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2013 1040 Ez Form

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2013 1040 Ez Form

2013 1040 ez form Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. 2013 1040 ez form Property not disposed of or abandoned. 2013 1040 ez form Special rule for normal retirements from item accounts. 2013 1040 ez form Abandoned property. 2013 1040 ez form Single item accounts. 2013 1040 ez form Multiple property account. 2013 1040 ez form Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. 2013 1040 ez form If your property qualified for MACRS, you must depreciate it under MACRS. 2013 1040 ez form See Publication 946. 2013 1040 ez form However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. 2013 1040 ez form Also, you can elect to exclude certain property from being depreciated under MACRS. 2013 1040 ez form Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. 2013 1040 ez form Intangible property. 2013 1040 ez form   You cannot depreciate intangible property under ACRS or MACRS. 2013 1040 ez form You depreciate intangible property using any other reasonable method, usually, the straight line method. 2013 1040 ez form Note. 2013 1040 ez form The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. 2013 1040 ez form For more information, see chapter 12 of Publication 535. 2013 1040 ez form Public utility property. 2013 1040 ez form   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. 2013 1040 ez form This type of property is subject to depreciation under a special rule. 2013 1040 ez form Videocassettes. 2013 1040 ez form   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. 2013 1040 ez form You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. 2013 1040 ez form The straight line method, salvage value, and useful life are discussed later under Methods To Use. 2013 1040 ez form You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. 2013 1040 ez form How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. 2013 1040 ez form These methods are straight line and declining balance. 2013 1040 ez form To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. 2013 1040 ez form They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. 2013 1040 ez form The amount of the deduction in any year also depends on which method of depreciation you choose. 2013 1040 ez form Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. 2013 1040 ez form The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. 2013 1040 ez form Your original basis is usually the purchase price. 2013 1040 ez form However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. 2013 1040 ez form Adjusted basis. 2013 1040 ez form   Events will often change the basis of property. 2013 1040 ez form When this occurs, the changed basis is called the adjusted basis. 2013 1040 ez form Some events, such as improvements you make, increase basis. 2013 1040 ez form Events such as deducting casualty losses and depreciation decrease basis. 2013 1040 ez form If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. 2013 1040 ez form   Publication 551 explains how to figure basis for property acquired in different ways. 2013 1040 ez form It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. 2013 1040 ez form Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. 2013 1040 ez form It is the length of time over which you will make yearly depreciation deductions of your basis in the property. 2013 1040 ez form It is how long it will continue to be useful to you, not how long the property will last. 2013 1040 ez form Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. 2013 1040 ez form The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. 2013 1040 ez form Consider all these factors before you arrive at a useful life for your property. 2013 1040 ez form The useful life of the same type of property varies from user to user. 2013 1040 ez form When you determine the useful life of your property, keep in mind your own experience with similar property. 2013 1040 ez form You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. 2013 1040 ez form Change in useful life. 2013 1040 ez form   You base your estimate of useful life on certain facts. 2013 1040 ez form If these facts change significantly, you can adjust your estimate of the remaining useful life. 2013 1040 ez form However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. 2013 1040 ez form Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. 2013 1040 ez form You generally cannot depreciate property below a reasonable salvage value. 2013 1040 ez form Determining salvage value. 2013 1040 ez form   Salvage value is the estimated value of property at the end of its useful life. 2013 1040 ez form It is what you expect to get for the property if you sell it after you can no longer use it productively. 2013 1040 ez form You must estimate the salvage value of a piece of property when you first acquire it. 2013 1040 ez form   Salvage value is affected both by how you use the property and how long you use it. 2013 1040 ez form If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. 2013 1040 ez form However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. 2013 1040 ez form Changing salvage value. 2013 1040 ez form   Once you determine the salvage value for property, you should not change it merely because prices have changed. 2013 1040 ez form However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. 2013 1040 ez form When you redetermine the salvage value, take into account the facts that exist at the time. 2013 1040 ez form Net salvage. 2013 1040 ez form   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. 2013 1040 ez form You can choose either salvage value or net salvage when you figure depreciation. 2013 1040 ez form You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. 2013 1040 ez form However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. 2013 1040 ez form Your salvage value can never be less than zero. 2013 1040 ez form Ten percent rule. 2013 1040 ez form   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. 2013 1040 ez form You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. 2013 1040 ez form If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. 2013 1040 ez form Methods To Use Two methods of depreciation are the straight line and declining balance methods. 2013 1040 ez form If ACRS or MACRS does not apply, you can use one of these methods. 2013 1040 ez form The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. 2013 1040 ez form Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. 2013 1040 ez form One of these methods was the straight line method. 2013 1040 ez form This method was also used for intangible property. 2013 1040 ez form It lets you deduct the same amount of depreciation each year. 2013 1040 ez form To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. 2013 1040 ez form Subtract the salvage value, if any, from the adjusted basis. 2013 1040 ez form The balance is the total amount of depreciation you can take over the useful life of the property. 2013 1040 ez form Divide the balance by the number of years remaining in the useful life. 2013 1040 ez form This gives you the amount of your yearly depreciation deduction. 2013 1040 ez form Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. 2013 1040 ez form If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. 2013 1040 ez form Example. 2013 1040 ez form In April 1994, Frank bought a franchise for $5,600. 2013 1040 ez form It expires in 10 years. 2013 1040 ez form This property is intangible property that cannot be depreciated under MACRS. 2013 1040 ez form Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. 2013 1040 ez form He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). 2013 1040 ez form He must prorate the $560 for his 9 months of use in 1994. 2013 1040 ez form This gives him a deduction of $420 ($560 ÷ 9/12). 2013 1040 ez form In 1995, Frank can deduct $560 for the full year. 2013 1040 ez form Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. 2013 1040 ez form The rate cannot be more than twice the straight line rate. 2013 1040 ez form Rate of depreciation. 2013 1040 ez form   Under this method, you must determine your declining balance rate of depreciation. 2013 1040 ez form The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. 2013 1040 ez form (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. 2013 1040 ez form ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. 2013 1040 ez form Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. 2013 1040 ez form Depreciation deductions. 2013 1040 ez form   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. 2013 1040 ez form This gives you the amount of your deduction. 2013 1040 ez form For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). 2013 1040 ez form To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. 2013 1040 ez form Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). 2013 1040 ez form Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). 2013 1040 ez form Your depreciation deduction for the second year is $1,600. 2013 1040 ez form   As you can see from this example, your adjusted basis in the property gets smaller each year. 2013 1040 ez form Also, under this method, deductions are larger in the earlier years and smaller in the later years. 2013 1040 ez form You can make a change to the straight line method without consent. 2013 1040 ez form Salvage value. 2013 1040 ez form   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. 2013 1040 ez form However, you cannot depreciate the property below its reasonable salvage value. 2013 1040 ez form Determine salvage value using the rules discussed earlier, including the special 10% rule. 2013 1040 ez form Example. 2013 1040 ez form If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. 2013 1040 ez form But if your estimate of salvage value was $900, you can only deduct $100. 2013 1040 ez form This is because $100 is the amount that would lower your adjusted basis to equal salvage value. 2013 1040 ez form Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. 2013 1040 ez form You can group the videocassettes by title for making this projection. 2013 1040 ez form You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. 2013 1040 ez form The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. 2013 1040 ez form For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. 2013 1040 ez form How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. 2013 1040 ez form If you change your method of depreciation, it is generally a change in your method of accounting. 2013 1040 ez form You must get IRS consent before making the change. 2013 1040 ez form However, you do not need permission for certain changes in your method of depreciation. 2013 1040 ez form The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. 2013 1040 ez form For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. 2013 1040 ez form Change to the straight line method. 2013 1040 ez form   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. 2013 1040 ez form However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. 2013 1040 ez form When the change is made, figure depreciation based on your adjusted basis in the property at that time. 2013 1040 ez form Your adjusted basis takes into account all previous depreciation deductions. 2013 1040 ez form Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. 2013 1040 ez form   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. 2013 1040 ez form You cannot make the change on an amended return filed after the due date of the original return (including extensions). 2013 1040 ez form   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. 2013 1040 ez form   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. 2013 1040 ez form Changes that require permission. 2013 1040 ez form   For most other changes in method of depreciation, you must get permission from the IRS. 2013 1040 ez form To request a change in method of depreciation, file Form 3115. 2013 1040 ez form File the application within the first 180 days of the tax year the change is to become effective. 2013 1040 ez form In most cases, there is a user fee that must accompany Form 3115. 2013 1040 ez form See the instructions for Form 3115 to determine if a fee is required. 2013 1040 ez form Changes granted automatically. 2013 1040 ez form   The IRS automatically approves certain changes of a method of depreciation. 2013 1040 ez form But, you must file Form 3115 for these automatic changes. 2013 1040 ez form   However, IRS can deny permission if Form 3115 is not filed on time. 2013 1040 ez form For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. 2013 1040 ez form B. 2013 1040 ez form 420. 2013 1040 ez form Changes for which approval is not automatic. 2013 1040 ez form   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. 2013 1040 ez form   You must request and receive permission for these changes. 2013 1040 ez form To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. 2013 1040 ez form Change from an improper method. 2013 1040 ez form   If the IRS disallows the method you are using, you do not need permission to change to a proper method. 2013 1040 ez form You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. 2013 1040 ez form If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. 2013 1040 ez form However, you must file the amended return before the filing date for the next tax year. 2013 1040 ez form Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. 2013 1040 ez form You can do this by selling, exchanging, or abandoning the item of property. 2013 1040 ez form You can also withdraw it from use without disposing of it. 2013 1040 ez form For example, you could place it in a supplies or scrap account. 2013 1040 ez form Retirements can be either normal or abnormal depending on all facts and circumstances. 2013 1040 ez form The rules discussed next do not apply to MACRS and ACRS property. 2013 1040 ez form Normal retirement. 2013 1040 ez form   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. 2013 1040 ez form A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. 2013 1040 ez form Abnormal retirement. 2013 1040 ez form   A retirement can be abnormal if you withdraw the property early or under other circumstances. 2013 1040 ez form For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. 2013 1040 ez form Gain or loss on retirement. 2013 1040 ez form   There are special rules for figuring the gain or loss on retirement of property. 2013 1040 ez form The gain or loss will depend on several factors. 2013 1040 ez form These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. 2013 1040 ez form A single property account contains only one item of property. 2013 1040 ez form A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. 2013 1040 ez form Sale or exchange. 2013 1040 ez form   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. 2013 1040 ez form See Publication 544. 2013 1040 ez form Property not disposed of or abandoned. 2013 1040 ez form   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. 2013 1040 ez form You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. 2013 1040 ez form However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. 2013 1040 ez form   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. 2013 1040 ez form Special rule for normal retirements from item accounts. 2013 1040 ez form   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. 2013 1040 ez form However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. 2013 1040 ez form   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. 2013 1040 ez form Abandoned property. 2013 1040 ez form   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. 2013 1040 ez form However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. 2013 1040 ez form Basis of property retired. 2013 1040 ez form   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. 2013 1040 ez form Single item accounts. 2013 1040 ez form   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. 2013 1040 ez form This is generally the cost or other basis of the item of property less depreciation. 2013 1040 ez form See Publication 551. 2013 1040 ez form Multiple property account. 2013 1040 ez form   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. 2013 1040 ez form If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. 2013 1040 ez form   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. 2013 1040 ez form The method of depreciation used for the multiple property account is used. 2013 1040 ez form You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. 2013 1040 ez form Prev  Up  Next   Home   More Online Publications
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Page Last Reviewed or Updated: 30-Sep-2013

The 2013 1040 Ez Form

2013 1040 ez form 7. 2013 1040 ez form   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. 2013 1040 ez form Costs not included. 2013 1040 ez form Intangible Drilling Costs Exploration CostsPartnerships and S corporations. 2013 1040 ez form Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. 2013 1040 ez form Film and Television Production Costs What's New Film and television productions costs. 2013 1040 ez form  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. 2013 1040 ez form See Film and Television Production Costs , later. 2013 1040 ez form Introduction This chapter discusses costs you can elect to deduct or capitalize. 2013 1040 ez form You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. 2013 1040 ez form If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. 2013 1040 ez form When you capitalize a cost, you add it to the basis of property to which it relates. 2013 1040 ez form A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. 2013 1040 ez form Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. 2013 1040 ez form You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. 2013 1040 ez form For more information on the alternative minimum tax, see the instructions for the following forms. 2013 1040 ez form Form 6251, Alternative Minimum Tax—Individuals. 2013 1040 ez form Form 4626, Alternative Minimum Tax—Corporations. 2013 1040 ez form Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. 2013 1040 ez form Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. 2013 1040 ez form Certain carrying charges must be capitalized under the uniform capitalization rules. 2013 1040 ez form (For information on capitalization of interest, see chapter 4 . 2013 1040 ez form ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. 2013 1040 ez form You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. 2013 1040 ez form For unimproved and unproductive real property, your election is good for only 1 year. 2013 1040 ez form You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. 2013 1040 ez form For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. 2013 1040 ez form For personal property, your election is effective until the date you install or first use it, whichever is later. 2013 1040 ez form How to make the election. 2013 1040 ez form   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Attach the statement to the amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2” on the statement. 2013 1040 ez form File the amended return at the same address you filed the original return. 2013 1040 ez form Research and Experimental Costs The costs of research and experimentation are generally capital expenses. 2013 1040 ez form However, you can elect to deduct these costs as a current business expense. 2013 1040 ez form Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. 2013 1040 ez form If you meet certain requirements, you may elect to defer and amortize research and experimental costs. 2013 1040 ez form For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. 2013 1040 ez form Research and experimental costs defined. 2013 1040 ez form   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. 2013 1040 ez form Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. 2013 1040 ez form Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. 2013 1040 ez form      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. 2013 1040 ez form However, costs paid or incurred to obtain another's patent are not research and experimental costs. 2013 1040 ez form Product. 2013 1040 ez form   The term “product” includes any of the following items. 2013 1040 ez form Formula. 2013 1040 ez form Invention. 2013 1040 ez form Patent. 2013 1040 ez form Pilot model. 2013 1040 ez form Process. 2013 1040 ez form Technique. 2013 1040 ez form Property similar to the items listed above. 2013 1040 ez form It also includes products used by you in your trade or business or held for sale, lease, or license. 2013 1040 ez form Costs not included. 2013 1040 ez form   Research and experimental costs do not include expenses for any of the following activities. 2013 1040 ez form Advertising or promotions. 2013 1040 ez form Consumer surveys. 2013 1040 ez form Efficiency surveys. 2013 1040 ez form Management studies. 2013 1040 ez form Quality control testing. 2013 1040 ez form Research in connection with literary, historical, or similar projects. 2013 1040 ez form The acquisition of another's patent, model, production, or process. 2013 1040 ez form When and how to elect. 2013 1040 ez form   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. 2013 1040 ez form If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. 2013 1040 ez form Deducting or Amortizing Research and Experimentation Costs IF you . 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form THEN . 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. 2013 1040 ez form Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. 2013 1040 ez form See Research and Experimental Costs in chapter 8. 2013 1040 ez form Research credit. 2013 1040 ez form   If you pay or incur qualified research expenses, you may be able to take the research credit. 2013 1040 ez form For more information see Form 6765, Credit for Increasing Research Activities and its instructions. 2013 1040 ez form Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. 2013 1040 ez form You can usually recover them through depreciation or depletion. 2013 1040 ez form However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. 2013 1040 ez form These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. 2013 1040 ez form You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. 2013 1040 ez form You can elect to deduct only the costs of items with no salvage value. 2013 1040 ez form These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. 2013 1040 ez form Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. 2013 1040 ez form However, see Amounts paid to contractor that must be capitalized , later. 2013 1040 ez form You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. 2013 1040 ez form It does not matter whether there is any intent to produce hydrocarbons. 2013 1040 ez form If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. 2013 1040 ez form Amounts paid to contractor that must be capitalized. 2013 1040 ez form   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. 2013 1040 ez form How to make the election. 2013 1040 ez form   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. 2013 1040 ez form No formal statement is required. 2013 1040 ez form If you file Schedule C (Form 1040), enter these costs under “Other expenses. 2013 1040 ez form ”   For oil and gas wells, your election is binding for the year it is made and for all later years. 2013 1040 ez form For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. 2013 1040 ez form You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. 2013 1040 ez form Energy credit for costs of geothermal wells. 2013 1040 ez form   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. 2013 1040 ez form See the Instructions for Form 3468 for more information. 2013 1040 ez form Nonproductive well. 2013 1040 ez form   If you capitalize your IDCs, you have another option if the well is nonproductive. 2013 1040 ez form You can deduct the IDCs of the nonproductive well as an ordinary loss. 2013 1040 ez form You must indicate and clearly state your election on your tax return for the year the well is completed. 2013 1040 ez form Once made, the election for oil and gas wells is binding for all later years. 2013 1040 ez form You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. 2013 1040 ez form Costs incurred outside the United States. 2013 1040 ez form   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. 2013 1040 ez form However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. 2013 1040 ez form If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. 2013 1040 ez form These rules do not apply to a nonproductive well. 2013 1040 ez form Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. 2013 1040 ez form You recover these costs through depletion as the mineral is removed from the ground. 2013 1040 ez form However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). 2013 1040 ez form How to make the election. 2013 1040 ez form   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. 2013 1040 ez form Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. 2013 1040 ez form The election applies to the tax year you make this election and all later tax years. 2013 1040 ez form Partnerships and S corporations. 2013 1040 ez form   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. 2013 1040 ez form Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. 2013 1040 ez form Reduced corporate deductions for exploration costs. 2013 1040 ez form   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. 2013 1040 ez form It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. 2013 1040 ez form A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. 2013 1040 ez form For more information on this method of amortization, see Internal Revenue Code section 59(e). 2013 1040 ez form   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. 2013 1040 ez form However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. 2013 1040 ez form See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. 2013 1040 ez form   These rules also apply to the deduction of development costs by corporations. 2013 1040 ez form See Development Costs , later. 2013 1040 ez form Recapture of exploration expenses. 2013 1040 ez form   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. 2013 1040 ez form Use either of the following methods. 2013 1040 ez form Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. 2013 1040 ez form Your election must be clearly indicated on the return. 2013 1040 ez form Increase your adjusted basis in the mine by the amount included in income. 2013 1040 ez form Generally, you must elect this recapture method by the due date (including extensions) of your return. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Make the election on your amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2” on the form where you are including the income. 2013 1040 ez form File the amended return at the same address you filed the original return. 2013 1040 ez form Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. 2013 1040 ez form   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. 2013 1040 ez form Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. 2013 1040 ez form   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. 2013 1040 ez form Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. 2013 1040 ez form If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. 2013 1040 ez form Foreign exploration costs. 2013 1040 ez form   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. 2013 1040 ez form You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. 2013 1040 ez form (Cost depletion is discussed in chapter 9 . 2013 1040 ez form ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. 2013 1040 ez form These rules also apply to foreign development costs. 2013 1040 ez form Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. 2013 1040 ez form These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. 2013 1040 ez form Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. 2013 1040 ez form Development costs do not include the costs for the acquisition or improvement of depreciable property. 2013 1040 ez form Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. 2013 1040 ez form This election applies each tax year to expenses paid or incurred in that year. 2013 1040 ez form Once made, the election is binding for the year and cannot be revoked for any reason. 2013 1040 ez form How to make the election. 2013 1040 ez form   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. 2013 1040 ez form Generally, you must make the election by the due date of the return (including extensions). 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2. 2013 1040 ez form ” File the amended return at the same address you filed the original return. 2013 1040 ez form Foreign development costs. 2013 1040 ez form   The rules discussed earlier for foreign exploration costs apply to foreign development costs. 2013 1040 ez form Reduced corporate deductions for development costs. 2013 1040 ez form   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. 2013 1040 ez form Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. 2013 1040 ez form For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. 2013 1040 ez form Circulation costs are deductible even if they normally would be capitalized. 2013 1040 ez form This rule does not apply to the following costs that must be capitalized. 2013 1040 ez form The purchase of land or depreciable property. 2013 1040 ez form The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. 2013 1040 ez form Other treatment of circulation costs. 2013 1040 ez form   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. 2013 1040 ez form Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). 2013 1040 ez form Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. 2013 1040 ez form How to make the election. 2013 1040 ez form   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. 2013 1040 ez form Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. 2013 1040 ez form Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. 2013 1040 ez form However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. 2013 1040 ez form The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. 2013 1040 ez form Any remaining costs must be amortized. 2013 1040 ez form For information about amortizing start-up and organizational costs, see chapter 8 . 2013 1040 ez form Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. 2013 1040 ez form Organizational costs include the costs of creating a corporation. 2013 1040 ez form For more information on start-up and organizational costs, see chapter 8 . 2013 1040 ez form How to make the election. 2013 1040 ez form   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2. 2013 1040 ez form ” File the amended return at the same address you filed the original return. 2013 1040 ez form The election applies when computing taxable income for the current tax year and all subsequent years. 2013 1040 ez form Reforestation Costs Reforestation costs are generally capital expenditures. 2013 1040 ez form However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. 2013 1040 ez form The remaining costs can be amortized over an 84-month period. 2013 1040 ez form For information about amortizing reforestation costs, see chapter 8 . 2013 1040 ez form Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. 2013 1040 ez form Qualified timber property is property that contains trees in significant commercial quantities. 2013 1040 ez form See chapter 8 for more information on qualifying reforestation costs and qualified timber property. 2013 1040 ez form If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. 2013 1040 ez form Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. 2013 1040 ez form How to make the election. 2013 1040 ez form   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. 2013 1040 ez form If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. 2013 1040 ez form If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. 2013 1040 ez form The unique stand identification numbers. 2013 1040 ez form The total number of acres reforested during the tax year. 2013 1040 ez form The nature of the reforestation treatments. 2013 1040 ez form The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. 2013 1040 ez form   If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2. 2013 1040 ez form ” File the amended return at the same address you filed the original return. 2013 1040 ez form The election applies when computing taxable income for the current tax year and all subsequent years. 2013 1040 ez form   For additional information on reforestation costs, see chapter 8 . 2013 1040 ez form Recapture. 2013 1040 ez form   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. 2013 1040 ez form For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. 2013 1040 ez form Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. 2013 1040 ez form However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. 2013 1040 ez form Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. 2013 1040 ez form However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. 2013 1040 ez form You must own or lease the facility or vehicle for use in connection with your trade or business. 2013 1040 ez form A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. 2013 1040 ez form A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). 2013 1040 ez form You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. 2013 1040 ez form Deduction limit. 2013 1040 ez form   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. 2013 1040 ez form However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. 2013 1040 ez form Partners and partnerships. 2013 1040 ez form   The $15,000 limit applies to a partnership and also to each partner in the partnership. 2013 1040 ez form A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. 2013 1040 ez form If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. 2013 1040 ez form   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). 2013 1040 ez form If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. 2013 1040 ez form Example. 2013 1040 ez form Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. 2013 1040 ez form Emilio had $12,000 of similar expenses in his sole proprietorship. 2013 1040 ez form He elected to deduct $7,000 of them. 2013 1040 ez form Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. 2013 1040 ez form Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. 2013 1040 ez form Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. 2013 1040 ez form Qualification standards. 2013 1040 ez form   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. 2013 1040 ez form You can view the Americans with Disabilities Act at www. 2013 1040 ez form ada. 2013 1040 ez form gov/pubs/ada. 2013 1040 ez form htm. 2013 1040 ez form   The following is a list of some architectural barrier removal costs that can be deducted. 2013 1040 ez form Ground and floor surfaces. 2013 1040 ez form Walks. 2013 1040 ez form Parking lots. 2013 1040 ez form Ramps. 2013 1040 ez form Entrances. 2013 1040 ez form Doors and doorways. 2013 1040 ez form Stairs. 2013 1040 ez form Floors. 2013 1040 ez form Toilet rooms. 2013 1040 ez form Water fountains. 2013 1040 ez form Public telephones. 2013 1040 ez form Elevators. 2013 1040 ez form Controls. 2013 1040 ez form Signage. 2013 1040 ez form Alarms. 2013 1040 ez form Protruding objects. 2013 1040 ez form Symbols of accessibility. 2013 1040 ez form You can find the ADA guidelines and requirements for architectural barrier removal at www. 2013 1040 ez form usdoj. 2013 1040 ez form gov/crt/ada/reg3a. 2013 1040 ez form html. 2013 1040 ez form   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. 2013 1040 ez form You can find the guidelines and requirements for transportation barrier removal at www. 2013 1040 ez form fta. 2013 1040 ez form dot. 2013 1040 ez form gov. 2013 1040 ez form   Also, you can access the ADA website at www. 2013 1040 ez form ada. 2013 1040 ez form gov for additional information. 2013 1040 ez form Other barrier removals. 2013 1040 ez form   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. 2013 1040 ez form The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. 2013 1040 ez form The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). 2013 1040 ez form The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. 2013 1040 ez form How to make the election. 2013 1040 ez form   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. 2013 1040 ez form Identify the deduction as a separate item. 2013 1040 ez form The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. 2013 1040 ez form If you make this election, you must maintain adequate records to support your deduction. 2013 1040 ez form   For your election to be valid, you generally must file your return by its due date, including extensions. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2. 2013 1040 ez form ” File the amended return at the same address you filed the original return. 2013 1040 ez form Your election is irrevocable after the due date, including extensions, of your return. 2013 1040 ez form Disabled access credit. 2013 1040 ez form   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. 2013 1040 ez form If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. 2013 1040 ez form   For more information, see Form 8826, Disabled Access Credit. 2013 1040 ez form Film and Television Production Costs Film and television production costs are generally capital expenses. 2013 1040 ez form However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. 2013 1040 ez form For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. 2013 1040 ez form Prev  Up  Next   Home   More Online Publications