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Can I File My 2011 Taxes In 2013

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Can I File My 2011 Taxes In 2013

Can i file my 2011 taxes in 2013 Index A Assessment of tax, Assessment of tax. Can i file my 2011 taxes in 2013 Assistance (see Tax help) B Bankruptcy Code tax compliance, Bankruptcy Code Tax Compliance Requirements Returns due after filing, Tax Returns Due After the Bankruptcy Filing Returns due before chapter 13 filing, Tax Returns Due for Periods Ending Before the Bankruptcy Filing in Chapter 13 Cases Bankruptcy estate, Taxes and the Bankruptcy Estate Attribute carryovers, Carrybacks from the debtor's activities. Can i file my 2011 taxes in 2013 Carrybacks, Carrybacks from the debtor's activities. Can i file my 2011 taxes in 2013 Disclosure of return information, Disclosure of bankruptcy estate's return information to debtor. Can i file my 2011 taxes in 2013 Employer identification number, Employer identification number. Can i file my 2011 taxes in 2013 , Employer identification number. Can i file my 2011 taxes in 2013 Estimated tax, Estimated tax – Form 1041-ES. Can i file my 2011 taxes in 2013 Return filing requirements, Bankruptcy Estate Tax Return Filing Requirements and Payment of Tax Due Separate taxable entity, Separate taxable entity. Can i file my 2011 taxes in 2013 Transfer of assets, Transfer of assets between debtor and bankruptcy estate. Can i file my 2011 taxes in 2013 C Conversion or dismissal chapter 11 case, Conversion or dismissal of chapter 11 cases. Can i file my 2011 taxes in 2013 Corporations, Corporations Filing requirements, Corporations Tax-free reorganizations, Tax-Free Reorganizations D Debt cancellation, Debt Cancellation Bankruptcy exclusion, Bankruptcy case exclusion. Can i file my 2011 taxes in 2013 Corporations, Corporations Insolvency exclusion, Insolvency exclusion. Can i file my 2011 taxes in 2013 Partnerships, Partnerships S corporations, S Corporations Deductions and credits, Bankruptcy Estate Deductions and Credits Administrative expenses, Administrative expenses. Can i file my 2011 taxes in 2013 Discharge of tax, Discharge of Unpaid Tax Disclosure of return information, Disclosure of debtor's return information to trustee. Can i file my 2011 taxes in 2013 , Disclosure of return information to trustee. Can i file my 2011 taxes in 2013 Dismissal of case Amended return, Dismissal of bankruptcy case. Can i file my 2011 taxes in 2013 E Election to end tax year: Form 1040, Debtor's Election To End Tax Year – Form 1040 Annualizing taxable income, Annualizing taxable income. Can i file my 2011 taxes in 2013 Election by spouse, Election by debtor's spouse. Can i file my 2011 taxes in 2013 Filing requirements, Making the Election - Filing Requirements Short tax years, Short tax years. Can i file my 2011 taxes in 2013 Employment taxes, Employment taxes. Can i file my 2011 taxes in 2013 , Employment Taxes Examination of return, Examination of return. Can i file my 2011 taxes in 2013 F Free tax services, How To Get Tax Help H Help (see Tax help) I Individuals in Chapter 12 or 13, Individuals in Chapter 12 or 13 Individuals in Chapter 7 or 11, Individuals in Chapter 7 or 11 Gross income chapter 11 case, Income of the estate in individual chapter 11 cases. Can i file my 2011 taxes in 2013 Gross income chapter 7 case, Income of the estate in individual chapter 7 cases. Can i file my 2011 taxes in 2013 J Jurisdiction over tax matters, Court Jurisdiction Over Tax Matters Bankruptcy Court, Bankruptcy Court Tax Court, Tax Court M More information (see Tax help) O Ordering tax return transcripts, Ordering tax transcripts and copies of returns. Can i file my 2011 taxes in 2013 P Partnerships, filing requirements, Partnerships Payment of tax claim, Federal Tax Claims Eighth priority taxes, Unsecured Tax Claims Second, third, fourth priority taxes, Higher priority taxes. Can i file my 2011 taxes in 2013 Secured tax claims, Secured tax claims. Can i file my 2011 taxes in 2013 Penalties, Penalties. Can i file my 2011 taxes in 2013 Relief from penalties, Relief from certain penalties. Can i file my 2011 taxes in 2013 Publications (see Tax help) R Request for prompt tax determination, Prompt Determination Requests Request for refund, Requests for refund or credit S Statute of limitations collections, Statute of limitations for collection. Can i file my 2011 taxes in 2013 T Tax attributes, Reduction of Tax Attributes Basis reduction, Basis. Can i file my 2011 taxes in 2013 , Basis Reduction Carryovers, Attribute carryovers. Can i file my 2011 taxes in 2013 Order of reduction, Order of reduction. Can i file my 2011 taxes in 2013 Reduction of, Reduction of Tax Attributes Tax help, How To Get Tax Help Tax reporting chapter 11 cases, Tax Reporting – Chapter 11 Cases Employment tax returns, Tax Reporting – Chapter 11 Cases Information returns, Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Can i file my 2011 taxes in 2013 Self-employment taxes, Self-employment taxes in individual chapter 11 cases. Can i file my 2011 taxes in 2013 Wage reporting, tax withholding, Employment taxes and employer's obligation to file Form W-2 in individual chapter 11 cases. Can i file my 2011 taxes in 2013 Tax return: Form 1041, Figuring tax due. Can i file my 2011 taxes in 2013 Figuring tax due, Filing Requirements Payment of tax due, Payment of Tax Due When to file, When to file. Can i file my 2011 taxes in 2013 Taxpayer Advocate, Taxpayer Advocate Service. Can i file my 2011 taxes in 2013 TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications

Topic 305 - Recordkeeping

Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination, or to prepare a response if you receive an IRS notice.

Records such as receipts, canceled checks, and other documents that support an item of income or a deduction, or a credit appearing on a return must be kept so long as they may become material in the administration of any internal revenue law, which generally will be until the period of limitation expires for that return. For assessment of tax you owe, this generally is 3 years from the date you filed the return. Returns filed before the due date are treated as filed on the due date.

There is no period of limitations to assess tax when a return is fraudulent or when no return is filed. If income that you should have reported is not reported, and it is more than 25% of the gross income shown on the return, the time to assess is 6 years from when the return is filed. For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date the original return was filed (or the due date for filing the return if the return was filed before that date), or 2 years from the date the tax was paid, whichever is later. For filing a claim for an overpayment resulting from a bad debt deduction or a loss from worthless securities the time to make the claim is 7 years from when the return was due.

If you have employees, you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. For more information, see Publication 15, (Circular E), Employer's Tax Guide.

If you are in business, there is no particular method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses. Publication 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses, provide additional information on required documentation for taxpayers with business expenses. Publication 17, Your Federal Income Tax for Individuals, provides more information on recordkeeping requirements for individuals.

Page Last Reviewed or Updated: January 22, 2014

The Can I File My 2011 Taxes In 2013

Can i file my 2011 taxes in 2013 2. Can i file my 2011 taxes in 2013   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. Can i file my 2011 taxes in 2013 You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. Can i file my 2011 taxes in 2013 This chapter discusses accounting methods. Can i file my 2011 taxes in 2013 For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. Can i file my 2011 taxes in 2013 Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. Can i file my 2011 taxes in 2013 Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. Can i file my 2011 taxes in 2013 Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. Can i file my 2011 taxes in 2013 A material item is one that affects the proper time for inclusion of income or allowance of a deduction. Can i file my 2011 taxes in 2013 An item considered material for financial statement purposes is generally also considered material for income tax purposes. Can i file my 2011 taxes in 2013 See Publication 538 for more information. Can i file my 2011 taxes in 2013 You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. Can i file my 2011 taxes in 2013 If you later want to change your accounting method, you generally must get IRS approval. Can i file my 2011 taxes in 2013 How to obtain IRS approval is discussed later under Changes in Methods of Accounting . Can i file my 2011 taxes in 2013 Types of accounting methods. Can i file my 2011 taxes in 2013   Generally, you can use any of the following accounting methods. Can i file my 2011 taxes in 2013 Each method is discussed in detail below. Can i file my 2011 taxes in 2013 Cash method. Can i file my 2011 taxes in 2013 Accrual method. Can i file my 2011 taxes in 2013 Special methods of accounting for certain items of income and expenses. Can i file my 2011 taxes in 2013 Combination (hybrid) method using elements of two or more of the above. Can i file my 2011 taxes in 2013 Business and other items. Can i file my 2011 taxes in 2013   You can account for business and personal items using different accounting methods. Can i file my 2011 taxes in 2013 For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. Can i file my 2011 taxes in 2013 Two or more businesses. Can i file my 2011 taxes in 2013   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. Can i file my 2011 taxes in 2013 Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. Can i file my 2011 taxes in 2013 Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. Can i file my 2011 taxes in 2013 However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. Can i file my 2011 taxes in 2013 See Accrual Method Required , later. Can i file my 2011 taxes in 2013 Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. Can i file my 2011 taxes in 2013 Items of income include money received as well as property or services received. Can i file my 2011 taxes in 2013 If you receive property or services, you must include the fair market value (FMV) of the property or services in income. Can i file my 2011 taxes in 2013 See chapter 3 for information on how to report farm income on your income tax return. Can i file my 2011 taxes in 2013 Constructive receipt. Can i file my 2011 taxes in 2013   Income is constructively received when an amount is credited to your account or made available to you without restriction. Can i file my 2011 taxes in 2013 You do not need to have possession of the income for it to be treated as income for the tax year. Can i file my 2011 taxes in 2013 If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. Can i file my 2011 taxes in 2013 Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. Can i file my 2011 taxes in 2013 Direct payments and counter-cyclical payments. Can i file my 2011 taxes in 2013   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. Can i file my 2011 taxes in 2013 Delaying receipt of income. Can i file my 2011 taxes in 2013   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. Can i file my 2011 taxes in 2013 You must report the income in the year the money or property is received or made available to you without restriction. Can i file my 2011 taxes in 2013 Example. Can i file my 2011 taxes in 2013 Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. Can i file my 2011 taxes in 2013 She was told in December that her payment was available. Can i file my 2011 taxes in 2013 She requested not to be paid until January 2014. Can i file my 2011 taxes in 2013 However, she must still include this payment in her 2013 income because it was made available to her in 2013. Can i file my 2011 taxes in 2013 Debts paid by another person or canceled. Can i file my 2011 taxes in 2013   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. Can i file my 2011 taxes in 2013 If you receive income in this way, you constructively receive the income when the debt is canceled or paid. Can i file my 2011 taxes in 2013 See Cancellation of Debt in chapter 3. Can i file my 2011 taxes in 2013 Deferred payment contract. Can i file my 2011 taxes in 2013   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. Can i file my 2011 taxes in 2013 However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. Can i file my 2011 taxes in 2013 Example. Can i file my 2011 taxes in 2013 You are a farmer who uses the cash method and a calendar tax year. Can i file my 2011 taxes in 2013 You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. Can i file my 2011 taxes in 2013 You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. Can i file my 2011 taxes in 2013 However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. Can i file my 2011 taxes in 2013 Repayment of income. Can i file my 2011 taxes in 2013   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. Can i file my 2011 taxes in 2013 If the repayment is more than $3,000, a special rule applies. Can i file my 2011 taxes in 2013 For details, see Repayments in chapter 11 of Publication 535, Business Expenses. Can i file my 2011 taxes in 2013 Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. Can i file my 2011 taxes in 2013 This includes business expenses for which you contest liability. Can i file my 2011 taxes in 2013 However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. Can i file my 2011 taxes in 2013 See chapter 4 for information on how to deduct farm business expenses on your income tax return. Can i file my 2011 taxes in 2013 Prepayment. Can i file my 2011 taxes in 2013   Generally, you cannot deduct expenses paid in advance. Can i file my 2011 taxes in 2013 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Can i file my 2011 taxes in 2013 Example. Can i file my 2011 taxes in 2013 On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. Can i file my 2011 taxes in 2013 In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. Can i file my 2011 taxes in 2013 In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. Can i file my 2011 taxes in 2013 An exception applies if the expense qualifies for the 12-month rule. Can i file my 2011 taxes in 2013 See Publication 538 for more information and examples. Can i file my 2011 taxes in 2013 See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. Can i file my 2011 taxes in 2013 Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. Can i file my 2011 taxes in 2013 The purpose of an accrual method of accounting is to correctly match income and expenses. Can i file my 2011 taxes in 2013 Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. Can i file my 2011 taxes in 2013 See Accrual Method Required and Farm Inventory , later. Can i file my 2011 taxes in 2013 Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. Can i file my 2011 taxes in 2013 Under this rule, include an amount in income on the earliest of the following dates. Can i file my 2011 taxes in 2013 When you receive payment. Can i file my 2011 taxes in 2013 When the income amount is due to you. Can i file my 2011 taxes in 2013 When you earn the income. Can i file my 2011 taxes in 2013 When title passes. Can i file my 2011 taxes in 2013 If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. Can i file my 2011 taxes in 2013 Inventory. Can i file my 2011 taxes in 2013   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. Can i file my 2011 taxes in 2013 An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. Can i file my 2011 taxes in 2013 See Publication 538 for more information. Can i file my 2011 taxes in 2013 Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. Can i file my 2011 taxes in 2013 Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. Can i file my 2011 taxes in 2013 The all-events test has been met. Can i file my 2011 taxes in 2013 This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. Can i file my 2011 taxes in 2013 Economic performance has occurred. Can i file my 2011 taxes in 2013 Economic performance. Can i file my 2011 taxes in 2013   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. Can i file my 2011 taxes in 2013 If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. Can i file my 2011 taxes in 2013 If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. Can i file my 2011 taxes in 2013 Example. Can i file my 2011 taxes in 2013 Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. Can i file my 2011 taxes in 2013 She entered into a contract with ABC Farm Consulting in 2012. Can i file my 2011 taxes in 2013 The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. Can i file my 2011 taxes in 2013 It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. Can i file my 2011 taxes in 2013 Jane paid ABC Farm Consulting $2,000 in December 2012. Can i file my 2011 taxes in 2013 Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. Can i file my 2011 taxes in 2013 Economic performance for Jane's liability in the contract occurs as the services are provided. Can i file my 2011 taxes in 2013 Jane incurs the $2,000 cost in 2013. Can i file my 2011 taxes in 2013 An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. Can i file my 2011 taxes in 2013 For more information, see Economic Performance in Publication 538. Can i file my 2011 taxes in 2013 Special rule for related persons. Can i file my 2011 taxes in 2013   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. Can i file my 2011 taxes in 2013 Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. Can i file my 2011 taxes in 2013 For more information, see Internal Revenue Code section 267. Can i file my 2011 taxes in 2013 Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. Can i file my 2011 taxes in 2013 A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. Can i file my 2011 taxes in 2013 A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. Can i file my 2011 taxes in 2013 A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. Can i file my 2011 taxes in 2013 A tax shelter. Can i file my 2011 taxes in 2013 Note. Can i file my 2011 taxes in 2013 Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). Can i file my 2011 taxes in 2013 Family corporation. Can i file my 2011 taxes in 2013   A family corporation is generally a corporation that meets one of the following ownership requirements. Can i file my 2011 taxes in 2013 Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. Can i file my 2011 taxes in 2013 Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. Can i file my 2011 taxes in 2013 Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. Can i file my 2011 taxes in 2013 For more information on family corporations, see Internal Revenue Code section 447. Can i file my 2011 taxes in 2013 Tax shelter. Can i file my 2011 taxes in 2013   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. Can i file my 2011 taxes in 2013 Its principal purpose is the avoidance or evasion of federal income tax. Can i file my 2011 taxes in 2013 It is a farming syndicate. Can i file my 2011 taxes in 2013 A farming syndicate is an entity that meets either of the following tests. Can i file my 2011 taxes in 2013 Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. Can i file my 2011 taxes in 2013 More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. Can i file my 2011 taxes in 2013   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. Can i file my 2011 taxes in 2013   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. Can i file my 2011 taxes in 2013 Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. Can i file my 2011 taxes in 2013 This record should show the actual count or measurement of the inventory. Can i file my 2011 taxes in 2013 It should also show all factors that enter into its valuation, including quality and weight, if applicable. Can i file my 2011 taxes in 2013 Hatchery business. Can i file my 2011 taxes in 2013   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. Can i file my 2011 taxes in 2013 Products held for sale. Can i file my 2011 taxes in 2013   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. Can i file my 2011 taxes in 2013 , must be included in inventory. Can i file my 2011 taxes in 2013 Supplies. Can i file my 2011 taxes in 2013   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. Can i file my 2011 taxes in 2013 Deduct the cost of supplies in the year used or consumed in operations. Can i file my 2011 taxes in 2013 Do not include incidental supplies in inventory as these are deductible in the year of purchase. Can i file my 2011 taxes in 2013 Livestock. Can i file my 2011 taxes in 2013   Livestock held primarily for sale must be included in inventory. Can i file my 2011 taxes in 2013 Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. Can i file my 2011 taxes in 2013 See also Unit-livestock-price method , later. Can i file my 2011 taxes in 2013 If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. Can i file my 2011 taxes in 2013 Growing crops. Can i file my 2011 taxes in 2013   Generally, growing crops are not required to be included in inventory. Can i file my 2011 taxes in 2013 However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. Can i file my 2011 taxes in 2013 See Uniform capitalization rules below. Can i file my 2011 taxes in 2013 Also see Uniform Capitalization Rules in  chapter 6. Can i file my 2011 taxes in 2013 Items to include in inventory. Can i file my 2011 taxes in 2013   Your inventory should include all items held for sale, or for use as feed, seed, etc. Can i file my 2011 taxes in 2013 , whether raised or purchased, that are unsold at the end of the year. Can i file my 2011 taxes in 2013 Uniform capitalization rules. Can i file my 2011 taxes in 2013   The following applies if you are required to use an accrual method of accounting. Can i file my 2011 taxes in 2013 The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. Can i file my 2011 taxes in 2013 The costs of animals are subject to the uniform capitalization rules. Can i file my 2011 taxes in 2013 Inventory valuation methods. Can i file my 2011 taxes in 2013   The following methods, described below, are those generally available for valuing inventory. Can i file my 2011 taxes in 2013 The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. Can i file my 2011 taxes in 2013 Cost. Can i file my 2011 taxes in 2013 Lower of cost or market. Can i file my 2011 taxes in 2013 Farm-price method. Can i file my 2011 taxes in 2013 Unit-livestock-price method. Can i file my 2011 taxes in 2013 Cost and lower of cost or market methods. Can i file my 2011 taxes in 2013   See Publication 538 for information on these valuation methods. Can i file my 2011 taxes in 2013 If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. Can i file my 2011 taxes in 2013 However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. Can i file my 2011 taxes in 2013 Farm-price method. Can i file my 2011 taxes in 2013   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. Can i file my 2011 taxes in 2013 Market price is the current price at the nearest market in the quantities you usually sell. Can i file my 2011 taxes in 2013 Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. Can i file my 2011 taxes in 2013 If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. Can i file my 2011 taxes in 2013 Unit-livestock-price method. Can i file my 2011 taxes in 2013   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. Can i file my 2011 taxes in 2013 You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. Can i file my 2011 taxes in 2013 The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. Can i file my 2011 taxes in 2013 Unit prices and classifications are subject to approval by the IRS on examination of your return. Can i file my 2011 taxes in 2013 You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. Can i file my 2011 taxes in 2013 IRS approval is not required for these adjustments. Can i file my 2011 taxes in 2013 Any other changes in unit prices or classifications do require IRS approval. Can i file my 2011 taxes in 2013   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. Can i file my 2011 taxes in 2013 This method accounts only for the increase in cost of raising an animal to maturity. Can i file my 2011 taxes in 2013 It does not provide for any decrease in the animal's market value after it reaches maturity. Can i file my 2011 taxes in 2013 Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. Can i file my 2011 taxes in 2013   Do not include sold or lost animals in the year-end inventory. Can i file my 2011 taxes in 2013 If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. Can i file my 2011 taxes in 2013 The animals on hand at the end of the year are considered those most recently acquired. Can i file my 2011 taxes in 2013   You must include in inventory all livestock purchased primarily for sale. Can i file my 2011 taxes in 2013 You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. Can i file my 2011 taxes in 2013 However, you must be consistent from year to year, regardless of the method you have chosen. Can i file my 2011 taxes in 2013 You cannot change your method without obtaining approval from the IRS. Can i file my 2011 taxes in 2013   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. Can i file my 2011 taxes in 2013 If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. Can i file my 2011 taxes in 2013 However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. Can i file my 2011 taxes in 2013 This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. Can i file my 2011 taxes in 2013 It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. Can i file my 2011 taxes in 2013 Uniform capitalization rules. Can i file my 2011 taxes in 2013   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. Can i file my 2011 taxes in 2013 This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. Can i file my 2011 taxes in 2013 Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. Can i file my 2011 taxes in 2013 Example 1. Can i file my 2011 taxes in 2013 You are a farmer who uses an accrual method of accounting. Can i file my 2011 taxes in 2013 You keep your books on the calendar year basis. Can i file my 2011 taxes in 2013 You sell grain in December 2013 but you are not paid until January 2014. Can i file my 2011 taxes in 2013 Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. Can i file my 2011 taxes in 2013 Example 2. Can i file my 2011 taxes in 2013 Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. Can i file my 2011 taxes in 2013 Under this method, you include the sales proceeds in income for 2014, the year you receive payment. Can i file my 2011 taxes in 2013 Deduct the costs of producing the grain in the year you pay for them. Can i file my 2011 taxes in 2013 Special Methods of Accounting There are special methods of accounting for certain items of income and expense. Can i file my 2011 taxes in 2013 Crop method. Can i file my 2011 taxes in 2013   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. Can i file my 2011 taxes in 2013 You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. Can i file my 2011 taxes in 2013 Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. Can i file my 2011 taxes in 2013    See chapter 4 for details on deducting the costs of operating a farm. Can i file my 2011 taxes in 2013 Also see Regulations section 1. Can i file my 2011 taxes in 2013 162-12. Can i file my 2011 taxes in 2013 Other special methods. Can i file my 2011 taxes in 2013   Other special methods of accounting apply to the following items. Can i file my 2011 taxes in 2013 Amortization, see chapter 7. Can i file my 2011 taxes in 2013 Casualties, see chapter 11. Can i file my 2011 taxes in 2013 Condemnations, see chapter 11. Can i file my 2011 taxes in 2013 Depletion, see chapter 7. Can i file my 2011 taxes in 2013 Depreciation, see chapter 7. Can i file my 2011 taxes in 2013 Farm business expenses, see chapter 4. Can i file my 2011 taxes in 2013 Farm income, see chapter 3. Can i file my 2011 taxes in 2013 Installment sales, see chapter 10. Can i file my 2011 taxes in 2013 Soil and water conservation expenses, see chapter 5. Can i file my 2011 taxes in 2013 Thefts, see chapter 11. Can i file my 2011 taxes in 2013 Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. Can i file my 2011 taxes in 2013 However, the following restrictions apply. Can i file my 2011 taxes in 2013 If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. Can i file my 2011 taxes in 2013 If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. Can i file my 2011 taxes in 2013 Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). Can i file my 2011 taxes in 2013 Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. Can i file my 2011 taxes in 2013 You may also have to pay a fee. Can i file my 2011 taxes in 2013 To obtain approval, you must generally file Form 3115. Can i file my 2011 taxes in 2013 There are instances when you can obtain automatic consent to change certain methods of accounting. Can i file my 2011 taxes in 2013 See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. Can i file my 2011 taxes in 2013 For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. Can i file my 2011 taxes in 2013 Also see Publication 538. Can i file my 2011 taxes in 2013 Prev  Up  Next   Home   More Online Publications