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Filing 1040 Online

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Filing 1040 Online

Filing 1040 online Índice Pérdidas en ciertas actividades madereras, retroactivación a 5 años, Traspaso a 5 años de NOL por ciertas pérdidas en actividades madereras. Filing 1040 online A Actividad maderera: Costos de reforestación, Costos de Reforestación Retroactivación a 5 años de NOL, Costos de Reforestación Apógrafo de la declaración de impuestos, solicitud de, Solicitud de apógrafo de la declaración de impuestos. Filing 1040 online Ayuda: Ayuda especial del IRS, Cómo Obtener Ayuda con los Impuestos Cibersitio del IRS, Cómo Obtener Ayuda con los Impuestos Cómo obtener, Cómo Obtener Ayuda con los Impuestos Teléfono, Cómo Obtener Ayuda con los Impuestos C Cancelación de endeudamiento, Exclusión de Ciertas Cancelaciones de Endeudamiento por Motivos del Huracán Katrina Cibersitio del IRS, Servicios gratis con los impuestos. Filing 1040 online Contribuciones caritativas, Suspensión Temporal de los Límites sobre las Contribuciones Caritativas Contribuyentes afectados, Contribuyentes afectados. Filing 1040 online Conversión involuntaria (ver Plazo de reposición para que las ganancias no sean reconocidas) Copia de su declaración de impuestos, solicitud de, Solicitud de copia de la declaración de impuestos. Filing 1040 online Costos de demolición, Costos de Demolición y Limpieza Costos de limpieza, Costos de Demolición y Limpieza Costos de reforestación, Costos de Reforestación Crédito Hope (ver Créditos por enseñanza superior) Crédito perpétuo (vitalicio) por aprendizaje (ver Créditos por enseñanza superior) Crédito por ingreso del trabajo, Crédito por Ingreso del Trabajo y Crédito Tributario por Hijos Crédito por la retención de empleados, Créditos por la Retención de Empleados Crédito por oportunidad de trabajo, Crédito por Oportunidad de Trabajo Crédito por vivienda para afectados por el huracán Katrina, Crédito por Vivienda del Huracán Katrina Crédito tributario por hijos, Crédito por Ingreso del Trabajo y Crédito Tributario por Hijos Crédito tributario por rehabilitación, Aumento del Crédito Tributario por Rehabilitación Créditos por enseñanza superior, Créditos Tributarios por Enseñanza Superior Créditos: Enseñanza superior, Créditos Tributarios por Enseñanza Superior Impuesto por rehabilitación, Aumento del Crédito Tributario por Rehabilitación Ingreso del trabajo, Crédito por Ingreso del Trabajo y Crédito Tributario por Hijos Oportunidad de trabajo, Crédito por Oportunidad de Trabajo Retención de empleados , Créditos por la Retención de Empleados Tributario por hijos, Crédito por Ingreso del Trabajo y Crédito Tributario por Hijos Vivienda para afectados por el huracán Katrina, Crédito por Vivienda del Huracán Katrina Cuentas IRA y otros planes de jubilación, Las Cuentas IRA y Otros Planes de Jubilación D Declaración de impuestos: Solicitud de apógrafo, Solicitud de apógrafo de la declaración de impuestos. Filing 1040 online Solicitud de una copia, Solicitud de copia de la declaración de impuestos. Filing 1040 online Deducción caritativa: Inventario de alimentos, Deducción Caritativa por Contribuciones de Inventario de Alimentos Inventario de libros, Deducción Caritativa por Contribuciones de Inventarios de Libros a Escuelas Públicas Deducción conforme a la sección 179, Mayor Deducción Conforme a la Sección 179 Defensor del contribuyente, Poniéndose en contacto con el Defensor del Contribuyente. Filing 1040 online Depreciación : Asignación especial , Asignación (Descuento) Especial de Depreciación Depreciación: Propiedad calificada de la Zona GO, Propiedad calificada de la Zona GO. Filing 1040 online Distribución calificada por motivos del huracán, Distribución calificada por motivos del huracán. Filing 1040 online Distribuciones: Compra o construcción de una vivienda, Reintegro de Distribuciones Calificadas por la Compra o Construcción de un Hogar Principal Huracán calificado, Distribución calificada por motivos del huracán. Filing 1040 online Reintegro de, Reintegro de Distribuciones Calificadas por Motivos de un Huracán Tributación de, Tributación de Distribuciones Calificadas por Motivos de un Huracán E Exención adicional por provisión de vivienda, Exenciones Adicionales por la Provisión de Vivienda para Personas que Tuvieron que Abandonar sus Hogares por Causa del Huracán Katrina F Fechas de vencimiento, prorrogadas, Prórrogas de las Fechas de Vencimiento Tributarias I Internet: Cibersitio del IRS, Servicios gratis con los impuestos. Filing 1040 online Inventario de alimentos, deducción caritativa por , Deducción Caritativa por Contribuciones de Inventario de Alimentos Inventario de libros, deducción caritativa por, Deducción Caritativa por Contribuciones de Inventarios de Libros a Escuelas Públicas P Pérdida calificada en una Zona GO, Pérdida calificada en una Zona GO. Filing 1040 online Pérdidas netas de operación , Pérdidas Netas de Operación Pérdidas por hechos fortuitos y robos, Pérdidas por Hechos Fortuitos y Robos Pérdidas por robo, Pérdidas por Hechos Fortuitos y Robos Plan de jubilación elegible, Plan de jubilación elegible. Filing 1040 online Planes de jubilación, Las Cuentas IRA y Otros Planes de Jubilación Plazo de reposición para que las ganancias no sean reconocidas, Período de Reposición para que las Ganancias no sean Reconocidas R Reembolsos de millas, voluntarios que prestaron servicios con fines caritativos, Reembolsos de Millas a Voluntarios que Prestaron Servicios con Fines Caritativos Reubicación temporal, Alivio Tributario para la Reubicación Temporal S Servicio de Impuestos Internos (IRS): Cibersitio del, Servicios gratis con los impuestos. Filing 1040 online Subsidio hipotecario federal, recuperación, Recuperación del Subsidio Hipotecario Federal T Tasa estándar por milla, uso con fines caritativos, Tasa Estándar por Milla para el Uso de Vehículos para Fines Caritativos Z Zona central del desastre, Zona de Oportunidad del Golfo (GO) (Zona Central del Desastre) Zona de desastre con cobertura: Katrina, Zona de Desastre del Huracán Katrina con Cobertura Rita, Zona de Desastre del Huracán Rita (Zona de Desastre de Rita con Cobertura) Wilma, Zona de Desastre del Huracán Wilma con Cobertura Zona de desastre: Huracán Katrina, Zona de Desastre del Huracán Katrina Huracán Rita, Zona de Desastre del Huracán Rita (Zona de Desastre de Rita con Cobertura) Huracán Wilma, Zona de Desastre del Huracán Wilma Zona de Oportunidad del Golfo (GO), Zona de Oportunidad del Golfo (GO) (Zona Central del Desastre) Zona GO de Rita, Zona GO de Rita Zona GO de Wilma, Zona GO de Wilma Anterior  Subir     Inicio   More Online Publications
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The Filing 1040 Online

Filing 1040 online 5. Filing 1040 online   Soil and Water Conservation Expenses Table of Contents Introduction Topics - This chapter discusses: Business of Farming Plan Certification Conservation ExpensesWater well. Filing 1040 online Assessment by Conservation DistrictAssessment for Depreciable Property 25% Limit on DeductionNet operating loss. Filing 1040 online When to Deduct or Capitalize Sale of a Farm Introduction If you are in the business of farming, you can choose to deduct certain expenses for: Soil or water conservation, Prevention of erosion of land used in farming, or Endangered species recovery. Filing 1040 online Otherwise, these are capital expenses that must be added to the basis of the land. Filing 1040 online (See chapter 6 for information on determining basis. Filing 1040 online ) Conservation expenses for land in a foreign country do not qualify for this special treatment. Filing 1040 online The deduction for conservation expenses cannot be more than 25% of your gross income from farming. Filing 1040 online See 25% Limit on Deduction , later. Filing 1040 online Although some expenses are not deductible as soil and water conservation expenses, they may be deductible as ordinary and necessary farm expenses. Filing 1040 online These include interest and taxes, the cost of periodically clearing brush from productive land, the regular removal of sediment from a drainage ditch, and expenses paid or incurred primarily to produce an agricultural crop that may also conserve soil. Filing 1040 online You must include in income most government payments for approved conservation practices. Filing 1040 online However, you can exclude some payments you receive under certain cost-sharing conservation programs. Filing 1040 online For more information, see Agricultural Program Payments in chapter 3. Filing 1040 online To get the full deduction to which you are entitled, you should maintain your records to clearly distinguish between your ordinary and necessary farm business expenses and your soil and water conservation expenses. Filing 1040 online Topics - This chapter discusses: Business of farming Plan certification Conservation expenses Assessment by conservation district 25% limit on deduction When to deduct or capitalize Sale of a farm Business of Farming For purposes of soil and water conservation expenses, you are in the business of farming if you cultivate, operate, or manage a farm for profit, either as an owner or a tenant. Filing 1040 online You are not in the business of farming if you cultivate or operate a farm for recreation or pleasure, rather than for profit. Filing 1040 online You are not farming if you are engaged only in forestry or the growing of timber. Filing 1040 online Farm defined. Filing 1040 online   A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. Filing 1040 online It also includes plantations, ranches, ranges, and orchards. Filing 1040 online A fish farm is an area where fish and other marine animals are grown or raised and artificially fed, protected, etc. Filing 1040 online It does not include an area where they are merely caught or harvested. Filing 1040 online A plant nursery is a farm for purposes of deducting soil and water conservation expenses. Filing 1040 online Farm rental. Filing 1040 online   If you own a farm and receive farm rental payments based on farm production, either in cash or crop shares, you are in the business of farming. Filing 1040 online If you get cash rental for a farm you own that is not used in farm production, you cannot deduct soil and water conservation expenses for that farm. Filing 1040 online   If you receive a fixed rental payment that is not based on farm production, you are in the business of farming only if you materially participate in operating or managing the farm. Filing 1040 online Example. Filing 1040 online You own a farm in Iowa and live in California. Filing 1040 online You rent the farm for $175 in cash per acre and do not materially participate in producing or managing production of the crops grown on the farm. Filing 1040 online You cannot deduct your soil conservation expenses for this farm. Filing 1040 online You must capitalize the expenses and add them to the basis of the land. Filing 1040 online     For more information, see Material participation for landlords under Landlord Participation in Farming in chapter 12. Filing 1040 online Plan Certification You can deduct soil and water conservation expenses only if they are consistent with a plan approved by the Natural Resources Conservation Service (NRCS) of the Department of Agriculture. Filing 1040 online If no such plan exists, the expenses must be consistent with a soil conservation plan of a comparable state agency. Filing 1040 online Keep a copy of the plan with your books and records to support your deductions. Filing 1040 online Conservation plan. Filing 1040 online   A conservation plan includes the farming conservation practices approved for the area where your farmland is located. Filing 1040 online There are three types of approved plans. Filing 1040 online NRCS individual site plans. Filing 1040 online These plans are issued individually to farmers who request assistance from NRCS to develop a conservation plan designed specifically for their farmland. Filing 1040 online NRCS county plans. Filing 1040 online These plans include a listing of farm conservation practices approved for the county where the farmland is located. Filing 1040 online You can deduct expenses for conservation practices not included on the NRCS county plans only if the practice is a part of an individual site plan. Filing 1040 online Comparable state agency plans. Filing 1040 online These plans are approved by state agencies and can be approved individual site plans or county plans. Filing 1040 online   A list of NRCS conservation programs is available at www. Filing 1040 online nrcs. Filing 1040 online usda. Filing 1040 online gov/programs. Filing 1040 online Individual site plans can be obtained from NRCS offices and the comparable state agencies. Filing 1040 online Conservation Expenses You can deduct conservation expenses only for land you or your tenant are using, or have used in the past, for farming. Filing 1040 online These expenses include, but are not limited to, the following. Filing 1040 online The treatment or movement of earth, such as: Leveling, Conditioning, Grading, Terracing, Contour furrowing, and Restoration of soil fertility. Filing 1040 online The construction, control, and protection of: Diversion channels, Drainage ditches, Irrigation ditches, Earthen dams, and Watercourses, outlets, and ponds. Filing 1040 online The eradication of brush. Filing 1040 online The planting of windbreaks. Filing 1040 online You cannot deduct expenses to drain or fill wetlands, or to prepare land for center pivot irrigation systems, as soil and water conservation expenses. Filing 1040 online These expenses are added to the basis of the land. Filing 1040 online If you choose to deduct soil and water conservation expenses, you cannot exclude from gross income any cost-sharing payments you receive for those expenses. Filing 1040 online See chapter 3 for information about payments eligible for the cost-sharing exclusion. Filing 1040 online New farm or farmland. Filing 1040 online   If you acquire a new farm or new farmland from someone who was using it in farming immediately before you acquired the land, soil and water conservation expenses you incur on it will be treated as made on land used in farming at the time the expenses were paid or incurred. Filing 1040 online You can deduct soil and water conservation expenses for this land if your use of it is substantially a continuation of its use in farming. Filing 1040 online The new farming activity does not have to be the same as the old farming activity. Filing 1040 online For example, if you buy land that was used for grazing cattle and then prepare it for use as an apple orchard, you can deduct your conservation expenses. Filing 1040 online Land not used for farming. Filing 1040 online   If your conservation expenses benefit both land that does not qualify as land used for farming and land that does qualify, you must allocate the expenses between the two types of land. Filing 1040 online For example, if the expenses benefit 200 acres of your land, but only 120 acres of this land are used for farming, then you can deduct 60% (120 ÷ 200) of the expenses. Filing 1040 online You can use another method to allocate these expenses if you can clearly show that your method is more reasonable. Filing 1040 online Depreciable conservation assets. Filing 1040 online   You generally cannot deduct your expenses for depreciable conservation assets. Filing 1040 online However, you can deduct certain amounts you pay or incur for an assessment for depreciable property that a soil and water conservation or drainage district levies against your farm. Filing 1040 online See Assessment for Depreciable Property , later. Filing 1040 online   You must capitalize expenses to buy, build, install, or improve depreciable structures or facilities. Filing 1040 online These expenses include those for materials, supplies, wages, fuel, hauling, and moving dirt when making structures such as tanks, reservoirs, pipes, culverts, canals, dams, wells, or pumps composed of masonry, concrete, tile, metal, or wood. Filing 1040 online You recover your capital investment through annual allowances for depreciation. Filing 1040 online   You can deduct soil and water conservation expenses for nondepreciable earthen items. Filing 1040 online Nondepreciable earthen items include certain dams, ponds, and terraces described under Property Having a Determinable Useful Life in chapter 7. Filing 1040 online Water well. Filing 1040 online   You cannot deduct the cost of drilling a water well for irrigation and other agricultural purposes as a soil and water conservation expense. Filing 1040 online It is a capital expense. Filing 1040 online You recover your cost through depreciation. Filing 1040 online You also must capitalize your cost for drilling a test hole. Filing 1040 online If the test hole produces no water and you continue drilling, the cost of the test hole is added to the cost of the producing well. Filing 1040 online You can recover the total cost through depreciation deductions. Filing 1040 online   If a test hole, dry hole, or dried-up well (resulting from prolonged lack of rain, for instance) is abandoned, you can deduct your unrecovered cost in the year of abandonment. Filing 1040 online Abandonment means that all economic benefits from the well are terminated. Filing 1040 online For example, filling or sealing a well excavation or casing so that all economic benefits from the well are terminated constitutes an abandonment. Filing 1040 online Endangered species recovery expenses. Filing 1040 online   If you are in the business of farming and meet other specific requirements, you can choose to deduct the conservation expenses discussed earlier as endangered species recovery expenses. Filing 1040 online Otherwise, these are capital expenses that must be added to the basis of the land. Filing 1040 online   The expenses must be paid or incurred for the purpose of achieving site-specific management actions recommended in a recovery plan approved under section 4(f) of the Endangered Species Act of 1973. Filing 1040 online See Internal Revenue Code section 175 for more information. Filing 1040 online Assessment by Conservation District In some localities, a soil or water conservation or drainage district incurs expenses for soil or water conservation and levies an assessment against the farmers who benefit from the expenses. Filing 1040 online You can deduct as a conservation expense amounts you pay or incur for the part of an assessment that: Covers expenses you could deduct if you had paid them directly, or Covers expenses for depreciable property used in the district's business. Filing 1040 online Assessment for Depreciable Property You generally can deduct as a conservation expense amounts you pay or incur for the part of a conservation or drainage district assessment that covers expenses for depreciable property. Filing 1040 online This includes items such as pumps, locks, concrete structures (including dams and weir gates), draglines, and similar equipment. Filing 1040 online The depreciable property must be used in the district's soil and water conservation activities. Filing 1040 online However, the following limits apply to these assessments. Filing 1040 online The total assessment limit. Filing 1040 online The yearly assessment limit. Filing 1040 online After you apply these limits, the amount you can deduct is added to your other conservation expenses for the year. Filing 1040 online The total for these expenses is then subject to the 25% of gross income from farming limit on the deduction, discussed later. Filing 1040 online See Table 5-1 for a brief summary of these limits. Filing 1040 online Table 5-1. Filing 1040 online Limits on Deducting an Assessment by a Conservation District for Depreciable Property Total Limit on Deduction for Assessment for Depreciable Property Yearly Limit on Deduction for Assessment for Depreciable Property Yearly Limit for All Conservation Expenses 10% of: $500 + 10% of: 25% of: Total assessment against all members of the district for the property. Filing 1040 online Your deductible share of the cost to the district for the property. Filing 1040 online Your gross income from farming. Filing 1040 online No one taxpayer can deduct more than 10% of the total assessment. Filing 1040 online Any amount over 10% is a capital expense and is added to the basis of your land. Filing 1040 online If an assessment is paid in installments, each payment must be prorated between the conservation expense and the capital expense. Filing 1040 online If the amount you pay or incur for any year is more than the limit, you can deduct for that year only 10% of your deductible share of the cost. Filing 1040 online You can deduct the remainder in equal amounts over the next 9 tax years. Filing 1040 online Limit for all conservation expenses, including assessments for depreciable property. Filing 1040 online Amounts greater than 25% can be carried to the following year and added to that year's expenses. Filing 1040 online The total is then subject to the 25% of gross income from farming limit in that year. Filing 1040 online To ensure your deduction is within the deduction limits, keep records to show the following. Filing 1040 online The total assessment against all members of the district for the depreciable property. Filing 1040 online Your deductible share of the cost to the district for the depreciable property. Filing 1040 online Your gross income from farming. Filing 1040 online Total assessment limit. Filing 1040 online   You cannot deduct more than 10% of the total amount assessed to all members of the conservation or drainage district for the depreciable property. Filing 1040 online This applies whether you pay the assessment in one payment or in installments. Filing 1040 online If your assessment is more than 10% of the total amount assessed, both the following rules apply. Filing 1040 online The amount over 10% is a capital expense and is added to the basis of your land. Filing 1040 online If the assessment is paid in installments, each payment must be prorated between the conservation expense and the capital expense. Filing 1040 online Yearly assessment limit. Filing 1040 online   The maximum amount you can deduct in any one year is the total of 10% of your deductible share of the cost as explained earlier, plus $500. Filing 1040 online If the amount you pay or incur is equal to or less than the maximum amount, you can deduct it in the year it is paid or incurred. Filing 1040 online If the amount you pay or incur is more, you can deduct in that year only 10% of your deductible share of the cost. Filing 1040 online You can deduct the remainder in equal amounts over the next 9 tax years. Filing 1040 online Your total conservation expense deduction for each year is also subject to the 25% of gross income from farming limit on the deduction, discussed later. Filing 1040 online Example 1. Filing 1040 online This year, the soil conservation district levies and you pay an assessment of $2,400 against your farm. Filing 1040 online Of the assessment, $1,500 is for digging drainage ditches. Filing 1040 online You can deduct this part as a soil or conservation expense as if you had paid it directly. Filing 1040 online The remaining $900 is for depreciable equipment to be used in the district's irrigation activities. Filing 1040 online The total amount assessed by the district against all its members for the depreciable equipment is $7,000. Filing 1040 online The total amount you can deduct for the depreciable equipment is limited to 10% of the total amount assessed by the district against all its members for depreciable equipment, or $700. Filing 1040 online The $200 excess ($900 − $700) is a capital expense you must add to the basis of your farm. Filing 1040 online To figure the maximum amount you can deduct for the depreciable equipment this year, multiply your deductible share of the total assessment ($700) by 10%. Filing 1040 online Add $500 to the result for a total of $570. Filing 1040 online Your deductible share, $700, is greater than the maximum amount deductible in one year, so you can deduct only $70 of the amount you paid or incurred for depreciable property this year (10% of $700). Filing 1040 online You can deduct the balance at the rate of $70 a year over the next 9 years. Filing 1040 online You add $70 to the $1,500 portion of the assessment for drainage ditches. Filing 1040 online You can deduct $1,570 of the $2,400 assessment as a soil and water conservation expense this year, subject to the 25% of gross income from farming limit on the deduction, discussed later. Filing 1040 online Example 2. Filing 1040 online Assume the same facts in Example 1 except that $1,850 of the $2,400 assessment is for digging drainage ditches and $550 is for depreciable equipment. Filing 1040 online The total amount assessed by the district against all its members for depreciable equipment is $5,500. Filing 1040 online The total amount you can deduct for the depreciable equipment is limited to 10% of this amount, or $550. Filing 1040 online The maximum amount you can deduct this year for the depreciable equipment is $555 (10% of your deductible share of the total assessment, $55, plus $500). Filing 1040 online Since your deductible share is less than the maximum amount deductible in one year, you can deduct the entire $550 this year. Filing 1040 online You can deduct the entire assessment, $2,400, as a soil and water conservation expense this year, subject to the 25% of gross income from farming limit on the deduction, discussed below. Filing 1040 online Sale or other disposal of land during 9-year period. Filing 1040 online   If you dispose of the land during the 9-year period for deducting conservation expenses subject to the yearly limit, any amounts you have not yet deducted because of this limit are added to the basis of the property. Filing 1040 online Death of farmer during 9-year period. Filing 1040 online   If a farmer dies during the 9-year period, any remaining amounts not yet deducted are deducted in the year of death. Filing 1040 online 25% Limit on Deduction The total deduction for conservation expenses in any tax year is limited to 25% of your gross income from farming for the year. Filing 1040 online Gross income from farming. Filing 1040 online   Gross income from farming is the income you derive in the business of farming from the production of crops, fish, fruits, other agricultural products, or livestock. Filing 1040 online Gains from sales of draft, breeding, or dairy livestock are included. Filing 1040 online Gains from sales of assets such as farm machinery, or from the disposition of land, are not included. Filing 1040 online Carryover of deduction. Filing 1040 online   If your deductible conservation expenses in any year are more than 25% of your gross income from farming for that year, you can carry the unused deduction over to later years. Filing 1040 online However, the deduction in any later year is limited to 25% of the gross income from farming for that year as well. Filing 1040 online Example. Filing 1040 online In 2012, you have gross income of $32,000 from two farms. Filing 1040 online During the year, you incurred $10,000 of deductible soil and water conservation expenses for one of the farms. Filing 1040 online However, your deduction is limited to 25% of $32,000, or $8,000. Filing 1040 online The $2,000 excess ($10,000 − $8,000) is carried over to 2013 and added to deductible soil and water conservation expenses made in that year. Filing 1040 online The total of the 2012 carryover plus 2013 expenses is deductible in 2013, subject to the limit of 25% of your gross income from farming in 2013. Filing 1040 online Any expenses over the limit in that year are carried to 2014 and later years. Filing 1040 online Net operating loss. Filing 1040 online   The deduction for soil and water conservation expenses, after applying the 25% limit, is included when figuring a net operating loss (NOL) for the year. Filing 1040 online If the NOL is carried to another year, the soil and water conservation deduction included in the NOL is not subject to the 25% limit in the year to which it is carried. Filing 1040 online When to Deduct or Capitalize If you choose to deduct soil and water conservation expenses, you must deduct the total allowable amount on your tax return for the first year you pay or incur these expenses. Filing 1040 online If you do not choose to deduct the expenses, you must capitalize them. Filing 1040 online Change of method. Filing 1040 online   If you want to change your method for the treatment of soil and water conservation expenses, or you want to treat the expenses for a particular project or a single farm in a different manner, you must get the approval of the IRS. Filing 1040 online To get this approval, submit a written request by the due date of your return for the first tax year you want the new method to apply. Filing 1040 online You or your authorized representative must sign the request. Filing 1040 online   The request must include the following information. Filing 1040 online Your name and address. Filing 1040 online The first tax year the method or change of method is to apply. Filing 1040 online Whether the method or change of method applies to all your soil and water conservation expenses or only to those for a particular project or farm. Filing 1040 online If the method or change of method does not apply to all your expenses, identify the project or farm to which the expenses apply. Filing 1040 online The total expenses you paid or incurred in the first tax year the method or change of method is to apply. Filing 1040 online A statement that you will account separately in your books for the expenses to which this method or change of method relates. Filing 1040 online Send your request to the following  address. Filing 1040 online  Department of the Treasury Internal Revenue Service Center Cincinnati, OH 45999  For more information, see Change in  Accounting Method in chapter 2. Filing 1040 online Sale of a Farm If you sell your farm, you cannot adjust the basis of the land at the time of the sale for any unused carryover of soil and water conservation expenses (except for deductions of assessments for depreciable property, discussed earlier). Filing 1040 online However, if you acquire another farm and return to the business of farming, you can start taking deductions again for the unused carryovers. Filing 1040 online Gain on sale of farmland. Filing 1040 online   If you held the land 5 years or less before you sold it, gain on the sale of the land is treated as ordinary income up to the amount you previously deducted for soil and water conservation expenses. Filing 1040 online If you held the land less than 10 but more than 5 years, the gain is treated as ordinary income up to a specified percentage of the previous deductions. Filing 1040 online See Section 1252 property under Other Gains in chapter 9. Filing 1040 online Prev  Up  Next   Home   More Online Publications