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Can Tax Form 1040x Be Filed Online

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Can Tax Form 1040x Be Filed Online

Can tax form 1040x be filed online Index A Acquisition indebtedness, Average acquisition indebtedness. Can tax form 1040x be filed online Annuity obligations, Annuity obligation. Can tax form 1040x be filed online By gift or bequest of mortgaged property, Exception for property acquired by gift, bequest, or devise. Can tax form 1040x be filed online Change in property use, Change in use of property. Can tax form 1040x be filed online Continued debt, Continued debt. Can tax form 1040x be filed online Debt modifying existing, Modifying existing debt. Can tax form 1040x be filed online Federal financing, Certain federal financing. Can tax form 1040x be filed online For performing exempt purpose, Debt incurred in performing exempt purpose. Can tax form 1040x be filed online Obligation to return collateral, Securities loans. Can tax form 1040x be filed online Property subject to mortgage or lien, Property acquired subject to mortgage or lien. Can tax form 1040x be filed online Real property, Real property debts of qualified organizations. Can tax form 1040x be filed online Advertising income, Exploitation of Exempt Activity—Advertising Sales Agricultural organization dues, Dues of Agricultural Organizations and Business Leagues Assistance (see Tax help) B Business league dues, Dues of Agricultural Organizations and Business Leagues C Churches, Churches. Can tax form 1040x be filed online Contributions deduction, Charitable contributions deduction. Can tax form 1040x be filed online Convention or trade show activity, Convention or trade show activity. Can tax form 1040x be filed online D Debt-financed property, Income From Debt-Financed Property Acquired in liquidation, Basis for debt-financed property acquired in corporate liquidation. Can tax form 1040x be filed online Dues, agricultural organizations and business leagues, Dues of Agricultural Organizations and Business Leagues E Exchange or rental of member lists, Exchange or rental of member lists. Can tax form 1040x be filed online Excluded trade or business activities, Excluded Trade or Business Activities Exclusions, Volunteer workforce. Can tax form 1040x be filed online Sponsorship, Qualified sponsorship activities. Can tax form 1040x be filed online Exempt function income, Exempt function income. Can tax form 1040x be filed online Exploitation of exempt activity Advertising income, Exploitation of Exempt Activity—Advertising Sales Exploitation of exempt functions, Exploitation of exempt functions. Can tax form 1040x be filed online F Form 990-T, Returns and Filing Requirements Free tax services, How to Get Tax Help H Help (see Tax help) I Income from research, Income from research. Can tax form 1040x be filed online L Limits, Limits. Can tax form 1040x be filed online M More information (see Tax help) N Net operating loss deduction, Modifications Nonrecognition of gain, Nonrecognition of gain. Can tax form 1040x be filed online P Publications (see Tax help) R Rents, Rents. Can tax form 1040x be filed online Return, Returns and Filing Requirements Royalties, Royalties. Can tax form 1040x be filed online S Specific deduction, Specific deduction. Can tax form 1040x be filed online T Tax, Organizations Subject to the Tax Alternative minimum, Alternative minimum tax. Can tax form 1040x be filed online Colleges and universities, Colleges and universities. Can tax form 1040x be filed online Deposits, Federal Tax Deposits Must be Made by Electronic Funds Transfer Estimated, Payment of Tax Organizations affected, Organizations Subject to the Tax Payment, Public Inspection Requirements of Section 501(c)(3) Organizations. Can tax form 1040x be filed online Rates, The Tax and Filing Requirements Return, Returns and Filing Requirements Title-holding corporations, Title-holding corporations. Can tax form 1040x be filed online U. Can tax form 1040x be filed online S. Can tax form 1040x be filed online instrumentalities, U. Can tax form 1040x be filed online S. Can tax form 1040x be filed online instrumentalities. Can tax form 1040x be filed online Tax help, How to Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. Can tax form 1040x be filed online Title-holding corporations, Title-holding corporations. Can tax form 1040x be filed online TTY/TDD information, How to Get Tax Help U Unrelated business Hospital laboratory, Nonpatient laboratory testing. Can tax form 1040x be filed online Unrelated business income, Unrelated Business Taxable Income, Income Advertising income, Exploitation of Exempt Activity—Advertising Sales Certain trusts, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Controlled organizations, Income From Controlled Organizations Debt-financed property, Income From Debt-Financed Property Deductions, Deductions Employees beneficiary associations, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Exclusions, Exclusions Foreign organizations, Special Rules for Foreign Organizations Income from gambling activities, Legal definition. Can tax form 1040x be filed online Income from lending securities, Income from lending securities. Can tax form 1040x be filed online Modifications, Modifications Partnership income or loss, Partnership Income or Loss Products of exempt functions, Selling of products of exempt functions. Can tax form 1040x be filed online S corporation income, S Corporation Income or Loss S corporation income or loss, S Corporation Income or Loss Social clubs, Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs Veterans organizations, Special Rules for Veterans' Organizations Unrelated debt-financed income, Certain federal financing. Can tax form 1040x be filed online Average acquisition indebtedness, Average acquisition indebtedness. Can tax form 1040x be filed online Average adjusted basis, Average adjusted basis. Can tax form 1040x be filed online Computation, Computation of Debt-Financed Income Debt/basis percentage, Computation of debt/basis percentage. Can tax form 1040x be filed online Deductions, Deductions for Debt-Financed Property Gains from dispositions, Gain or loss from sale or other disposition of property. Can tax form 1040x be filed online Indeterminate property price, Indeterminate price. Can tax form 1040x be filed online Unrelated trade or business, Unrelated Trade or Business Artists facilities, Artists' facilities. Can tax form 1040x be filed online Book publishing, Book publishing. Can tax form 1040x be filed online Broadcasting rights, Broadcasting rights. Can tax form 1040x be filed online Business league's parking and bus services, Business league's parking and bus services. Can tax form 1040x be filed online Convenience of members, Convenience of members. Can tax form 1040x be filed online Convention or trade show, Convention or trade show activity. Can tax form 1040x be filed online Directory of members, Directory of members. Can tax form 1040x be filed online Distribution of low cost articles, Distribution of low cost articles. Can tax form 1040x be filed online Dual use facilities, etc. Can tax form 1040x be filed online , Dual use of assets or facilities. Can tax form 1040x be filed online Employees association sales, Employee association sales. Can tax form 1040x be filed online Exclusions, Excluded Trade or Business Activities Exploitation of exempt functions, Exploitation of exempt functions. Can tax form 1040x be filed online Gambling activities other than bingo, Gambling activities other than bingo. Can tax form 1040x be filed online Halfway house, Halfway house workshop. Can tax form 1040x be filed online Health club program, Health club program. Can tax form 1040x be filed online Hearing aid sales, Sales of hearing aids. Can tax form 1040x be filed online Hospital facilities, Hospital facilities. Can tax form 1040x be filed online Hospital services, Hospital services. Can tax form 1040x be filed online Insurance programs, Insurance programs. Can tax form 1040x be filed online Magazine publishing, Magazine publishing. Can tax form 1040x be filed online Member lists rentals, etc. Can tax form 1040x be filed online , Exchange or rental of member lists. Can tax form 1040x be filed online Membership list sales, Membership list sales. Can tax form 1040x be filed online Miniature golf course, Miniature golf course. Can tax form 1040x be filed online Museum eating facilities, Museum eating facilities. Can tax form 1040x be filed online Museum greeting card sales, Museum greeting card sales. Can tax form 1040x be filed online Pet boarding and grooming services, Pet boarding and grooming services. Can tax form 1040x be filed online Pole rentals, Pole rentals. Can tax form 1040x be filed online Public entertainment activity, Public entertainment activity. Can tax form 1040x be filed online Publishing legal notices, Publishing legal notices. Can tax form 1040x be filed online Regularly conducted, Regularly conducted. Can tax form 1040x be filed online Sales commissions, Sales commissions. Can tax form 1040x be filed online Sales of advertising space, Sales of advertising space. Can tax form 1040x be filed online School facilities, School facilities. Can tax form 1040x be filed online School handicraft shop, School handicraft shop. Can tax form 1040x be filed online Selling donated merchandise, Selling donated merchandise. Can tax form 1040x be filed online Selling endorsements, Selling endorsements. Can tax form 1040x be filed online Sponsoring entertainment events, Sponsoring entertainment events. Can tax form 1040x be filed online Substantially related, Not substantially related. Can tax form 1040x be filed online Trade or business defined, Trade or business. Can tax form 1040x be filed online Travel tour programs, Travel tour programs. Can tax form 1040x be filed online Volunteer workforce, Volunteer workforce. Can tax form 1040x be filed online Yearbook advertising, Yearbook advertising. Can tax form 1040x be filed online Youth residence, Youth residence. Can tax form 1040x be filed online Unstated trade or business Bingo games, Bingo games. Can tax form 1040x be filed online V Volunteer fire company, Excluded Trade or Business Activities W When to file, When to file. Can tax form 1040x be filed online Prev  Up     Home   More Online Publications
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The Can Tax Form 1040x Be Filed Online

Can tax form 1040x be filed online 9. Can tax form 1040x be filed online   Depletion Table of Contents Introduction Topics - This chapter discusses: Who Can Claim Depletion? Mineral PropertyCost Depletion Percentage Depletion Oil and Gas Wells Mines and Geothermal Deposits Lessor's Gross Income TimberTimber units. Can tax form 1040x be filed online Depletion unit. Can tax form 1040x be filed online Introduction Depletion is the using up of natural resources by mining, drilling, quarrying stone, or cutting timber. Can tax form 1040x be filed online The depletion deduction allows an owner or operator to account for the reduction of a product's reserves. Can tax form 1040x be filed online There are two ways of figuring depletion: cost depletion and percentage depletion. Can tax form 1040x be filed online For mineral property, you generally must use the method that gives you the larger deduction. Can tax form 1040x be filed online For standing timber, you must use cost depletion. Can tax form 1040x be filed online Topics - This chapter discusses: Who can claim depletion Mineral property Timber Who Can Claim Depletion? If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. Can tax form 1040x be filed online More than one person can have an economic interest in the same mineral deposit or timber. Can tax form 1040x be filed online In the case of leased property, the depletion deduction is divided between the lessor and the lessee. Can tax form 1040x be filed online You have an economic interest if both the following apply. Can tax form 1040x be filed online You have acquired by investment any interest in mineral deposits or standing timber. Can tax form 1040x be filed online You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment. Can tax form 1040x be filed online A contractual relationship that allows you an economic or monetary advantage from products of the mineral deposit or standing timber is not, in itself, an economic interest. Can tax form 1040x be filed online A production payment carved out of, or retained on the sale of, mineral property is not an economic interest. Can tax form 1040x be filed online Individuals, corporations, estates, and trusts who claim depletion deductions may be liable for alternative minimum tax. Can tax form 1040x be filed online Basis adjustment for depletion. Can tax form 1040x be filed online   You must reduce the basis of your property by the depletion allowed or allowable, whichever is greater. Can tax form 1040x be filed online Mineral Property Mineral property includes oil and gas wells, mines, and other natural deposits (including geothermal deposits). Can tax form 1040x be filed online For this purpose, the term “property” means each separate interest you own in each mineral deposit in each separate tract or parcel of land. Can tax form 1040x be filed online You can treat two or more separate interests as one property or as separate properties. Can tax form 1040x be filed online See section 614 of the Internal Revenue Code and the related regulations for rules on how to treat separate mineral interests. Can tax form 1040x be filed online There are two ways of figuring depletion on mineral property. Can tax form 1040x be filed online Cost depletion. Can tax form 1040x be filed online Percentage depletion. Can tax form 1040x be filed online Generally, you must use the method that gives you the larger deduction. Can tax form 1040x be filed online However, unless you are an independent producer or royalty owner, you generally cannot use percentage depletion for oil and gas wells. Can tax form 1040x be filed online See Oil and Gas Wells , later. Can tax form 1040x be filed online Cost Depletion To figure cost depletion you must first determine the following. Can tax form 1040x be filed online The property's basis for depletion. Can tax form 1040x be filed online The total recoverable units of mineral in the property's natural deposit. Can tax form 1040x be filed online The number of units of mineral sold during the tax year. Can tax form 1040x be filed online Basis for depletion. Can tax form 1040x be filed online   To figure the property's basis for depletion, subtract all the following from the property's adjusted basis. Can tax form 1040x be filed online Amounts recoverable through: Depreciation deductions, Deferred expenses (including deferred exploration and development costs), and Deductions other than depletion. Can tax form 1040x be filed online The residual value of land and improvements at the end of operations. Can tax form 1040x be filed online The cost or value of land acquired for purposes other than mineral production. Can tax form 1040x be filed online Adjusted basis. Can tax form 1040x be filed online   The adjusted basis of your property is your original cost or other basis, plus certain additions and improvements, and minus certain deductions such as depletion allowed or allowable and casualty losses. Can tax form 1040x be filed online Your adjusted basis can never be less than zero. Can tax form 1040x be filed online See Publication 551, Basis of Assets, for more information on adjusted basis. Can tax form 1040x be filed online Total recoverable units. Can tax form 1040x be filed online   The total recoverable units is the sum of the following. Can tax form 1040x be filed online The number of units of mineral remaining at the end of the year (including units recovered but not sold). Can tax form 1040x be filed online The number of units of mineral sold during the tax year (determined under your method of accounting, as explained next). Can tax form 1040x be filed online   You must estimate or determine recoverable units (tons, pounds, ounces, barrels, thousands of cubic feet, or other measure) of mineral products using the current industry method and the most accurate and reliable information you can obtain. Can tax form 1040x be filed online You must include ores and minerals that are developed, in sight, blocked out, or assured. Can tax form 1040x be filed online You must also include probable or prospective ores or minerals that are believed to exist based on good evidence. Can tax form 1040x be filed online But see Elective safe harbor for owners of oil and gas property , later. Can tax form 1040x be filed online Number of units sold. Can tax form 1040x be filed online   You determine the number of units sold during the tax year based on your method of accounting. Can tax form 1040x be filed online Use the following table to make this determination. Can tax form 1040x be filed online    IF you  use . Can tax form 1040x be filed online . Can tax form 1040x be filed online . Can tax form 1040x be filed online THEN the units sold during the year are . Can tax form 1040x be filed online . Can tax form 1040x be filed online . Can tax form 1040x be filed online The cash method of accounting The units sold for which you receive payment during the tax year (regardless of the year of sale). Can tax form 1040x be filed online An accrual method of accounting The units sold based on your inventories and method of accounting for inventory. Can tax form 1040x be filed online   The number of units sold during the tax year does not include any for which depletion deductions were allowed or allowable in earlier years. Can tax form 1040x be filed online Figuring the cost depletion deduction. Can tax form 1040x be filed online   Once you have figured your property's basis for depletion, the total recoverable units, and the number of units sold during the tax year, you can figure your cost depletion deduction by taking the following steps. Can tax form 1040x be filed online Step Action Result 1 Divide your property's basis for depletion by total recoverable units. Can tax form 1040x be filed online Rate per unit. Can tax form 1040x be filed online 2 Multiply the rate per unit by units sold during the tax year. Can tax form 1040x be filed online Cost depletion deduction. Can tax form 1040x be filed online You must keep accounts for the depletion of each property and adjust these accounts each year for units sold and depletion claimed. Can tax form 1040x be filed online Elective safe harbor for owners of oil and gas property. Can tax form 1040x be filed online   Instead of using the method described earlier to determine the total recoverable units, you can use an elective safe harbor. Can tax form 1040x be filed online If you choose the elective safe harbor, the total recoverable units equal 105% of a property's proven reserves (both developed and undeveloped). Can tax form 1040x be filed online For details, see Revenue Procedure 2004-19 on page 563 of Internal Revenue Bulletin 2004-10, available at www. Can tax form 1040x be filed online irs. Can tax form 1040x be filed online gov/pub/irs-irbs/irb04-10. Can tax form 1040x be filed online pdf. Can tax form 1040x be filed online   To make the election, attach a statement to your timely filed (including extensions) original return for the first tax year for which the safe harbor is elected. Can tax form 1040x be filed online The statement must indicate that you are electing the safe harbor provided by Revenue Procedure 2004-19. Can tax form 1040x be filed online The election, if made, is effective for the tax year in which it is made and all later years. Can tax form 1040x be filed online It cannot be revoked for the tax year in which it is elected, but may be revoked in a later year. Can tax form 1040x be filed online Once revoked, it cannot be re-elected for the next 5 years. Can tax form 1040x be filed online Percentage Depletion To figure percentage depletion, you multiply a certain percentage, specified for each mineral, by your gross income from the property during the tax year. Can tax form 1040x be filed online The rates to be used and other rules for oil and gas wells are discussed later under Independent Producers and Royalty Owners and under Natural Gas Wells . Can tax form 1040x be filed online Rates and other rules for percentage depletion of other specific minerals are found later in Mines and Geothermal Deposits . Can tax form 1040x be filed online Gross income. Can tax form 1040x be filed online   When figuring percentage depletion, subtract from your gross income from the property the following amounts. Can tax form 1040x be filed online Any rents or royalties you paid or incurred for the property. Can tax form 1040x be filed online The part of any bonus you paid for a lease on the property allocable to the product sold (or that otherwise gives rise to gross income) for the tax year. Can tax form 1040x be filed online A bonus payment includes amounts you paid as a lessee to satisfy a production payment retained by the lessor. Can tax form 1040x be filed online   Use the following fraction to figure the part of the bonus you must subtract. Can tax form 1040x be filed online No. Can tax form 1040x be filed online of units sold in the tax year Recoverable units from the property × Bonus Payments For oil and gas wells and geothermal deposits, more information about the definition of gross income from the property is under Oil and Gas Wells , later. Can tax form 1040x be filed online For other property, more information about the definition of gross income from the property is under Mines and Geothermal Deposits , later. Can tax form 1040x be filed online Taxable income limit. Can tax form 1040x be filed online   The percentage depletion deduction generally cannot be more than 50% (100% for oil and gas property) of your taxable income from the property figured without the depletion deduction and the domestic production activities deduction. Can tax form 1040x be filed online   Taxable income from the property means gross income from the property minus all allowable deductions (except any deduction for depletion or domestic production activities) attributable to mining processes, including mining transportation. Can tax form 1040x be filed online These deductible items include, but are not limited to, the following. Can tax form 1040x be filed online Operating expenses. Can tax form 1040x be filed online Certain selling expenses. Can tax form 1040x be filed online Administrative and financial overhead. Can tax form 1040x be filed online Depreciation. Can tax form 1040x be filed online Intangible drilling and development costs. Can tax form 1040x be filed online Exploration and development expenditures. Can tax form 1040x be filed online Deductible taxes (see chapter 5), but not taxes that you capitalize or take as a credit. Can tax form 1040x be filed online Losses sustained. Can tax form 1040x be filed online   The following rules apply when figuring your taxable income from the property for purposes of the taxable income limit. Can tax form 1040x be filed online Do not deduct any net operating loss deduction from the gross income from the property. Can tax form 1040x be filed online Corporations do not deduct charitable contributions from the gross income from the property. Can tax form 1040x be filed online If, during the year, you dispose of an item of section 1245 property that was used in connection with mineral property, reduce any allowable deduction for mining expenses by the part of any gain you must report as ordinary income that is allocable to the mineral property. Can tax form 1040x be filed online See section 1. Can tax form 1040x be filed online 613-5(b)(1) of the regulations for information on how to figure the ordinary gain allocable to the property. Can tax form 1040x be filed online Oil and Gas Wells You cannot claim percentage depletion for an oil or gas well unless at least one of the following applies. Can tax form 1040x be filed online You are either an independent producer or a royalty owner. Can tax form 1040x be filed online The well produces natural gas that is either sold under a fixed contract or produced from geopressured brine. Can tax form 1040x be filed online If you are an independent producer or royalty owner, see Independent Producers and Royalty Owners , next. Can tax form 1040x be filed online For information on the depletion deduction for wells that produce natural gas that is either sold under a fixed contract or produced from geopressured brine, see Natural Gas Wells , later. Can tax form 1040x be filed online Independent Producers and Royalty Owners If you are an independent producer or royalty owner, you figure percentage depletion using a rate of 15% of the gross income from the property based on your average daily production of domestic crude oil or domestic natural gas up to your depletable oil or natural gas quantity. Can tax form 1040x be filed online However, certain refiners, as explained next, and certain retailers and transferees of proven oil and gas properties, as explained next, cannot claim percentage depletion. Can tax form 1040x be filed online For information on figuring the deduction, see Figuring percentage depletion , later. Can tax form 1040x be filed online Refiners who cannot claim percentage depletion. Can tax form 1040x be filed online   You cannot claim percentage depletion if you or a related person refine crude oil and you and the related person refined more than 75,000 barrels on any day during the tax year based on average (rather than actual) daily refinery runs for the tax year. Can tax form 1040x be filed online The average daily refinery run is computed by dividing total refinery runs for the tax year by the total number of days in the tax year. Can tax form 1040x be filed online Related person. Can tax form 1040x be filed online   You and another person are related persons if either of you holds a significant ownership interest in the other person or if a third person holds a significant ownership interest in both of you. Can tax form 1040x be filed online For example, a corporation, partnership, estate, or trust and anyone who holds a significant ownership interest in it are related persons. Can tax form 1040x be filed online A partnership and a trust are related persons if one person holds a significant ownership interest in each of them. Can tax form 1040x be filed online For purposes of the related person rules, significant ownership interest means direct or indirect ownership of 5% or more in any one of the following. Can tax form 1040x be filed online The value of the outstanding stock of a corporation. Can tax form 1040x be filed online The interest in the profits or capital of a partnership. Can tax form 1040x be filed online The beneficial interests in an estate or trust. Can tax form 1040x be filed online Any interest owned by or for a corporation, partnership, trust, or estate is considered to be owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries. Can tax form 1040x be filed online Retailers who cannot claim percentage depletion. Can tax form 1040x be filed online   You cannot claim percentage depletion if both the following apply. Can tax form 1040x be filed online You sell oil or natural gas or their by-products directly or through a related person in any of the following situations. Can tax form 1040x be filed online Through a retail outlet operated by you or a related person. Can tax form 1040x be filed online To any person who is required under an agreement with you or a related person to use a trademark, trade name, or service mark or name owned by you or a related person in marketing or distributing oil, natural gas, or their by-products. Can tax form 1040x be filed online To any person given authority under an agreement with you or a related person to occupy any retail outlet owned, leased, or controlled by you or a related person. Can tax form 1040x be filed online The combined gross receipts from sales (not counting resales) of oil, natural gas, or their by-products by all retail outlets taken into account in (1) are more than $5 million for the tax year. Can tax form 1040x be filed online   For the purpose of determining if this rule applies, do not count the following. Can tax form 1040x be filed online Bulk sales (sales in very large quantities) of oil or natural gas to commercial or industrial users. Can tax form 1040x be filed online Bulk sales of aviation fuels to the Department of Defense. Can tax form 1040x be filed online Sales of oil or natural gas or their by-products outside the United States if none of your domestic production or that of a related person is exported during the tax year or the prior tax year. Can tax form 1040x be filed online Related person. Can tax form 1040x be filed online   To determine if you and another person are related persons, see Related person under Refiners who cannot claim percentage depletion, earlier. Can tax form 1040x be filed online Sales through a related person. Can tax form 1040x be filed online   You are considered to be selling through a related person if any sale by the related person produces gross income from which you may benefit because of your direct or indirect ownership interest in the person. Can tax form 1040x be filed online   You are not considered to be selling through a related person who is a retailer if all the following apply. Can tax form 1040x be filed online You do not have a significant ownership interest in the retailer. Can tax form 1040x be filed online You sell your production to persons who are not related to either you or the retailer. Can tax form 1040x be filed online The retailer does not buy oil or natural gas from your customers or persons related to your customers. Can tax form 1040x be filed online There are no arrangements for the retailer to acquire oil or natural gas you produced for resale or made available for purchase by the retailer. Can tax form 1040x be filed online Neither you nor the retailer knows of or controls the final disposition of the oil or natural gas you sold or the original source of the petroleum products the retailer acquired for resale. Can tax form 1040x be filed online Transferees who cannot claim percentage depletion. Can tax form 1040x be filed online   You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. Can tax form 1040x be filed online For a definition of the term “transfer,” see section 1. Can tax form 1040x be filed online 613A-7(n) of the regulations. Can tax form 1040x be filed online For a definition of the term “interest in proven oil or gas property,” see section 1. Can tax form 1040x be filed online 613A-7(p) of the regulations. Can tax form 1040x be filed online Figuring percentage depletion. Can tax form 1040x be filed online   Generally, as an independent producer or royalty owner, you figure your percentage depletion by computing your average daily production of domestic oil or gas and comparing it to your depletable oil or gas quantity. Can tax form 1040x be filed online If your average daily production does not exceed your depletable oil or gas quantity, you figure your percentage depletion by multiplying the gross income from the oil or gas property (defined later) by 15%. Can tax form 1040x be filed online If your average daily production of domestic oil or gas exceeds your depletable oil or gas quantity, you must make an allocation as explained later under Average daily production. Can tax form 1040x be filed online   In addition, there is a limit on the percentage depletion deduction. Can tax form 1040x be filed online See Taxable income limit , later. Can tax form 1040x be filed online Average daily production. Can tax form 1040x be filed online   Figure your average daily production by dividing your total domestic production of oil or gas for the tax year by the number of days in your tax year. Can tax form 1040x be filed online Partial interest. Can tax form 1040x be filed online   If you have a partial interest in the production from a property, figure your share of the production by multiplying total production from the property by your percentage of interest in the revenues from the property. Can tax form 1040x be filed online   You have a partial interest in the production from a property if you have a net profits interest in the property. Can tax form 1040x be filed online To figure the share of production for your net profits interest, you must first determine your percentage participation (as measured by the net profits) in the gross revenue from the property. Can tax form 1040x be filed online To figure this percentage, you divide the income you receive for your net profits interest by the gross revenue from the property. Can tax form 1040x be filed online Then multiply the total production from the property by your percentage participation to figure your share of the production. Can tax form 1040x be filed online Example. Can tax form 1040x be filed online Javier Robles owns oil property in which Pablo Olmos owns a 20% net profits interest. Can tax form 1040x be filed online During the year, the property produced 10,000 barrels of oil, which Javier sold for $200,000. Can tax form 1040x be filed online Javier had expenses of $90,000 attributable to the property. Can tax form 1040x be filed online The property generated a net profit of $110,000 ($200,000 − $90,000). Can tax form 1040x be filed online Pablo received income of $22,000 ($110,000 × . Can tax form 1040x be filed online 20) for his net profits interest. Can tax form 1040x be filed online Pablo determined his percentage participation to be 11% by dividing $22,000 (the income he received) by $200,000 (the gross revenue from the property). Can tax form 1040x be filed online Pablo determined his share of the oil production to be 1,100 barrels (10,000 barrels × 11%). Can tax form 1040x be filed online Depletable oil or natural gas quantity. Can tax form 1040x be filed online   Generally, your depletable oil quantity is 1,000 barrels. Can tax form 1040x be filed online Your depletable natural gas quantity is 6,000 cubic feet multiplied by the number of barrels of your depletable oil quantity that you choose to apply. Can tax form 1040x be filed online If you claim depletion on both oil and natural gas, you must reduce your depletable oil quantity (1,000 barrels) by the number of barrels you use to figure your depletable natural gas quantity. Can tax form 1040x be filed online Example. Can tax form 1040x be filed online You have both oil and natural gas production. Can tax form 1040x be filed online To figure your depletable natural gas quantity, you choose to apply 360 barrels of your 1000-barrel depletable oil quantity. Can tax form 1040x be filed online Your depletable natural gas quantity is 2. Can tax form 1040x be filed online 16 million cubic feet of gas (360 × 6000). Can tax form 1040x be filed online You must reduce your depletable oil quantity to 640 barrels (1000 − 360). Can tax form 1040x be filed online If you have production from marginal wells, see section 613A(c)(6) of the Internal Revenue Code to figure your depletable oil or natural gas quantity. Can tax form 1040x be filed online Also, see Notice 2012-50, available at www. Can tax form 1040x be filed online irs. Can tax form 1040x be filed online gov/irb/2012–31_IRB/index. Can tax form 1040x be filed online html. Can tax form 1040x be filed online Business entities and family members. Can tax form 1040x be filed online   You must allocate the depletable oil or gas quantity among the following related persons in proportion to each entity's or family member's production of domestic oil or gas for the year. Can tax form 1040x be filed online Corporations, trusts, and estates if 50% or more of the beneficial interest is owned by the same or related persons (considering only persons that own at least 5% of the beneficial interest). Can tax form 1040x be filed online You and your spouse and minor children. Can tax form 1040x be filed online A related person is anyone mentioned in the related persons discussion under Nondeductible loss in chapter 2 of Publication 544, except that for purposes of this allocation, item (1) in that discussion includes only an individual, his or her spouse, and minor children. Can tax form 1040x be filed online Controlled group of corporations. Can tax form 1040x be filed online   Members of the same controlled group of corporations are treated as one taxpayer when figuring the depletable oil or natural gas quantity. Can tax form 1040x be filed online They share the depletable quantity. Can tax form 1040x be filed online A controlled group of corporations is defined in section 1563(a) of the Internal Revenue Code, except that, for this purpose, the stock ownership requirement in that definition is “more than 50%” rather than “at least 80%. Can tax form 1040x be filed online ” Gross income from the property. Can tax form 1040x be filed online   For purposes of percentage depletion, gross income from the property (in the case of oil and gas wells) is the amount you receive from the sale of the oil or gas in the immediate vicinity of the well. Can tax form 1040x be filed online If you do not sell the oil or gas on the property, but manufacture or convert it into a refined product before sale or transport it before sale, the gross income from the property is the representative market or field price (RMFP) of the oil or gas, before conversion or transportation. Can tax form 1040x be filed online   If you sold gas after you removed it from the premises for a price that is lower than the RMFP, determine gross income from the property for percentage depletion purposes without regard to the RMFP. Can tax form 1040x be filed online   Gross income from the property does not include lease bonuses, advance royalties, or other amounts payable without regard to production from the property. Can tax form 1040x be filed online Average daily production exceeds depletable quantities. Can tax form 1040x be filed online   If your average daily production for the year is more than your depletable oil or natural gas quantity, figure your allowance for depletion for each domestic oil or natural gas property as follows. Can tax form 1040x be filed online Figure your average daily production of oil or natural gas for the year. Can tax form 1040x be filed online Figure your depletable oil or natural gas quantity for the year. Can tax form 1040x be filed online Figure depletion for all oil or natural gas produced from the property using a percentage depletion rate of 15%. Can tax form 1040x be filed online Multiply the result figured in (3) by a fraction, the numerator of which is the result figured in (2) and the denominator of which is the result figured in (1). Can tax form 1040x be filed online This is your depletion allowance for that property for the year. Can tax form 1040x be filed online Taxable income limit. Can tax form 1040x be filed online   If you are an independent producer or royalty owner of oil and gas, your deduction for percentage depletion is limited to the smaller of the following. Can tax form 1040x be filed online 100% of your taxable income from the property figured without the deduction for depletion and the deduction for domestic production activities under section 199 of the Internal Revenue Code. Can tax form 1040x be filed online For a definition of taxable income from the property, see Taxable income limit , earlier, under Mineral Property. Can tax form 1040x be filed online 65% of your taxable income from all sources, figured without the depletion allowance, the deduction for domestic production activities, any net operating loss carryback, and any capital loss carryback. Can tax form 1040x be filed online You can carry over to the following year any amount you cannot deduct because of the 65%-of-taxable-income limit. Can tax form 1040x be filed online Add it to your depletion allowance (before applying any limits) for the following year. Can tax form 1040x be filed online Partnerships and S Corporations Generally, each partner or S corporation shareholder, and not the partnership or S corporation, figures the depletion allowance separately. Can tax form 1040x be filed online (However, see Electing large partnerships must figure depletion allowance , later. Can tax form 1040x be filed online ) Each partner or shareholder must decide whether to use cost or percentage depletion. Can tax form 1040x be filed online If a partner or shareholder uses percentage depletion, he or she must apply the 65%-of-taxable-income limit using his or her taxable income from all sources. Can tax form 1040x be filed online Partner's or shareholder's adjusted basis. Can tax form 1040x be filed online   The partnership or S corporation must allocate to each partner or shareholder his or her share of the adjusted basis of each oil or gas property held by the partnership or S corporation. Can tax form 1040x be filed online The partnership or S corporation makes the allocation as of the date it acquires the oil or gas property. Can tax form 1040x be filed online   Each partner's share of the adjusted basis of the oil or gas property generally is figured according to that partner's interest in partnership capital. Can tax form 1040x be filed online However, in some cases, it is figured according to the partner's interest in partnership income. Can tax form 1040x be filed online   The partnership or S corporation adjusts the partner's or shareholder's share of the adjusted basis of the oil and gas property for any capital expenditures made for the property and for any change in partnership or S corporation interests. Can tax form 1040x be filed online Recordkeeping. Can tax form 1040x be filed online Each partner or shareholder must separately keep records of his or her share of the adjusted basis in each oil and gas property of the partnership or S corporation. Can tax form 1040x be filed online The partner or shareholder must reduce his or her adjusted basis by the depletion allowed or allowable on the property each year. Can tax form 1040x be filed online The partner or shareholder must use that reduced adjusted basis to figure cost depletion or his or her gain or loss if the partnership or S corporation disposes of the property. Can tax form 1040x be filed online Reporting the deduction. Can tax form 1040x be filed online   Information that you, as a partner or shareholder, use to figure your depletion deduction on oil and gas properties is reported by the partnership or S corporation on Schedule K-1 (Form 1065) or on Schedule K-1 (Form 1120S). Can tax form 1040x be filed online Deduct oil and gas depletion for your partnership or S corporation interest on Schedule E (Form 1040). Can tax form 1040x be filed online The depletion deducted on Schedule E is included in figuring income or loss from rental real estate or royalty properties. Can tax form 1040x be filed online The instructions for Schedule E explain where to report this income or loss and whether you need to file either of the following forms. Can tax form 1040x be filed online Form 6198, At-Risk Limitations. Can tax form 1040x be filed online Form 8582, Passive Activity Loss Limitations. Can tax form 1040x be filed online Electing large partnerships must figure depletion allowance. Can tax form 1040x be filed online   An electing large partnership, rather than each partner, generally must figure the depletion allowance. Can tax form 1040x be filed online The partnership figures the depletion allowance without taking into account the 65-percent-of-taxable-income limit and the depletable oil or natural gas quantity. Can tax form 1040x be filed online Also, the adjusted basis of a partner's interest in the partnership is not affected by the depletion allowance. Can tax form 1040x be filed online   An electing large partnership is one that meets both the following requirements. Can tax form 1040x be filed online The partnership had 100 or more partners in the preceding year. Can tax form 1040x be filed online The partnership chooses to be an electing large partnership. Can tax form 1040x be filed online Disqualified persons. Can tax form 1040x be filed online   An electing large partnership does not figure the depletion allowance of its partners that are disqualified persons. Can tax form 1040x be filed online Disqualified persons must figure it themselves, as explained earlier. Can tax form 1040x be filed online   All the following are disqualified persons. Can tax form 1040x be filed online Refiners who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). Can tax form 1040x be filed online Retailers who cannot claim percentage depletion (discussed under Independent Producers and Royalty Owners , earlier). Can tax form 1040x be filed online Any partner whose average daily production of domestic crude oil and natural gas is more than 500 barrels during the tax year in which the partnership tax year ends. Can tax form 1040x be filed online Average daily production is discussed earlier. Can tax form 1040x be filed online Natural Gas Wells You can use percentage depletion for a well that produces natural gas that is either Sold under a fixed contract, or Produced from geopressured brine. Can tax form 1040x be filed online Natural gas sold under a fixed contract. Can tax form 1040x be filed online   Natural gas sold under a fixed contract qualifies for a percentage depletion rate of 22%. Can tax form 1040x be filed online This is domestic natural gas sold by the producer under a contract that does not provide for a price increase to reflect any increase in the seller's tax liability because of the repeal of percentage depletion for gas. Can tax form 1040x be filed online The contract must have been in effect from February 1, 1975, until the date of sale of the gas. Can tax form 1040x be filed online Price increases after February 1, 1975, are presumed to take the increase in tax liability into account unless demonstrated otherwise by clear and convincing evidence. Can tax form 1040x be filed online Natural gas from geopressured brine. Can tax form 1040x be filed online   Qualified natural gas from geopressured brine is eligible for a percentage depletion rate of 10%. Can tax form 1040x be filed online This is natural gas that is both the following. Can tax form 1040x be filed online Produced from a well you began to drill after September 1978 and before 1984. Can tax form 1040x be filed online Determined in accordance with section 503 of the Natural Gas Policy Act of 1978 to be produced from geopressured brine. Can tax form 1040x be filed online Mines and Geothermal Deposits Certain mines, wells, and other natural deposits, including geothermal deposits, qualify for percentage depletion. Can tax form 1040x be filed online Mines and other natural deposits. Can tax form 1040x be filed online   For a natural deposit, the percentage of your gross income from the property that you can deduct as depletion depends on the type of deposit. Can tax form 1040x be filed online   The following is a list of the percentage depletion rates for the more common minerals. Can tax form 1040x be filed online DEPOSITS RATE Sulphur, uranium, and, if from deposits in the United States, asbestos, lead ore, zinc ore, nickel ore, and mica 22% Gold, silver, copper, iron ore, and certain oil shale, if from deposits in the United States 15% Borax, granite, limestone, marble, mollusk shells, potash, slate, soapstone, and carbon dioxide produced from a well 14% Coal, lignite, and sodium chloride 10% Clay and shale used or sold for use in making sewer pipe or bricks or used or sold for use as sintered or burned lightweight aggregates 7½% Clay used or sold for use in making drainage and roofing tile, flower pots, and kindred products, and gravel, sand, and stone (other than stone used or sold for use by a mine owner or operator as dimension or ornamental stone) 5%   You can find a complete list of minerals and their percentage depletion rates in section 613(b) of the Internal Revenue Code. Can tax form 1040x be filed online Corporate deduction for iron ore and coal. Can tax form 1040x be filed online   The percentage depletion deduction of a corporation for iron ore and coal (including lignite) is reduced by 20% of: The percentage depletion deduction for the tax year (figured without this reduction), minus The adjusted basis of the property at the close of the tax year (figured without the depletion deduction for the tax year). Can tax form 1040x be filed online Gross income from the property. Can tax form 1040x be filed online   For property other than a geothermal deposit or an oil or gas well, gross income from the property means the gross income from mining. Can tax form 1040x be filed online Mining includes all the following. Can tax form 1040x be filed online Extracting ores or minerals from the ground. Can tax form 1040x be filed online Applying certain treatment processes described later. Can tax form 1040x be filed online Transporting ores or minerals (generally, not more than 50 miles) from the point of extraction to the plants or mills in which the treatment processes are applied. Can tax form 1040x be filed online Excise tax. Can tax form 1040x be filed online   Gross income from mining includes the separately stated excise tax received by a mine operator from the sale of coal to compensate the operator for the excise tax the mine operator must pay to finance black lung benefits. Can tax form 1040x be filed online Extraction. Can tax form 1040x be filed online   Extracting ores or minerals from the ground includes extraction by mine owners or operators of ores or minerals from the waste or residue of prior mining. Can tax form 1040x be filed online This does not apply to extraction from waste or residue of prior mining by the purchaser of the waste or residue or the purchaser of the rights to extract ores or minerals from the waste or residue. Can tax form 1040x be filed online Treatment processes. Can tax form 1040x be filed online   The processes included as mining depend on the ore or mineral mined. Can tax form 1040x be filed online To qualify as mining, the treatment processes must be applied by the mine owner or operator. Can tax form 1040x be filed online For a listing of treatment processes considered as mining, see section 613(c)(4) of the Internal Revenue Code and the related regulations. Can tax form 1040x be filed online Transportation of more than 50 miles. Can tax form 1040x be filed online   If the IRS finds that the ore or mineral must be transported more than 50 miles to plants or mills to be treated because of physical and other requirements, the additional authorized transportation is considered mining and included in the computation of gross income from mining. Can tax form 1040x be filed online    If you wish to include transportation of more than 50 miles in the computation of gross income from mining, request an advance ruling from the IRS. Can tax form 1040x be filed online Include in the request the facts about the physical and other requirements that prevented the construction and operation of the plant within 50 miles of the point of extraction. Can tax form 1040x be filed online For more information about requesting an advance ruling, see Revenue Procedure 2013-1, available at www. Can tax form 1040x be filed online irs. Can tax form 1040x be filed online gov/irb/2013-01_IRB/ar11. Can tax form 1040x be filed online html. Can tax form 1040x be filed online Disposal of coal or iron ore. Can tax form 1040x be filed online   You cannot take a depletion deduction for coal (including lignite) or iron ore mined in the United States if both the following apply. Can tax form 1040x be filed online You disposed of it after holding it for more than 1 year. Can tax form 1040x be filed online You disposed of it under a contract under which you retain an economic interest in the coal or iron ore. Can tax form 1040x be filed online Treat any gain on the disposition as a capital gain. Can tax form 1040x be filed online Disposal to related person. Can tax form 1040x be filed online   This rule does not apply if you dispose of the coal or iron ore to one of the following persons. Can tax form 1040x be filed online A related person (as listed in chapter 2 of Publication 544). Can tax form 1040x be filed online A person owned or controlled by the same interests that own or control you. Can tax form 1040x be filed online Geothermal deposits. Can tax form 1040x be filed online   Geothermal deposits located in the United States or its possessions qualify for a percentage depletion rate of 15%. Can tax form 1040x be filed online A geothermal deposit is a geothermal reservoir of natural heat stored in rocks or in a watery liquid or vapor. Can tax form 1040x be filed online For percentage depletion purposes, a geothermal deposit is not considered a gas well. Can tax form 1040x be filed online   Figure gross income from the property for a geothermal steam well in the same way as for oil and gas wells. Can tax form 1040x be filed online See Gross income from the property , earlier, under Oil and Gas Wells. Can tax form 1040x be filed online Percentage depletion on a geothermal deposit cannot be more than 50% of your taxable income from the property. Can tax form 1040x be filed online Lessor's Gross Income In the case of leased property, the depletion deduction is divided between the lessor and the lessee. Can tax form 1040x be filed online A lessor's gross income from the property that qualifies for percentage depletion usually is the total of the royalties received from the lease. Can tax form 1040x be filed online Bonuses and advanced royalties. Can tax form 1040x be filed online   Bonuses and advanced royalties are payments a lessee makes before production to a lessor for the grant of rights in a lease or for minerals, gas, or oil to be extracted from leased property. Can tax form 1040x be filed online If you are the lessor, your income from bonuses and advanced royalties received is subject to an allowance for depletion, as explained in the next two paragraphs. Can tax form 1040x be filed online Figuring cost depletion. Can tax form 1040x be filed online   To figure cost depletion on a bonus, multiply your adjusted basis in the property by a fraction, the numerator of which is the bonus and the denominator of which is the total bonus and royalties expected to be received. Can tax form 1040x be filed online To figure cost depletion on advanced royalties, use the computation explained earlier under Cost Depletion , treating the number of units for which the advanced royalty is received as the number of units sold. Can tax form 1040x be filed online Figuring percentage depletion. Can tax form 1040x be filed online   In the case of mines, wells, and other natural deposits other than gas, oil, or geothermal property, you may use the percentage rates discussed earlier under Mines and Geothermal Deposits . Can tax form 1040x be filed online Any bonus or advanced royalty payments are generally part of the gross income from the property to which the rates are applied in making the calculation. Can tax form 1040x be filed online However, for oil, gas, or geothermal property, gross income does not include lease bonuses, advanced royalties, or other amounts payable without regard to production from the property. Can tax form 1040x be filed online Ending the lease. Can tax form 1040x be filed online   If you receive a bonus on a lease that ends or is abandoned before you derive any income from mineral extraction, include in income the depletion deduction you took. Can tax form 1040x be filed online Do this for the year the lease ends or is abandoned. Can tax form 1040x be filed online Also increase your adjusted basis in the property to restore the depletion deduction you previously subtracted. Can tax form 1040x be filed online   For advanced royalties, include in income the depletion claimed on minerals for which the advanced royalties were paid if the minerals were not produced before the lease ended. Can tax form 1040x be filed online Include this amount in income for the year the lease ends. Can tax form 1040x be filed online Increase your adjusted basis in the property by the amount you include in income. Can tax form 1040x be filed online Delay rentals. Can tax form 1040x be filed online   These are payments for deferring development of the property. Can tax form 1040x be filed online Since delay rentals are ordinary rent, they are ordinary income that is not subject to depletion. Can tax form 1040x be filed online These rentals can be avoided by either abandoning the lease, beginning development operations, or obtaining production. Can tax form 1040x be filed online Timber You can figure timber depletion only by the cost method. Can tax form 1040x be filed online Percentage depletion does not apply to timber. Can tax form 1040x be filed online Base your depletion on your cost or other basis in the timber. Can tax form 1040x be filed online Your cost does not include the cost of land or any amounts recoverable through depreciation. Can tax form 1040x be filed online Depletion takes place when you cut standing timber. Can tax form 1040x be filed online You can figure your depletion deduction when the quantity of cut timber is first accurately measured in the process of exploitation. Can tax form 1040x be filed online Figuring cost depletion. Can tax form 1040x be filed online   To figure your cost depletion allowance, you multiply the number of timber units cut by your depletion unit. Can tax form 1040x be filed online Timber units. Can tax form 1040x be filed online   When you acquire timber property, you must make an estimate of the quantity of marketable timber that exists on the property. Can tax form 1040x be filed online You measure the timber using board feet, log scale, cords, or other units. Can tax form 1040x be filed online If you later determine that you have more or less units of timber, you must adjust the original estimate. Can tax form 1040x be filed online   The term “timber property” means your economic interest in standing timber in each tract or block representing a separate timber account. Can tax form 1040x be filed online Depletion unit. Can tax form 1040x be filed online   You figure your depletion unit each year by taking the following steps. Can tax form 1040x be filed online Determine your cost or adjusted basis of the timber on hand at the beginning of the year. Can tax form 1040x be filed online Adjusted basis is defined under Cost Depletion in the discussion on Mineral Property. Can tax form 1040x be filed online Add to the amount determined in (1) the cost of any timber units acquired during the year and any additions to capital. Can tax form 1040x be filed online Figure the number of timber units to take into account by adding the number of timber units acquired during the year to the number of timber units on hand in the account at the beginning of the year and then adding (or subtracting) any correction to the estimate of the number of timber units remaining in the account. Can tax form 1040x be filed online Divide the result of (2) by the result of (3). Can tax form 1040x be filed online This is your depletion unit. Can tax form 1040x be filed online Example. Can tax form 1040x be filed online You bought a timber tract for $160,000 and the land was worth as much as the timber. Can tax form 1040x be filed online Your basis for the timber is $80,000. Can tax form 1040x be filed online Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 ÷ 1,000). Can tax form 1040x be filed online If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF × $80). Can tax form 1040x be filed online When to claim depletion. Can tax form 1040x be filed online   Claim your depletion allowance as a deduction in the year of sale or other disposition of the products cut from the timber, unless you choose to treat the cutting of timber as a sale or exchange (explained below). Can tax form 1040x be filed online Include allowable depletion for timber products not sold during the tax year the timber is cut as a cost item in the closing inventory of timber products for the year. Can tax form 1040x be filed online The inventory is your basis for determining gain or loss in the tax year you sell the timber products. Can tax form 1040x be filed online Example. Can tax form 1040x be filed online The facts are the same as in the previous example except that you sold only half of the timber products in the cutting year. Can tax form 1040x be filed online You would deduct $20,000 of the $40,000 depletion that year. Can tax form 1040x be filed online You would add the remaining $20,000 depletion to your closing inventory of timber products. Can tax form 1040x be filed online Electing to treat the cutting of timber as a sale or exchange. Can tax form 1040x be filed online   You can elect, under certain circumstances, to treat the cutting of timber held for more than 1 year as a sale or exchange. Can tax form 1040x be filed online You must make the election on your income tax return for the tax year to which it applies. Can tax form 1040x be filed online If you make this election, subtract the adjusted basis for depletion from the fair market value of the timber on the first day of the tax year in which you cut it to figure the gain or loss on the cutting. Can tax form 1040x be filed online You generally report the gain as long-term capital gain. Can tax form 1040x be filed online The fair market value then becomes your basis for figuring your ordinary gain or loss on the sale or other disposition of the products cut from the timber. Can tax form 1040x be filed online For more information, see Timber in chapter 2 of Publication 544, Sales and Other Dispositions of Assets. Can tax form 1040x be filed online   You may revoke an election to treat the cutting of timber as a sale or exchange without IRS's consent. Can tax form 1040x be filed online The prior election (and revocation) is disregarded for purposes of making a subsequent election. Can tax form 1040x be filed online See Form T (Timber), Forest Activities Schedule, for more information. Can tax form 1040x be filed online Form T. Can tax form 1040x be filed online   Complete and attach Form T (Timber) to your income tax return if you claim a deduction for timber depletion, choose to treat the cutting of timber as a sale or exchange, or make an outright sale of timber. 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