to use the same depreciation method as the transferor and figure depreciation as if the transfer had not occurred. Taxact online 2010 However, if MACRS would otherwise apply, you can use it to depreciate the part of the property's basis that exceeds the carried-over basis. Taxact online 2010 The nontaxable transfers covered by this rule include the following. Taxact online 2010 A distribution in complete liquidation of a subsidiary. Taxact online 2010 A transfer to a corporation controlled by the transferor. Taxact online 2010 An exchange of property solely for corporate stock or securities in a reorganization. Taxact online 2010 A contribution of property to a partnership in exchange for a partnership interest. Taxact online 2010 A partnership distribution of property to a partner. Taxact online 2010 Election To Exclude Property From MACRS If you can properly depreciate any property under a method not based on a term of years, such as the unit-of-production method, you can elect to exclude that property from MACRS. Taxact online 2010 You make the election by reporting your depreciation for the property on line 15 in Part II of Form 4562 and attaching a statement as described in the instructions for Form 4562. Taxact online 2010 You must make this election by the return due date (including extensions) for the tax year you place your property in service. Taxact online 2010 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 six months of the due date of the return (excluding extensions). Taxact online 2010 Attach the election to the amended return and write “Filed pursuant to section 301. Taxact online 2010 9100-2” on the election statement. Taxact online 2010 File the amended return at the same address you filed the original return. Taxact online 2010 Use of standard mileage rate. Taxact online 2010   If you use the standard mileage rate to figure your tax deduction for your business automobile, you are treated as having made an election to exclude the automobile from MACRS. Taxact online 2010 See Publication 463 for a discussion of the standard mileage rate. Taxact online 2010 What Is the Basis of Your Depreciable Property? To figure your depreciation deduction, you must determine the basis of your property. Taxact online 2010 To determine basis, you need to know the cost or other basis of your property. Taxact online 2010 Cost as Basis The basis of property you buy is its cost plus amounts you paid for items such as sales tax (see Exception , below), freight charges, and installation and testing fees. Taxact online 2010 The cost includes the amount you pay in cash, debt obligations, other property, or services. Taxact online 2010 Exception. Taxact online 2010   You can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). Taxact online 2010 If you make that choice, you cannot include those sales taxes as part of your cost basis. Taxact online 2010 Assumed debt. Taxact online 2010   If you buy property and assume (or buy subject to) an existing mortgage or other debt on the property, your basis includes the amount you pay for the property plus the amount of the assumed debt. Taxact online 2010 Example. Taxact online 2010 You make a $20,000 down payment on property and assume the seller's mortgage of $120,000. Taxact online 2010 Your total cost is $140,000, the cash you paid plus the mortgage you assumed. Taxact online 2010 Settlement costs. Taxact online 2010   The basis of real property also includes certain fees and charges you pay in addition to the purchase price. Taxact online 2010 These generally are shown on your settlement statement and include the following. Taxact online 2010 Legal and recording fees. Taxact online 2010 Abstract fees. Taxact online 2010 Survey charges. Taxact online 2010 Owner's title insurance. Taxact online 2010 Amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. Taxact online 2010   For fees and charges you cannot include in the basis of property, see Real Property in Publication 551. Taxact online 2010 Property you construct or build. Taxact online 2010   If you construct, build, or otherwise produce property for use in your business, you may have to use the uniform capitalization rules to determine the basis of your property. Taxact online 2010 For information about the uniform capitalization rules, see Publication 551 and the regulations under section 263A of the Internal Revenue Code. Taxact online 2010 Other Basis Other basis usually refers to basis that is determined by the way you received the property. Taxact online 2010 For example, your basis is other than cost if you acquired the property in exchange for other property, as payment for services you performed, as a gift, or as an inheritance. Taxact online 2010 If you acquired property in this or some other way, see Publication 551 to determine your basis. Taxact online 2010 Property changed from personal use. Taxact online 2010   If you held property for personal use and later use it in your business or income-producing activity, your depreciable basis is the lesser of the following. Taxact online 2010 The fair market value (FMV) of the property on the date of the change in use. Taxact online 2010 Your original cost or other basis adjusted as follows. Taxact online 2010 Increased by the cost of any permanent improvements or additions and other costs that must be added to basis. Taxact online 2010 Decreased by any deductions you claimed for casualty and theft losses and other items that reduced your basis. Taxact online 2010 Example. Taxact online 2010 Several years ago, Nia paid $160,000 to have her home built on a lot that cost her $25,000. Taxact online 2010 Before changing the property to rental use last year, she paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house. Taxact online 2010 Land is not depreciable, so she includes only the cost of the house when figuring the basis for depreciation. Taxact online 2010 Nia's adjusted basis in the house when she changed its use was $178,000 ($160,000 + $20,000 − $2,000). Taxact online 2010 On the same date, her property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. Taxact online 2010 The basis for depreciation on the house is the FMV on the date of change ($165,000), because it is less than her adjusted basis ($178,000). Taxact online 2010 Property acquired in a nontaxable transaction. Taxact online 2010   Generally, if you receive property in a nontaxable exchange, the basis of the property you receive is the same as the adjusted basis of the property you gave up. Taxact online 2010 Special rules apply in determining the basis and figuring the MACRS depreciation deduction and special depreciation allowance for property acquired in a like-kind exchange or involuntary conversion. Taxact online 2010 See Like-kind exchanges and involuntary conversions. Taxact online 2010 under How Much Can You Deduct? in chapter 3 and Figuring the Deduction for Property Acquired in a Nontaxable Exchange in chapter 4. Taxact online 2010   There are also special rules for determining the basis of MACRS property involved in a like-kind exchange or involuntary conversion when the property is contained in a general asset account. Taxact online 2010 See How Do You Use General Asset Accounts in chapter 4. Taxact online 2010 Adjusted Basis To find your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service. Taxact online 2010 These events could include the following. Taxact online 2010 Installing utility lines. Taxact online 2010 Paying legal fees for perfecting the title. Taxact online 2010 Settling zoning issues. Taxact online 2010 Receiving rebates. Taxact online 2010 Incurring a casualty or theft loss. Taxact online 2010 For a discussion of adjustments to the basis of your property, see Adjusted Basis in Publication 551. Taxact online 2010 If you depreciate your property under MACRS, you also may have to reduce your basis by certain deductions and credits with respect to the property. Taxact online 2010 For more information, see What Is the Basis for Depreciation in chapter 4. Taxact online 2010 . Taxact online 2010 Basis adjustment for depreciation allowed or allowable. Taxact online 2010   You must reduce the basis of property by the depreciation allowed or allowable, whichever is greater. Taxact online 2010 Depreciation allowed is depreciation you actually deducted (from which you received a tax benefit). Taxact online 2010 Depreciation allowable is depreciation you are entitled to deduct. Taxact online 2010   If you do not claim depreciation you are entitled to deduct, you must still reduce the basis of the property by the full amount of depreciation allowable. Taxact online 2010   If you deduct more depreciation than you should, you must reduce your basis by any amount deducted from which you received a tax benefit (the depreciation allowed). Taxact online 2010 How Do You Treat Repairs and Improvements? If you improve depreciable property, you must treat the improvement as separate depreciable property. Taxact online 2010 Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use. Taxact online 2010 You generally deduct the cost of repairing business property in the same way as any other business expense. Taxact online 2010 However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it. Taxact online 2010 Example. Taxact online 2010 You repair a small section on one corner of the roof of a rental house. Taxact online 2010 You deduct the cost of the repair as a rental expense. Taxact online 2010 However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. Taxact online 2010 You depreciate the cost of the new roof. Taxact online 2010 Improvements to rented property. Taxact online 2010   You can depreciate permanent improvements you make to business property you rent from someone else. Taxact online 2010 Do You Have To File Form 4562? Use Form 4562 to figure your deduction for depreciation and amortization. Taxact online 2010 Attach Form 4562 to your tax return for the current tax year if you are claiming any of the following items. Taxact online 2010 A section 179 deduction for the current year or a section 179 carryover from a prior year. Taxact online 2010 See chapter 2 for information on the section 179 deduction. Taxact online 2010 Depreciation for property placed in service during the current year. Taxact online 2010 Depreciation on any vehicle or other listed property, regardless of when it was placed in service. Taxact online 2010 See chapter 5 for information on listed property. Taxact online 2010 A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040). Taxact online 2010 Amortization of costs if the current year is the first year of the amortization period. Taxact online 2010 Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U. Taxact online 2010 S. Taxact online 2010 Income Tax Return for an S Corporation) regardless of when it was placed in service. Taxact online 2010 You must submit a separate Form 4562 for each business or activity on your return for which a Form 4562 is required. Taxact online 2010 Table 1-1 presents an overview of the purpose of the various parts of Form 4562. Taxact online 2010 Employee. Taxact online 2010   Do not use Form 4562 if you are an employee and you deduct job-related vehicle expenses using either actual expenses (including depreciation) or the standard mileage rate. Taxact online 2010 Instead, use either Form 2106 or Form 2106-EZ. Taxact online 2010 Use Form 2106-EZ if you are claiming the standard mileage rate and you are not reimbursed by your employer for any expenses. Taxact online 2010 How Do You Correct Depreciation Deductions? If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. Taxact online 2010 See Filing an Amended Return , next. Taxact online 2010 If you are not allowed to make the correction on an amended return, you may be able to change your accounting method to claim the correct amount of depreciation. Taxact online 2010 See Changing Your Accounting Method , later. Taxact online 2010 Filing an Amended Return You can file an amended return to correct the amount of depreciation claimed for any property in any of the following situations. Taxact online 2010 You claimed the incorrect amount because of a mathematical error made in any year. Taxact online 2010 You claimed the incorrect amount because of a posting error made in any year. Taxact online 2010 You have not adopted a method of accounting for property placed in service by you in tax years ending after December 29, 2003. Taxact online 2010 You claimed the incorrect amount on property placed in service by you in tax years ending before December 30, 2003. Taxact online 2010 Adoption of accounting method defined. Taxact online 2010   Generally, you adopt a method of accounting for depreciation by using a permissible method of determining depreciation when you file your first tax return, or by using the same impermissible method of determining depreciation in two or more consecutively filed tax returns. Taxact online 2010   For an exception to this 2-year rule, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb11-04. Taxact online 2010 pdf. Taxact online 2010 (Note. Taxact online 2010 Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. Taxact online 2010 For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb12-14. Taxact online 2010 pdf. Taxact online 2010 )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets and procedures to obtain automatic consent to change to the safe harbor method of accounting, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb07-29. Taxact online 2010 pdf. Taxact online 2010 When to file. Taxact online 2010   If an amended return is allowed, you must file it by the later of the following. Taxact online 2010 3 years from the date you filed your original return for the year in which you did not deduct the correct amount. Taxact online 2010 A return filed before an unextended due date is considered filed on that due date. Taxact online 2010 2 years from the time you paid your tax for that year. Taxact online 2010 Changing Your Accounting Method Generally, you must get IRS approval to change your method of accounting. Taxact online 2010 You generally must file Form 3115, Application for Change in Accounting Method, to request a change in your method of accounting for depreciation. Taxact online 2010 The following are examples of a change in method of accounting for depreciation. Taxact online 2010 A change from an impermissible method of determining depreciation for depreciable property, if the impermissible method was used in two or more consecutively filed tax returns. Taxact online 2010 A change in the treatment of an asset from nondepreciable to depreciable or vice versa. Taxact online 2010 A change in the depreciation method, period of recovery, or convention of a depreciable asset. Taxact online 2010 A change from not claiming to claiming the special depreciation allowance if you did not make the election to not claim any special allowance. Taxact online 2010 A change from claiming a 50% special depreciation allowance to claiming a 30% special depreciation allowance for qualified property (including property that is included in a class of property for which you elected a 30% special allowance instead of a 50% special allowance). Taxact online 2010 Changes in depreciation that are not a change in method of accounting (and may only be made on an amended return) include the following. Taxact online 2010 An adjustment in the useful life of a depreciable asset for which depreciation is determined under section 167. Taxact online 2010 A change in use of an asset in the hands of the same taxpayer. Taxact online 2010 Making a late depreciation election or revoking a timely valid depreciation election (including the election not to deduct the special depreciation allowance). Taxact online 2010 If you elected not to claim any special allowance, a change from not claiming to claiming the special allowance is a revocation of the election and is not an accounting method change. Taxact online 2010 Generally, you must get IRS approval to make a late depreciation election or revoke a depreciation election. Taxact online 2010 You must submit a request for a letter ruling to make a late election or revoke an election. Taxact online 2010 Any change in the placed in service date of a depreciable asset. Taxact online 2010 See section 1. Taxact online 2010 446-1(e)(2)(ii)(d) of the regulations for more information and examples. Taxact online 2010 IRS approval. Taxact online 2010   In some instances, you may be able to get approval from the IRS to change your method of accounting for depreciation under the automatic change request procedures generally covered in Revenue Procedure 2011-14. Taxact online 2010 If you do not qualify to use the automatic procedures to get approval, you must use the advance consent request procedures generally covered in Revenue Procedure 97-27, 1997-1 C. Taxact online 2010 B. Taxact online 2010 680. Taxact online 2010 Also see the Instructions for Form 3115 for more information on getting approval, including lists of scope limitations and automatic accounting method changes. Taxact online 2010 Additional guidance. Taxact online 2010    For additional guidance and special procedures for changing your accounting method, automatic change procedures, amending your return, and filing Form 3115, see Revenue Procedure 2011-14 on page 330 of the Internal Revenue Bulletin 2011-4, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb11-04. Taxact online 2010 pdf. Taxact online 2010 (Note. Taxact online 2010 Revenue Procedure 2011-14 is clarified and modified by Revenue Procedure 2012-20. Taxact online 2010 For more information, see Revenue Procedure 2012-20 on page 700 of the Internal Revenue Bulletin 2012-14, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb12-14. Taxact online 2010 pdf. Taxact online 2010 )   For a safe harbor method of accounting to treat rotable spare parts as depreciable assets, see Revenue Procedure 2007-48 on page 110 of Internal Revenue Bulletin 2007-29, available at www. Taxact online 2010 irs. Taxact online 2010 gov/pub/irs-irbs/irb07-29. Taxact online 2010 pdf. Taxact online 2010 Table 1-1. Taxact online 2010 Purpose of Form 4562 This table describes the purpose of the various parts of Form 4562. Taxact online 2010 For more information, see Form 4562 and its instructions. Taxact online 2010 Part Purpose I • Electing the section 179 deduction • Figuring the maximum section 179 deduction for the current year • Figuring any section 179 deduction carryover to the next year II • Reporting the special depreciation allowance for property (other than listed property) placed in service during the tax year • Reporting depreciation deductions on property being depreciated under any method other than Modified Accelerated Cost Recovery System (MACRS) III • Reporting MACRS depreciation deductions for property placed in service before this year • Reporting MACRS depreciation deductions for property (other than listed property) placed in service during the current year IV • Summarizing other parts V • Reporting the special depreciation allowance for automobiles and other listed property • Reporting MACRS depreciation on automobiles and other listed property • Reporting the section 179 cost elected for automobiles and other listed property • Reporting information on the use of automobiles and other transportation vehicles VI • Reporting amortization deductions Section 481(a) adjustment. Taxact online 2010   If you file Form 3115 and change from an impermissible method to a permissible method of accounting for depreciation, you can make a section 481(a) adjustment for any unclaimed or excess amount of allowable depreciation. Taxact online 2010 The adjustment is the difference between the total depreciation actually deducted for the property and the total amount allowable prior to the year of change. Taxact online 2010 If no depreciation was deducted, the adjustment is the total depreciation allowable prior to the year of change. Taxact online 2010 A negative section 481(a) adjustment results in a decrease in taxable income. Taxact online 2010 It is taken into account in the year of change and is reported on your business tax returns as “other expenses. Taxact online 2010 ” A positive section 481(a) adjustment results in an increase in taxable income. Taxact online 2010 It is generally taken into account over 4 tax years and is reported on your business tax returns as “other income. Taxact online 2010 ” However, you can elect to use a one-year adjustment period and report the adjustment in the year of change if the total adjustment is less than $25,000. Taxact online 2010 Make the election by completing the appropriate line on Form 3115. Taxact online 2010   If you file a Form 3115 and change from one permissible method to another permissible method, the section 481(a) adjustment is zero. Taxact online 2010 Prev  Up  Next   Home   More Online Publications
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The Taxact Online 2010

Taxact online 2010 Index A Abusive tax shelters (see Tax shelters) Accounting fees, Attorney or accounting fees. Taxact online 2010 Accrual method, Accrual method taxpayers. Taxact online 2010 , Accrual method. Taxact online 2010 , Holders must use accrual method. Taxact online 2010 , When To Deduct Investment Interest Accuracy-related penalty, Accuracy-related penalty. Taxact online 2010 Acquisition discount, Government obligations. Taxact online 2010 , Acquisition discount on short-term obligations. Taxact online 2010 Adjusted basis, Basis adjustment. Taxact online 2010 , Fair market value equal to or more than donor's adjusted basis. Taxact online 2010 , Adjusted Basis, Short sales. Taxact online 2010 Alaska Permanent Fund dividends, Alaska Permanent Fund dividends. Taxact online 2010 , Child's Alaska Permanent Fund dividends. Taxact online 2010 Amortization of bond premium, Bond Premium Amortization, Bonds acquired after October 22, 1986, but before 1988. Taxact online 2010 Annuities Borrowing on, Borrowing on insurance. Taxact online 2010 Interest on, Interest on annuity contract. Taxact online 2010 Life insurance proceeds used to buy, Annuity. Taxact online 2010 Sale of, Sale of Annuity Single-premium, Single-premium life insurance, endowment, and annuity contracts. Taxact online 2010 Trade for, Trade of investment property for an annuity. Taxact online 2010 , Insurance Policies and Annuities Applicable federal rate, Applicable federal rate. Taxact online 2010 Appreciated financial positions, Constructive Sales of Appreciated Financial Positions Arbitrage bonds, Arbitrage bonds. Taxact online 2010 Assistance (see Tax help) At-risk rules, At-risk rules. Taxact online 2010 , At-risk rules. Taxact online 2010 Attorneys' fees, Attorney or accounting fees. Taxact online 2010 Automatic investment service, Automatic investment service and dividend reinvestment plans. Taxact online 2010 , Automatic investment service. Taxact online 2010 , Automatic investment service. Taxact online 2010 Average basis, Average Basis Double-category method, Transition rule from double-category method. Taxact online 2010 Illustrated, Average basis method illustrated. Taxact online 2010 B Backup withholding, Backup withholding. Taxact online 2010 Bad debts, Nonbusiness bad debt. Taxact online 2010 , Nonbusiness Bad Debts Bankrupt financial institutions Deposit in, Deposit in Insolvent or Bankrupt Financial Institution Bargain purchases, Bargain purchases. Taxact online 2010 Basis, Basis of Investment Property, U. Taxact online 2010 S. Taxact online 2010 Treasury Notes or Bonds Adjusted, Basis adjustment. Taxact online 2010 , Fair market value equal to or more than donor's adjusted basis. Taxact online 2010 , Adjusted Basis, Short sales. Taxact online 2010 Average, Average Basis Cost, Cost Basis, Cost Basis Inherited property, Property Received as Inheritance Investment property, Basis of Investment Property Like-kind exchanges, Basis of property received. Taxact online 2010 Other than cost, Basis Other Than Cost REITs, Shares in a mutual fund or REIT. Taxact online 2010 REMIC, residual interest, Basis in the residual interest. Taxact online 2010 Replacement stock, Basis of replacement stock. Taxact online 2010 Shares acquired by reinvestment, Reinvestment right. Taxact online 2010 Stocks and bonds, Basis adjustment. Taxact online 2010 , Basis. Taxact online 2010 , Basis. Taxact online 2010 , Stocks and Bonds Bearer obligations, Bearer CDs. Taxact online 2010 , Bearer Obligations Below-market loans, Below-Market Loans Bonds Accrued interest on, Accrued interest on bonds. Taxact online 2010 Amortization of premium, Bond Premium Amortization Arbitrage, Arbitrage bonds. Taxact online 2010 Basis, Basis. Taxact online 2010 , Stocks and Bonds Capital asset, Stocks, stock rights, and bonds. Taxact online 2010 Convertible, Convertible stocks and bonds. Taxact online 2010 Coupon, Coupon bonds. Taxact online 2010 Enterprise zone facility, Enterprise zone facility bonds. Taxact online 2010 Federally guaranteed, Federally guaranteed bonds. Taxact online 2010 Identification, Identifying stock or bonds sold. Taxact online 2010 Market discount, Market discount. Taxact online 2010 , Limit on interest deduction for market discount bonds. Taxact online 2010 , Market discount on bonds. Taxact online 2010 , Market discount bonds. Taxact online 2010 , Market discount bonds. Taxact online 2010 New York Liberty bonds, New York Liberty bonds. Taxact online 2010 Par value, Bonds purchased at par value. Taxact online 2010 Premiums on, Bond premium. Taxact online 2010 , Premiums on bonds. Taxact online 2010 Private activity, Private activity bonds. Taxact online 2010 Redemption or retirement of, Redemption or retirement of bonds. Taxact online 2010 Sold between interest dates, Bonds Sold Between Interest Dates State and local government, Tax-exempt state and local government bonds. Taxact online 2010 Stripped, Stripped bonds or coupons. Taxact online 2010 , Stripped Bonds and Coupons, Stripped tax-exempt obligation. Taxact online 2010 Tax credit bonds, Tax credit bonds. Taxact online 2010 Tax-exempt, Tax-exempt state and local government bonds. Taxact online 2010 Traded flat, Bonds traded flat. Taxact online 2010 U. Taxact online 2010 S. Taxact online 2010 savings (see U. Taxact online 2010 S. Taxact online 2010 savings bonds) U. Taxact online 2010 S. Taxact online 2010 Treasury (see U. Taxact online 2010 S. Taxact online 2010 Treasury bills, notes, and bonds) Brokerage fees, Fees to buy or sell. Taxact online 2010 , Sale expenses. Taxact online 2010 C Calls and puts, Puts and Calls Table 4-3, Table 4-3. Taxact online 2010 Puts and Calls Capital assets, Capital Assets and Noncapital Assets Capital gain distributions, Capital Gain Distributions, Basis adjustment. Taxact online 2010 , Capital gain distributions. Taxact online 2010 , Child's capital gain distributions. Taxact online 2010 , Capital gain distributions received. Taxact online 2010 Capital gains and losses, Capital Gains and Losses, Loss on stock that paid qualified dividends. Taxact online 2010 Constructive ownership transactions, Gains From Certain Constructive Ownership Transactions Definition, Capital or Ordinary Gain or Loss Empowerment zone assets, Exclusion of Gain From DC Zone Assets Investment property, Investment property. Taxact online 2010 Long-term, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. Taxact online 2010 Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). Taxact online 2010 Losses, limit on, Limit on deduction. Taxact online 2010 Passive activities, Passive activity gains and losses. Taxact online 2010 Qualified covered call options, Capital loss on qualified covered call options. Taxact online 2010 Qualified small business stock, Gains on Qualified Small Business Stock Reporting requirements, How To Report Gains and Losses (Form 6781), How to report gain. Taxact online 2010 Rollover of gain from sale of securities, Rollover of Gain From Publicly Traded Securities Short-term, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. Taxact online 2010 Tax rates, Capital Gain Tax Rates, Table 4-4. Taxact online 2010 What Is Your Maximum Capital Gain Rate? Table 4-4, Table 4-4. Taxact online 2010 What Is Your Maximum Capital Gain Rate? Capital loss carryover, Capital loss carryover. Taxact online 2010 , Capital Losses Worksheet 4-1, Worksheet 4-1. Taxact online 2010 Capital Loss Carryover Worksheet Cash method, Cash method taxpayers. Taxact online 2010 , Cash method. Taxact online 2010 , When To Deduct Investment Interest Reporting options for savings bond interest, Reporting options for cash method taxpayers. Taxact online 2010 Cash-settled options, Cash-settled options. Taxact online 2010 Casualty losses, Ordinary loss or casualty loss. Taxact online 2010 CDOs (Collateralized debt obligations), Collateralized Debt Obligations (CDOs) Certificates of deposit (CDs), Certificates of Deposit (CDs) Children Alaska Permanent Fund dividends, Child's Alaska Permanent Fund dividends. Taxact online 2010 Capital gain distributions, Child's capital gain distributions. Taxact online 2010 Custodian account for, Custodian account for your child. Taxact online 2010 Gifts to, Income from property given to a child. Taxact online 2010 Investment income of, Tax on unearned income of certain children. Taxact online 2010 , Investment income of child reported on parent's return. Taxact online 2010 Qualified dividends, Child's qualified dividends. Taxact online 2010 Savings account with parent as trustee, Savings account with parent as trustee. Taxact online 2010 U. Taxact online 2010 S. Taxact online 2010 savings bond owner, Child as only owner. Taxact online 2010 Clerical help, Clerical help and office rent. Taxact online 2010 Co-owners of U. Taxact online 2010 S. Taxact online 2010 savings bonds, Co-owners. Taxact online 2010 Collateralized debt obligations (CDOs), Collateralized Debt Obligations (CDOs) Collectibles, Collectibles gain or loss. Taxact online 2010 Commissions, Commissions and load charges. Taxact online 2010 Commodity futures, Commodity Futures, Commodity futures. Taxact online 2010 Community property U. Taxact online 2010 S. Taxact online 2010 savings bonds, Community property. Taxact online 2010 Constructive ownership transactions, Constructive ownership of stock. Taxact online 2010 , Gains From Certain Constructive Ownership Transactions Constructive receipt, Constructive receipt. Taxact online 2010 Constructive sales, Constructive Sales of Appreciated Financial Positions Contractors, insolvency of, Insolvency of contractor. Taxact online 2010 Conversion transactions, Conversion Transactions Convertible stocks and bonds, Convertible stocks and bonds. Taxact online 2010 Cooperatives, sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Corporate distributions, Dividends and Other Distributions Capital gain, Capital gain distributions. Taxact online 2010 , Child's capital gain distributions. Taxact online 2010 , Capital gain distributions received. Taxact online 2010 Constructive, Constructive distributions. Taxact online 2010 Dividends (see Dividends) Fractional shares, Fractional shares. Taxact online 2010 Liquidating, Liquidating Distributions, Liquidating distributions. Taxact online 2010 Nondividend, Nondividend Distributions, Nondividend distributions. Taxact online 2010 Return of capital, Basis adjustment. Taxact online 2010 Stock rights, Distributions of Stock and Stock Rights Undistributed capital gains, Undistributed capital gains of mutual funds and REITs. Taxact online 2010 Corporate reorganizations, Corporate reorganizations. Taxact online 2010 Cost basis, Cost Basis, Cost Basis Coupon bonds, Coupon bonds. Taxact online 2010 D Day traders, Special Rules for Traders in Securities Dealer equity options, Dealer equity option. Taxact online 2010 Dealer securities futures contracts, Dealer securities futures contract. Taxact online 2010 Debt instruments, retirement of, Retirement of debt instrument. Taxact online 2010 Decedents, Appreciated property you gave the decedent. Taxact online 2010 , Decedent's capital loss. Taxact online 2010 U. Taxact online 2010 S. Taxact online 2010 savings bond interest, reporting of, Decedents. Taxact online 2010 Demutualization, Demutualization of Life Insurance Companies Deposits, loss on, Deposit in Insolvent or Bankrupt Financial Institution Discount on debt instruments, Discount on Debt Instruments Certificates of deposit, Certificates of Deposit (CDs) Election to report all interest as OID, Election To Report All Interest as OID Face-amount certificates, Face-Amount Certificates Gain or loss treatment, Discounted Debt Instruments Inflation-indexed, Inflation-Indexed Debt Instruments Market discount bonds (see Market discount bonds) Original issue discount (see Original issue discount (OID)) Short-term obligations, Discount on Short-Term Obligations, Short-term government obligations. Taxact online 2010 Stripped bonds and coupons, Stripped Bonds and Coupons Discounted debt instruments, Discount on Debt Instruments Discounted tax-exempt obligations, Discounted tax-exempt obligations. Taxact online 2010 Dividends, Dividends and Other Distributions, Form 1099-DIV. Taxact online 2010 (see also Form 1099-DIV) Alaska Permanent Fund, Alaska Permanent Fund dividends. Taxact online 2010 , Child's Alaska Permanent Fund dividends. Taxact online 2010 Exempt-interest, Exempt-interest dividends. Taxact online 2010 , Exempt-interest dividends. Taxact online 2010 , Exempt-interest dividends on mutual fund stock. Taxact online 2010 Extraordinary, Extraordinary dividends. Taxact online 2010 Holding period, Holding period. Taxact online 2010 Insurance policies, Dividends on insurance policies. Taxact online 2010 Money market funds, Money Market Funds Nominees, Nominees. Taxact online 2010 , Nominees. Taxact online 2010 Ordinary, Ordinary Dividends Patronage, Patronage dividends. Taxact online 2010 Payments in lieu of, Payments in lieu of dividends. Taxact online 2010 Qualified, Qualified Dividends, Qualified dividends. Taxact online 2010 , Child's qualified dividends. Taxact online 2010 Qualified foreign corporation, Qualified foreign corporation. Taxact online 2010 Received in January, Dividends received in January. Taxact online 2010 Reinvestment of, Reinvested distributions. Taxact online 2010 Reinvestment plans, Dividends Used To Buy More Stock, Automatic investment service and dividend reinvestment plans. Taxact online 2010 , Dividend reinvestment plans. Taxact online 2010 Reporting requirements, Form 1099-DIV. Taxact online 2010 , How To Report Dividend Income, Stripped Preferred Stock Restricted stock, Dividends received on restricted stock. Taxact online 2010 Sale or trade vs. Taxact online 2010 , Dividend versus sale or trade. Taxact online 2010 Scrip, Scrip dividends. Taxact online 2010 Sold stock, Dividends on stock sold. Taxact online 2010 Stock, Stock dividends. Taxact online 2010 , Stock dividends. Taxact online 2010 Underreported, Underreported interest and dividends. Taxact online 2010 Veterans' insurance, Interest on VA dividends. Taxact online 2010 , Dividends on veterans' insurance. Taxact online 2010 Divorce, Property Received From Your Spouse, Transfers Between Spouses E Education Savings Bond Program, Education Savings Bond Program Interest excluded under, Interest excluded under the Education Savings Bond Program. Taxact online 2010 Recordkeeping requirements, Education Savings Bond Program Employee stock options, Reminders Employee stock ownership plans (ESOPs), sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Employer identification numbers (EINs), Identifying number. Taxact online 2010 Empowerment zone, Exclusion of Gain From DC Zone Assets Endowment contracts, Single-premium life insurance, endowment, and annuity contracts. Taxact online 2010 Enterprise zone facility bonds, Enterprise zone facility bonds. Taxact online 2010 Equity option, Equity option. Taxact online 2010 Estate income received by beneficiary, Beneficiary of an estate or trust. Taxact online 2010 Exchanges of mutual fund shares, Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Exclusion of gain DC zone assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends on mutual fund stock, Exempt-interest dividends on mutual fund stock. Taxact online 2010 Expenses of producing income, Expenses of Producing Income F Face-amount certificates, Face-Amount Certificates Fair market value, Fair market value. Taxact online 2010 , Fair market value less than donor's adjusted basis. Taxact online 2010 , Fair market value. Taxact online 2010 Federal guarantee on bonds, Federally guaranteed bonds. Taxact online 2010 Fees to buy or sell, Fees to buy or sell. Taxact online 2010 Financial asset securitization investment trusts (FASITs), FASITs First-in first-out (FIFO), First-in first-out (FIFO). Taxact online 2010 Foreign currency transactions, Foreign currency contract. Taxact online 2010 Foreign income, Reminders Form 1040, Form 1040. Taxact online 2010 , Form 1040A or Form 1040. Taxact online 2010 Form 1040, Schedule B, Schedule B (Form 1040A or 1040). Taxact online 2010 Form 1040, Schedule D, How to report gain. Taxact online 2010 Form 1040A, Form 1040A. Taxact online 2010 Form 1040X, Filing a claim for refund. Taxact online 2010 Form 1041, Filing requirement. Taxact online 2010 Form 1065, Filing requirement. Taxact online 2010 Schedule K-1, Schedule K-1 (Form 1065). Taxact online 2010 Form 1066, Schedule Q, Schedule Q (Form 1066). Taxact online 2010 , Investment expenses from pass-through entities. Taxact online 2010 Form 1096, File Form 1099-INT with the IRS. Taxact online 2010 , File Form 1099-DIV with the IRS. Taxact online 2010 , File Form 1099-B or Form 1099-S with the IRS. Taxact online 2010 Form 1099-B, Form 1099-B. Taxact online 2010 , Form 1099-B transactions. Taxact online 2010 , File Form 1099-B or Form 1099-S with the IRS. Taxact online 2010 Form 1099-CAP, Form 1099-CAP transactions. Taxact online 2010 Form 1099-DIV, General Information, Form 1099-DIV. Taxact online 2010 , Form 1099-DIV. Taxact online 2010 , File Form 1099-DIV with the IRS. Taxact online 2010 Form 1099-INT, General Information, Form 1099-INT. Taxact online 2010 , Form 1099-INT for U. Taxact online 2010 S. Taxact online 2010 savings bond interest. Taxact online 2010 , Form 1099-INT. Taxact online 2010 , File Form 1099-INT with the IRS. Taxact online 2010 , Forms 1099-INT and 1099-OID. Taxact online 2010 , Forms 1099-INT and 1099-OID. Taxact online 2010 Form 1099-MISC, Form 1099-MISC. Taxact online 2010 , Reporting Substitute Payments Form 1099-OID, Form 1099-OID. Taxact online 2010 , Form 1099-OID, Form 1099-OID. Taxact online 2010 , Forms 1099-INT and 1099-OID. Taxact online 2010 , Forms 1099-INT and 1099-OID. Taxact online 2010 Form 1099-S, Form 1099-S transactions. Taxact online 2010 , File Form 1099-B or Form 1099-S with the IRS. Taxact online 2010 Form 1120, Filing requirement. Taxact online 2010 Form 2439, Undistributed capital gains of mutual funds and REITs. Taxact online 2010 Form 3115, Change from method 2. Taxact online 2010 , Choosing To Amortize, How To Make the Mark-to-Market Election Form 4684, Ordinary loss or casualty loss. Taxact online 2010 Form 4797, How to report. Taxact online 2010 , Losses on Section 1244 (Small Business) Stock, How to report. Taxact online 2010 Form 4952, Form 4952 Form 6198, At-risk rules. Taxact online 2010 Form 6781, Form 6781. Taxact online 2010 , How to report. Taxact online 2010 , How To Report Gains and Losses (Form 6781), Section 1256 contracts and straddles. Taxact online 2010 Form 8275, Negligence or disregard of rules or regulations. Taxact online 2010 Form 8275-R, Negligence or disregard of rules or regulations. Taxact online 2010 Form 8582, Form 8582. Taxact online 2010 Form 8615, Tax on unearned income of certain children. Taxact online 2010 Form 8815, Form 8815. Taxact online 2010 , Figuring the interest part of the proceeds (Form 8815, line 6). Taxact online 2010 , Interest excluded under the Education Savings Bond Program. Taxact online 2010 Form 8824, How to report. Taxact online 2010 Form 8832, Clubs formed before 1997. Taxact online 2010 Form 8886, Reportable Transaction Disclosure Statement, Negligence or disregard of rules or regulations. Taxact online 2010 Form 8949 Bad debts, How to report bad debts. Taxact online 2010 Basis adjustment, Basis adjustment. Taxact online 2010 Capital Gains, Reporting Capital Gains and Losses Capital Losses, Reporting Capital Gains and Losses Cooperative, sale to certain, Sales of Stock to ESOPs or Certain Cooperatives Copyrights in musical works, Capital asset treatment for self-created musical works. Taxact online 2010 Employee stock ownership plan, sale to, Sales of Stock to ESOPs or Certain Cooperatives Empowerment Zone Assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends, Exempt-interest dividends on mutual fund stock. Taxact online 2010 Form 1099-B, Form 1099-B. Taxact online 2010 , Form 1099-B transactions. Taxact online 2010 Form 1099-CAP, Form 1099-CAP transactions. Taxact online 2010 Form 1099-S, Form 1099-S transactions. Taxact online 2010 Fractional shares, Fractional shares. Taxact online 2010 Gain, qualified small business stock, How to report gain. Taxact online 2010 How to fill in, generally, Reporting Capital Gains and Losses Long-term gains and losses, Long-term gains and losses. Taxact online 2010 Marked-to-market election, Mark-to-market election made. Taxact online 2010 Market discount bonds, Market discount bonds. Taxact online 2010 , Market discount bonds. Taxact online 2010 Musical compositions, Capital asset treatment for self-created musical works. Taxact online 2010 Nominees, Nominees. Taxact online 2010 Nonbusiness bad debt, Nonbusiness bad debt. Taxact online 2010 Nondividend distributions, Nondividend distributions. Taxact online 2010 Option, How to report. Taxact online 2010 Property bought at various times, Sale of property bought at various times. Taxact online 2010 Rollover, publicly traded securities, Rollover of Gain From Publicly Traded Securities Rollover, qualified small business stock, How to report gain. Taxact online 2010 Sale expenses, Sale expenses. Taxact online 2010 Short-term gains and losses, Short-term gains and losses. Taxact online 2010 Software, Stocks and Bonds Worthless securities, How to report loss. Taxact online 2010 Form SS-4, Identifying number. Taxact online 2010 Form W-8BEN, Nonresident aliens. Taxact online 2010 Form W-9, Certification. Taxact online 2010 Fractional shares, Fractional shares. Taxact online 2010 , Automatic investment service. Taxact online 2010 Free tax services, Free help with your tax return. Taxact online 2010 Frozen deposits, Interest income on frozen deposits. Taxact online 2010 , Frozen deposits. Taxact online 2010 Futures contracts Regulated, Regulated futures contract. Taxact online 2010 Securities, Securities futures contract. Taxact online 2010 , Securities futures contract to sell. Taxact online 2010 , Securities Futures Contracts Futures, commodity, Commodity Futures, Commodity futures. Taxact online 2010 Wash sales, Options and futures contracts. Taxact online 2010 G Gains on qualified small business stock, Gains on Qualified Small Business Stock Gains on sales or trades, How To Figure Gain or Loss, Gain on Sale or Trade of Depreciable Property, Property received from a related party. Taxact online 2010 (see also Capital gains and losses) Gifts, What's New, Income from property given to a child. Taxact online 2010 , Property Received as a Gift, Property received as a gift. Taxact online 2010 Gifts of shares, Shares received as gift. Taxact online 2010 Government obligations, Government obligations. Taxact online 2010 H Hedging transactions, Hedging exception. Taxact online 2010 , Hedging Transactions, Hedging transaction. Taxact online 2010 Help (see Tax help) Holding period Investment property, Holding Period Replacement stock, Holding period of replacement stock. Taxact online 2010 Shares acquired by reinvestment, Reinvested distributions. Taxact online 2010 Straddles, Holding Period and Loss Treatment Rules I Income from sources outside U. Taxact online 2010 S. Taxact online 2010 , Reminders Income tax treaties (Table 1-3), Qualified Dividends Indian tribal government, Indian tribal government. Taxact online 2010 Individual retirement arrangements (IRAs) Interest income, Individual retirement arrangements (IRAs). Taxact online 2010 Inflation-indexed debt instruments, Inflation-Indexed Debt Instruments, Stripped inflation-indexed debt instruments. Taxact online 2010 Inherited property Basis, Property Received as Inheritance Holding period, Inherited property. Taxact online 2010 Transfer by inheritance, Transfer by inheritance. Taxact online 2010 Insolvency of contractors, Insolvency of contractor. Taxact online 2010 Installment sales, Installment sales. Taxact online 2010 Insurance Borrowing on, Borrowing on insurance. Taxact online 2010 Dividends, interest on, Interest on insurance dividends. Taxact online 2010 , Dividends on insurance policies. Taxact online 2010 Interest option on, Interest option on insurance. Taxact online 2010 Life insurance companies, demutualization, Demutualization of Life Insurance Companies Life, paid to beneficiary, Insurance Prepaid premiums, Prepaid insurance premiums. Taxact online 2010 Single-premium life, Single-premium life insurance, endowment, and annuity contracts. Taxact online 2010 Trades, Insurance Policies and Annuities Veterans' dividends, interest on, Interest on VA dividends. Taxact online 2010 , Dividends on veterans' insurance. Taxact online 2010 Interest expenses Allocation of, Allocation of Interest Expense Investment interest, Investment Interest Limit on, Limit on interest deduction for market discount bonds. Taxact online 2010 , Limit on Deduction When to deduct, When To Deduct Investment Interest Margin accounts, Interest on margin accounts. Taxact online 2010 Paid in advance, Interest paid in advance. Taxact online 2010 Straddles, Interest expense and carrying charges on straddles. Taxact online 2010 Interest income, Interest Income Annuity contracts, Interest on annuity contract. Taxact online 2010 Bonds traded flat, Bonds traded flat. Taxact online 2010 Certificates of deposits, Certificates of deposit and other deferred interest accounts. Taxact online 2010 Condemnation awards, Interest on condemnation award. Taxact online 2010 Deferred interest accounts, Certificates of deposit and other deferred interest accounts. Taxact online 2010 Dividends on deposit or share accounts, Dividends that are actually interest. Taxact online 2010 Frozen deposits, Interest income on frozen deposits. Taxact online 2010 , Frozen deposits. Taxact online 2010 Gift for opening account, Gift for opening account. Taxact online 2010 Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs). Taxact online 2010 Installment sale payments, Installment sale payments. Taxact online 2010 Insurance dividends, Interest on insurance dividends. Taxact online 2010 Money market funds, Money market funds. Taxact online 2010 Nominee distributions, Nominees. Taxact online 2010 Prepaid insurance premiums, Prepaid insurance premiums. Taxact online 2010 Reporting, When To Report Interest Income, Penalty on early withdrawal of savings. Taxact online 2010 Seller-financed mortgage, Form 1040A. Taxact online 2010 , Interest on seller-financed mortgage. Taxact online 2010 Tax refunds, Interest on tax refunds. Taxact online 2010 Tax-exempt, Tax-Exempt Interest, Reporting tax-exempt interest. Taxact online 2010 Taxable, Taxable Interest — General, Bonds traded flat. Taxact online 2010 , Taxation of interest. Taxact online 2010 , Taxable Interest U. Taxact online 2010 S. Taxact online 2010 savings bonds, person responsible for tax (Table 1-2), Table 1-2. Taxact online 2010 Who Pays the Tax on U. Taxact online 2010 S. Taxact online 2010 Savings Bond Interest Underreported, Underreported interest and dividends. Taxact online 2010 Unstated, Unstated interest. Taxact online 2010 Usurious interest, Usurious interest. Taxact online 2010 VA insurance dividends, Interest on VA dividends. Taxact online 2010 Investment clubs, Investment Clubs, Filing requirement. Taxact online 2010 Investment counsel and advice, Investment counsel and advice. Taxact online 2010 Investment expenses, Investment Expenses Allocated, Allocated investment expenses. Taxact online 2010 At-risk rules, At-risk rules. Taxact online 2010 Deductible, Expenses of Producing Income Interest, Investment interest deducted. Taxact online 2010 Limits on deductions, Limits on Deductions Nondeductible, Nondeductible Expenses Pass-through entities, Investment expenses from pass-through entities. Taxact online 2010 Reporting requirements, How To Report Investment Expenses Investment income, Investment Income Children, Tax on unearned income of certain children. Taxact online 2010 , Investment income of child reported on parent's return. Taxact online 2010 General Information, General Information Net income, Net Investment Income Records to keep, General Information Reporting of (Table 1-1), Table 1-1. Taxact online 2010 Where To Report Common Types of Investment Income Investment property, Investment property. Taxact online 2010 Basis, Basis of Investment Property Definition, Investment property. Taxact online 2010 Gain or loss treatment, Investment property. Taxact online 2010 Gift, received as, Property Received as a Gift Holding period, Holding Period Liquidation, received in, Investment property received in liquidation. Taxact online 2010 Nontaxable trades, received in, Property Received in Nontaxable Trades Sales and trades, Sales and Trades of Investment Property Services, received for, Property Received for Services Spouse, received from, Property Received From Your Spouse Taxable trades, received in, Property Received in Taxable Trades J Joint accounts, Joint accounts. Taxact online 2010 Joint and separate returns, Joint return. Taxact online 2010 , Joint and separate returns. Taxact online 2010 L Life insurance companies demutualization, Demutualization of Life Insurance Companies Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Basis of property received, Basis of property received. Taxact online 2010 Reporting requirements, How to report. Taxact online 2010 Liquidating distributions, Liquidating Distributions, Investment property received in liquidation. Taxact online 2010 Listed options, Listed option. Taxact online 2010 Load charges, Commissions and load charges. Taxact online 2010 Loans Below-market, Below-Market Loans, Effective dates. Taxact online 2010 Gift and demand, Gift and demand loans. Taxact online 2010 Guarantees, Loan guarantees. Taxact online 2010 Term, Term loans. Taxact online 2010 Local government obligations (see State or local government obligations) Long-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. Taxact online 2010 Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). Taxact online 2010 Losses on sales or trades, Property received from a related party. Taxact online 2010 (see also Capital gains and losses) Amount calculation, How To Figure Gain or Loss Carryback election, Loss carryback election. Taxact online 2010 , Loss carryback election. Taxact online 2010 Mutual fund or REIT stock held 6 months or less, Loss on mutual fund or REIT stock held 6 months or less. Taxact online 2010 Passive activities, Passive activity losses. Taxact online 2010 , Passive activity losses. Taxact online 2010 , Passive activity losses and credits. Taxact online 2010 , Losses from passive activities. Taxact online 2010 Related parties, Losses on Sales or Trades of Property Section 1244 (small business) stock, Losses on Section 1244 (Small Business) Stock Small business investment company stock, Losses on Small Business Investment Company Stock Wash sales, Coordination of Loss Deferral Rules and Wash Sale Rules M Mark-to-market election, Mark-to-market election made. Taxact online 2010 Marked-to-market rules, Marked-to-Market Rules, Mark-to-market election made. Taxact online 2010 Market discount bonds, Market discount. Taxact online 2010 , Market Discount Bonds, Partial principal payments. Taxact online 2010 , Limit on interest deduction for market discount bonds. Taxact online 2010 , Market discount on bonds. Taxact online 2010 , Market discount bonds. Taxact online 2010 , Market discount bonds. Taxact online 2010 Accrued market discount, Accrued market discount. Taxact online 2010 Maximum rate of capital gains (Table 4-4), Table 4-4. Taxact online 2010 What Is Your Maximum Capital Gain Rate? Mechanics' and suppliers' liens, Mechanics' and suppliers' liens. Taxact online 2010 Meetings, expenses of attending, Stockholders' meetings. Taxact online 2010 Missing children, photographs of, Reminders Mixed straddles, Mixed straddles. Taxact online 2010 , Mixed straddles. Taxact online 2010 Money market funds, Money Market Funds Interest income, Money market funds. Taxact online 2010 Mortgages Revenue bonds, Mortgage revenue bonds. Taxact online 2010 Secondary liability on home, Secondary liability on home mortgage. Taxact online 2010 Seller-financed, Interest on seller-financed mortgage. Taxact online 2010 Municipal bonds, State or Local Government Obligations, Reporting tax-exempt interest. Taxact online 2010 , Tax-exempt state and local government bonds. Taxact online 2010 (see also State or local government obligations) Mutual funds, Capital Gain Distributions, Other income (nonpassive income). Taxact online 2010 , Choosing to include net capital gain. Taxact online 2010 , Including mutual fund or REMIC expenses in income. Taxact online 2010 , Shares in a mutual fund or REIT. Taxact online 2010 , Special Rules for Mutual Funds, Loss on mutual fund or REIT stock held 6 months or less. Taxact online 2010 Individual retirement arrangements (IRAs), Qualified retirement plans and IRAs. Taxact online 2010 publicly offered, Publicly-offered mutual funds. Taxact online 2010 N Net Investment Income Tax, What's New, Net investment income tax (NIIT). Taxact online 2010 New York Liberty bonds, New York Liberty bonds. Taxact online 2010 NIIT, What's New, Net investment income tax (NIIT). Taxact online 2010 Nominee distributions Dividends, Nominees. Taxact online 2010 , Nominees. Taxact online 2010 Interest income, Nominees. Taxact online 2010 , Nominee distributions. Taxact online 2010 Original issue discount, Nominee. Taxact online 2010 Nonbusiness bad debts, Nonbusiness bad debt. Taxact online 2010 , Nonbusiness Bad Debts Noncapital assets, Capital Assets and Noncapital Assets Nondeductible investment expenses, Nondeductible Expenses Nondividend distributions, Nondividend Distributions Nonequity options, Nonequity option. Taxact online 2010 Nonqualified preferred stock, Nonqualified preferred stock. Taxact online 2010 Nonresident aliens Backup withholding, Nonresident aliens. Taxact online 2010 Nontaxable return of capital, Basis adjustment. Taxact online 2010 Nontaxable stock rights, Nontaxable stock rights. Taxact online 2010 Nontaxable trades, Nontaxable Trades, Nontaxable trades. Taxact online 2010 Notes Individuals, bought at discount, Notes of individuals. Taxact online 2010 U. Taxact online 2010 S. Taxact online 2010 Treasury (see U. Taxact online 2010 S. Taxact online 2010 Treasury bills, notes, and bonds) O Office expenses, Clerical help and office rent. Taxact online 2010 Options, Options Calls and puts, Puts and Calls Cash settlement, Cash-settled options. Taxact online 2010 , Cash settlement option. Taxact online 2010 Dealer equity, Dealer equity option. Taxact online 2010 Deep-in-the-money, Qualified covered call options and optioned stock. Taxact online 2010 Employee stock, Reminders Equity, Equity option. Taxact online 2010 Gain or loss, Options, Qualified covered call options and optioned stock. Taxact online 2010 Holding period, Option exercised. Taxact online 2010 Listed, Listed option. Taxact online 2010 Nonequity, Nonequity option. Taxact online 2010 Qualified covered call, Qualified covered call options and optioned stock. Taxact online 2010 Reporting requirements, How to report. Taxact online 2010 Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contract options. Taxact online 2010 Wash sales, Options and futures contracts. Taxact online 2010 Ordinary gains and losses, Capital or Ordinary Gain or Loss, Ordinary loss or casualty loss. Taxact online 2010 Original issue discount (OID), Original issue discount. Taxact online 2010 , Original Issue Discount (OID), Stripped tax-exempt obligations. Taxact online 2010 , Original issue discount (OID) on debt instruments. Taxact online 2010 Adjustment to, Original issue discount (OID) adjustment. Taxact online 2010 Reporting requirements, Exceptions to reporting OID. Taxact online 2010 , Form 1099-OID Rules, Applying the OID Rules P Pass-through entities Rollover of gain, Pass-through entity. Taxact online 2010 Passive activities Gains and losses, Passive activity losses. Taxact online 2010 , Passive activity losses. Taxact online 2010 , Passive activity losses and credits. Taxact online 2010 , Losses from passive activities. Taxact online 2010 , Passive activity gains and losses. Taxact online 2010 Patronage dividends, Patronage dividends. Taxact online 2010 Penalties Accuracy-related, Accuracy-related penalty. Taxact online 2010 , Accuracy-related penalties. Taxact online 2010 Backup withholding, Penalties. Taxact online 2010 Civil fraud, Civil fraud penalty. Taxact online 2010 Early withdrawal, Interest subject to penalty for early withdrawal. Taxact online 2010 , Penalty on early withdrawal of savings. Taxact online 2010 Failure to pay tax, Failure to pay tax. Taxact online 2010 Failure to supply SSN, Penalty for failure to supply SSN. Taxact online 2010 Substantial understatement, Substantial understatement of tax. Taxact online 2010 Valuation misstatement, Substantial valuation misstatement. Taxact online 2010 Political parties Debts owed by, Debts owed by political parties. Taxact online 2010 Preferred stock Nonqualified, Nonqualified preferred stock. Taxact online 2010 Redeemable at a premium, Preferred stock redeemable at a premium. Taxact online 2010 Stripped, Stripped Preferred Stock Premiums on bonds, Bond premium. Taxact online 2010 , Premiums on bonds. Taxact online 2010 Private activity bonds, Private activity bonds. Taxact online 2010 Public utility stock reinvestment, Public utilities. Taxact online 2010 Publications (see Tax help) Puts and calls, Puts and Calls Table 4-3, Table 4-3. Taxact online 2010 Puts and Calls Q Qualified dividends, Qualified dividends. Taxact online 2010 Qualified small business stock, Qualified small business stock. Taxact online 2010 , Qualified small business stock. Taxact online 2010 , Gains on Qualified Small Business Stock Gains on, Gains on Qualified Small Business Stock R Real estate investment trusts (REITs), Undistributed capital gains of mutual funds and REITs. Taxact online 2010 , Shares in a mutual fund or REIT. Taxact online 2010 , Loss on mutual fund or REIT stock held 6 months or less. Taxact online 2010 Real estate mortgage investment conduits (REMICs), REMICs, Expenses. Taxact online 2010 , Including mutual fund or REMIC expenses in income. Taxact online 2010 Regular interest, Regular Interest Residual interest, Residual Interest, Residual interests in a REMIC. Taxact online 2010 Recordkeeping requirements Education Savings Bond Program, Education Savings Bond Program Investment income, General Information Small business stock, Losses on Section 1244 (Small Business) Stock Redemption of stock, Redemption of stock. Taxact online 2010 Redemption or retirement of bonds, Redemption or retirement of bonds. Taxact online 2010 Regulated futures contract, Regulated futures contract. Taxact online 2010 Reinvestment rights, Commissions and load charges. Taxact online 2010 REITs (see Real estate investment trusts (REITs)) Related party transactions, Unpaid expenses owed to related party. Taxact online 2010 , Related Party Transactions, Property received from a related party. Taxact online 2010 Related persons, Related persons. Taxact online 2010 REMICs (see Real estate mortgage investment conduits (REMICs)) Reorganizations, corporate, Corporate reorganizations. Taxact online 2010 Reporting requirements Bad debts, How to report bad debts. Taxact online 2010 Bond premium amortization, How To Report Amortization Capital gains and losses, How To Report Gains and Losses (Form 6781), How to report gain. Taxact online 2010 , Reporting Capital Gains and Losses Dividend income, How To Report Dividend Income Exempt-interest dividends, Information reporting requirement. Taxact online 2010 Interest on U. Taxact online 2010 S. Taxact online 2010 savings bonds, Reporting options for cash method taxpayers. Taxact online 2010 , Choice to report interest each year. Taxact online 2010 Investment expenses, How To Report Investment Expenses Like-kind exchanges, How to report. Taxact online 2010 Options, How to report. Taxact online 2010 Original issue discount, Form 1099-OID S corporation income, deductions, and credits, Reporting S corporation income, deductions, and credits. Taxact online 2010 Section 1256 contracts, How To Report State or local government obligations, Information reporting requirement. Taxact online 2010 Straddles, Section 1256 contracts and straddles. Taxact online 2010 Substitute payments, Reporting Substitute Payments Tax-exempt interest income, Reporting tax-exempt interest. Taxact online 2010 Trades, How To Report Repossession of real property, Real property repossessed. Taxact online 2010 Restricted property, Restricted property. Taxact online 2010 Restricted stock, Dividends received on restricted stock. Taxact online 2010 Retirement of debt instrument, Retirement of debt instrument. Taxact online 2010 Return of capital (see Nondividend distributions) Revocable trust, trustee's commissions for, Trustee's commissions for revocable trust. Taxact online 2010 Rollover of gain from sale Securities, Rollover of Gain From Publicly Traded Securities, Rollover of Gain S S corporations, S Corporations, S corporation stock. Taxact online 2010 Safe deposit box, Safe deposit box rent. Taxact online 2010 Sales and trades of investment property, Sales and Trades of Investment Property Definition, What Is a Sale or Trade? Savings bonds (see U. Taxact online 2010 S. Taxact online 2010 savings bonds) SBIC stock (see Small business investment company stock) Scrip dividends, Scrip dividends. Taxact online 2010 Section 1202 gain, Section 1202 Exclusion, Gain on qualified small business stock. Taxact online 2010 Section 1244 stock, Losses on Section 1244 (Small Business) Stock Section 1250 gain, Unrecaptured section 1250 gain. Taxact online 2010 Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contracts. Taxact online 2010 , Section 1256 contract options. Taxact online 2010 , Section 1256 contracts and straddles. Taxact online 2010 Net gain on, Net section 1256 contracts gain. Taxact online 2010 Net loss on, Net section 1256 contracts loss. Taxact online 2010 Reporting requirements, How To Report Securities Holding period, Holding Period Installment sales, Installment sales. Taxact online 2010 Lost, stolen, etc. Taxact online 2010 , cost of replacing, Cost of replacing missing securities. Taxact online 2010 Rollover of gain from sale, Rollover of Gain From Publicly Traded Securities, Rollover of Gain Traders in, Special Rules for Traders in Securities Worthless, Worthless Securities, Worthless securities. Taxact online 2010 Securities futures contracts, Dealer securities futures contract. Taxact online 2010 , Securities futures contract. Taxact online 2010 , Securities Futures Contracts Self-employment income, Self-Employment Income Self-employment tax, Self-employment tax. Taxact online 2010 Seller-financed mortgages, Interest on seller-financed mortgage. Taxact online 2010 Short sales, Short Sales, Extraordinary dividends. Taxact online 2010 Adjusted basis, Short sales. Taxact online 2010 Expenses of, Short-sale expenses. Taxact online 2010 Extraordinary dividends, Extraordinary dividends. Taxact online 2010 Puts, Put option as short sale. Taxact online 2010 Small business investment company stock, Short sale. Taxact online 2010 Short-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. Taxact online 2010 Short-term obligations, Discount on Short-Term Obligations, Choosing to include accrued discount and other interest in current income. Taxact online 2010 , Acquisition discount on short-term obligations. Taxact online 2010 , Short-term government obligations. Taxact online 2010 Interest deduction, limit on, Limit on interest deduction for short-term obligations. Taxact online 2010 Sixty/forty (60/40) rule, 60/40 rule. Taxact online 2010 Small business investment company stock, Losses on Small Business Investment Company Stock, SSBIC stock. Taxact online 2010 Reporting requirements, How to report. Taxact online 2010 Small business stock, Qualified small business stock. Taxact online 2010 , Losses on Section 1244 (Small Business) Stock, Qualified small business stock. Taxact online 2010 , Gains on Qualified Small Business Stock Social security number (SSN) Custodial accounts, Custodian account for your child. Taxact online 2010 Joint accounts, SSN for joint account. Taxact online 2010 Requirement to give, Social security number (SSN). Taxact online 2010 Specialized small business investment company stock, Specialized small business investment company stock or partnership interest. Taxact online 2010 , SSBIC stock. Taxact online 2010 Spouses Transfers between, Property Received From Your Spouse, Transfers Between Spouses (see also Related party transactions) State or local government obligations, State or Local Government Obligations, Taxable Interest Market discount bonds (see Market discount bonds) Private activity bonds, Private activity bonds. Taxact online 2010 Registration requirement, Registration requirement. Taxact online 2010 Tax-exempt interest, Tax-Exempt Interest Taxable interest, Taxable Interest Stock Basis, Basis adjustment. Taxact online 2010 , Basis adjustment. Taxact online 2010 , Basis. Taxact online 2010 , Stocks and Bonds, Basis of replacement stock. Taxact online 2010 Capital asset, Stocks, stock rights, and bonds. Taxact online 2010 Constructive ownership, Constructive ownership of stock. Taxact online 2010 Convertible, Convertible stocks and bonds. Taxact online 2010 Corporate, Corporate Stocks Dividends (see Dividends) Fractional shares, Fractional shares. Taxact online 2010 , Automatic investment service. Taxact online 2010 Identification, Identifying stock or bonds sold. Taxact online 2010 Installment sales, Installment sales. Taxact online 2010 Nonqualified preferred stock, Nonqualified preferred stock. Taxact online 2010 Options for employees, Reminders Public utility, reinvestment, Public utilities. Taxact online 2010 Redemption of, Redemption of stock. Taxact online 2010 Replacement stock, Basis of replacement stock. Taxact online 2010 Restricted stock, Dividends received on restricted stock. Taxact online 2010 Rights, Distributions of Stock and Stock Rights, Stock rights. Taxact online 2010 , Nontaxable stock rights. Taxact online 2010 S corporations, S corporation stock. Taxact online 2010 Sales to ESOPs or cooperatives, Sales of Stock to ESOPs or Certain Cooperatives Small business, Qualified small business stock. Taxact online 2010 , Qualified small business stock. Taxact online 2010 Specialized small business investment company, Specialized small business investment company stock or partnership interest. Taxact online 2010 Splits, Stock splits. Taxact online 2010 Straddles (see Straddles) Stripped preferred stock, Stripped Preferred Stock Surrender of, Surrender of stock. Taxact online 2010 Trades, Stock for stock of the same corporation. Taxact online 2010 Trust instruments treated as, Certain trust instruments treated as stock. Taxact online 2010 Straddles, Straddles, Interest expense and carrying charges relating to mixed straddle account positions. Taxact online 2010 Holding period, Holding Period and Loss Treatment Rules Interest expense and carrying charges, Interest expense and carrying charges on straddles. Taxact online 2010 Loss deferral rules, Loss Deferral Rules Mixed, Mixed straddles. Taxact online 2010 , Mixed straddles. Taxact online 2010 , Mixed Straddle Elections Reporting requirements, Section 1256 contracts and straddles. Taxact online 2010 Stripped bonds and coupons, Stripped bonds or coupons. Taxact online 2010 , Stripped Bonds and Coupons, Stripped tax-exempt obligation. Taxact online 2010 Stripped preferred stock, Stripped Preferred Stock Substitute payments, Reporting Substitute Payments T Tables Capital gains maximum rate (Table 4-4), Table 4-4. Taxact online 2010 What Is Your Maximum Capital Gain Rate? Income tax treaties (Table 1-3), Qualified Dividends Investment income, reporting of (Table 1-1), Table 1-1. Taxact online 2010 Where To Report Common Types of Investment Income Puts and calls (Table 4-3), Table 4-3. Taxact online 2010 Puts and Calls U. Taxact online 2010 S. Taxact online 2010 savings bonds, person responsible for tax (Table 1-2), Table 1-2. Taxact online 2010 Who Pays the Tax on U. Taxact online 2010 S. Taxact online 2010 Savings Bond Interest Tax credit bonds, Tax credit bonds. Taxact online 2010 Tax help, How To Get Tax Help Tax rates, What's New Capital gain and losses, Capital Gain Tax Rates Tax refunds Interest on, Interest on tax refunds. Taxact online 2010 Tax shelters, Tax Shelters and Other Reportable Transactions, Whether To Invest Penalties, Penalties Reporting requirements, Investor Reporting Rules to curb abuse, Rules To Curb Abusive Tax Shelters Tax-exempt bonds, Tax-exempt state and local government bonds. Taxact online 2010 Tax-exempt income Expenses of, Tax-exempt income. Taxact online 2010 Interest, Tax-Exempt Interest, Reporting tax-exempt interest. Taxact online 2010 Tax-exempt obligations, Tax-Exempt Interest, Stripped tax-exempt obligations. Taxact online 2010 , Discounted tax-exempt obligations. Taxact online 2010 Taxable income, expenses of, Expenses for both tax-exempt and taxable income. Taxact online 2010 Taxes State and local transfer, State and local transfer taxes. Taxact online 2010 State income, State income taxes. Taxact online 2010 Term loans, Term loans. Taxact online 2010 Trade or business, Passive activity. Taxact online 2010 Traders in securities, Special Rules for Traders in Securities Trades Insurance, Insurance Policies and Annuities Investment property, Sales and Trades of Investment Property Like-kind, Like-Kind Exchanges, Like-Kind Exchanges Nontaxable, Property Received in Nontaxable Trades, Nontaxable Trades, Nontaxable trades. Taxact online 2010 Reporting requirements, How To Report Stock, Stock for stock of the same corporation. Taxact online 2010 Taxable, Property Received in Taxable Trades U. Taxact online 2010 S. Taxact online 2010 Treasury notes or bonds, U. Taxact online 2010 S. Taxact online 2010 Treasury Notes or Bonds Treasury bills, notes, and bonds (see U. Taxact online 2010 S. Taxact online 2010 Treasury bills, notes, and bonds) Treasury inflation-indexed securities, Inflation-Indexed Debt Instruments Treasury inflation-protected securities (TIPS), Treasury inflation-protected securities (TIPS). Taxact online 2010 , Inflation-Indexed Debt Instruments Treaties, income tax (Table 1-3), Qualified Dividends Trust income received by beneficiary, Beneficiary of an estate or trust. Taxact online 2010 Trustee's commission for revocable trust, Trustee's commissions for revocable trust. Taxact online 2010 U U. Taxact online 2010 S. Taxact online 2010 savings bonds, U. Taxact online 2010 S. Taxact online 2010 obligations. Taxact online 2010 , U. Taxact online 2010 S. Taxact online 2010 Savings Bonds Reporting interest on, U. Taxact online 2010 S. Taxact online 2010 obligations. Taxact online 2010 , U. Taxact online 2010 S. Taxact online 2010 Savings Bonds Retirement or profit-sharing plan, distributed from, Savings bonds distributed from a retirement or profit-sharing plan. Taxact online 2010 Worksheet, Worksheet for savings bonds distributed from a retirement or profit-sharing plan. Taxact online 2010 Tax, responsible person (Table 1-2), Table 1-2. Taxact online 2010 Who Pays the Tax on U. Taxact online 2010 S. Taxact online 2010 Savings Bond Interest U. Taxact online 2010 S. Taxact online 2010 Treasury bills, notes, and bonds, U. Taxact online 2010 S. Taxact online 2010 obligations. Taxact online 2010 , U. Taxact online 2010 S. Taxact online 2010 Treasury Bills, Notes, and Bonds, U. Taxact online 2010 S. Taxact online 2010 Treasury Notes or Bonds, U. Taxact online 2010 S. Taxact online 2010 Treasury notes and bonds. Taxact online 2010 Undistributed capital gains, Undistributed capital gains. Taxact online 2010 Usurious interest, Usurious interest. Taxact online 2010 V Veterans' insurance Dividends on, Dividends on veterans' insurance. Taxact online 2010 W Warrants, Warrants. Taxact online 2010 Wash sales, Wash Sales, Securities Futures Contracts Holding period, Wash sales. Taxact online 2010 Loss deferral rules, straddles, Coordination of Loss Deferral Rules and Wash Sale Rules Withholding, backup, Backup withholding. Taxact online 2010 Worksheets Capital loss carryover, Worksheet 4-1. Taxact online 2010 Capital Loss Carryover Worksheet Worthless securities, Worthless Securities, Worthless securities. Taxact online 2010 Prev  Up     Home   More Online Publications