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Free Federal And State Tax Filing 2012

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Free Federal And State Tax Filing 2012

Free federal and state tax filing 2012 2. Free federal and state tax filing 2012   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. Free federal and state tax filing 2012 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. Free federal and state tax filing 2012 Deduction may depend on your type of business. Free federal and state tax filing 2012 Exception for events that benefit charitable organizations. Free federal and state tax filing 2012 Food and beverages in skybox seats. Free federal and state tax filing 2012 What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. Free federal and state tax filing 2012 You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Free federal and state tax filing 2012 The rules and definitions are summarized in Table 2-1 . Free federal and state tax filing 2012 You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. Free federal and state tax filing 2012 Directly-related test. Free federal and state tax filing 2012 Associated test. Free federal and state tax filing 2012 Both of these tests are explained later. Free federal and state tax filing 2012 An ordinary expense is one that is common and accepted in your trade or business. Free federal and state tax filing 2012 A necessary expense is one that is helpful and appropriate for your business. Free federal and state tax filing 2012 An expense does not have to be required to be considered necessary. Free federal and state tax filing 2012 The amount you can deduct for entertainment expenses may be limited. Free federal and state tax filing 2012 Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Free federal and state tax filing 2012 This limit is discussed later under 50% Limit. Free federal and state tax filing 2012 Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. Free federal and state tax filing 2012 Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. Free federal and state tax filing 2012 Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. Free federal and state tax filing 2012 See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. Free federal and state tax filing 2012 You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. Free federal and state tax filing 2012 It is not necessary to devote more time to business than to entertainment. Free federal and state tax filing 2012 However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. Free federal and state tax filing 2012 Table 2-1. Free federal and state tax filing 2012 When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Free federal and state tax filing 2012 Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Free federal and state tax filing 2012 An ordinary expense is one that is common and accepted in your trade or business. Free federal and state tax filing 2012 A necessary expense is one that is helpful and appropriate. Free federal and state tax filing 2012 Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Free federal and state tax filing 2012   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. Free federal and state tax filing 2012 Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Free federal and state tax filing 2012 You cannot deduct expenses that are lavish or extravagant under the circumstances. Free federal and state tax filing 2012 You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). Free federal and state tax filing 2012 You do not have to show that business income or other business benefit actually resulted from each entertainment expense. Free federal and state tax filing 2012 Clear business setting. Free federal and state tax filing 2012   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. Free federal and state tax filing 2012 The following situations are examples of entertainment in a clear business setting. Free federal and state tax filing 2012 Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. Free federal and state tax filing 2012 Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). Free federal and state tax filing 2012 Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. Free federal and state tax filing 2012 An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. Free federal and state tax filing 2012 Expenses not considered directly related. Free federal and state tax filing 2012   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. Free federal and state tax filing 2012 The following are examples of situations where there are substantial distractions. Free federal and state tax filing 2012 A meeting or discussion at a nightclub, theater, or sporting event. Free federal and state tax filing 2012 A meeting or discussion during what is essentially a social gathering, such as a cocktail party. Free federal and state tax filing 2012 A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. Free federal and state tax filing 2012 Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. Free federal and state tax filing 2012 To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). Free federal and state tax filing 2012 Associated with trade or business. Free federal and state tax filing 2012   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. Free federal and state tax filing 2012 The purpose may be to get new business or to encourage the continuation of an existing business relationship. Free federal and state tax filing 2012 Substantial business discussion. Free federal and state tax filing 2012   Whether a business discussion is substantial depends on the facts of each case. Free federal and state tax filing 2012 A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. Free federal and state tax filing 2012   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. Free federal and state tax filing 2012 It is not necessary that you devote more time to business than to entertainment. Free federal and state tax filing 2012 You do not have to discuss business during the meal or entertainment. Free federal and state tax filing 2012 Meetings at conventions. Free federal and state tax filing 2012   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. Free federal and state tax filing 2012 However, your reason for attending the convention or meeting must be to further your trade or business. Free federal and state tax filing 2012 The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. Free federal and state tax filing 2012 Directly before or after business discussion. Free federal and state tax filing 2012   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. Free federal and state tax filing 2012   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. Free federal and state tax filing 2012 Among the facts to consider are the place, date, and duration of the business discussion. Free federal and state tax filing 2012 If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. Free federal and state tax filing 2012 Example. Free federal and state tax filing 2012 A group of business associates comes from out of town to your place of business to hold a substantial business discussion. Free federal and state tax filing 2012 If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. Free federal and state tax filing 2012 The expense meets the associated test. Free federal and state tax filing 2012 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Free federal and state tax filing 2012 (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Free federal and state tax filing 2012 See Individuals subject to “hours of service” limits , later. Free federal and state tax filing 2012 ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Free federal and state tax filing 2012 Figure A summarizes the general rules explained in this section. Free federal and state tax filing 2012 The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Free federal and state tax filing 2012 Included expenses. Free federal and state tax filing 2012   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Free federal and state tax filing 2012 However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Free federal and state tax filing 2012 Figure A. Free federal and state tax filing 2012 Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Free federal and state tax filing 2012 See Exceptions to the 50% Limit . Free federal and state tax filing 2012 Please click here for the text description of the image. Free federal and state tax filing 2012 Figure A. Free federal and state tax filing 2012 Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. Free federal and state tax filing 2012   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. Free federal and state tax filing 2012   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Free federal and state tax filing 2012 It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. Free federal and state tax filing 2012 It also applies to the cost of meals included in deductible educational expenses. Free federal and state tax filing 2012 When to apply the 50% limit. Free federal and state tax filing 2012   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Free federal and state tax filing 2012 You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. Free federal and state tax filing 2012 Example 1. Free federal and state tax filing 2012 You spend $200 for a business-related meal. Free federal and state tax filing 2012 If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Free federal and state tax filing 2012 Your deduction cannot be more than $45 (50% × $90). Free federal and state tax filing 2012 Example 2. Free federal and state tax filing 2012 You purchase two tickets to a concert and give them to a client. Free federal and state tax filing 2012 You purchased the tickets through a ticket agent. Free federal and state tax filing 2012 You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Free federal and state tax filing 2012 Your deduction cannot be more than $80 (50% × $160). Free federal and state tax filing 2012 Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Free federal and state tax filing 2012 Figure A can help you determine if the 50% limit applies to you. Free federal and state tax filing 2012 Expenses not subject to 50% limit. Free federal and state tax filing 2012   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Free federal and state tax filing 2012 1 - Employee's reimbursed expenses. Free federal and state tax filing 2012   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Free federal and state tax filing 2012 Accountable plans are discussed in chapter 6. Free federal and state tax filing 2012 2 - Self-employed. Free federal and state tax filing 2012   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. Free federal and state tax filing 2012 You have these expenses as an independent contractor. Free federal and state tax filing 2012 Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. Free federal and state tax filing 2012 You provide adequate records of these expenses to your customer or client. Free federal and state tax filing 2012 (See chapter 5 . Free federal and state tax filing 2012 )   In this case, your client or customer is subject to the 50% limit on the expenses. Free federal and state tax filing 2012 Example. Free federal and state tax filing 2012 You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. Free federal and state tax filing 2012 You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. Free federal and state tax filing 2012 If the client can deduct the expenses, the client is subject to the 50% limit. Free federal and state tax filing 2012 If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. Free federal and state tax filing 2012 3 - Advertising expenses. Free federal and state tax filing 2012   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Free federal and state tax filing 2012 For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. Free federal and state tax filing 2012 4 - Sale of meals or entertainment. Free federal and state tax filing 2012   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. Free federal and state tax filing 2012 For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. Free federal and state tax filing 2012 5 - Charitable sports event. Free federal and state tax filing 2012   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. Free federal and state tax filing 2012 For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. Free federal and state tax filing 2012 Individuals subject to “hours of service” limits. Free federal and state tax filing 2012   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Free federal and state tax filing 2012 The percentage is 80%. Free federal and state tax filing 2012   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Free federal and state tax filing 2012 Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Free federal and state tax filing 2012 Interstate truck operators and bus drivers who are under Department of Transportation regulations. Free federal and state tax filing 2012 Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Free federal and state tax filing 2012 Certain merchant mariners who are under Coast Guard regulations. Free federal and state tax filing 2012 What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Free federal and state tax filing 2012 Entertainment. Free federal and state tax filing 2012   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Free federal and state tax filing 2012 Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Free federal and state tax filing 2012   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. Free federal and state tax filing 2012 A meal as a form of entertainment. Free federal and state tax filing 2012   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Free federal and state tax filing 2012 A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Free federal and state tax filing 2012 To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Free federal and state tax filing 2012    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Free federal and state tax filing 2012    Meals sold in the normal course of your business are not considered entertainment. Free federal and state tax filing 2012 Deduction may depend on your type of business. Free federal and state tax filing 2012   Your kind of business may determine if a particular activity is considered entertainment. Free federal and state tax filing 2012 For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. Free federal and state tax filing 2012 This is because fashion shows are typical in your business. Free federal and state tax filing 2012 But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. Free federal and state tax filing 2012 Separating costs. Free federal and state tax filing 2012   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Free federal and state tax filing 2012 You must have a reasonable basis for making this allocation. Free federal and state tax filing 2012 For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Free federal and state tax filing 2012 Taking turns paying for meals or entertainment. Free federal and state tax filing 2012   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Free federal and state tax filing 2012 Lavish or extravagant expenses. Free federal and state tax filing 2012   You cannot deduct expenses for entertainment that are lavish or extravagant. Free federal and state tax filing 2012 An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Free federal and state tax filing 2012 Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Free federal and state tax filing 2012 Allocating between business and nonbusiness. Free federal and state tax filing 2012   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. Free federal and state tax filing 2012 You can deduct only the business part. Free federal and state tax filing 2012 If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. Free federal and state tax filing 2012 Example. Free federal and state tax filing 2012 You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. Free federal and state tax filing 2012 Only 4/11 of the expense qualifies as a business entertainment expense. Free federal and state tax filing 2012 You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. Free federal and state tax filing 2012 Trade association meetings. Free federal and state tax filing 2012   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Free federal and state tax filing 2012 These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Free federal and state tax filing 2012 Entertainment tickets. Free federal and state tax filing 2012   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Free federal and state tax filing 2012 For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Free federal and state tax filing 2012 Exception for events that benefit charitable organizations. Free federal and state tax filing 2012   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. Free federal and state tax filing 2012 You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. Free federal and state tax filing 2012 The event's main purpose is to benefit a qualified charitable organization. Free federal and state tax filing 2012 The entire net proceeds go to the charity. Free federal and state tax filing 2012 The event uses volunteers to perform substantially all the event's work. Free federal and state tax filing 2012    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. Free federal and state tax filing 2012 Example 1. Free federal and state tax filing 2012 You purchase tickets to a golf tournament organized by the local volunteer fire company. Free federal and state tax filing 2012 All net proceeds will be used to buy new fire equipment. Free federal and state tax filing 2012 The volunteers will run the tournament. Free federal and state tax filing 2012 You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. Free federal and state tax filing 2012 Example 2. Free federal and state tax filing 2012 You purchase tickets to a college football game through a ticket broker. Free federal and state tax filing 2012 After having a business discussion, you take a client to the game. Free federal and state tax filing 2012 Net proceeds from the game go to colleges that qualify as charitable organizations. Free federal and state tax filing 2012 However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. Free federal and state tax filing 2012 Skyboxes and other private luxury boxes. Free federal and state tax filing 2012   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. Free federal and state tax filing 2012   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. Free federal and state tax filing 2012 For example, renting a skybox for a series of playoff games is considered renting it for more than one event. Free federal and state tax filing 2012 All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. Free federal and state tax filing 2012   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. Free federal and state tax filing 2012 Example. Free federal and state tax filing 2012 You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. Free federal and state tax filing 2012 The cost of regular nonluxury box seats at each event is $30 a seat. Free federal and state tax filing 2012 You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). Free federal and state tax filing 2012 Food and beverages in skybox seats. Free federal and state tax filing 2012   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. Free federal and state tax filing 2012 The amounts separately stated for food and beverages must be reasonable. Free federal and state tax filing 2012 You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. Free federal and state tax filing 2012 What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Free federal and state tax filing 2012 Club dues and membership fees. Free federal and state tax filing 2012   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Free federal and state tax filing 2012 This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. Free federal and state tax filing 2012   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Free federal and state tax filing 2012 You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Free federal and state tax filing 2012 Entertainment facilities. Free federal and state tax filing 2012   Generally, you cannot deduct any expense for the use of an entertainment facility. Free federal and state tax filing 2012 This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Free federal and state tax filing 2012   An entertainment facility is any property you own, rent, or use for entertainment. Free federal and state tax filing 2012 Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Free federal and state tax filing 2012 Out-of-pocket expenses. Free federal and state tax filing 2012   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Free federal and state tax filing 2012 These are not expenses for the use of an entertainment facility. Free federal and state tax filing 2012 However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. Free federal and state tax filing 2012 Expenses for spouses. Free federal and state tax filing 2012   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. Free federal and state tax filing 2012 However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. Free federal and state tax filing 2012 Example. Free federal and state tax filing 2012 You entertain a customer. Free federal and state tax filing 2012 The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. Free federal and state tax filing 2012 The customer's spouse joins you because it is impractical to entertain the customer without the spouse. Free federal and state tax filing 2012 You can deduct the cost of entertaining the customer's spouse. Free federal and state tax filing 2012 If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. Free federal and state tax filing 2012 Gift or entertainment. Free federal and state tax filing 2012   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Free federal and state tax filing 2012 However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. Free federal and state tax filing 2012   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Free federal and state tax filing 2012 You can treat the tickets as either a gift or entertainment, whichever is to your advantage. Free federal and state tax filing 2012   You can change your treatment of the tickets at a later date by filing an amended return. Free federal and state tax filing 2012 Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Free federal and state tax filing 2012   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Free federal and state tax filing 2012 You cannot choose, in this case, to treat the tickets as a gift. Free federal and state tax filing 2012 Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Transactions of Foreign-Owned Domestic Corporations

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  • Data are taken from Form 5472 - Information Return of a Foreign Owned Corporation.
  • "Owned" generally indicates that a foreign entity owns 25 percent or more of the U.S. corporation's voting stock.

            Statistical Tables                    SOI Bulletin Articles
 


Statistical Tables

Foreign-Owned Domestic Corporations with Total Receipts of $500 Million or More and with Form 5472 Attached: Transactions Between Corporations and Related Foreign Persons
     Classified by: Industry*
     Tax Years: 2008    2006    2004    2002     2000      1998     1996     1994     1993     1992

 

     Classified by: Country of Residence of Related Foreign Person
     Tax Years: 2008    2006    2004    2002     2000      1998     1996     1994     1993     1992

 

     Classified by: Industry and Country of Residence of Related Foreign Person*
     Tax Years: 2008    2006    2004    2002     2000      1998     1996     1994     1993     1992

*For Study Years prior to 1998, industrial sectors are classified using the Standard Industry Classification (SIC).  Study Years from 1998 to present use the North American Industry Classification (NAICS).

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SOI Bulletin Articles 

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Page Last Reviewed or Updated: 14-Mar-2014

The Free Federal And State Tax Filing 2012

Free federal and state tax filing 2012 Index A Active participation, Active participation. Free federal and state tax filing 2012 Activity Appropriate economic unit, Appropriate Economic Units Nonpassive, Activities That Are Not Passive Activities Trade or business, Passive Activities Amounts borrowed, Amounts borrowed. Free federal and state tax filing 2012 Amounts not at risk, Amounts Not At Risk, Other loss limiting arrangements. Free federal and state tax filing 2012 Appropriate economic unit, Appropriate Economic Units Assistance (see Tax help) At-risk activities Aggregation of, Aggregation of Activities Separation of, Separation of Activities At-risk amounts, At-Risk Amounts Government price support programs, Effect of government price support programs. Free federal and state tax filing 2012 Increasing amounts, Effect of increasing amounts at risk in subsequent years. Free federal and state tax filing 2012 Nonrecourse financing, Nonrecourse financing. Free federal and state tax filing 2012 At-risk limits, At-Risk Limits Closely held corporation, Closely held C corporation. Free federal and state tax filing 2012 Loss defined, Loss defined. Free federal and state tax filing 2012 Partners, Loss limits for partners and S corporation shareholders. Free federal and state tax filing 2012 S corporation shareholders, Loss limits for partners and S corporation shareholders. Free federal and state tax filing 2012 Who is affected, Who Is Affected? At-risk rules Activities covered by, Activities Covered by the At-Risk Rules Exceptions to, Exception for holding real property placed in service before 1987. Free federal and state tax filing 2012 Excluded business, Qualifying business. Free federal and state tax filing 2012 Qualified corporation, Qualified corporation. Free federal and state tax filing 2012 Qualifying business, Qualifying business. Free federal and state tax filing 2012 Recapture rule, Recapture Rule B Borrowed amounts, Amounts borrowed. Free federal and state tax filing 2012 C Closely held corporation, Closely held C corporation. Free federal and state tax filing 2012 Commercial revitalization deduction, Commercial revitalization deduction (CRD). Free federal and state tax filing 2012 Corporations Closely held, Corporations. Free federal and state tax filing 2012 , Corporations. Free federal and state tax filing 2012 Controlled group of, Controlled group of corporations. Free federal and state tax filing 2012 Personal service, Corporations. Free federal and state tax filing 2012 , Corporations. Free federal and state tax filing 2012 Qualified, Qualified corporation. Free federal and state tax filing 2012 CRD, Commercial revitalization deduction (CRD). Free federal and state tax filing 2012 D Deductions, passive activity, Passive Activity Deductions Disabled farmer, Retired or disabled farmer and surviving spouse of a farmer. Free federal and state tax filing 2012 Disclosure requirement, Appropriate Economic Units Dispositions Death, Dispositions by death. Free federal and state tax filing 2012 Gift, Dispositions by gift. Free federal and state tax filing 2012 Installment sale, Installment sale of an entire interest. Free federal and state tax filing 2012 Partial, Partial dispositions. Free federal and state tax filing 2012 E Excluded business, definition of, Qualifying business. Free federal and state tax filing 2012 F Farm loss, Excess Farm Loss Farmer, Retired or disabled farmer and surviving spouse of a farmer. Free federal and state tax filing 2012 Form 6198, Form 6198. Free federal and state tax filing 2012 8582, Step Three—Completing Form 8582 8810, Who Must Use These Rules? Former passive activity, Treatment of former passive activities. Free federal and state tax filing 2012 Free tax services, Free help with your tax return. Free federal and state tax filing 2012 G Grouping passive activities, Grouping Your Activities H Help (see Tax help) I Income, passive activity, Passive Activity Income L Limited entrepreneur, Limited entrepreneur. Free federal and state tax filing 2012 Limited partners, Limited partners. Free federal and state tax filing 2012 M Material participation, Material Participation, Corporations. Free federal and state tax filing 2012 Modified adjusted gross income, Phaseout rule. Free federal and state tax filing 2012 N Nonrecourse loan, Nonrecourse financing. Free federal and state tax filing 2012 P Participation, Participation. Free federal and state tax filing 2012 Active, Active participation. Free federal and state tax filing 2012 Material, Material Participation Passive activity, Passive Activity Limits Comprehensive example, How To Report Your Passive Activity Loss Disposition, Dispositions Former, Treatment of former passive activities. Free federal and state tax filing 2012 Grouping, Grouping Your Activities Limits, Passive Activity Limits Material participation, Material Participation Rental, Rental Activities Rules, Passive Activities, Grouping Your Activities Who must use these rules, Who Must Use These Rules? Passive activity deductions, Passive Activity Deductions Passive activity income, Passive Activity Income Passive income, recharacterization of, Recharacterization of Passive Income Publications (see Tax help) Publicly traded partnership, Publicly Traded Partnership, Publicly traded partnership (PTP). Free federal and state tax filing 2012 Q Qualified person, nonrecourse financing, Qualified person. Free federal and state tax filing 2012 Qualifying business, at-risk rules, Qualifying business. Free federal and state tax filing 2012 R Real estate professional, Real Estate Professional Recapture rule under at-risk limits, Recapture Rule Recharacterization of passive income, Recharacterization of Passive Income Reductions of amounts at risk, Reductions of Amounts At Risk Related persons, Related persons. Free federal and state tax filing 2012 Rental activity $25,000 offset, Special $25,000 allowance. Free federal and state tax filing 2012 Active participation, Active participation. Free federal and state tax filing 2012 Exceptions, Exceptions. Free federal and state tax filing 2012 Phaseout rule, Phaseout rule. Free federal and state tax filing 2012 Real estate professional, Real Estate Professional Retired farmer, Retired or disabled farmer and surviving spouse of a farmer. Free federal and state tax filing 2012 S Section 1245 property, Section 1245 property. Free federal and state tax filing 2012 Self-charged interest, Self-charged interest. Free federal and state tax filing 2012 Separate activity, Separation of Activities Significant participation passive activities, Significant Participation Passive Activities Special $25,000 allowance, Special $25,000 allowance. Free federal and state tax filing 2012 Surviving spouse of farmer, Retired or disabled farmer and surviving spouse of a farmer. Free federal and state tax filing 2012 T Tax help, How To Get Tax Help Trade or business activities Definition of, Trade or Business Activities Real property, Real property trades or businesses. Free federal and state tax filing 2012 W Worksheet 1, Worksheet 1. Free federal and state tax filing 2012 Worksheet 3, Worksheet 3. Free federal and state tax filing 2012 Worksheet 4, Step Four—Completing Worksheet 4 Worksheet 5, Step Five—Completing Worksheet 5 Worksheet 6, Step Six—Using Worksheets 6 and 7 Worksheet 7, Step Six—Using Worksheets 6 and 7 Worksheet A, Worksheet A. Free federal and state tax filing 2012 , Worksheet A. Free federal and state tax filing 2012 Significant Participation Passive Activities Worksheet B, Worksheet B. Free federal and state tax filing 2012 , Worksheet B. Free federal and state tax filing 2012 Significant Participation Activities With Net Income Prev  Up     Home   More Online Publications