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2005 Tax Return

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2005 Tax Return

2005 tax return Publication 571 - Introductory Material Table of Contents Future Developments What's New for 2013 What's New for 2014 Reminder IntroductionOrdering forms and publications. 2005 tax return Tax questions. 2005 tax return Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 571 and its instructions, such as legislation enacted after they were published, go to www. 2005 tax return irs. 2005 tax return gov/pub571. 2005 tax return What's New for 2013 Retirement savings contributions credit. 2005 tax return  For 2013, the adjusted gross income limitations have increased from $57,500 to $59,000 for married filing jointly filers, from $43,125 to $44,250 for head of household filers, and from $28,750 to $29,500 for single, married filing separately, or qualifying widow(er) with dependent child filers. 2005 tax return See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. 2005 tax return Limit on elective deferrals. 2005 tax return  For 2013, the limit on elective deferrals has increased from $17,000 to $17,500. 2005 tax return Limit on annual additions. 2005 tax return  For 2013, the limit on annual additions has increased from $50,000 to $51,000. 2005 tax return What's New for 2014 Retirement savings contributions credit. 2005 tax return  For 2014, the adjusted gross income limitations have increased from $59,000 to $60,000 for married filing jointly filers, from $44,250 to $45,000 for head of household filers, and from $29,500 to $30,000 for single, married filing separately, or qualifying widow(er) with dependent child filers. 2005 tax return See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. 2005 tax return Limit on elective deferrals. 2005 tax return  For 2014, the limit on elective deferrals remains unchanged at $17,500. 2005 tax return Limit on annual additions. 2005 tax return  For 2014, the limit on annual additions has increased from $51,000 to $52,000. 2005 tax return Reminder Photographs of missing children. 2005 tax return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2005 tax return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2005 tax return 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. 2005 tax return Introduction This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan. 2005 tax return In this publication, you will find information to help you: Determine the maximum amount that can be contributed to your 403(b) account in 2014. 2005 tax return Determine the maximum amount that could have been contributed to your 403(b) account in 2013. 2005 tax return Identify excess contributions. 2005 tax return Understand the basic rules for claiming the retirement savings contributions credit. 2005 tax return Understand the basic rules for distributions and rollovers from 403(b) accounts. 2005 tax return This publication does not provide specific information on the following topics. 2005 tax return Distributions from 403(b) accounts. 2005 tax return This is covered in Publication 575, Pension and Annuity Income. 2005 tax return Rollovers. 2005 tax return This is covered in Publication 590, Individual Retirement Arrangements (IRAs). 2005 tax return How to use this publication. 2005 tax return   This publication is organized into chapters to help you find information easily. 2005 tax return    Chapter 1 answers questions frequently asked by 403(b) plan participants. 2005 tax return    Chapters 2 through 6 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2013 and the maximum amount that can be contributed to your 403(b) account in 2014. 2005 tax return    Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) account. 2005 tax return    Chapter 8 provides general information on distributions, transfers, and rollovers. 2005 tax return    Chapter 9 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. 2005 tax return Filled-in samples of most of these worksheets can be found throughout this publication. 2005 tax return    Chapter 10 explains the rules for claiming the retirement savings contributions credit (saver's credit). 2005 tax return Comments and suggestions. 2005 tax return   We welcome your comments about this publication and your suggestions for future editions. 2005 tax return   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2005 tax return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2005 tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2005 tax return   You can send your comments from www. 2005 tax return irs. 2005 tax return gov/formspubs/. 2005 tax return Click on “More Information” and then on “Comment on Tax Forms and Publications. 2005 tax return ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2005 tax return Ordering forms and publications. 2005 tax return   Visit www. 2005 tax return irs. 2005 tax return gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2005 tax return  Internal Revenue Service 1201 N. 2005 tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2005 tax return   If you have a tax question, check the information available on IRS. 2005 tax return gov or call 1-800-829-1040. 2005 tax return We cannot answer tax questions sent to either of the above addresses. 2005 tax return Useful Items - You may want to see: Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) W-2 Wage and Tax Statement 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2005 tax return 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans Prev  Up  Next   Home   More Online Publications
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Alternative Motor Vehicle Credit

The Alternative Fuel Motor Vehicle Credit was enacted by the Energy Policy Act of 2005 and includes separate credits for four distinct categories of vehicles: 

  1. Qualified Hybrid Vehicles, - expired
  2. Qualified Fuel Cell Vehicles,
  3. Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrids, expired
  4. Advanced Lean-Burn Technology Vehicles.  expired

The amount of the potential credit varies by type of vehicle and which of the four credits applies.

Internal Revenue Code Section 30B provides for the Alternative Motor Vehicle Credit. Notice 2006-9 provides procedures for manufacturers to certify passenger auto and light trucks as Qualified Hybrid Vehicles and Advance Lean Burn Vehicles and Notice 2007-46 provides procedures for heavy hybrid vehicles. Notice 2006-54 provides procedures for manufacturers to certify vehicles as Qualified Alternative Fuel Motor Vehicles (QAFMV). Notice 2008-33 provides procedures for manufacturers to certify Fuel Cell Vehicles.

Each of the four credits under the Alternative Motor Vehicle Credit is addressed individually below.

Qualified Fuel Cell Vehicles

A qualified fuel cell motor vehicle is a vehicle that is propelled by power derived from one or more cells which convert chemical energy directly into electricity.

The base amount of the new qualified fuel cell motor vehicle credit varies with the gross vehicle weight rating of the vehicle. Passenger automobiles and light trucks are eligible for an additional fuel economy amount that varies with the rated fuel economy of a qualifying vehicle. A list of qualifying cell vehicles is available.

 

Page Last Reviewed or Updated: 11-Feb-2014

The 2005 Tax Return

2005 tax return 4. 2005 tax return   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. 2005 tax return Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. 2005 tax return Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. 2005 tax return However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. 2005 tax return Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. 2005 tax return Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. 2005 tax return This information is also provided to the IRS. 2005 tax return Form 1099-B. 2005 tax return   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. 2005 tax return Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. 2005 tax return Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. 2005 tax return on Form 8949 and/or Schedule D, as applicable. 2005 tax return For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. 2005 tax return For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). 2005 tax return Form 1099-S. 2005 tax return   An information return must be provided on certain real estate transactions. 2005 tax return Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. 2005 tax return Land (improved or unimproved), including air space. 2005 tax return An inherently permanent structure, including any residential, commercial, or industrial building. 2005 tax return A condominium unit and its related fixtures and common elements (including land). 2005 tax return Stock in a cooperative housing corporation. 2005 tax return If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. 2005 tax return The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. 2005 tax return   For more information see chapter 4 in Publication 550. 2005 tax return Also, see the Instructions for Form 8949. 2005 tax return Schedule D and Form 8949 Form 8949. 2005 tax return   Individuals, corporations, and partnerships, use Form 8949 to report the following. 2005 tax return    Sales or exchanges of capital assets, including stocks, bonds, etc. 2005 tax return , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). 2005 tax return Include these transactions even if you did not receive a Form 1099-B or 1099-S. 2005 tax return Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. 2005 tax return Nonbusiness bad debts. 2005 tax return   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. 2005 tax return You and your spouse may list your transactions on separate forms or you may combine them. 2005 tax return However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. 2005 tax return    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. 2005 tax return   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. 2005 tax return See the Instructions for Form 8949. 2005 tax return Schedule D. 2005 tax return    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. 2005 tax return Before completing Schedule D, you may have to complete other forms as shown below. 2005 tax return    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. 2005 tax return Enter on Schedule D the combined totals from all your Forms 8949. 2005 tax return For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). 2005 tax return For a like-kind exchange, complete Form 8824. 2005 tax return See Reporting the exchange under Like-Kind Exchanges in chapter 1. 2005 tax return For an installment sale, complete Form 6252. 2005 tax return See Publication 537. 2005 tax return For an involuntary conversion due to casualty or theft, complete Form 4684. 2005 tax return See Publication 547, Casualties, Disasters, and Thefts. 2005 tax return For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. 2005 tax return See Publication 925, Passive Activity and At-Risk Rules. 2005 tax return For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. 2005 tax return See Publication 925. 2005 tax return For gains and losses from section 1256 contracts and straddles, complete Form 6781. 2005 tax return See Publication 550. 2005 tax return Personal-use property. 2005 tax return   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. 2005 tax return Loss from the sale or exchange of property held for personal use is not deductible. 2005 tax return But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. 2005 tax return See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. 2005 tax return Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. 2005 tax return The time you own an asset before disposing of it is the holding period. 2005 tax return If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. 2005 tax return If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. 2005 tax return Report it in Part I of Form 8949 and/or Schedule D, as applicable. 2005 tax return If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. 2005 tax return Report it in Part II of Form 8949 and/or Schedule D, as applicable. 2005 tax return   Table 4-1. 2005 tax return Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. 2005 tax return . 2005 tax return . 2005 tax return  THEN you have a. 2005 tax return . 2005 tax return . 2005 tax return 1 year or less, Short-term capital gain or  loss. 2005 tax return More than 1 year, Long-term capital gain or  loss. 2005 tax return These distinctions are essential to correctly arrive at your net capital gain or loss. 2005 tax return Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. 2005 tax return See Capital Gains Tax Rates, later. 2005 tax return Holding period. 2005 tax return   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. 2005 tax return The day you disposed of the property is part of your holding period. 2005 tax return Example. 2005 tax return If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. 2005 tax return If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. 2005 tax return Patent property. 2005 tax return   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. 2005 tax return For more information, see Patents in chapter 2. 2005 tax return Inherited property. 2005 tax return   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. 2005 tax return Installment sale. 2005 tax return   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. 2005 tax return If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. 2005 tax return    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. 2005 tax return Nontaxable exchange. 2005 tax return   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. 2005 tax return That is, it begins on the same day as your holding period for the old property. 2005 tax return Example. 2005 tax return You bought machinery on December 4, 2012. 2005 tax return On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. 2005 tax return On December 5, 2013, you sold the machinery you got in the exchange. 2005 tax return Your holding period for this machinery began on December 5, 2012. 2005 tax return Therefore, you held it longer than 1 year. 2005 tax return Corporate liquidation. 2005 tax return   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. 2005 tax return Profit-sharing plan. 2005 tax return   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. 2005 tax return Gift. 2005 tax return   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. 2005 tax return For more information on basis, see Publication 551, Basis of Assets. 2005 tax return Real property. 2005 tax return   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. 2005 tax return   However, taking possession of real property under an option agreement is not enough to start the holding period. 2005 tax return The holding period cannot start until there is an actual contract of sale. 2005 tax return The holding period of the seller cannot end before that time. 2005 tax return Repossession. 2005 tax return   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. 2005 tax return Your holding period does not include the time between the original sale and the repossession. 2005 tax return That is, it does not include the period during which the first buyer held the property. 2005 tax return Nonbusiness bad debts. 2005 tax return   Nonbusiness bad debts are short-term capital losses. 2005 tax return For information on nonbusiness bad debts, see chapter 4 of Publication 550. 2005 tax return    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. 2005 tax return Net short-term capital gain or loss. 2005 tax return   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. 2005 tax return Do this by adding all your short-term capital gains. 2005 tax return Then add all your short-term capital losses. 2005 tax return Subtract the lesser total from the other. 2005 tax return The result is your net short-term capital gain or loss. 2005 tax return Net long-term capital gain or loss. 2005 tax return   Follow the same steps to combine your long-term capital gains and losses. 2005 tax return Include the following items. 2005 tax return Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. 2005 tax return Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. 2005 tax return Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. 2005 tax return Any long-term capital loss carryover. 2005 tax return The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. 2005 tax return Net gain. 2005 tax return   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. 2005 tax return Different tax rates may apply to the part that is a net capital gain. 2005 tax return See Capital Gains Tax Rates, later. 2005 tax return Net loss. 2005 tax return   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. 2005 tax return But there are limits on how much loss you can deduct and when you can deduct it. 2005 tax return See Treatment of Capital Losses, next. 2005 tax return    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. 2005 tax return The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). 2005 tax return Table 4-2. 2005 tax return Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. 2005 tax return Ends on trading date you sold security. 2005 tax return U. 2005 tax return S. 2005 tax return Treasury notes and bonds If bought at auction, day after notification of bid acceptance. 2005 tax return If bought through subscription, day after subscription was submitted. 2005 tax return Nontaxable exchanges Day after date you acquired old property. 2005 tax return Gift If your basis is giver's adjusted basis, same day as giver's holding period began. 2005 tax return If your basis is FMV, day after date of gift. 2005 tax return Real property bought Generally, day after date you received title to the property. 2005 tax return Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. 2005 tax return Capital loss carryover. 2005 tax return   Generally, you have a capital loss carryover if either of the following situations applies to you. 2005 tax return Your net loss is more than the yearly limit. 2005 tax return Your taxable income without your deduction for exemptions is less than zero. 2005 tax return If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. 2005 tax return Example. 2005 tax return Bob and Gloria Sampson sold property in 2013. 2005 tax return The sale resulted in a capital loss of $7,000. 2005 tax return The Sampsons had no other capital transactions. 2005 tax return On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. 2005 tax return They had taxable income of $2,000. 2005 tax return The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. 2005 tax return If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. 2005 tax return Their capital loss deduction would have been $2,000. 2005 tax return They would have no carryover to 2014. 2005 tax return Short-term and long-term losses. 2005 tax return   When you carry over a loss, it retains its original character as either long term or short term. 2005 tax return A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. 2005 tax return A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. 2005 tax return A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. 2005 tax return   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. 2005 tax return If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. 2005 tax return To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). 2005 tax return Joint and separate returns. 2005 tax return   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. 2005 tax return If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. 2005 tax return Neither you nor your spouse can deduct any part of the other's loss. 2005 tax return   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. 2005 tax return However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. 2005 tax return Death of taxpayer. 2005 tax return   Capital losses cannot be carried over after a taxpayer's death. 2005 tax return They are deductible only on the final income tax return filed on the decedent's behalf. 2005 tax return The yearly limit discussed earlier still applies in this situation. 2005 tax return Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. 2005 tax return Corporations. 2005 tax return   A corporation can deduct capital losses only up to the amount of its capital gains. 2005 tax return In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. 2005 tax return It must be carried to other tax years and deducted from capital gains occurring in those years. 2005 tax return For more information, see Publication 542. 2005 tax return Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. 2005 tax return These lower rates are called the maximum capital gains rates. 2005 tax return The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 2005 tax return For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. 2005 tax return Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. 2005 tax return For more information, see chapter 4 of Publication 550. 2005 tax return Also see the Instructions for Schedule D (Form 1040). 2005 tax return Unrecaptured section 1250 gain. 2005 tax return   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. 2005 tax return Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. 2005 tax return Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. 2005 tax return For more information about section 1250 property and net section 1231 gain, see chapter 3. 2005 tax return Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. 2005 tax return The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. 2005 tax return The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). 2005 tax return The disposition of capital assets not reported on Schedule D. 2005 tax return The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. 2005 tax return The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. 2005 tax return Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). 2005 tax return You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. 2005 tax return Section 1231 gains and losses. 2005 tax return   Show any section 1231 gains and losses in Part I. 2005 tax return Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. 2005 tax return Carry a net loss to Part II of Form 4797 as an ordinary loss. 2005 tax return   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. 2005 tax return Report any remaining gain on Schedule D (Form 1040). 2005 tax return See Section 1231 Gains and Losses in chapter 3. 2005 tax return Ordinary gains and losses. 2005 tax return   Show any ordinary gains and losses in Part II. 2005 tax return This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. 2005 tax return It also includes ordinary gain figured in Part III. 2005 tax return Mark-to-market election. 2005 tax return   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). 2005 tax return See the Instructions for Form 4797. 2005 tax return Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. 2005 tax return Ordinary income from depreciation. 2005 tax return   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. 2005 tax return Carry the ordinary income to Part II of Form 4797 as an ordinary gain. 2005 tax return Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. 2005 tax return Carry any remaining gain from a casualty or theft to Form 4684. 2005 tax return Prev  Up  Next   Home   More Online Publications