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Turbotax Premier Federal E File State 2010 Download Old Version

Turbotax premier federal e file state 2010 download old version 2. Turbotax premier federal e file state 2010 download old version   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. Turbotax premier federal e file state 2010 download old version You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. Turbotax premier federal e file state 2010 download old version This chapter discusses accounting methods. Turbotax premier federal e file state 2010 download old version For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. Turbotax premier federal e file state 2010 download old version Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. Turbotax premier federal e file state 2010 download old version Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. Turbotax premier federal e file state 2010 download old version Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. Turbotax premier federal e file state 2010 download old version A material item is one that affects the proper time for inclusion of income or allowance of a deduction. Turbotax premier federal e file state 2010 download old version An item considered material for financial statement purposes is generally also considered material for income tax purposes. Turbotax premier federal e file state 2010 download old version See Publication 538 for more information. Turbotax premier federal e file state 2010 download old version You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. Turbotax premier federal e file state 2010 download old version If you later want to change your accounting method, you generally must get IRS approval. Turbotax premier federal e file state 2010 download old version How to obtain IRS approval is discussed later under Changes in Methods of Accounting . Turbotax premier federal e file state 2010 download old version Types of accounting methods. Turbotax premier federal e file state 2010 download old version   Generally, you can use any of the following accounting methods. Turbotax premier federal e file state 2010 download old version Each method is discussed in detail below. Turbotax premier federal e file state 2010 download old version Cash method. Turbotax premier federal e file state 2010 download old version Accrual method. Turbotax premier federal e file state 2010 download old version Special methods of accounting for certain items of income and expenses. Turbotax premier federal e file state 2010 download old version Combination (hybrid) method using elements of two or more of the above. Turbotax premier federal e file state 2010 download old version Business and other items. Turbotax premier federal e file state 2010 download old version   You can account for business and personal items using different accounting methods. Turbotax premier federal e file state 2010 download old version For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. Turbotax premier federal e file state 2010 download old version Two or more businesses. Turbotax premier federal e file state 2010 download old version   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. Turbotax premier federal e file state 2010 download old version Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. Turbotax premier federal e file state 2010 download old version Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. Turbotax premier federal e file state 2010 download old version However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. Turbotax premier federal e file state 2010 download old version See Accrual Method Required , later. Turbotax premier federal e file state 2010 download old version Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. Turbotax premier federal e file state 2010 download old version Items of income include money received as well as property or services received. Turbotax premier federal e file state 2010 download old version If you receive property or services, you must include the fair market value (FMV) of the property or services in income. Turbotax premier federal e file state 2010 download old version See chapter 3 for information on how to report farm income on your income tax return. Turbotax premier federal e file state 2010 download old version Constructive receipt. Turbotax premier federal e file state 2010 download old version   Income is constructively received when an amount is credited to your account or made available to you without restriction. Turbotax premier federal e file state 2010 download old version You do not need to have possession of the income for it to be treated as income for the tax year. Turbotax premier federal e file state 2010 download old version If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. Turbotax premier federal e file state 2010 download old version Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. Turbotax premier federal e file state 2010 download old version Direct payments and counter-cyclical payments. Turbotax premier federal e file state 2010 download old version   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. Turbotax premier federal e file state 2010 download old version Delaying receipt of income. Turbotax premier federal e file state 2010 download old version   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. Turbotax premier federal e file state 2010 download old version You must report the income in the year the money or property is received or made available to you without restriction. Turbotax premier federal e file state 2010 download old version Example. Turbotax premier federal e file state 2010 download old version Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. Turbotax premier federal e file state 2010 download old version She was told in December that her payment was available. Turbotax premier federal e file state 2010 download old version She requested not to be paid until January 2014. Turbotax premier federal e file state 2010 download old version However, she must still include this payment in her 2013 income because it was made available to her in 2013. Turbotax premier federal e file state 2010 download old version Debts paid by another person or canceled. Turbotax premier federal e file state 2010 download old version   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. Turbotax premier federal e file state 2010 download old version If you receive income in this way, you constructively receive the income when the debt is canceled or paid. Turbotax premier federal e file state 2010 download old version See Cancellation of Debt in chapter 3. Turbotax premier federal e file state 2010 download old version Deferred payment contract. Turbotax premier federal e file state 2010 download old version   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. Turbotax premier federal e file state 2010 download old version However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. Turbotax premier federal e file state 2010 download old version Example. Turbotax premier federal e file state 2010 download old version You are a farmer who uses the cash method and a calendar tax year. Turbotax premier federal e file state 2010 download old version You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. Turbotax premier federal e file state 2010 download old version You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. Turbotax premier federal e file state 2010 download old version However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. Turbotax premier federal e file state 2010 download old version Repayment of income. Turbotax premier federal e file state 2010 download old version   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. Turbotax premier federal e file state 2010 download old version If the repayment is more than $3,000, a special rule applies. Turbotax premier federal e file state 2010 download old version For details, see Repayments in chapter 11 of Publication 535, Business Expenses. Turbotax premier federal e file state 2010 download old version Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. Turbotax premier federal e file state 2010 download old version This includes business expenses for which you contest liability. Turbotax premier federal e file state 2010 download old version However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. Turbotax premier federal e file state 2010 download old version See chapter 4 for information on how to deduct farm business expenses on your income tax return. Turbotax premier federal e file state 2010 download old version Prepayment. Turbotax premier federal e file state 2010 download old version   Generally, you cannot deduct expenses paid in advance. Turbotax premier federal e file state 2010 download old version This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Turbotax premier federal e file state 2010 download old version Example. Turbotax premier federal e file state 2010 download old version On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. Turbotax premier federal e file state 2010 download old version In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. Turbotax premier federal e file state 2010 download old version In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. Turbotax premier federal e file state 2010 download old version An exception applies if the expense qualifies for the 12-month rule. Turbotax premier federal e file state 2010 download old version See Publication 538 for more information and examples. Turbotax premier federal e file state 2010 download old version See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. Turbotax premier federal e file state 2010 download old version Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. Turbotax premier federal e file state 2010 download old version The purpose of an accrual method of accounting is to correctly match income and expenses. Turbotax premier federal e file state 2010 download old version Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. Turbotax premier federal e file state 2010 download old version See Accrual Method Required and Farm Inventory , later. Turbotax premier federal e file state 2010 download old version Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. Turbotax premier federal e file state 2010 download old version Under this rule, include an amount in income on the earliest of the following dates. Turbotax premier federal e file state 2010 download old version When you receive payment. Turbotax premier federal e file state 2010 download old version When the income amount is due to you. Turbotax premier federal e file state 2010 download old version When you earn the income. Turbotax premier federal e file state 2010 download old version When title passes. Turbotax premier federal e file state 2010 download old version If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. Turbotax premier federal e file state 2010 download old version Inventory. Turbotax premier federal e file state 2010 download old version   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. Turbotax premier federal e file state 2010 download old version An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. Turbotax premier federal e file state 2010 download old version See Publication 538 for more information. Turbotax premier federal e file state 2010 download old version Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. Turbotax premier federal e file state 2010 download old version Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. Turbotax premier federal e file state 2010 download old version The all-events test has been met. Turbotax premier federal e file state 2010 download old version This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. Turbotax premier federal e file state 2010 download old version Economic performance has occurred. Turbotax premier federal e file state 2010 download old version Economic performance. Turbotax premier federal e file state 2010 download old version   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. Turbotax premier federal e file state 2010 download old version If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. Turbotax premier federal e file state 2010 download old version If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. Turbotax premier federal e file state 2010 download old version Example. Turbotax premier federal e file state 2010 download old version Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. Turbotax premier federal e file state 2010 download old version She entered into a contract with ABC Farm Consulting in 2012. Turbotax premier federal e file state 2010 download old version The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. Turbotax premier federal e file state 2010 download old version It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. Turbotax premier federal e file state 2010 download old version Jane paid ABC Farm Consulting $2,000 in December 2012. Turbotax premier federal e file state 2010 download old version Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. Turbotax premier federal e file state 2010 download old version Economic performance for Jane's liability in the contract occurs as the services are provided. Turbotax premier federal e file state 2010 download old version Jane incurs the $2,000 cost in 2013. Turbotax premier federal e file state 2010 download old version An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. Turbotax premier federal e file state 2010 download old version For more information, see Economic Performance in Publication 538. Turbotax premier federal e file state 2010 download old version Special rule for related persons. Turbotax premier federal e file state 2010 download old version   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. Turbotax premier federal e file state 2010 download old version Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. Turbotax premier federal e file state 2010 download old version For more information, see Internal Revenue Code section 267. Turbotax premier federal e file state 2010 download old version Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. Turbotax premier federal e file state 2010 download old version A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. Turbotax premier federal e file state 2010 download old version A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. Turbotax premier federal e file state 2010 download old version A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. Turbotax premier federal e file state 2010 download old version A tax shelter. Turbotax premier federal e file state 2010 download old version Note. Turbotax premier federal e file state 2010 download old version Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). Turbotax premier federal e file state 2010 download old version Family corporation. Turbotax premier federal e file state 2010 download old version   A family corporation is generally a corporation that meets one of the following ownership requirements. Turbotax premier federal e file state 2010 download old version Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. Turbotax premier federal e file state 2010 download old version Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. Turbotax premier federal e file state 2010 download old version Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. Turbotax premier federal e file state 2010 download old version For more information on family corporations, see Internal Revenue Code section 447. Turbotax premier federal e file state 2010 download old version Tax shelter. Turbotax premier federal e file state 2010 download old version   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. Turbotax premier federal e file state 2010 download old version Its principal purpose is the avoidance or evasion of federal income tax. Turbotax premier federal e file state 2010 download old version It is a farming syndicate. Turbotax premier federal e file state 2010 download old version A farming syndicate is an entity that meets either of the following tests. Turbotax premier federal e file state 2010 download old version Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. Turbotax premier federal e file state 2010 download old version More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. Turbotax premier federal e file state 2010 download old version   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. Turbotax premier federal e file state 2010 download old version   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. Turbotax premier federal e file state 2010 download old version Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. Turbotax premier federal e file state 2010 download old version This record should show the actual count or measurement of the inventory. Turbotax premier federal e file state 2010 download old version It should also show all factors that enter into its valuation, including quality and weight, if applicable. Turbotax premier federal e file state 2010 download old version Hatchery business. Turbotax premier federal e file state 2010 download old version   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. Turbotax premier federal e file state 2010 download old version Products held for sale. Turbotax premier federal e file state 2010 download old version   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. Turbotax premier federal e file state 2010 download old version , must be included in inventory. Turbotax premier federal e file state 2010 download old version Supplies. Turbotax premier federal e file state 2010 download old version   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. Turbotax premier federal e file state 2010 download old version Deduct the cost of supplies in the year used or consumed in operations. Turbotax premier federal e file state 2010 download old version Do not include incidental supplies in inventory as these are deductible in the year of purchase. Turbotax premier federal e file state 2010 download old version Livestock. Turbotax premier federal e file state 2010 download old version   Livestock held primarily for sale must be included in inventory. Turbotax premier federal e file state 2010 download old version Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. Turbotax premier federal e file state 2010 download old version See also Unit-livestock-price method , later. Turbotax premier federal e file state 2010 download old version If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. Turbotax premier federal e file state 2010 download old version Growing crops. Turbotax premier federal e file state 2010 download old version   Generally, growing crops are not required to be included in inventory. Turbotax premier federal e file state 2010 download old version However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. Turbotax premier federal e file state 2010 download old version See Uniform capitalization rules below. Turbotax premier federal e file state 2010 download old version Also see Uniform Capitalization Rules in  chapter 6. Turbotax premier federal e file state 2010 download old version Items to include in inventory. Turbotax premier federal e file state 2010 download old version   Your inventory should include all items held for sale, or for use as feed, seed, etc. Turbotax premier federal e file state 2010 download old version , whether raised or purchased, that are unsold at the end of the year. Turbotax premier federal e file state 2010 download old version Uniform capitalization rules. Turbotax premier federal e file state 2010 download old version   The following applies if you are required to use an accrual method of accounting. Turbotax premier federal e file state 2010 download old version The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. Turbotax premier federal e file state 2010 download old version The costs of animals are subject to the uniform capitalization rules. Turbotax premier federal e file state 2010 download old version Inventory valuation methods. Turbotax premier federal e file state 2010 download old version   The following methods, described below, are those generally available for valuing inventory. Turbotax premier federal e file state 2010 download old version The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. Turbotax premier federal e file state 2010 download old version Cost. Turbotax premier federal e file state 2010 download old version Lower of cost or market. Turbotax premier federal e file state 2010 download old version Farm-price method. Turbotax premier federal e file state 2010 download old version Unit-livestock-price method. Turbotax premier federal e file state 2010 download old version Cost and lower of cost or market methods. Turbotax premier federal e file state 2010 download old version   See Publication 538 for information on these valuation methods. Turbotax premier federal e file state 2010 download old version If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. Turbotax premier federal e file state 2010 download old version However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. Turbotax premier federal e file state 2010 download old version Farm-price method. Turbotax premier federal e file state 2010 download old version   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. Turbotax premier federal e file state 2010 download old version Market price is the current price at the nearest market in the quantities you usually sell. Turbotax premier federal e file state 2010 download old version Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. Turbotax premier federal e file state 2010 download old version If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. Turbotax premier federal e file state 2010 download old version Unit-livestock-price method. Turbotax premier federal e file state 2010 download old version   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. Turbotax premier federal e file state 2010 download old version You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. Turbotax premier federal e file state 2010 download old version The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. Turbotax premier federal e file state 2010 download old version Unit prices and classifications are subject to approval by the IRS on examination of your return. Turbotax premier federal e file state 2010 download old version You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. Turbotax premier federal e file state 2010 download old version IRS approval is not required for these adjustments. Turbotax premier federal e file state 2010 download old version Any other changes in unit prices or classifications do require IRS approval. Turbotax premier federal e file state 2010 download old version   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. Turbotax premier federal e file state 2010 download old version This method accounts only for the increase in cost of raising an animal to maturity. Turbotax premier federal e file state 2010 download old version It does not provide for any decrease in the animal's market value after it reaches maturity. Turbotax premier federal e file state 2010 download old version Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. Turbotax premier federal e file state 2010 download old version   Do not include sold or lost animals in the year-end inventory. Turbotax premier federal e file state 2010 download old version If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. Turbotax premier federal e file state 2010 download old version The animals on hand at the end of the year are considered those most recently acquired. Turbotax premier federal e file state 2010 download old version   You must include in inventory all livestock purchased primarily for sale. Turbotax premier federal e file state 2010 download old version You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. Turbotax premier federal e file state 2010 download old version However, you must be consistent from year to year, regardless of the method you have chosen. Turbotax premier federal e file state 2010 download old version You cannot change your method without obtaining approval from the IRS. Turbotax premier federal e file state 2010 download old version   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. Turbotax premier federal e file state 2010 download old version If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. Turbotax premier federal e file state 2010 download old version However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. Turbotax premier federal e file state 2010 download old version This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. Turbotax premier federal e file state 2010 download old version It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. Turbotax premier federal e file state 2010 download old version Uniform capitalization rules. Turbotax premier federal e file state 2010 download old version   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. Turbotax premier federal e file state 2010 download old version This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. Turbotax premier federal e file state 2010 download old version Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. Turbotax premier federal e file state 2010 download old version Example 1. Turbotax premier federal e file state 2010 download old version You are a farmer who uses an accrual method of accounting. Turbotax premier federal e file state 2010 download old version You keep your books on the calendar year basis. Turbotax premier federal e file state 2010 download old version You sell grain in December 2013 but you are not paid until January 2014. Turbotax premier federal e file state 2010 download old version Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. Turbotax premier federal e file state 2010 download old version Example 2. Turbotax premier federal e file state 2010 download old version Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. Turbotax premier federal e file state 2010 download old version Under this method, you include the sales proceeds in income for 2014, the year you receive payment. Turbotax premier federal e file state 2010 download old version Deduct the costs of producing the grain in the year you pay for them. Turbotax premier federal e file state 2010 download old version Special Methods of Accounting There are special methods of accounting for certain items of income and expense. Turbotax premier federal e file state 2010 download old version Crop method. Turbotax premier federal e file state 2010 download old version   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. Turbotax premier federal e file state 2010 download old version You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. Turbotax premier federal e file state 2010 download old version Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. Turbotax premier federal e file state 2010 download old version    See chapter 4 for details on deducting the costs of operating a farm. Turbotax premier federal e file state 2010 download old version Also see Regulations section 1. Turbotax premier federal e file state 2010 download old version 162-12. Turbotax premier federal e file state 2010 download old version Other special methods. Turbotax premier federal e file state 2010 download old version   Other special methods of accounting apply to the following items. Turbotax premier federal e file state 2010 download old version Amortization, see chapter 7. Turbotax premier federal e file state 2010 download old version Casualties, see chapter 11. Turbotax premier federal e file state 2010 download old version Condemnations, see chapter 11. Turbotax premier federal e file state 2010 download old version Depletion, see chapter 7. Turbotax premier federal e file state 2010 download old version Depreciation, see chapter 7. Turbotax premier federal e file state 2010 download old version Farm business expenses, see chapter 4. Turbotax premier federal e file state 2010 download old version Farm income, see chapter 3. Turbotax premier federal e file state 2010 download old version Installment sales, see chapter 10. Turbotax premier federal e file state 2010 download old version Soil and water conservation expenses, see chapter 5. Turbotax premier federal e file state 2010 download old version Thefts, see chapter 11. Turbotax premier federal e file state 2010 download old version Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. Turbotax premier federal e file state 2010 download old version However, the following restrictions apply. Turbotax premier federal e file state 2010 download old version If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. Turbotax premier federal e file state 2010 download old version If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. Turbotax premier federal e file state 2010 download old version Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). Turbotax premier federal e file state 2010 download old version Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. Turbotax premier federal e file state 2010 download old version You may also have to pay a fee. Turbotax premier federal e file state 2010 download old version To obtain approval, you must generally file Form 3115. Turbotax premier federal e file state 2010 download old version There are instances when you can obtain automatic consent to change certain methods of accounting. Turbotax premier federal e file state 2010 download old version See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. Turbotax premier federal e file state 2010 download old version For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. Turbotax premier federal e file state 2010 download old version Also see Publication 538. Turbotax premier federal e file state 2010 download old version Prev  Up  Next   Home   More Online Publications
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Rural Utilities Service

The Department of Agriculture's Rural Utilities Service provides funding, through grants, loans, loan guarantees, and payments, for the development of rural utilities infrastructure such as water, waste management, power and telecommunications.

Contact the Agency or Department

Website: Rural Utilities Service

Contact In-Person: Find an Office in Your State

Address: USDA Rural Development, Room 4051-S
1400 Independence Ave SW

Washington, DC 20250-1510

Phone Number: (202) 720-9540

TTY: (800) 877-8339 (Federal Relay Service)

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The Turbotax Premier Federal E File State 2010 Download Old Version

Turbotax premier federal e file state 2010 download old version Publication 554 - Additional Material Prev  Up  Next   Home   More Online Publications