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Turbotax State Efile Coupon

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Turbotax State Efile Coupon

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

Whether you are buying or leasing a vehicle, these tips will help you get the best deal and avoid problems.

  • Decide what kind of vehicle best suits your needs and budget. Read our tips for choosing a safe vehicle. To compare models and get car buying tips, visit Edmunds.com or InternetAutoGuide.com.
  • Consider fuel economy. A vehicle that gets more miles per gallon is good for your wallet as well as for the environment.
  • Check out the seller. For car dealers, check with your local consumer protection office and Better Business Bureau. If you're buying from an individual, check the title to make sure you're dealing with the vehicle owner.
  • Take a test drive. Drive at different speeds and check for smooth right and left turns. On a straight stretch, make sure the vehicle doesn't pull to one side.
  • Handle trade-ins and financing separately from your purchase to get the best deal on each. Get a written price quote before you talk about a trade-in or dealer financing.
  • Shop in advance for the best finance deal at your credit union, bank or finance company. Look at the total finance charges and the Annual Percentage Rate (APR), not just the monthly payment.
  • Read and understand every document you are asked to sign.
  • Don't take possession of the car until all paperwork is final.
  • Choose an auto insurance policy that is right for you.

Vehicle Financing

Most car buyers today need some form of financing to purchase a new vehicle. Many use direct lending, that is, a loan from a finance company, bank, or credit union. In direct lending, a buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a specified period. Once a buyer and a vehicle dealership enter into a contract to purchase a vehicle, the buyer uses the loan proceeds from the direct lender to pay the dealership for the vehicle.

Another common form is dealership financing, which offers convenience, financing options, and sometimes special, manufacturer-sponsored, low-rate deals. Before you make a financing decision, it’s important to do your research:

  • Decide in advance how much you can afford to spend and stick to your limit.
  • Get a copy of your credit report and correct any errors before applying for a loan.
  • Check buying guides to identify price ranges and best available deals.

The Federal Trade Commission has more information about vehicle financing, deciding what you can afford, and consumer protections. If you need to file a complaint about your auto loan, contact the Consumer Financial Protection Bureau.

The Turbotax State Efile Coupon

Turbotax state efile coupon Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. Turbotax state efile coupon SIMPLE plans. Turbotax state efile coupon Qualified plans. Turbotax state efile coupon Ordering forms and publications. Turbotax state efile coupon Tax questions. Turbotax state efile coupon Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. Turbotax state efile coupon irs. Turbotax state efile coupon gov/pub560. Turbotax state efile coupon What's New Compensation limit increased for 2013 and 2014. Turbotax state efile coupon  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. Turbotax state efile coupon This limit increases to $260,000 for 2014. Turbotax state efile coupon Elective deferral limit for 2013 and 2014. Turbotax state efile coupon  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. Turbotax state efile coupon These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. Turbotax state efile coupon Defined contribution limit increased for 2013 and 2014. Turbotax state efile coupon  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. Turbotax state efile coupon This limit increases to $52,000 for 2014. Turbotax state efile coupon SIMPLE plan salary reduction contribution limit for 2013 and 2014. Turbotax state efile coupon  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. Turbotax state efile coupon Catch-up contribution limit remains unchanged for 2013 and 2014. Turbotax state efile coupon  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Turbotax state efile coupon The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. Turbotax state efile coupon The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. Turbotax state efile coupon The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. Turbotax state efile coupon The catch-up contribution limit. Turbotax state efile coupon The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Turbotax state efile coupon See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. Turbotax state efile coupon All section references are to the Internal Revenue Code, unless otherwise stated. Turbotax state efile coupon Reminders In-plan Roth rollovers. Turbotax state efile coupon  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. Turbotax state efile coupon An in-plan Roth rollover is not treated as a distribution for most purposes. Turbotax state efile coupon Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. Turbotax state efile coupon For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Turbotax state efile coupon R. Turbotax state efile coupon B. Turbotax state efile coupon 872, available at  www. Turbotax state efile coupon irs. Turbotax state efile coupon gov/irb/2010-51_IRB/ar11. Turbotax state efile coupon html. Turbotax state efile coupon In-plan Roth rollovers expanded. Turbotax state efile coupon  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. Turbotax state efile coupon Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. Turbotax state efile coupon For more information, see Notice 2013-74, 2013-52 I. Turbotax state efile coupon R. Turbotax state efile coupon B. Turbotax state efile coupon 819, available at www. Turbotax state efile coupon irs. Turbotax state efile coupon gov/irb/2013-52_IRB/ar11. Turbotax state efile coupon html. Turbotax state efile coupon Credit for startup costs. Turbotax state efile coupon  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. Turbotax state efile coupon The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Turbotax state efile coupon You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. Turbotax state efile coupon You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. Turbotax state efile coupon At least one participant must be a non-highly compensated employee. Turbotax state efile coupon The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. Turbotax state efile coupon You. Turbotax state efile coupon A member of a controlled group that includes you. Turbotax state efile coupon A predecessor of (1) or (2). Turbotax state efile coupon The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. Turbotax state efile coupon However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. Turbotax state efile coupon You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. Turbotax state efile coupon To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. Turbotax state efile coupon Retirement savings contributions credit. Turbotax state efile coupon  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. Turbotax state efile coupon The maximum contribution eligible for the credit is $2,000. Turbotax state efile coupon To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. Turbotax state efile coupon For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). Turbotax state efile coupon Photographs of missing children. Turbotax state efile coupon  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Turbotax state efile coupon Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Turbotax state efile coupon You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Turbotax state efile coupon Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. Turbotax state efile coupon In this publication, “you” refers to the employer. Turbotax state efile coupon See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. Turbotax state efile coupon This publication covers the following types of retirement plans. Turbotax state efile coupon SEP (simplified employee pension) plans. Turbotax state efile coupon SIMPLE (savings incentive match plan for employees) plans. Turbotax state efile coupon Qualified plans (also called H. Turbotax state efile coupon R. Turbotax state efile coupon 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. Turbotax state efile coupon SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. Turbotax state efile coupon You can deduct contributions you make to the plan for your employees. Turbotax state efile coupon If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. Turbotax state efile coupon You can also deduct trustees' fees if contributions to the plan do not cover them. Turbotax state efile coupon Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Turbotax state efile coupon Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. Turbotax state efile coupon These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. Turbotax state efile coupon What this publication covers. Turbotax state efile coupon   This publication contains the information you need to understand the following topics. Turbotax state efile coupon What type of plan to set up. Turbotax state efile coupon How to set up a plan. Turbotax state efile coupon How much you can contribute to a plan. Turbotax state efile coupon How much of your contribution is deductible. Turbotax state efile coupon How to treat certain distributions. Turbotax state efile coupon How to report information about the plan to the IRS and your employees. Turbotax state efile coupon Basic features of SEP, SIMPLE, and qualified plans. Turbotax state efile coupon The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. Turbotax state efile coupon SEP plans. Turbotax state efile coupon   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. Turbotax state efile coupon Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. Turbotax state efile coupon SIMPLE plans. Turbotax state efile coupon   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. Turbotax state efile coupon Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. Turbotax state efile coupon In addition, you will contribute matching or nonelective contributions. Turbotax state efile coupon The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. Turbotax state efile coupon Qualified plans. Turbotax state efile coupon   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. Turbotax state efile coupon However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. Turbotax state efile coupon Table 1. Turbotax state efile coupon Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). Turbotax state efile coupon Smaller of $51,000 or 25%1 of participant's compensation. Turbotax state efile coupon 2 25%1 of all participants' compensation. Turbotax state efile coupon 2 Any time up to the due date of employer's return (including extensions). Turbotax state efile coupon SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. Turbotax state efile coupon 4  Matching or nonelective contributions: Due date of employer's return (including extensions). Turbotax state efile coupon Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. Turbotax state efile coupon   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. Turbotax state efile coupon 2 Same as maximum contribution. Turbotax state efile coupon Any time between 1/1 and 10/1 of the calendar year. Turbotax state efile coupon   For a new employer coming into existence after 10/1, as soon as administratively feasible. Turbotax state efile coupon Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). Turbotax state efile coupon 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). Turbotax state efile coupon  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. Turbotax state efile coupon   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. Turbotax state efile coupon 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. Turbotax state efile coupon 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. Turbotax state efile coupon   By the end of the tax year. Turbotax state efile coupon Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. Turbotax state efile coupon See Minimum Funding Requirement in chapter 4. Turbotax state efile coupon Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Turbotax state efile coupon Based on actuarial assumptions and computations. Turbotax state efile coupon By the end of the tax year. Turbotax state efile coupon 1Net earnings from self-employment must take the contribution into account. Turbotax state efile coupon See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . Turbotax state efile coupon  2Compensation is generally limited to $255,000 in 2013. Turbotax state efile coupon  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. Turbotax state efile coupon  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. Turbotax state efile coupon What this publication does not cover. Turbotax state efile coupon   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. Turbotax state efile coupon You may also need professional help and guidance. Turbotax state efile coupon   Also, this publication does not cover all the rules that may be of interest to employees. Turbotax state efile coupon For example, it does not cover the following topics. Turbotax state efile coupon The comprehensive IRA rules an employee needs to know. Turbotax state efile coupon These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). Turbotax state efile coupon The comprehensive rules that apply to distributions from retirement plans. Turbotax state efile coupon These rules are covered in Publication 575, Pension and Annuity Income. Turbotax state efile coupon The comprehensive rules that apply to section 403(b) plans. Turbotax state efile coupon These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Turbotax state efile coupon Comments and suggestions. Turbotax state efile coupon   We welcome your comments about this publication and your suggestions for future editions. Turbotax state efile coupon   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Turbotax state efile coupon NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Turbotax state efile coupon Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Turbotax state efile coupon   You can send your comments from www. Turbotax state efile coupon irs. Turbotax state efile coupon gov/formspubs. 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