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

Amend 1040

H & R Block Free TaxIrs E File ExtensionIt 1040xTax Compliance SoftwareFree Tax 2011Can I Amend My Tax Return2011 Irs Form 8863Online 1040x2012 Income TaxesPrintable 1040ez Form1040 Tax Forms 2011Taxcut OnlineFiling 2012 Taxes Late OnlineWho Has Free State Tax FilingAmended TaxWww Irs Gov EfileWww Irs Gov2012 Tax Software DownloadsFiling For State Taxes1040ez InstructionsTurbotax MilitaryHow To File Tax Extension ElectronicallyFree E File ExtensionFile State Taxes Only OnlineIrs Forms 2009IrstaxAmend My 2012 Tax ReturnExtentionIrs Forms 2012Ree 1040 Ez Tax Filing OnlineFiling Income Tax ReturnWww Irs Gov Form1040xTax BackNeed To File 2011 Tax Return1040ez 2013 FormAmend A 2013 Tax ReturnFile 2011 Taxes Online FreeCan I File 2010 Taxes OnlineH&r Block Free Federal Tax Return1040ez File

Amend 1040

Amend 1040 7. Amend 1040   Figuring Gross Profit Table of Contents Introduction Items To Check Testing Gross Profit AccuracyExample. Amend 1040 Additions to Gross Profit Introduction After you have figured the gross receipts from your business (chapter 5) and the cost of goods sold (chapter 6), you are ready to figure your gross profit. Amend 1040 You must determine gross profit before you can deduct any business expenses. Amend 1040 These expenses are discussed in chapter 8. Amend 1040 If you are filing Schedule C-EZ, your gross profit is your gross receipts plus certain other amounts, explained later under Additions to Gross Profit. Amend 1040 Businesses that sell products. Amend 1040   If you are filing Schedule C, figure your gross profit by first figuring your net receipts. Amend 1040 Figure net receipts (line 3) on Schedule C by subtracting any returns and allowances (line 2) from gross receipts (line 1). Amend 1040 Returns and allowances include cash or credit refunds you make to customers, rebates, and other allowances off the actual sales price. Amend 1040   Next, subtract the cost of goods sold (line 4) from net receipts (line 3). Amend 1040 The result is the gross profit from your business. Amend 1040 Businesses that sell services. Amend 1040   You do not have to figure the cost of goods sold if the sale of merchandise is not an income-producing factor for your business. Amend 1040 Your gross profit is the same as your net receipts (gross receipts minus any refunds, rebates, or other allowances). Amend 1040 Most professions and businesses that sell services rather than products can figure gross profit directly from net receipts in this way. Amend 1040 Illustration. Amend 1040   This illustration of the gross profit section of the income statement of a retail business shows how gross profit is figured. Amend 1040 Income Statement Year Ended December 31, 2013 Gross receipts $400,000 Minus: Returns and allowances 14,940 Net receipts $385,060 Minus: Cost of goods sold 288,140 Gross profit $96,920   The cost of goods sold for this business is figured as follows: Inventory at beginning of year $37,845 Plus: Purchases $285,900   Minus: Items withdrawn for personal use 2,650 283,250 Goods available for sale $321,095 Minus: Inventory at end of year 32,955 Cost of goods sold $288,140 Items To Check Consider the following items before figuring your gross profit. Amend 1040 Gross receipts. Amend 1040   At the end of each business day, make sure your records balance with your actual cash and credit receipts for the day. Amend 1040 You may find it helpful to use cash registers to keep track of receipts. Amend 1040 You should also use a proper invoicing system and keep a separate bank account for your business. Amend 1040 Sales tax collected. Amend 1040   Check to make sure your records show the correct sales tax collected. Amend 1040   If you collect state and local sales taxes imposed on you as the seller of goods or services from the buyer, you must include the amount collected in gross receipts. Amend 1040   If you are required to collect state and local taxes imposed on the buyer and turn them over to state or local governments, you generally do not include these amounts in income. Amend 1040 Inventory at beginning of year. Amend 1040   Compare this figure with last year's ending inventory. Amend 1040 The two amounts should usually be the same. Amend 1040 Purchases. Amend 1040   If you take any inventory items for your personal use (use them yourself, provide them to your family, or give them as personal gifts, etc. Amend 1040 ) be sure to remove them from the cost of goods sold. Amend 1040 For details on how to adjust cost of goods sold, see Merchandise withdrawn from sale in chapter 6. Amend 1040 Inventory at end of year. Amend 1040   Check to make sure your procedures for taking inventory are adequate. Amend 1040 These procedures should ensure all items have been included in inventory and proper pricing techniques have been used. Amend 1040   Use inventory forms and adding machine tapes as the only evidence for your inventory. Amend 1040 Inventory forms are available at office supply stores. Amend 1040 These forms have columns for recording the description, quantity, unit price, and value of each inventory item. Amend 1040 Each page has space to record who made the physical count, who priced the items, who made the extensions, and who proofread the calculations. Amend 1040 These forms will help satisfy you that the total inventory is accurate. Amend 1040 They will also provide you with a permanent record to support its validity. Amend 1040   Inventories are discussed in chapter 2. Amend 1040 Testing Gross Profit Accuracy If you are in a retail or wholesale business, you can check the accuracy of your gross profit figure. Amend 1040 First, divide gross profit by net receipts. Amend 1040 The resulting percentage measures the average spread between the merchandise cost of goods sold and the selling price. Amend 1040 Next, compare this percentage to your markup policy. Amend 1040 Little or no difference between these two percentages shows that your gross profit figure is accurate. Amend 1040 A large difference between these percentages may show that you did not accurately figure sales, purchases, inventory, or other items of cost. Amend 1040 You should determine the reason for the difference. Amend 1040 Example. Amend 1040   Joe Able operates a retail business. Amend 1040 On the average, he marks up his merchandise so that he will realize a gross profit of 331/3% on its sales. Amend 1040 The net receipts (gross receipts minus returns and allowances) shown on his income statement is $300,000. Amend 1040 His cost of goods sold is $200,000. Amend 1040 This results in a gross profit of $100,000 ($300,000 − $200,000). Amend 1040 To test the accuracy of this year's results, Joe divides gross profit ($100,000) by net receipts ($300,000). Amend 1040 The resulting 331/3% confirms his markup percentage of 331/3%. Amend 1040 Additions to Gross Profit If your business has income from a source other than its regular business operations, enter the income on line 6 of Schedule C and add it to gross profit. Amend 1040 The result is gross business income. Amend 1040 If you use Schedule C-EZ, include the income on line 1 of the schedule. Amend 1040 Some examples include income from an interest-bearing checking account, income from scrap sales, income from certain fuel tax credits and refunds, and amounts recovered from bad debts. Amend 1040 Prev  Up  Next   Home   More Online Publications
Español

A-Z Index of U.S. Government Departments and Agencies

The Amend 1040

Amend 1040 Index A Accelerated Cost Recovery System (ACRS), MACRS Depreciation (see also Modified Accelerated Cost Recovery System (MACRS)) Effective date, Depreciation Methods Accounting methods Accrual method, Accrual method. Amend 1040 Cash method, Cash method. Amend 1040 Change of method, Changing your accounting method. Amend 1040 Constructive receipt of income, Cash method. Amend 1040 , More information. Amend 1040 Accrual method taxpayers, Accrual method. Amend 1040 ACRS (Accelerated Cost Recovery System) Effective date, Depreciation Methods Active participation, Active participation. Amend 1040 Activities not for profit, Duplex. Amend 1040 Additions to property, Additions or improvements to property. Amend 1040 (see also Improvements) Basis, Increases to basis. Amend 1040 , Additions or improvements. Amend 1040 MACRS recovery period, Additions or improvements to property. Amend 1040 Adjusted basis MACRS depreciation, Adjusted Basis Adjusted gross income (AGI) Modified (see Modified adjusted gross income (MAGI)) Advance rent, Advance rent. Amend 1040 Security deposits, Security deposits. Amend 1040 Advertising, Types of Expenses Allocation of expenses Change of property to rental use, Payments added to capital account. Amend 1040 How to divide expenses, Dividing Expenses Part of property rented, Renting Part of Property, How to divide expenses. Amend 1040 Personal use of rental property, Personal use of rental property. Amend 1040 , Personal Use of Dwelling Unit (Including Vacation Home) Alternative Depreciation System (ADS) Election of, Electing ADS MACRS, MACRS Depreciation, Table 2-2d. Amend 1040 Alternative minimum tax (AMT) Accelerated depreciation methods, Alternative minimum tax (AMT). Amend 1040 Amended returns, Filing an amended return. Amend 1040 Apartments Basement apartments, Examples. Amend 1040 Dwelling units, Dwelling unit. Amend 1040 Appraisal fees, Settlement fees and other costs. Amend 1040 Assessments for maintenance, Assessments for local improvements. Amend 1040 Assessments, local (see Local assessments) Assistance (see Tax help) Assumption of mortgage, Assumption of a mortgage. Amend 1040 Attorneys' fees, Settlement fees and other costs. Amend 1040 , Increases to basis. Amend 1040 Automobiles MACRS recovery periods, Property Classes Under GDS B Basis Adjusted basis, Adjusted Basis Assessments for local improvements, Assessments for local improvements. Amend 1040 Basis other than cost, Basis Other Than Cost Cost basis, Cost Basis Decreases to, Decreases to basis. Amend 1040 Deductions Capitalization of costs vs. Amend 1040 , Deducting vs. Amend 1040 capitalizing costs. Amend 1040 Not greater than basis, Cost or Other Basis Fully Recovered Fair market value, Fair market value. Amend 1040 Increases to, Increases to basis. Amend 1040 MACRS depreciable basis, Basis of Depreciable Property Property changed to rental use, Basis of Property Changed to Rental Use C Capital expenditures Deductions vs. Amend 1040 effect on basis, Deducting vs. Amend 1040 capitalizing costs. Amend 1040 Local benefit taxes, Local benefit taxes. Amend 1040 Mortgages, payments to obtain, Expenses paid to obtain a mortgage. Amend 1040 Cars MACRS recovery periods, Property Classes Under GDS Cash method taxpayers, Cash method. Amend 1040 Casualty losses, Exception for Rental Real Estate With Active Participation Change of accounting method, Changing your accounting method. Amend 1040 Charitable contributions Use of property, Donation of use of the property. Amend 1040 Cleaning and maintenance, Types of Expenses Closing costs, Settlement fees and other costs. Amend 1040 Commissions, Types of Expenses Computers MACRS recovery periods, Property Classes Under GDS Condominiums, Condominiums, Dwelling unit. Amend 1040 Constructive receipt of income, Cash method. Amend 1040 , More information. Amend 1040 Cooperative housing, Cooperative apartments. Amend 1040 , Cooperatives, Dwelling unit. Amend 1040 Cost basis, Cost Basis Credit reports, Settlement fees and other costs. Amend 1040 Credits Residential energy credits, Decreases to basis. Amend 1040 D Days of personal use, What is a day of personal use? Days used for repairs and maintenance, Days used for repairs and maintenance. Amend 1040 Deductions Capitalizing costs vs. Amend 1040 effect on basis, Deducting vs. Amend 1040 capitalizing costs. Amend 1040 Depreciation (see Depreciation) Limitations on, Form 4562. Amend 1040 Passive activity losses (see Passive activity) Depreciation, Depreciation of Rental Property, Changing your accounting method. Amend 1040 Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS)) Basis (see Basis) Change of accounting method, Changing your accounting method. Amend 1040 Change of property to rental use, Property Changed to Rental Use Claiming correct amount of, Claiming the Correct Amount of Depreciation Declining balance method, Depreciation Methods Duration of property expected to last more than one year, What Rental Property Can Be Depreciated? Eligible property, What Rental Property Can Be Depreciated? First-year expensing, Section 179 deduction. Amend 1040 MACRS (see Modified Accelerated Cost Recovery System (MACRS)) Methods, Depreciation Methods, Figuring Your Depreciation Deduction Ownership of property, What Rental Property Can Be Depreciated?, Property you own. Amend 1040 Rental expense, Depreciation. Amend 1040 Rented property, Rented property. Amend 1040 Section 179 deduction, Section 179 deduction. Amend 1040 Special depreciation allowances, Claiming the Special Depreciation Allowance Straight line method, Depreciation Methods Useful life, What Rental Property Can Be Depreciated?, Property having a determinable useful life. Amend 1040 Vacant rental property, Vacant rental property. Amend 1040 Discount, bonds and notes issued at (see Original issue discount (OID)) Dividing of expenses (see Allocation of expenses) Dwelling units Definition, Dwelling unit. Amend 1040 Fair rental price, Fair rental price. Amend 1040 Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), What is a day of personal use? E Easements, Decreases to basis. Amend 1040 Equipment rental expense, Rental of equipment. Amend 1040 F Fair market value (FMV), Fair market value. Amend 1040 Fair rental price, Dividing Expenses, Fair rental price. Amend 1040 Fees Loan origination fees, Points, Settlement fees and other costs. Amend 1040 Points (see Points) Settlement fees and other costs, Settlement fees and other costs. Amend 1040 Tax return preparation fees, Legal and other professional fees. Amend 1040 First-year expensing, Section 179 deduction. Amend 1040 Form 1040 Not rented for profit income, Where to report. Amend 1040 Part of property rented, Renting Part of Property Rental income and expenses, Reporting Rental Income, Expenses, and Losses Schedule E, Schedule E (Form 1040) Form 1098 Mortgage interest, Form 1098, Mortgage Interest Statement. Amend 1040 Form 4684 Casualties and thefts, How to report. Amend 1040 Form 4797 Sales of business property, How to report. Amend 1040 Form 8582 Passive activity losses, Form 8582. Amend 1040 , Form 8582 not required. Amend 1040 Free tax services, Free help with your tax return. Amend 1040 G Gains and losses At-risk rules, At-Risk Rules Casualty and theft losses, Exception for Rental Real Estate With Active Participation Limits on rental losses, Form 4562. Amend 1040 Passive activity losses, Passive Activity Limits Rental real estate activities, Exception for Rental Real Estate With Active Participation Sale of rental property, Sale or exchange of rental property. Amend 1040 , How to report. Amend 1040 General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS)) H Help (see Tax help) Home Main home, Main home. Amend 1040 Use as rental property (see Use of home) I Improvements, Table 1-1. Amend 1040 Examples of Improvements (see also Repairs) Assessments for local improvements, Assessments for local improvements. Amend 1040 Basis, Increases to basis. Amend 1040 , Additions or improvements. Amend 1040 Depreciation of rented property, Rented property. Amend 1040 MACRS recovery period, Additions or improvements to property. Amend 1040 Insurance, Types of Expenses Casualty or theft loss payments, Decreases to basis. Amend 1040 Change of property to rental use, Property Changed to Rental Use Fire insurance premiums, cost basis, Settlement fees and other costs. Amend 1040 Part of property rented, Renting Part of Property Premiums paid in advance, Insurance premiums paid in advance. Amend 1040 Title insurance, cost basis, Settlement fees and other costs. Amend 1040 Interest payments, Interest expense. Amend 1040 (see also Mortgages) Loan origination fees, Points Rental expenses, Types of Expenses L Land Cost basis, Separating cost of land and buildings. Amend 1040 Depreciation, Land. Amend 1040 Leases Cancellation payments, Canceling a lease. Amend 1040 Equipment leasing, Rental of equipment. Amend 1040 Limits Passive activity losses and credits, Passive Activity Limits Rental losses, Limits on Rental Losses Loans Assumption fees, Settlement fees and other costs. Amend 1040 Charges connected with getting or refinancing, cost basis, Settlement fees and other costs. Amend 1040 Low or no interest, Loans with low or no interest. Amend 1040 Origination fees, Points Local assessments, Assessments for local improvements. Amend 1040 Losses (see Gains and losses) M Missing children, photographs of, Reminders Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Additions or improvements to property, Additions or improvements to property. Amend 1040 Adjusted basis, Adjusted Basis Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Basis other than cost, Basis Other Than Cost Conventions, Conventions Cost basis, Cost Basis Depreciable basis, Basis of Depreciable Property Effective date, Depreciation Methods Excluded property, Excluded Property General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction Nonresidential rental property, Property Classes Under GDS Property used in rental activities (Table 2-1), Table 2-1. Amend 1040 MACRS Recovery Periods for Property Used in Rental Activities Recovery periods, Table 2-1. Amend 1040 MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property. Amend 1040 Residential rental property, Property Classes Under GDS, Residential rental property. Amend 1040 Special depreciation allowances, Claiming the Special Depreciation Allowance Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Amend 1040 Mortgages, Expenses paid to obtain a mortgage. Amend 1040 Assumption of, cost basis, Assumption of a mortgage. Amend 1040 Change of property to rental use, Property Changed to Rental Use End of, OID, Loan or mortgage ends. Amend 1040 Interest, Interest expense. Amend 1040 , Property Changed to Rental Use, Renting Part of Property Mortgage insurance premiums, Settlement fees and other costs. Amend 1040 Part of property rented, Renting Part of Property N Nonresidential real property, Property Classes Under GDS Not-for-profit activities, Duplex. Amend 1040 O Original issue discount (OID), Points, Loan or mortgage ends. Amend 1040 P Part interest Expenses, Part interest. Amend 1040 Income, Part interest. Amend 1040 Passive activity Maximum special allowance, Maximum special allowance. Amend 1040 Personal property Rental income from, Property or services. Amend 1040 Personal use of rental property, Payments added to capital account. Amend 1040 , Personal Use of Dwelling Unit (Including Vacation Home) (see also Property changed to rental use) Placed-in-service date, Placed in Service Points, Types of Expenses, Points, Settlement fees and other costs. Amend 1040 Pre-rental expenses, Pre-rental expenses. Amend 1040 Principal residence (see Home) Profit, property not rented for, Duplex. Amend 1040 Property changed to rental use, Payments added to capital account. Amend 1040 Basis, Basis of Property Changed to Rental Use Publications (see Tax help) R Real estate professionals, Real estate professionals. Amend 1040 Real estate taxes, Real estate taxes. Amend 1040 Real property trades or businesses, Real property trades or businesses. Amend 1040 Recordkeeping requirements Travel and transportation expenses, Local transportation expenses. Amend 1040 , Travel expenses. Amend 1040 Recovery periods, Property Classes Under GDS Rent, Settlement fees and other costs. Amend 1040 Advance rent, Advance rent. Amend 1040 Fair price, Fair rental price. Amend 1040 Rental expenses, Rental Expenses Advertising, Types of Expenses Allocation between rental and personal uses, Dividing Expenses Change of property to rental use, Property Changed to Rental Use Cleaning and maintenance, Types of Expenses Commissions, Types of Expenses Depreciation, Depreciation. Amend 1040 Dwelling unit used as home, Dwelling Unit Used as a Home Equipment rental, Rental of equipment. Amend 1040 Home, property also used as, Rental of property also used as your home. Amend 1040 Improvements, Table 1-1. Amend 1040 Examples of Improvements Insurance, Types of Expenses, Insurance premiums paid in advance. Amend 1040 Interest payments, Types of Expenses, Interest expense. Amend 1040 Local transportation expenses, Types of Expenses, Local transportation expenses. Amend 1040 Part of property rented, Renting Part of Property Points, Types of Expenses, Points Pre-rental expenses, Pre-rental expenses. Amend 1040 Rental payments, Types of Expenses Repairs, Types of Expenses, Repairs and Improvements Sale of property, Vacant while listed for sale. Amend 1040 Tax return preparation fees, Legal and other professional fees. Amend 1040 Taxes, Types of Expenses Tenant, paid by, Expenses paid by tenant. Amend 1040 Travel expenses, Types of Expenses Utilities, Types of Expenses Vacant rental property, Vacant rental property. Amend 1040 Rental income Advance rent, Advance rent. Amend 1040 Cancellation of lease payments, Canceling a lease. Amend 1040 Dwelling unit used as home, Dwelling Unit Used as a Home Lease with option to buy, Lease with option to buy. Amend 1040 Not rented for profit, Not Rented for Profit Part interest, Part interest. Amend 1040 Property received from tenant, Property or services. Amend 1040 Reporting, Accrual method. Amend 1040 , Which Forms To Use Security deposit, Security deposits. Amend 1040 Services received from tenant, Property or services. Amend 1040 Uncollected rent, Uncollected rent. Amend 1040 Used as home, Rental of property also used as your home. Amend 1040 Rental losses, Exception for Rental Real Estate With Active Participation (see also Gains and losses) (see also Passive activity) Repairs, Types of Expenses, Repairs and Improvements (see also Improvements) Assessments for maintenance, Assessments for local improvements. Amend 1040 Personal use of rental property exception for days used for repairs and maintenance, Days used for repairs and maintenance. Amend 1040 S Sale of property Expenses, Vacant while listed for sale. Amend 1040 Gain or loss, Sale or exchange of rental property. Amend 1040 , How to report. Amend 1040 Main home, Sale of main home used as rental property. Amend 1040 Section 179 deductions, Section 179 deduction. Amend 1040 Security deposits, Security deposits. Amend 1040 Settlement fees, Settlement fees and other costs. Amend 1040 Shared equity financing agreements, Shared equity financing agreement. Amend 1040 Special depreciation allowances, Claiming the Special Depreciation Allowance Spouse Material participation, Participating spouse. Amend 1040 Standard mileage rates, Local transportation expenses. Amend 1040 Surveys, Settlement fees and other costs. Amend 1040 T Tables and figures Improvements, examples of (Table 1-1), Table 1-1. Amend 1040 Examples of Improvements MACRS optional tables (Table 2-2d), Table 2-2d. Amend 1040 MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c. Amend 1040 MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1. Amend 1040 MACRS Recovery Periods for Property Used in Rental Activities Tax credits Residential energy credits, effect on basis, Decreases to basis. Amend 1040 Tax help, How To Get Tax Help Tax return preparation fees, Legal and other professional fees. Amend 1040 Taxes Deduction of, Types of Expenses Local benefit taxes, Local benefit taxes. Amend 1040 Real estate taxes, Real estate taxes. Amend 1040 Transfer taxes, Settlement fees and other costs. Amend 1040 Theft losses, Theft. Amend 1040 Title insurance, Settlement fees and other costs. Amend 1040 Transfer taxes, Settlement fees and other costs. Amend 1040 Travel and transportation expenses Local transportation expenses, Types of Expenses, Local transportation expenses. Amend 1040 Recordkeeping, Travel expenses. Amend 1040 Rental expenses, Types of Expenses Standard mileage rate, Local transportation expenses. Amend 1040 U Uncollected rent Income, Uncollected rent. Amend 1040 Use of home Before or after renting, Days used as a main home before or after renting. Amend 1040 Change to rental use, Property Changed to Rental Use Days of personal use, What is a day of personal use? Fair rental price, Fair rental price. Amend 1040 Passive activity rules exception, Exception for Personal Use of Dwelling Unit Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home) Utilities, Types of Expenses, Increases to basis. Amend 1040 V Vacant rental property, Vacant rental property. Amend 1040 Vacation homes Dwelling unit, Dwelling unit. Amend 1040 Fair rental price, Fair rental price. Amend 1040 Personal use of, Personal Use of Dwelling Unit (Including Vacation Home) Valuation Fair market value, Fair market value. Amend 1040 Prev  Up     Home   More Online Publications