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Filing 1040x Online

Filing 1040x online 5. Filing 1040x online   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. Filing 1040x online Short-term lease. Filing 1040x online Retail space. Filing 1040x online Qualified long-term real property. Filing 1040x online Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. Filing 1040x online If there is a connection between any income you receive and your business, the income is business income. Filing 1040x online A connection exists if it is clear that the payment of income would not have been made if you did not have the business. Filing 1040x online You can have business income even if you are not involved in the activity on a regular full-time basis. Filing 1040x online Income from work you do on the side in addition to your regular job can be business income. Filing 1040x online You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. Filing 1040x online But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. Filing 1040x online For information on selling business assets, see chapter 3. Filing 1040x online Nonemployee compensation. Filing 1040x online Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. Filing 1040x online This includes amounts reported as nonemployee compensation in box 7 of the form. Filing 1040x online You can find more information in the instructions on the back of the Form 1099-MISC you received. Filing 1040x online Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. Filing 1040x online In most cases, your business income will be in the form of cash, checks, and credit card charges. Filing 1040x online But business income can be in other forms, such as property or services. Filing 1040x online These and other types of income are explained next. Filing 1040x online If you are a U. Filing 1040x online S. Filing 1040x online citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. Filing 1040x online S. Filing 1040x online law. Filing 1040x online If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. Filing 1040x online For details, see Publication 54, Tax Guide for U. Filing 1040x online S. Filing 1040x online Citizens and Resident Aliens Abroad. Filing 1040x online Bartering for Property or Services Bartering is an exchange of property or services. Filing 1040x online You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. Filing 1040x online If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. Filing 1040x online Example 1. Filing 1040x online You are a self-employed lawyer. Filing 1040x online You perform legal services for a client, a small corporation. Filing 1040x online In payment for your services, you receive shares of stock in the corporation. Filing 1040x online You must include the fair market value of the shares in income. Filing 1040x online Example 2. Filing 1040x online You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. Filing 1040x online You must include the fair rental value of the apartment in your gross receipts. Filing 1040x online Your landlord must include the fair market value of the work of art in his or her rental income. Filing 1040x online Example 3. Filing 1040x online You are a self-employed accountant. Filing 1040x online Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. Filing 1040x online Members get in touch with other members directly and bargain for the value of the services to be performed. Filing 1040x online In return for accounting services you provided for the house painter's business, the house painter painted your home. Filing 1040x online You must include in gross receipts the fair market value of the services you received from the house painter. Filing 1040x online The house painter must include the fair market value of your accounting services in his or her gross receipts. Filing 1040x online Example 4. Filing 1040x online You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. Filing 1040x online As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. Filing 1040x online You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. Filing 1040x online The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. Filing 1040x online It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. Filing 1040x online See Publication 15 (Circular E), Employer's Tax Guide. Filing 1040x online Example 5. Filing 1040x online You operate a plumbing business and use the cash method of accounting. Filing 1040x online You join a barter club and agree to provide plumbing services to any member for a specified number of hours. Filing 1040x online Each member has access to a directory that lists the members of the club and the services available. Filing 1040x online Members contact each other directly and request services to be performed. Filing 1040x online You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. Filing 1040x online You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. Filing 1040x online Information returns. Filing 1040x online   If you are involved in a bartering transaction, you may have to file either of the following forms. Filing 1040x online Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. Filing 1040x online Form 1099-MISC, Miscellaneous Income. Filing 1040x online For information about these forms, see the General Instructions for Certain Information Returns. Filing 1040x online Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. Filing 1040x online , who provides services (maid services, etc. Filing 1040x online ) for guests, report the rental income and expenses on Schedule C or C-EZ. Filing 1040x online If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. Filing 1040x online For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). Filing 1040x online Real estate dealer. Filing 1040x online   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. Filing 1040x online Rent you receive from real estate held for sale to customers is subject to SE tax. Filing 1040x online However, rent you receive from real estate held for speculation or investment is not subject to SE tax. Filing 1040x online Trailer park owner. Filing 1040x online   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. Filing 1040x online    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. Filing 1040x online Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. Filing 1040x online   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. Filing 1040x online   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. Filing 1040x online Hotels, boarding houses, and apartments. Filing 1040x online   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. Filing 1040x online   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. Filing 1040x online An example of a service that is not normally provided for the convenience of the occupants is maid service. Filing 1040x online However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. Filing 1040x online Prepaid rent. Filing 1040x online   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. Filing 1040x online This is true no matter what accounting method or period you use. Filing 1040x online Lease bonus. Filing 1040x online   A bonus you receive from a lessee for granting a lease is an addition to the rent. Filing 1040x online Include it in your gross receipts in the year received. Filing 1040x online Lease cancellation payments. Filing 1040x online   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. Filing 1040x online Payments to third parties. Filing 1040x online   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. Filing 1040x online A common example of this kind of income is a lessee's payment of your property taxes on leased real property. Filing 1040x online Settlement payments. Filing 1040x online   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. Filing 1040x online Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. Filing 1040x online ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. Filing 1040x online Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. Filing 1040x online If you receive any of those payments, include them in your gross receipts as explained in that discussion. Filing 1040x online Interest and Dividend Income Interest and dividends may be considered business income. Filing 1040x online Interest. Filing 1040x online   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. Filing 1040x online Interest received on loans is business income if you are in the business of lending money. Filing 1040x online Uncollectible loans. Filing 1040x online   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. Filing 1040x online If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. Filing 1040x online See Bad Debts in chapter 8. Filing 1040x online Unstated interest. Filing 1040x online   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. Filing 1040x online See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. Filing 1040x online Dividends. Filing 1040x online   Generally, dividends are business income to dealers in securities. Filing 1040x online For most sole proprietors and statutory employees, however, dividends are nonbusiness income. Filing 1040x online If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. Filing 1040x online   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. Filing 1040x online To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. Filing 1040x online Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. Filing 1040x online General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. Filing 1040x online Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. Filing 1040x online If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. Filing 1040x online Exceptions The following discussion covers some exceptions to the general rule for canceled debt. Filing 1040x online Price reduced after purchase. Filing 1040x online   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. Filing 1040x online Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. Filing 1040x online Deductible debt. Filing 1040x online   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. Filing 1040x online Example. Filing 1040x online You get accounting services for your business on credit. Filing 1040x online Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. Filing 1040x online Your accountant forgives part of the amount you owe for the accounting services. Filing 1040x online How you treat the canceled debt depends on your method of accounting. Filing 1040x online Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. Filing 1040x online Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. Filing 1040x online   For information on the cash and accrual methods of accounting, see chapter 2. Filing 1040x online Exclusions Do not include canceled debt in income in the following situations. Filing 1040x online However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Filing 1040x online For more information, see Form 982. Filing 1040x online The cancellation takes place in a bankruptcy case under title 11 of the U. Filing 1040x online S. Filing 1040x online Code (relating to bankruptcy). Filing 1040x online See Publication 908, Bankruptcy Tax Guide. Filing 1040x online The cancellation takes place when you are insolvent. Filing 1040x online You can exclude the canceled debt to the extent you are insolvent. Filing 1040x online See Publication 908. Filing 1040x online The canceled debt is a qualified farm debt owed to a qualified person. Filing 1040x online See chapter 3 in Publication 225, Farmer's Tax Guide. Filing 1040x online The canceled debt is a qualified real property business debt. Filing 1040x online This situation is explained later. Filing 1040x online The canceled debt is qualified principal residence indebtedness which is discharged after 2006. Filing 1040x online See Form 982. Filing 1040x online If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. Filing 1040x online If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. Filing 1040x online Debt. Filing 1040x online   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. Filing 1040x online Qualified real property business debt. Filing 1040x online   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. Filing 1040x online If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. Filing 1040x online Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. Filing 1040x online However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. Filing 1040x online Cancellation of qualified real property business debt. Filing 1040x online   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. Filing 1040x online It was incurred or assumed in connection with real property used in a trade or business. Filing 1040x online It was secured by such real property. Filing 1040x online It was incurred or assumed at either of the following times. Filing 1040x online Before January 1, 1993. Filing 1040x online After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. Filing 1040x online It is debt to which you choose to apply these rules. Filing 1040x online   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. Filing 1040x online   You cannot exclude more than either of the following amounts. Filing 1040x online The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. Filing 1040x online The total adjusted bases of depreciable real property held by you immediately before the cancellation. Filing 1040x online These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. Filing 1040x online Do not take into account depreciable real property acquired in contemplation of the cancellation. Filing 1040x online Election. Filing 1040x online   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. Filing 1040x online You must file your return by the due date (including extensions). Filing 1040x online If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Filing 1040x online For more information, see When To File in the form instructions. Filing 1040x online Other Income The following discussion explains how to treat other types of business income you may receive. Filing 1040x online Restricted property. Filing 1040x online   Restricted property is property that has certain restrictions that affect its value. Filing 1040x online If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. Filing 1040x online However, you can choose to be taxed in the year you receive the property. Filing 1040x online For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. Filing 1040x online Gains and losses. Filing 1040x online   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. Filing 1040x online Instead, you must report these gains and losses on other forms. Filing 1040x online For more information, see chapter 3. Filing 1040x online Promissory notes. Filing 1040x online   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. Filing 1040x online In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. Filing 1040x online Lost income payments. Filing 1040x online   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. Filing 1040x online Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. Filing 1040x online Damages. Filing 1040x online   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. Filing 1040x online Patent infringement. Filing 1040x online Breach of contract or fiduciary duty. Filing 1040x online Antitrust injury. Filing 1040x online Economic injury. Filing 1040x online   You may be entitled to a deduction against the income if it compensates you for actual economic injury. Filing 1040x online Your deduction is the smaller of the following amounts. Filing 1040x online The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. Filing 1040x online Your loss from the injury that you have not yet deducted. Filing 1040x online Punitive damages. Filing 1040x online   You must also include punitive damages in income. Filing 1040x online Kickbacks. Filing 1040x online   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. Filing 1040x online However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. Filing 1040x online Recovery of items previously deducted. Filing 1040x online   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. Filing 1040x online However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. Filing 1040x online If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. Filing 1040x online Example. Filing 1040x online Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. Filing 1040x online He also had 2 personal exemptions for a total of $7,800. Filing 1040x online He would not pay income tax even if he did not deduct the bad debt. Filing 1040x online Therefore, he will not report as income any part of the $300 he may recover in any future year. Filing 1040x online Exception for depreciation. Filing 1040x online   This rule does not apply to depreciation. Filing 1040x online You recover depreciation using the rules explained next. Filing 1040x online Recapture of depreciation. Filing 1040x online   In the following situations, you have to recapture the depreciation deduction. Filing 1040x online This means you include in income part or all of the depreciation you deducted in previous years. Filing 1040x online Listed property. Filing 1040x online   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. Filing 1040x online You do this by including in income on Schedule C part of the depreciation you deducted in previous years. Filing 1040x online Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. Filing 1040x online For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. Filing 1040x online That chapter explains how to determine whether property is used more than 50% in your business. Filing 1040x online Section 179 property. Filing 1040x online   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. Filing 1040x online You do this by including in income on Schedule C part of the deduction you took. Filing 1040x online Use Part IV of Form 4797 to figure the amount to include on Schedule C. Filing 1040x online See chapter 2 in Publication 946 to find out when you recapture the deduction. Filing 1040x online Sale or exchange of depreciable property. Filing 1040x online   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. Filing 1040x online You figure the income due to depreciation recapture in Part III of Form 4797. Filing 1040x online For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. Filing 1040x online Items That Are Not Income In some cases the property or money you receive is not income. Filing 1040x online Appreciation. Filing 1040x online   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. Filing 1040x online Consignments. Filing 1040x online   Consignments of merchandise to others to sell for you are not sales. Filing 1040x online The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. Filing 1040x online Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. Filing 1040x online Merchandise you have shipped out on consignment is included in your inventory until it is sold. Filing 1040x online   Do not include merchandise you receive on consignment in your inventory. Filing 1040x online Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. Filing 1040x online Construction allowances. Filing 1040x online   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. Filing 1040x online Under a short-term lease of retail space. Filing 1040x online For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. Filing 1040x online Amount you can exclude. Filing 1040x online   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. Filing 1040x online Short-term lease. Filing 1040x online   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. Filing 1040x online The following rules apply in determining whether the lease is for 15 years or less. Filing 1040x online Take into account options to renew when figuring whether the lease is for 15 years or less. Filing 1040x online But do not take into account any option to renew at fair market value determined at the time of renewal. Filing 1040x online Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. Filing 1040x online Retail space. Filing 1040x online   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. Filing 1040x online Qualified long-term real property. Filing 1040x online   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. Filing 1040x online Exchange of like-kind property. Filing 1040x online   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. Filing 1040x online This means that the gain is not taxable and the loss is not deductible. Filing 1040x online A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. Filing 1040x online For more information, see Form 8824. Filing 1040x online Leasehold improvements. Filing 1040x online   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. Filing 1040x online However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. Filing 1040x online Loans. Filing 1040x online   Money borrowed through a bona fide loan is not income. Filing 1040x online Sales tax. Filing 1040x online   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. Filing 1040x online Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). Filing 1040x online Direct seller. Filing 1040x online   You must report all income you receive as a direct seller on Schedule C or C-EZ. Filing 1040x online This includes any of the following. Filing 1040x online Income from sales—payments you receive from customers for products they buy from you. Filing 1040x online Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. Filing 1040x online Prizes, awards, and gifts you receive from your selling business. Filing 1040x online You must report this income regardless of whether it is reported to you on an information return. Filing 1040x online   You are a direct seller if you meet all the following conditions. Filing 1040x online You are engaged in one of the following trades or businesses. Filing 1040x online Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. Filing 1040x online Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). Filing 1040x online Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. Filing 1040x online Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. Filing 1040x online Executor or administrator. Filing 1040x online   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. Filing 1040x online A nonprofessional fiduciary (personal representative) and both of the following apply. Filing 1040x online The estate includes an active trade or business in which you actively participate. Filing 1040x online Your fees are related to the operation of that trade or business. Filing 1040x online A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. Filing 1040x online    If the fees do not meet the above requirements, report them on line 21 of Form 1040. Filing 1040x online Fishing crew member. Filing 1040x online    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . Filing 1040x online Insurance agent, former. Filing 1040x online   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. Filing 1040x online You received payments after your agreement to perform services for the company ended. Filing 1040x online You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. Filing 1040x online You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. Filing 1040x online The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. Filing 1040x online The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). Filing 1040x online Insurance agent, retired. Filing 1040x online   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. Filing 1040x online Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. Filing 1040x online   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. Filing 1040x online Newspaper carrier or distributor. Filing 1040x online   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Filing 1040x online You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). Filing 1040x online Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. Filing 1040x online You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Filing 1040x online   This rule applies whether or not you hire others to help you make deliveries. Filing 1040x online It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. Filing 1040x online Newspaper or magazine vendor. Filing 1040x online   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Filing 1040x online You sell newspapers or magazines to ultimate consumers. Filing 1040x online You sell them at a fixed price. Filing 1040x online Your earnings are based on the difference between the sales price and your cost of goods sold. Filing 1040x online   This rule applies whether or not you are guaranteed a minimum amount of earnings. Filing 1040x online It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. Filing 1040x online Notary public. Filing 1040x online   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. Filing 1040x online These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). Filing 1040x online Public official. Filing 1040x online   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. Filing 1040x online This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. Filing 1040x online Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. Filing 1040x online   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. Filing 1040x online Real estate agent or direct seller. Filing 1040x online   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. Filing 1040x online Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. Filing 1040x online You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Filing 1040x online Securities dealer. Filing 1040x online   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. Filing 1040x online For more information, see sections 1256 and 1402(i). Filing 1040x online Securities trader. Filing 1040x online   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. Filing 1040x online As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. Filing 1040x online However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. Filing 1040x online For more information about securities traders, see Publication 550, Investment Income and Expenses. Filing 1040x online Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. Filing 1040x online This section discusses some of the more common differences that may affect business transactions. Filing 1040x online Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). Filing 1040x online If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. Filing 1040x online Dealers in real estate are not allowed to use inventories. Filing 1040x online For more information on inventories, see chapter 2. Filing 1040x online Income paid to a third party. Filing 1040x online   All income you earn is taxable to you. Filing 1040x online You cannot avoid tax by having the income paid to a third party. Filing 1040x online Example. Filing 1040x online You rent out your property and the rental agreement directs the lessee to pay the rent to your son. Filing 1040x online The amount paid to your son is gross income to you. Filing 1040x online Cash discounts. Filing 1040x online   These are amounts the seller permits you to deduct from the invoice price for prompt payment. Filing 1040x online For income tax purposes, you can use either of the following two methods to account for cash discounts. Filing 1040x online Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). Filing 1040x online Credit the cash discount to a discount income account. Filing 1040x online You must use the chosen method every year for all your purchase discounts. Filing 1040x online   If you use the second method, the credit balance in the account at the end of your tax year is business income. Filing 1040x online Under this method, you do not reduce the cost of goods sold by the cash discounts you received. Filing 1040x online When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. Filing 1040x online Trade discounts. Filing 1040x online   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. Filing 1040x online Do not enter these discounts on your books of account. Filing 1040x online Instead, use only the net amount as the cost of the merchandise purchased. Filing 1040x online For more information, see Trade discounts in chapter 6. Filing 1040x online Payment placed in escrow. Filing 1040x online   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. Filing 1040x online However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. Filing 1040x online Sales returns and allowances. Filing 1040x online   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. Filing 1040x online Advance payments. Filing 1040x online   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. Filing 1040x online Insurance proceeds. Filing 1040x online   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. Filing 1040x online You cannot deduct the reimbursed part of a casualty or theft loss. Filing 1040x online   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. Filing 1040x online Prev  Up  Next   Home   More Online Publications
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The Filing 1040x Online

Filing 1040x online Internal Revenue Bulletin:  2013-12  March 18, 2013  Rev. Filing 1040x online Proc. Filing 1040x online 2013-21 Table of Contents SECTION 1. Filing 1040x online PURPOSE SECTION 2. Filing 1040x online BACKGROUND SECTION 3. Filing 1040x online SCOPE SECTION 4. Filing 1040x online APPLICATION. Filing 1040x online 01 Limitations on Depreciation Deductions for Certain Automobiles. Filing 1040x online . Filing 1040x online 02 Inclusions in Income of Lessees of Passenger Automobiles. Filing 1040x online SECTION 5. Filing 1040x online EFFECTIVE DATE SECTION 6. Filing 1040x online DRAFTING INFORMATION SECTION 1. Filing 1040x online PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. Filing 1040x online The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Filing 1040x online SECTION 2. Filing 1040x online BACKGROUND . Filing 1040x online 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Filing 1040x online For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Filing 1040x online The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Filing 1040x online This change reflects the higher rate of price inflation for trucks and vans since 1988. Filing 1040x online . Filing 1040x online 02 Section 331(a) of the American Taxpayer Relief Act of 2012, Pub. Filing 1040x online L. Filing 1040x online No. Filing 1040x online 112-240, 126 Stat. Filing 1040x online 2313 (Jan. Filing 1040x online 2, 2013) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2014, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2014. Filing 1040x online Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Filing 1040x online . Filing 1040x online 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Filing 1040x online Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Filing 1040x online Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2012, that is round 3 extension property (as defined in § 168(k)(4)(J)(iv)). Filing 1040x online Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Filing 1040x online This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer: (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2013 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Filing 1040x online . Filing 1040x online 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Filing 1040x online The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Filing 1040x online Under § 1. Filing 1040x online 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Filing 1040x online One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Filing 1040x online Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Filing 1040x online SECTION 3. Filing 1040x online SCOPE . Filing 1040x online 01 The limitations on depreciation deductions in section 4. Filing 1040x online 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2013, and continue to apply for each taxable year that the passenger automobile remains in service. Filing 1040x online . Filing 1040x online 02 The tables in section 4. Filing 1040x online 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2013. Filing 1040x online Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Filing 1040x online See Rev. Filing 1040x online Proc. Filing 1040x online 2008-22, 2008-1 C. Filing 1040x online B. Filing 1040x online 658, for passenger automobiles first leased during calendar year 2008; Rev. Filing 1040x online Proc. Filing 1040x online 2009-24, 2009-17 I. Filing 1040x online R. Filing 1040x online B. Filing 1040x online 885, for passenger automobiles first leased during calendar year 2009; Rev. Filing 1040x online Proc. Filing 1040x online 2010-18, 2010-09 I. Filing 1040x online R. Filing 1040x online B. Filing 1040x online 427, as amplified and modified by section 4. Filing 1040x online 03 of Rev. Filing 1040x online Proc. Filing 1040x online 2011-21, 2011-12 I. Filing 1040x online R. Filing 1040x online B. Filing 1040x online 560, for passenger automobiles first leased during calendar year 2010; Rev. Filing 1040x online Proc. Filing 1040x online 2011-21, for passenger automobiles first leased during calendar year 2011; and Rev. Filing 1040x online Proc. Filing 1040x online 2012-23, 2012-14 I. Filing 1040x online R. Filing 1040x online B. Filing 1040x online 712, for passenger automobiles first leased during calendar year 2012. Filing 1040x online SECTION 4. Filing 1040x online APPLICATION . Filing 1040x online 01 Limitations on Depreciation Deductions for Certain Automobiles. Filing 1040x online (1) Amount of the inflation adjustment. Filing 1040x online (a) Passenger automobiles (other than trucks or vans). Filing 1040x online Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Filing 1040x online Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Filing 1040x online The new car component of the CPI was 115. Filing 1040x online 2 for October 1987 and 143. Filing 1040x online 787 for October 2012. Filing 1040x online The October 2012 index exceeded the October 1987 index by 28. Filing 1040x online 587. Filing 1040x online Therefore, the automobile price inflation adjustment for 2013 for passenger automobiles (other than trucks and vans) is 24. Filing 1040x online 8 percent (28. Filing 1040x online 587/115. Filing 1040x online 2 x 100%). Filing 1040x online The dollar limitations in § 280F(a) are multiplied by a factor of 0. Filing 1040x online 248, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2013. Filing 1040x online This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2013. Filing 1040x online (b) Trucks and vans. Filing 1040x online To determine the dollar limitations for trucks and vans first placed in service during calendar year 2013, the Service uses the new truck component of the CPI instead of the new car component. Filing 1040x online The new truck component of the CPI was 112. Filing 1040x online 4 for October 1987 and 149. Filing 1040x online 386 for October 2012. Filing 1040x online The October 2012 index exceeded the October 1987 index by 36. Filing 1040x online 986. Filing 1040x online Therefore, the automobile price inflation adjustment for 2013 for trucks and vans is 32. Filing 1040x online 9 percent (36. Filing 1040x online 986/112. Filing 1040x online 4 x 100%). Filing 1040x online The dollar limitations in § 280F(a) are multiplied by a factor of 0. Filing 1040x online 329, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Filing 1040x online This adjustment applies to all trucks and vans that are first placed in service in calendar year 2013. Filing 1040x online (2) Amount of the limitation. Filing 1040x online Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2013. Filing 1040x online Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction applies. Filing 1040x online Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2013 for which the § 168(k) additional first year depreciation deduction does not apply. Filing 1040x online REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,400 3rd Tax Year $3,250 Each Succeeding Year $1,975 . Filing 1040x online 02 Inclusions in Income of Lessees of Passenger Automobiles. Filing 1040x online A taxpayer must follow the procedures in § 1. Filing 1040x online 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2013. Filing 1040x online In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Filing 1040x online REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 2 4 6 7 8 19,500 20,000 2 5 6 9 9 20,000 20,500 2 5 8 9 11 20,500 21,000 3 6 8 10 12 21,000 21,500 3 6 10 11 13 21,500 22,000 3 7 10 13 14 22,000 23,000 4 8 11 14 16 23,000 24,000 4 9 14 16 18 24,000 25,000 5 10 15 18 21 25,000 26,000 5 12 16 21 23 26,000 27,000 6 12 19 23 25 27,000 28,000 6 14 20 25 28 28,000 29,000 7 15 22 27 30 29,000 30,000 7 16 24 29 33 30,000 31,000 8 17 26 31 35 31,000 32,000 8 19 27 33 38 32,000 33,000 9 20 29 35 40 33,000 34,000 10 21 31 37 43 34,000 35,000 10 22 33 39 45 35,000 36,000 11 23 35 41 48 36,000 37,000 11 25 36 43 50 37,000 38,000 12 26 38 45 53 38,000 39,000 12 27 40 47 55 39,000 40,000 13 28 42 49 58 40,000 41,000 13 29 44 52 59 41,000 42,000 14 30 45 54 63 42,000 43,000 14 32 47 56 64 43,000 44,000 15 33 48 59 67 44,000 45,000 15 34 51 60 69 45,000 46,000 16 35 52 63 72 46,000 47,000 17 36 54 65 74 47,000 48,000 17 38 55 67 77 48,000 49,000 18 39 57 69 79 49,000 50,000 18 40 59 71 82 50,000 51,000 19 41 61 73 84 51,000 52,000 19 42 63 75 87 52,000 53,000 20 43 65 77 89 53,000 54,000 20 45 66 79 92 54,000 55,000 21 46 68 81 94 55,000 56,000 21 47 70 84 96 56,000 57,000 22 48 72 85 99 57,000 58,000 22 50 73 88 101 58,000 59,000 23 51 75 90 103 59,000 60,000 24 52 76 92 106 60,000 62,000 24 54 79 95 110 62,000 64,000 25 56 83 99 115 64,000 66,000 27 58 87 103 120 66,000 68,000 28 60 90 108 125 68,000 70,000 29 63 93 112 130 70,000 72,000 30 65 97 117 134 72,000 74,000 31 68 100 121 139 74,000 76,000 32 70 104 125 144 76,000 78,000 33 73 107 129 149 78,000 80,000 34 75 111 133 154 80,000 85,000 36 79 117 141 162 85,000 90,000 39 85 126 151 174 90,000 95,000 41 91 135 162 186 95,000 100,000 44 97 144 172 199 100,000 110,000 48 106 157 188 217 110,000 120,000 53 118 174 210 241 120,000 130,000 59 129 193 230 266 130,000 140,000 64 141 210 252 290 140,000 150,000 70 153 227 273 315 150,000 160,000 75 165 245 294 339 160,000 170,000 80 177 263 315 363 170,000 180,000 86 189 280 336 388 180,000 190,000 91 201 298 357 412 190,000 200,000 97 212 316 378 436 200,000 210,000 102 224 333 400 461 210,000 220,000 107 236 351 420 486 220,000 230,000 113 248 368 442 509 230,000 240,000 118 260 386 463 534 240,000 And up 124 272 403 484 558 REV. Filing 1040x online PROC. Filing 1040x online 2013-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 1 3 4 5 6 19,500 20,000 2 3 5 6 7 20,000 20,500 2 4 6 7 8 20,500 21,000 2 5 7 8 9 21,000 21,500 2 5 8 9 11 21,500 22,000 3 6 8 10 12 22,000 23,000 3 7 10 11 14 23,000 24,000 4 8 11 14 16 24,000 25,000 4 9 14 16 18 25,000 26,000 5 10 15 18 21 26,000 27,000 5 12 17 20 23 27,000 28,000 6 13 18 23 25 28,000 29,000 6 14 20 25 28 29,000 30,000 7 15 22 27 30 30,000 31,000 7 16 24 29 33 31,000 32,000 8 17 26 31 35 32,000 33,000 8 19 27 33 38 33,000 34,000 9 20 29 35 41 34,000 35,000 10 21 31 37 43 35,000 36,000 10 22 33 39 46 36,000 37,000 11 23 35 41 48 37,000 38,000 11 25 36 43 51 38,000 39,000 12 26 38 45 53 39,000 40,000 12 27 40 48 55 40,000 41,000 13 28 42 49 58 41,000 42,000 13 29 44 52 60 42,000 43,000 14 30 46 54 62 43,000 44,000 14 32 47 56 65 44,000 45,000 15 33 48 59 67 45,000 46,000 15 34 51 60 70 46,000 47,000 16 35 52 63 72 47,000 48,000 17 36 54 65 74 48,000 49,000 17 38 55 67 77 49,000 50,000 18 39 57 69 79 50,000 51,000 18 40 59 71 82 51,000 52,000 19 41 61 73 84 52,000 53,000 19 42 63 75 87 53,000 54,000 20 43 65 77 89 54,000 55,000 20 45 66 80 91 55,000 56,000 21 46 68 81 94 56,000 57,000 21 47 70 84 96 57,000 58,000 22 48 72 86 98 58,000 59,000 22 50 73 88 101 59,000 60,000 23 51 75 90 103 60,000 62,000 24 52 78 93 108 62,000 64,000 25 55 81 97 113 64,000 66,000 26 57 85 101 118 66,000 68,000 27 60 88 106 122 68,000 70,000 28 62 92 110 127 70,000 72,000 29 64 96 114 132 72,000 74,000 30 67 99 118 137 74,000 76,000 31 69 103 122 142 76,000 78,000 32 72 105 127 147 78,000 80,000 34 73 110 131 151 80,000 85,000 35 78 116 138 160 85,000 90,000 38 84 124 149 172 90,000 95,000 41 90 133 160 184 95,000 100,000 44 95 142 171 196 100,000 110,000 48 104 156 186 214 110,000 120,000 53 116 173 207 240 120,000 130,000 58 128 191 228 264 130,000 140,000 64 140 208 249 288 140,000 150,000 69 152 226 270 313 150,000 160,000 75 164 243 292 336 160,000 170,000 80 176 261 312 361 170,000 180,000 85 188 278 334 386 180,000 190,000 91 199 296 355 410 190,000 200,000 96 211 314 376 434 200,000 210,000 101 223 332 397 459 210,000 220,000 107 235 349 418 483 220,000 230,000 112 247 367 439 507 230,000 240,000 118 259 384 460 532 240,000 And up 123 271 401 482 556 SECTION 5. Filing 1040x online EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2013. Filing 1040x online SECTION 6. Filing 1040x online DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Filing 1040x online Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Filing 1040x online For further information regarding this revenue procedure, contact Mr. Filing 1040x online Harvey at (202) 622-4930 (not a toll-free call). Filing 1040x online Prev  Up  Next   Home   More Internal Revenue Bulletins