Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

2011 Irs 1040ez

1040ez Tax FilingHow To Fill Out 1040xTaxact 2011File My 2010 TaxesFree Fillable State Tax FormsE File A 1040xEz Form 2014Taxact2010Free Turbotax 2011 DownloadHow Do You Do An Amendment To Your Tax ReturnHow To File Taxes For 2011Irs E File 2012Income Taxes For StudentsH&r Block Free State FilingRevised Tax ReturnHow To File An Extension For 2012 TaxesTurbotax Deluxe Federal E File State 2011 For Pc DownloadHow To Do A Tax AmendmentHow Can I File State Taxes For FreeFree 1040 Tax Return2012 Tax Return Software1040 Ez FileHow To Amend 2012 Federal Tax ReturnTurbotax Military 2012Free State Return Filing2008 Tax Forms 1040Can I Amend My Tax Return OnlineHr Block Free1040x Site Irs GovTaxact 2011 Download FreeTaxact Online 2010Federal Tax Forms1040nr OnlineE File Amended Tax ReturnFile 2006 Tax ReturnFile Federal And State Taxes FreeDownload 1040ezFree Income Tax PreparationWhere Can I Get 2011 Tax FormsFree Efile

2011 Irs 1040ez

2011 irs 1040ez 6. 2011 irs 1040ez   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. 2011 irs 1040ez Vehicles not considered highway vehicles. 2011 irs 1040ez Idling reduction device. 2011 irs 1040ez Separate purchase. 2011 irs 1040ez Leases. 2011 irs 1040ez Exported vehicle. 2011 irs 1040ez Tax on resale of tax-paid trailers and semitrailers. 2011 irs 1040ez Use treated as sale. 2011 irs 1040ez Sale. 2011 irs 1040ez Long-term lease. 2011 irs 1040ez Short-term lease. 2011 irs 1040ez Related person. 2011 irs 1040ez Exclusions from tax base. 2011 irs 1040ez Sales not at arm's length. 2011 irs 1040ez Installment sales. 2011 irs 1040ez Repairs and modifications. 2011 irs 1040ez Further manufacture. 2011 irs 1040ez Rail trailers and rail vans. 2011 irs 1040ez Parts and accessories. 2011 irs 1040ez Trash containers. 2011 irs 1040ez House trailers. 2011 irs 1040ez Camper coaches or bodies for self-propelled mobile homes. 2011 irs 1040ez Farm feed, seed, and fertilizer equipment. 2011 irs 1040ez Ambulances and hearses. 2011 irs 1040ez Truck-tractors. 2011 irs 1040ez Concrete mixers. 2011 irs 1040ez Registration requirement. 2011 irs 1040ez Further manufacture. 2011 irs 1040ez A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. 2011 irs 1040ez Truck chassis and bodies. 2011 irs 1040ez Truck trailer and semitrailer chassis and bodies. 2011 irs 1040ez Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 2011 irs 1040ez A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. 2011 irs 1040ez A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. 2011 irs 1040ez A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. 2011 irs 1040ez A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. 2011 irs 1040ez The seller is liable for the tax. 2011 irs 1040ez Chassis or body. 2011 irs 1040ez   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. 2011 irs 1040ez Highway vehicle. 2011 irs 1040ez   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. 2011 irs 1040ez Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. 2011 irs 1040ez A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. 2011 irs 1040ez A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). 2011 irs 1040ez A special kind of cargo, goods, supplies, or materials. 2011 irs 1040ez Some off-highway task unrelated to highway transportation, except as discussed next. 2011 irs 1040ez Vehicles not considered highway vehicles. 2011 irs 1040ez   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. 2011 irs 1040ez Specially designed mobile machinery for nontransportation functions. 2011 irs 1040ez A self-propelled vehicle is not a highway vehicle if all the following apply. 2011 irs 1040ez The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. 2011 irs 1040ez The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. 2011 irs 1040ez The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. 2011 irs 1040ez Vehicles specially designed for off-highway transportation. 2011 irs 1040ez A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. 2011 irs 1040ez To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. 2011 irs 1040ez It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. 2011 irs 1040ez Nontransportation trailers and semitrailers. 2011 irs 1040ez A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. 2011 irs 1040ez For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. 2011 irs 1040ez Gross vehicle weight. 2011 irs 1040ez   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. 2011 irs 1040ez It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. 2011 irs 1040ez Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. 2011 irs 1040ez   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. 2011 irs 1040ez Platform truck bodies 21 feet or less in length. 2011 irs 1040ez Dry freight and refrigerated truck van bodies 24 feet or less in length. 2011 irs 1040ez Dump truck bodies with load capacities of 8 cubic yards or less. 2011 irs 1040ez Refuse packer truck bodies with load capacities of 20 cubic yards or less. 2011 irs 1040ez For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. 2011 irs 1040ez R. 2011 irs 1040ez B. 2011 irs 1040ez 2005-14 at www. 2011 irs 1040ez irs. 2011 irs 1040ez gov/pub/irs-irbs/irb05-14. 2011 irs 1040ez pdf. 2011 irs 1040ez   The gross vehicle weight means the maximum total weight of a loaded vehicle. 2011 irs 1040ez Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. 2011 irs 1040ez The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. 2011 irs 1040ez The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. 2011 irs 1040ez See Regulations section 145. 2011 irs 1040ez 4051-1(e)(3) for more information. 2011 irs 1040ez Parts or accessories. 2011 irs 1040ez   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. 2011 irs 1040ez For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. 2011 irs 1040ez The tax applies in this case whether or not the retailer bills the parts or accessories separately. 2011 irs 1040ez   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. 2011 irs 1040ez The tax applies unless there is evidence to the contrary. 2011 irs 1040ez For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. 2011 irs 1040ez The tax does not apply to parts and accessories that are spares or replacements. 2011 irs 1040ez   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. 2011 irs 1040ez Idling reduction device. 2011 irs 1040ez   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. 2011 irs 1040ez The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. 2011 irs 1040ez The EPA discusses idling reduction technologies on its website at www. 2011 irs 1040ez epa. 2011 irs 1040ez gov/smartway/technology/idling. 2011 irs 1040ez htm. 2011 irs 1040ez Separate purchase. 2011 irs 1040ez   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. 2011 irs 1040ez The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. 2011 irs 1040ez The installation occurs within 6 months after the vehicle is first placed in service. 2011 irs 1040ez   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. 2011 irs 1040ez   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. 2011 irs 1040ez This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. 2011 irs 1040ez   The tax does not apply if the installed part or accessory is a replacement part or accessory. 2011 irs 1040ez The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. 2011 irs 1040ez However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. 2011 irs 1040ez Example. 2011 irs 1040ez You bought a taxable vehicle and placed it in service on April 8. 2011 irs 1040ez On May 3, you bought and installed parts and accessories at a cost of $850. 2011 irs 1040ez On July 15, you bought and installed parts and accessories for $300. 2011 irs 1040ez Tax of $138 (12% of $1,150) applies on July 15. 2011 irs 1040ez Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. 2011 irs 1040ez First retail sale defined. 2011 irs 1040ez   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. 2011 irs 1040ez There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). 2011 irs 1040ez The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). 2011 irs 1040ez The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. 2011 irs 1040ez There is no registration requirement. 2011 irs 1040ez Leases. 2011 irs 1040ez   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. 2011 irs 1040ez The tax is imposed on the lessor at the time of the lease. 2011 irs 1040ez   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. 2011 irs 1040ez The tax is imposed on the lessor at the time of the lease. 2011 irs 1040ez Exported vehicle. 2011 irs 1040ez   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. 2011 irs 1040ez Tax on resale of tax-paid trailers and semitrailers. 2011 irs 1040ez   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. 2011 irs 1040ez The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. 2011 irs 1040ez The credit cannot exceed the tax on the resale. 2011 irs 1040ez See Regulations section 145. 2011 irs 1040ez 4052-1(a)(4) for information on the conditions to allowance for the credit. 2011 irs 1040ez Use treated as sale. 2011 irs 1040ez   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. 2011 irs 1040ez Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. 2011 irs 1040ez The tax attaches when the use begins. 2011 irs 1040ez   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. 2011 irs 1040ez   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. 2011 irs 1040ez   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. 2011 irs 1040ez Presumptive retail sales price. 2011 irs 1040ez   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. 2011 irs 1040ez If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. 2011 irs 1040ez Table 6-1 outlines the appropriate tax base calculation for various transactions. 2011 irs 1040ez   The presumed markup percentage to be used for trucks and truck-tractors is 4%. 2011 irs 1040ez But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. 2011 irs 1040ez Sale. 2011 irs 1040ez   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. 2011 irs 1040ez Long-term lease. 2011 irs 1040ez   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. 2011 irs 1040ez Short-term lease. 2011 irs 1040ez   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. 2011 irs 1040ez   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. 2011 irs 1040ez   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. 2011 irs 1040ez Related person. 2011 irs 1040ez   A related person is any member of the same controlled group as the manufacturer, producer, or importer. 2011 irs 1040ez Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 2011 irs 1040ez Table 6-1. 2011 irs 1040ez Tax Base IF the transaction is a. 2011 irs 1040ez . 2011 irs 1040ez . 2011 irs 1040ez THEN figuring the base by using the. 2011 irs 1040ez . 2011 irs 1040ez . 2011 irs 1040ez Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. 2011 irs 1040ez   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. 2011 irs 1040ez   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. 2011 irs 1040ez However, you do add a markup if all the following apply. 2011 irs 1040ez You do not perform any significant activities relating to the processing of the sale of a taxable article. 2011 irs 1040ez The main reason for processing the sale through you is to avoid or evade the presumed markup. 2011 irs 1040ez You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. 2011 irs 1040ez In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. 2011 irs 1040ez Determination of tax base. 2011 irs 1040ez   These rules apply to both normal retail sales price and presumptive retail sales price computations. 2011 irs 1040ez To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. 2011 irs 1040ez However, see Presumptive retail sales price, earlier. 2011 irs 1040ez Exclusions from tax base. 2011 irs 1040ez   Exclude from the tax base the retail excise tax imposed on the sale. 2011 irs 1040ez Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. 2011 irs 1040ez Also exclude the value of any used component of the article furnished by the first user of the article. 2011 irs 1040ez   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. 2011 irs 1040ez These expenses are those incurred in delivery from the retail dealer to the customer. 2011 irs 1040ez In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. 2011 irs 1040ez   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. 2011 irs 1040ez For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. 2011 irs 1040ez Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. 2011 irs 1040ez Sales not at arm's length. 2011 irs 1040ez   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. 2011 irs 1040ez   A sale is not at arm's length if either of the following apply. 2011 irs 1040ez One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. 2011 irs 1040ez The sale is made under special arrangements between a seller and a purchaser. 2011 irs 1040ez Installment sales. 2011 irs 1040ez   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. 2011 irs 1040ez The tax is figured on the entire sales price. 2011 irs 1040ez No part of the tax is deferred because the sales price is paid in installments. 2011 irs 1040ez Repairs and modifications. 2011 irs 1040ez   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. 2011 irs 1040ez This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. 2011 irs 1040ez However, this exception generally does not apply to an article that was not subject to the tax when it was new. 2011 irs 1040ez Further manufacture. 2011 irs 1040ez   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. 2011 irs 1040ez Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. 2011 irs 1040ez Combining an article with an item in this list does not give rise to taxability. 2011 irs 1040ez However, see Parts or accessories discussed earlier. 2011 irs 1040ez Articles exempt from tax. 2011 irs 1040ez   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. 2011 irs 1040ez Rail trailers and rail vans. 2011 irs 1040ez   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). 2011 irs 1040ez Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. 2011 irs 1040ez Parts and accessories. 2011 irs 1040ez   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. 2011 irs 1040ez Trash containers. 2011 irs 1040ez   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. 2011 irs 1040ez It is designed to be used as a trash container. 2011 irs 1040ez It is not designed to carry freight other than trash. 2011 irs 1040ez It is not designed to be permanently mounted on or affixed to a truck chassis or body. 2011 irs 1040ez House trailers. 2011 irs 1040ez   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. 2011 irs 1040ez Camper coaches or bodies for self-propelled mobile homes. 2011 irs 1040ez   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. 2011 irs 1040ez Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. 2011 irs 1040ez Farm feed, seed, and fertilizer equipment. 2011 irs 1040ez   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. 2011 irs 1040ez This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. 2011 irs 1040ez Ambulances and hearses. 2011 irs 1040ez   This is any ambulance, hearse, or combination ambulance-hearse. 2011 irs 1040ez Truck-tractors. 2011 irs 1040ez   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. 2011 irs 1040ez Concrete mixers. 2011 irs 1040ez   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. 2011 irs 1040ez This exemption does not apply to the chassis on which the article is mounted. 2011 irs 1040ez Sales exempt from tax. 2011 irs 1040ez   The following sales are ordinarily exempt from tax. 2011 irs 1040ez Sales to a state or local government for its exclusive use. 2011 irs 1040ez Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. 2011 irs 1040ez Sales to a nonprofit educational organization for its exclusive use. 2011 irs 1040ez Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 2011 irs 1040ez Sales for use by the purchaser for further manufacture of other taxable articles (see below). 2011 irs 1040ez Sales for export or for resale by the purchaser to a second purchaser for export. 2011 irs 1040ez Sales to the United Nations for official use. 2011 irs 1040ez Registration requirement. 2011 irs 1040ez   In general, the seller and buyer must be registered for a sale to be tax free. 2011 irs 1040ez See the Form 637 instructions for more information. 2011 irs 1040ez Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. 2011 irs 1040ez Further manufacture. 2011 irs 1040ez   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. 2011 irs 1040ez Credits or refunds. 2011 irs 1040ez   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. 2011 irs 1040ez The person using the article as a component part is eligible for the credit or refund. 2011 irs 1040ez   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. 2011 irs 1040ez A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. 2011 irs 1040ez   See also Conditions to allowance in chapter 5. 2011 irs 1040ez Tire credit. 2011 irs 1040ez   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. 2011 irs 1040ez The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). 2011 irs 1040ez This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. 2011 irs 1040ez Prev  Up  Next   Home   More Online Publications
Español

Office of Special Education and Rehabilitative Services (OSERS)

OSERS provides a wide array of supports to parents and individuals, school districts and states in three main areas: special education, vocational rehabilitation and research.

The 2011 Irs 1040ez

2011 irs 1040ez 5. 2011 irs 1040ez   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. 2011 irs 1040ez Making the election. 2011 irs 1040ez Form 3115. 2011 irs 1040ez Income TaxesAccrual of contested income taxes. 2011 irs 1040ez Employment Taxes Other TaxesAdditional Medicare Tax. 2011 irs 1040ez What's New Additional Medicare Tax. 2011 irs 1040ez  Beginning in 2013, you must withhold a 0. 2011 irs 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 2011 irs 1040ez Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. 2011 irs 1040ez See Employment Taxes , and Self-employment tax , later. 2011 irs 1040ez Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. 2011 irs 1040ez You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. 2011 irs 1040ez Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. 2011 irs 1040ez When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. 2011 irs 1040ez This applies whether you use the cash method or an accrual method of accounting. 2011 irs 1040ez Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. 2011 irs 1040ez You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . 2011 irs 1040ez Limit on accrual of taxes. 2011 irs 1040ez   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. 2011 irs 1040ez However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. 2011 irs 1040ez Example. 2011 irs 1040ez Your state imposes a tax on personal property used in a trade or business conducted in the state. 2011 irs 1040ez This tax is assessed and becomes a lien as of July 1 (accrual date). 2011 irs 1040ez In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. 2011 irs 1040ez Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. 2011 irs 1040ez You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. 2011 irs 1040ez Uniform capitalization rules. 2011 irs 1040ez   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. 2011 irs 1040ez They also apply to certain taxpayers who acquire property for resale. 2011 irs 1040ez Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. 2011 irs 1040ez For more information, see chapter 1. 2011 irs 1040ez Carrying charges. 2011 irs 1040ez   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. 2011 irs 1040ez You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. 2011 irs 1040ez For more information, see chapter 7. 2011 irs 1040ez Refunds of taxes. 2011 irs 1040ez   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. 2011 irs 1040ez For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. 2011 irs 1040ez    You must include in income any interest you receive on tax refunds. 2011 irs 1040ez Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. 2011 irs 1040ez The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. 2011 irs 1040ez Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. 2011 irs 1040ez See Taxes for local benefits , later. 2011 irs 1040ez If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. 2011 irs 1040ez However, you can elect to ratably accrue the taxes during the year. 2011 irs 1040ez See Electing to ratably accrue , later. 2011 irs 1040ez Taxes for local benefits. 2011 irs 1040ez   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. 2011 irs 1040ez These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. 2011 irs 1040ez You should increase the basis of your property by the amount of the assessment. 2011 irs 1040ez   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. 2011 irs 1040ez If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. 2011 irs 1040ez Example. 2011 irs 1040ez To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. 2011 irs 1040ez The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. 2011 irs 1040ez The city is paying the principal and interest with the annual payments made by the property owners. 2011 irs 1040ez The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. 2011 irs 1040ez The part of the payments used to pay the interest charges on the bonds is deductible as taxes. 2011 irs 1040ez Charges for services. 2011 irs 1040ez   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. 2011 irs 1040ez Purchase or sale of real estate. 2011 irs 1040ez   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. 2011 irs 1040ez   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. 2011 irs 1040ez Treat the seller as paying the taxes up to but not including the date of sale. 2011 irs 1040ez Treat the buyer as paying the taxes beginning with the date of sale. 2011 irs 1040ez You can usually find this information on the settlement statement you received at closing. 2011 irs 1040ez   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. 2011 irs 1040ez Example. 2011 irs 1040ez Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. 2011 irs 1040ez He has not elected to ratably accrue property taxes. 2011 irs 1040ez November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. 2011 irs 1040ez He sold the property on June 30, 2013. 2011 irs 1040ez Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. 2011 irs 1040ez He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. 2011 irs 1040ez Electing to ratably accrue. 2011 irs 1040ez   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. 2011 irs 1040ez Example. 2011 irs 1040ez Juan Sanchez is a calendar year taxpayer who uses an accrual method. 2011 irs 1040ez His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. 2011 irs 1040ez July 1 is the assessment and lien date. 2011 irs 1040ez If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. 2011 irs 1040ez Separate elections. 2011 irs 1040ez   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. 2011 irs 1040ez Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. 2011 irs 1040ez See Form 3115 , later. 2011 irs 1040ez Making the election. 2011 irs 1040ez   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. 2011 irs 1040ez The statement should show all the following items. 2011 irs 1040ez The trades or businesses to which the election applies and the accounting method or methods used. 2011 irs 1040ez The period to which the taxes relate. 2011 irs 1040ez The computation of the real estate tax deduction for that first year. 2011 irs 1040ez   Generally, you must file your return by the due date (including extensions). 2011 irs 1040ez However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). 2011 irs 1040ez Attach the statement to the amended return and write “Filed pursuant to section 301. 2011 irs 1040ez 9100-2” on the statement. 2011 irs 1040ez File the amended return at the same address where you filed the original return. 2011 irs 1040ez Form 3115. 2011 irs 1040ez    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. 2011 irs 1040ez For more information, including applicable time frames for filing, see the Instructions for Form 3115. 2011 irs 1040ez Note. 2011 irs 1040ez If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. 2011 irs 1040ez R. 2011 irs 1040ez B. 2011 irs 1040ez 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. 2011 irs 1040ez R. 2011 irs 1040ez B. 2011 irs 1040ez 689, and Revenue Procedure 2012-20, 2012-14 I. 2011 irs 1040ez R. 2011 irs 1040ez B. 2011 irs 1040ez 700, or any successor. 2011 irs 1040ez Revenue Procedure 2011-14 is available at  www. 2011 irs 1040ez irs. 2011 irs 1040ez gov/irb/2011-04IRB/ar08. 2011 irs 1040ez html. 2011 irs 1040ez Income Taxes This section discusses federal, state, local, and foreign income taxes. 2011 irs 1040ez Federal income taxes. 2011 irs 1040ez   You cannot deduct federal income taxes. 2011 irs 1040ez State and local income taxes. 2011 irs 1040ez   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. 2011 irs 1040ez An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). 2011 irs 1040ez   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. 2011 irs 1040ez Accrual of contested income taxes. 2011 irs 1040ez   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. 2011 irs 1040ez   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. 2011 irs 1040ez You cannot deduct them in the year in which the liability is finally determined. 2011 irs 1040ez    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. 2011 irs 1040ez Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. 2011 irs 1040ez   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. 2011 irs 1040ez You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. 2011 irs 1040ez For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. 2011 irs 1040ez Foreign income taxes. 2011 irs 1040ez   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. 2011 irs 1040ez S. 2011 irs 1040ez possession. 2011 irs 1040ez However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. 2011 irs 1040ez S. 2011 irs 1040ez tax under the foreign earned income exclusion or the foreign housing exclusion. 2011 irs 1040ez For information on these exclusions, see Publication 54, Tax Guide for U. 2011 irs 1040ez S. 2011 irs 1040ez Citizens and Resident Aliens Abroad. 2011 irs 1040ez For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. 2011 irs 1040ez Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. 2011 irs 1040ez Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. 2011 irs 1040ez You may also need to pay certain employment taxes from your own funds. 2011 irs 1040ez These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. 2011 irs 1040ez Note. 2011 irs 1040ez Additional Medicare Tax is only imposed on the employee. 2011 irs 1040ez There is no employer share of Additional Medicare Tax. 2011 irs 1040ez Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. 2011 irs 1040ez You can deduct the employment taxes you must pay from your own funds as taxes. 2011 irs 1040ez Example. 2011 irs 1040ez You pay your employee $18,000 a year. 2011 irs 1040ez However, after you withhold various taxes, your employee receives $14,500. 2011 irs 1040ez You also pay an additional $1,500 in employment taxes. 2011 irs 1040ez You should deduct the full $18,000 as wages. 2011 irs 1040ez You can deduct the $1,500 you pay from your own funds as taxes. 2011 irs 1040ez For more information on employment taxes, see Publication 15 (Circular E). 2011 irs 1040ez Unemployment fund taxes. 2011 irs 1040ez   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. 2011 irs 1040ez Deduct these payments as taxes. 2011 irs 1040ez Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. 2011 irs 1040ez Excise taxes. 2011 irs 1040ez   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. 2011 irs 1040ez However, see Fuel taxes , later. 2011 irs 1040ez   For more information on excise taxes, see Publication 510. 2011 irs 1040ez Franchise taxes. 2011 irs 1040ez   You can deduct corporate franchise taxes as a business expense. 2011 irs 1040ez Fuel taxes. 2011 irs 1040ez   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. 2011 irs 1040ez Do not deduct these taxes as a separate item. 2011 irs 1040ez   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. 2011 irs 1040ez For more information, see Publication 510. 2011 irs 1040ez Occupational taxes. 2011 irs 1040ez   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. 2011 irs 1040ez Personal property tax. 2011 irs 1040ez   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. 2011 irs 1040ez Sales tax. 2011 irs 1040ez   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. 2011 irs 1040ez If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. 2011 irs 1040ez If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. 2011 irs 1040ez If the property is depreciable, add the sales tax to the basis for depreciation. 2011 irs 1040ez For more information on basis, see Publication 551. 2011 irs 1040ez    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. 2011 irs 1040ez Also, do not include these taxes in gross receipts or sales. 2011 irs 1040ez Self-employment tax. 2011 irs 1040ez   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. 2011 irs 1040ez This deduction only affects your income tax. 2011 irs 1040ez It does not affect your net earnings from self-employment or your self-employment tax. 2011 irs 1040ez   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). 2011 irs 1040ez   For more information on self-employment tax, see Publication 334. 2011 irs 1040ez Additional Medicare Tax. 2011 irs 1040ez   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. 2011 irs 1040ez See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. 2011 irs 1040ez Prev  Up  Next   Home   More Online Publications