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H&r block online Index A Abandonment, Abandonment Accounting method Accrual, Accrual Method Cash, Cash Method Change in, Changes in Methods of Accounting Crop, Crop method. H&r block online Farm inventory, Farm Inventory Accounting periods, Introduction Accrual method of accounting, Accrual Method Additional Medicare Tax withholding, What's New for 2013, Additional Medicare Tax. H&r block online Adjusted basis for installment sale, Adjusted basis for installment sale purposes. H&r block online Adjusted basis of assets, Adjusted Basis Agricultural activity codes, Schedule F, Reminders Agricultural program payments, Agricultural Program Payments Agricultural structure, defined, Agricultural structure. H&r block online Alternative Depreciation System (ADS), Required use of ADS. H&r block online , ADS election. H&r block online Amortization Going into business, Business Start-Up Costs Reforestation expenses, Reforestation Costs Section 197 intangibles, Section 197 Intangibles Assessments By conservation district, Assessment by Conservation District Depreciable property, Assessment for Depreciable Property Assistance (see Tax help) Automobiles, depreciation, Limits for passenger automobiles. H&r block online B Bankruptcy, Bankruptcy. H&r block online Barter income, Barter income. H&r block online Basis Adjusted, Adjusted basis. H&r block online Installment sale, Adjusted basis for installment sale purposes. H&r block online Involuntary conversion, Basis for depreciation. H&r block online Like-kind exchange, Basis for depreciation. H&r block online Partner's basis, Property Distributed From a Partnership or Corporation Replacement property, Basis of replacement property. H&r block online Shareholder's basis, Property Distributed From a Partnership or Corporation Basis of assets Adjusted basis, Adjusted Basis Allocating to several assets, Allocating the Basis Changed to business use, Property changed from personal to business or rental use. H&r block online Constructing assets, Constructing assets. H&r block online Cost, Cost Basis Decreases, Decreases to Basis Depreciation, What Is the Basis for Depreciation? Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Gifts, Property Received as a Gift Increases, Increases to Basis Real property, Real Property Received for services, Property received for services. H&r block online Uniform capitalization rules, Uniform Capitalization Rules Below-market loans, Below-market loans. H&r block online Books and records, Importance of Records Breeding fees, Breeding Fees Business income limit, section 179 expense deduction, Business Income Limit Business use of home, Business Use of Your Home C Canceled debt, Cancellation of Debt Capital assets, Capital Assets Capital expenses, Capital Expenses Car expenses, Truck and Car Expenses Cash method of accounting, Cash Method Casualties and thefts Adjustments to basis, Adjustments to basis. H&r block online Casualty, defined, Casualty. H&r block online Disaster area losses, Disaster Area Losses Leased property, Leased property. H&r block online Livestock, Livestock or produce bought for resale. H&r block online , Raised draft, breeding, dairy, or sporting animals. H&r block online Reimbursement, Insurance and other reimbursements. H&r block online Reporting gains and losses, Reporting Gains and Losses Theft, defined, Theft. H&r block online Change in accounting method, Changes in Methods of Accounting Chickens, purchased, Chickens, seeds, and young plants. H&r block online Christmas trees, Christmas tree cultivation. H&r block online , Christmas trees. H&r block online Club dues, Club dues and membership fees. H&r block online Comments on publication, Comments and suggestions. H&r block online Commodity Futures, Hedging (Commodity Futures) Wages, Noncash wages. H&r block online Commodity Credit Corporation (CCC) Loans, Commodity Credit Corporation (CCC) Loans Market gain, Market Gain Community property, Community property. H&r block online , Community property. H&r block online Computer, software, Computer software. H&r block online Condemnation, Casualties, Thefts, and Condemnations, Condemnation Conservation Cost-sharing exclusion, Conservation Expenses District assessments, Assessment by Conservation District Expenses, Conservation Expenses Plans, Conservation plan. H&r block online Conservation Reserve Program, Conservation Reserve Program (CRP) payments. H&r block online Conservation Reserve Program (CRP), Conservation Reserve Program (CRP) Constructing assets, Constructing assets. H&r block online Constructive receipt of income, Constructive receipt. H&r block online Contamination, Soil or other environmental contamination. H&r block online Contract price, Contract price. H&r block online Converted wetland, Converted Wetland and Highly Erodible Cropland Cooperatives, income from, Income From Cooperatives Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements) Counter-cyclical payments, Direct payments and counter-cyclical payments. H&r block online , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Credits Employment, Employment Credits Fuel tax, Fuel tax credit and refund. H&r block online , How To Claim a Credit or Refund, Claiming a Credit Social security and Medicare, Earning credits in 2013. H&r block online Social security coverage, How to become insured under social security. H&r block online State unemployment tax, Tax rate and credit. H&r block online Crew leaders, Crew Leaders Crop Destroyed, Standing crop destroyed by casualty. H&r block online Insurance proceeds, Crop Insurance and Crop Disaster Payments Method of accounting, Crop method. H&r block online Shares, Rents (Including Crop Shares) Unharvested, Cost of raising unharvested crops. H&r block online , Section 1231 transactions. H&r block online , Gain or loss. H&r block online Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland D Damage Casualties and thefts, Casualties and Thefts Crop insurance, Crop Insurance and Crop Disaster Payments Tree seedlings, Tree Seedlings Debt Bad, Nonbusiness bad debt. H&r block online Canceled, Cancellation of Debt, Canceled debt excluded from income. H&r block online , Cancellation of debt. H&r block online , Canceled debt. H&r block online Nonrecourse, Amount realized on a nonrecourse debt. H&r block online Qualified farm, Qualified Farm Debt Qualified principal residence, Qualified Principal Residence Debt Recourse, Amount realized on a recourse debt. H&r block online Depletion, Depletion Depreciation, Claiming the Special Depreciation Allowance ADS election, ADS election. H&r block online Conservation assets, Depreciable conservation assets. H&r block online Deduction, Overview of Depreciation Incorrect amount deducted, How Do You Correct Depreciation Deductions? Limit for automobiles, Limits for passenger automobiles. H&r block online Listed property, Additional Rules for Listed Property Raised livestock, Livestock. H&r block online Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property When to file, Do You Have To File Form 4562? Depreciation allowable, Basis adjustment for depreciation allowed or allowable. H&r block online Depreciation allowed, Basis adjustment for depreciation allowed or allowable. H&r block online Direct payments, Direct payments and counter-cyclical payments. H&r block online , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Disaster area losses, Disaster Area Losses Disaster payments, Crop Insurance and Crop Disaster Payments Disaster relief grants, Federal disaster relief grants. H&r block online Disaster relief payments, Qualified disaster relief payments. H&r block online Dispositions, Sale or other disposal of land during 9-year period. H&r block online , Gain on sale of farmland. H&r block online , Introduction Domestic production activities deduction, Domestic Production Activities Deduction Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E e-file, Reminders Easement, Easements and rights-of-way. H&r block online , Easements. H&r block online Election ADS depreciation, Electing ADS. H&r block online , ADS election. H&r block online Amortization Business start-up costs, Business Start-Up Costs Reforestation costs, Reforestation Costs Crop method, Election to use crop method. H&r block online Cutting of timber, Election to treat cutting as a sale or exchange. H&r block online Deducting conservation expenses, When to Deduct or Capitalize Not excluding cost-sharing payments, Electing not to exclude payments. H&r block online Out of installment method, Electing out of the installment method. H&r block online Postponing casualty gain, Postponing Gain Postponing reporting crop insurance proceeds, Election to postpone reporting until the following year. H&r block online Section 179 expense deduction, How Do You Elect the Deduction? Electronic filing, Reminders Embryo transplants, Transplanted embryo. H&r block online Employer identification number, Reminders, Employer identification number (EIN). H&r block online Endangered species recovery expenses, Endangered species recovery expenses. H&r block online Environmental contamination, Soil or other environmental contamination. H&r block online Estimated tax Farm gross income, Gross Income From Farming Gross income, Gross Income Penalties, Estimated Tax Penalty for 2013 Exchanges Basis Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Like-Kind Exchanges Excise taxes Credit, Claiming a Credit Diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Farming purposes, Fuels Used in Farming Home use of fuels, Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines Off-highway uses, Fuels Used in Off-Highway Business Use Refund, Claiming a Refund F Fair market value defined, Fair market value (FMV). H&r block online , Fair market value (FMV). H&r block online Family member Business expenses, Special rule for related persons. H&r block online Installment sale, Sale to a related person. H&r block online Like-kind exchange, Like-kind exchanges between related persons. H&r block online Loss on sale or exchange of property, Losses from sales or exchanges between related persons. H&r block online Personal-use property, Personal-use property. H&r block online Social security coverage, Family Employees Farm Business expenses, Farm Business Expenses Business, defined, Business of Farming Defined, Farm defined. H&r block online , Farm. H&r block online Income averaging, Income Averaging for Farmers Rental, Farm rental. H&r block online Sale of, Sale of a Farm Farmer, Farmer. H&r block online Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax Fertilizer, Fertilizer and Lime, Fertilizer and Lime Foreclosure, Foreclosure or Repossession Forestation costs, Forestation and reforestation costs. H&r block online Form 1099-A, Form 1099-A. H&r block online , Forms 1099-A and 1099-C. H&r block online 1099-C, Cancellation of Debt, Form 1099-C. H&r block online , Forms 1099-A and 1099-C. H&r block online 1099-G, Market Gain, Payment to More Than One Person 1099-MISC, Reminders, Nonemployee compensation. H&r block online 1099-PATR, Form 1099-PATR. H&r block online 1128, Introduction 2210-F, Estimated Tax Penalty for 2013 3115, Changes in Methods of Accounting 4136, Claiming a Credit 4562, Do You Have To File Form 4562? 4797, Form 4797. H&r block online , Recapture. H&r block online , Reporting the exchange. H&r block online 4835, Rents (Including Crop Shares) 5213, Using the presumption later. H&r block online 6252, Form 6252. H&r block online 8822, Reminders 8824, Reporting the exchange. H&r block online 8849, Claiming a Refund 8886, Reminders 940, Form 940. H&r block online 943, Form 943. H&r block online 982, Form 982 I-9, Form I-9. H&r block online SS-4, Reminders, Employer identification number (EIN). H&r block online SS-5, Obtaining a social security number. H&r block online T (Timber), Form T (Timber). H&r block online W-2, Form W-2. H&r block online W-4, Reminders, New hire reporting. H&r block online , Form W-4. H&r block online W-4V, Commodity Credit Corporation (CCC) Loans, Crop Insurance and Crop Disaster Payments W-7, Obtaining an individual taxpayer identification number. H&r block online Free tax services, How To Get Tax Help, Free help with your tax return. H&r block online Fuel tax credit or refund, Fuel tax credit and refund. H&r block online , How To Claim a Credit or Refund G Gains and losses Basis of assets, Cost Basis Capital assets, defined, Capital Assets Casualty, How To Figure a Loss, Figuring a Gain Installment sales, Installment Sales Livestock, Livestock Long- or short-term, Long and Short Term Ordinary or capital, Ordinary or Capital Gain or Loss Sale of farm, Sale of a Farm Section 1231, Section 1231 Gains and Losses Theft, How To Figure a Loss, Figuring a Gain Timber, Timber General asset accounts, How Do You Use General Asset Accounts? Gifts, Crop shares you give to others (gift). H&r block online , Cost related to gifts. H&r block online , Property Received as a Gift, Gift. H&r block online Going into business, Business Start-Up Costs Grants, disaster relief, Federal disaster relief grants. H&r block online Gross profit percentage, Gross profit percentage. H&r block online Gross profit, defined, Gross profit. H&r block online Guarantee, Debt not payable on demand. H&r block online H Health insurance deduction, Self-employed health insurance deduction. H&r block online Hedging, Hedging (Commodity Futures) Help (see Tax help) Highway use tax, Highway use tax. H&r block online Holding period, Holding period. H&r block online Horticultural structure, Horticultural structure. H&r block online I Illegal irrigation subsidy, Illegal federal irrigation subsidy. H&r block online Important dates, Important Dates for 2014 Improvements, Cost-Sharing Exclusion (Improvements) Income Accounting for, Accounting Methods Accrual method of accounting, Income Canceled debt excluded, Cancellation of Debt From farming, Farm Income, Gross income from farming. H&r block online , Gross Income From Farming Gross, Gross Income Not-for-profit farming, Not-for-Profit Farming Pasture, Pasture income and rental. H&r block online Schedule F, Farm Income Withholding of tax, Federal Income Tax Withholding Income averaging (see Farm: Income averaging) Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions? Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number. H&r block online Inherited property, Inherited Property Insolvency, Insolvency. H&r block online Installment sales, Form 6252. H&r block online Electing out, Electing out of the installment method. H&r block online Farm, sale of, Installment Sale of a Farm Figuring income, Figuring Installment Sale Income Reporting income, Form 6252. H&r block online Unstated interest, Unstated interest. H&r block online Insurance, Insurance, Self-employed health insurance deduction. H&r block online Intangible property, Section 197 Intangibles Interest Expense, Interest Income, Interest income. H&r block online Unstated, Unstated interest. H&r block online Inventory Items included, Farm Inventory Methods of valuation, Inventory valuation methods. H&r block online Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion. H&r block online , Introduction Irrigation Illegal subsidy, Illegal federal irrigation subsidy. H&r block online Project, Irrigation Project L Labor hired, Labor Hired Landlord participation, Landlord Participation in Farming Lease or purchase, Lease or Purchase Life tenant (see Term interests) Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Lime, Fertilizer and Lime Limits At-risk, At-Risk Limits Business use of home, Deduction limit. H&r block online Capital losses, Treatment of Capital Losses Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction Depreciation Business-use, What Is the Business-Use Requirement? Excluded farm debt, Exclusion limit. H&r block online Farm losses, Losses From Operating a Farm Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property Not-for-profit farming, Not-for-Profit Farming Passive activity, Passive Activity Limits Percentage depletion, Taxable income limit. H&r block online Prepaid farm supplies, Deduction limit. H&r block online Reforestation costs, Reforestation Costs Section 179 expense deduction Automobile, Limits for passenger automobiles. H&r block online Business income, Business Income Limit Dollar, Dollar Limits Time to keep records, How Long To Keep Records Listed property Defined, What Is Listed Property? Passenger automobile, Passenger automobiles. H&r block online Rules, Additional Rules for Listed Property Livestock, Section 1231 transactions. H&r block online Casualty and theft losses, Livestock or produce bought for resale. H&r block online Crop shares, Crop shares you use to feed livestock. H&r block online Depreciation, Livestock. H&r block online Diseased, Diseased livestock. H&r block online Feed assistance, Feed Assistance and Payments Immature, Immature livestock. H&r block online Losses, Loss of livestock. H&r block online , Livestock Purchased, Purchased livestock. H&r block online Raised, Raised livestock. H&r block online Sale of, Sales of Farm Products, Livestock Unit-livestock-price, inventory valuation, Unit-livestock-price method. H&r block online Used in a farm business, Livestock used in farm business. H&r block online Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. H&r block online Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses. H&r block online Losses At-risk limits, At-Risk Limits Casualty, Casualties, Thefts, and Condemnations Disaster areas, Disaster Area Losses Farming, Farming Losses Growing crops, Loss of growing plants, produce, and crops. H&r block online Hobby farming, Not-for-Profit Farming Livestock, Livestock, Diseased livestock. H&r block online Nondeductible, Other Nondeductible Items Theft, Casualties, Thefts, and Condemnations Lost income payments, Lost income payments. H&r block online Lost property, Mislaid or lost property. H&r block online M MACRS property Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. H&r block online Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion. H&r block online Nontaxable transfer, Property acquired in a nontaxable transfer. H&r block online Market gain, reporting, Market Gain Marketing quota penalties, Marketing Quota Penalties Material participation, Landlord Participation in Farming Meals, Meals. H&r block online Membership fees, Club dues and membership fees. H&r block online Methods of accounting, Accounting Methods Modified ACRS (MACRS) ADS election, ADS election. H&r block online Conventions, Which Convention Applies? Depreciation methods, Which Depreciation Method Applies? Exchange, Property acquired in a like-kind exchange or involuntary conversion. H&r block online Figuring the deduction, How Is the Depreciation Deduction Figured? Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. H&r block online Nontaxable transfer, Property acquired in a nontaxable transfer. H&r block online Percentage tables, Rules for using the tables. H&r block online Property classes, Which Property Class Applies Under GDS? Recovery periods, Which Recovery Period Applies? N New hire reporting, New hire reporting. H&r block online Noncapital asset, Noncapital Assets Nontaxable exchanges, Like-Kind Exchanges Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer. H&r block online Not-for-profit farming, Not-for-Profit Farming O Organizational costs, Business start-up and organizational costs. H&r block online P Partners, limited, Limited partner. H&r block online Partners, retired, Retired partner. H&r block online Partners, Spouse, Business Owned and Operated by Spouses. H&r block online Partnership, Partnership income or loss. H&r block online Passenger automobile, Passenger automobiles. H&r block online Pasture income, Pasture income and rental. H&r block online Patronage dividends, Patronage Dividends Payments considered received, Payments Received or Considered Received Payments received, Payments Received or Considered Received Penalties Estimated tax, Estimated Tax Penalty for 2013 Returns, Estimated Tax Penalty for 2013 Trust fund recovery, Trust fund recovery penalty. H&r block online Per-unit retain certificates, Per-Unit Retain Certificates Personal expenses, Personal, Living, and Family Expenses Placed in service, Placed in Service, What Is the Placed-in-Service Date? Postponing casualty gain, Postponing Gain Prepaid expense Advance premiums, Advance premiums. H&r block online Extends useful life, Prepayment. H&r block online Farm supplies, Prepaid Farm Supplies Livestock feed, Prepaid Livestock Feed Prizes, Prizes. H&r block online Produce, Sales of Farm Products Property Changed to business use, Property changed from personal to business or rental use. H&r block online Received for services, Property received for services. H&r block online Repairs and improvements, How Do You Treat Repairs and Improvements? Section 1231, Section 1231 transactions. H&r block online Section 1245, Section 1245 Property Section 1250, Section 1250 Property Section 1252, Section 1252 property. H&r block online Section 1255, Section 1255 property. H&r block online Tangible personal, Tangible personal property. H&r block online Publications (see Tax help) Q Qualified disaster relief payments, Qualified disaster relief payments. H&r block online Qualified farm debt, Qualified Farm Debt Qualified joint venture, Qualified joint venture. H&r block online Qualified principal residence debt, Qualified Principal Residence Debt R Recapture Amortization, Depreciation and amortization. H&r block online Basis reductions, Recapture of basis reductions. H&r block online Certain depreciation, Recapture of certain depreciation. H&r block online Cost-sharing payments, Recapture. H&r block online Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture. H&r block online Section 1245 property, Section 1245 Property Section 1250 property, Section 1250 Property Section 179 expense deduction, When Must You Recapture the Deduction? Section 179 GO Zone property, Recapture for qualified section 179 GO Zone property. H&r block online Special depreciation allowance, When Must You Recapture an Allowance Recordkeeping, Importance of Records, Meals. H&r block online Records on depreciable property, Depreciation Recapture Reforestation costs, Forestation and reforestation costs. H&r block online , Reforestation Costs Refund Deduction taken, Refund or reimbursement. H&r block online Fuel tax, Fuel tax credit and refund. H&r block online , Including the Credit or Refund in Income Reimbursements Casualties and thefts, Casualty and theft losses. H&r block online , Casualties and Thefts, Insurance and other reimbursements. H&r block online Deduction taken, Refund or reimbursement. H&r block online Expenses, Reimbursed expenses. H&r block online Feed assistance, Feed Assistance and Payments Real estate taxes, Real estate taxes. H&r block online Reforestation expenses, Qualifying costs. H&r block online To employees, Reimbursements to employees. H&r block online Related persons, Special rule for related persons. H&r block online , Losses from sales or exchanges between related persons. H&r block online , Special rules for related persons. H&r block online , Like-kind exchanges between related persons. H&r block online , Sale to a related person. H&r block online , Buying replacement property from a related person. H&r block online , Related persons. H&r block online Rental income, Rents (Including Crop Shares) Rented property, improvements, Improvements to rented property. H&r block online Repairs, Repairs and Maintenance Repairs and improvements, How Do You Treat Repairs and Improvements? Repayment of income, Repayment of income. H&r block online Replacement Period, Replacement Period Property, Replacement Property Reportable transactions. H&r block online , Reminders Repossessions, Foreclosure or Repossession Right-of-way income, Easements and rights-of-way. H&r block online S Sale of home, Sale of your home. H&r block online Section 179 expense deduction, Section 179 Expense Deduction How to elect, How Do You Elect the Deduction? Listed property, Additional Rules for Listed Property Qualifying property, What Property Qualifies? Recapture, When Must You Recapture the Deduction? Self-employed health insurance, Self-employed health insurance deduction. H&r block online Self-employed health insurance deduction, Self-employed health insurance deduction. H&r block online Self-employment tax Community property, Community property. H&r block online Deduction, Deduction for employer-equivalent portion of self-employment tax. H&r block online How to pay, How To Pay Self-Employment Tax Landlord participation, Landlord Participation in Farming Material participation, Material participation for landlords. H&r block online Maximum net earnings, What's New for 2013 Methods for figuring net earnings, Methods for Figuring Net Earnings Optional method, Farm Optional Method Regular method, Regular Method Rental income, Landlord Participation in Farming Reporting, Reporting Self-Employment Tax Self-employment tax rate, Self-employment tax rate. H&r block online Share farming, Share farmer. H&r block online Tax rates, What's New for 2013 Who must pay, Who Must Pay Self-Employment Tax? Selling expenses, Selling expenses. H&r block online Selling price Defined, Selling price. H&r block online Reduced, Selling price reduced. H&r block online Settlement costs (fees), Settlement costs. H&r block online Social security and Medicare Credits of coverage, Earning credits in 2013. H&r block online Withholding of tax, Social Security and Medicare Taxes Social security number, Obtaining a social security number. H&r block online Software, computer, Computer software. H&r block online Soil Conservation, Conservation Expenses Contamination, Soil or other environmental contamination. H&r block online Special depreciation allowance How to elect not to claim, How Can You Elect Not To Claim the Allowance? Recapture, When Must You Recapture an Allowance Standard mileage rate, Standard mileage rate. H&r block online Start-up costs for businesses, Business start-up and organizational costs. H&r block online Suggestions for publication, Comments and suggestions. H&r block online T Tangible personal property, Tangible personal property. H&r block online Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. H&r block online Tax shelter At-risk limits, At-Risk Limits Defined, Tax shelter. H&r block online Tax-free exchanges, Like-Kind Exchanges Taxes Excise, Excise Taxes Federal use, Highway use tax. H&r block online General, Taxes Self-employment, Self-Employment Tax State and federal, State and federal income taxes. H&r block online State and local general sales, State and local general sales taxes. H&r block online Withholding, Federal income tax withholding. H&r block online , Social Security and Medicare Taxes, Federal Income Tax Withholding Telephone expense, Telephone expense. H&r block online Tenant house expenses, Tenant House Expenses Term interests, Certain term interests in property. H&r block online Theft losses, Casualties, Thefts, and Condemnations Timber, Timber. H&r block online , Timber Depletion, Timber Tobacco quota buyout payments, Tobacco Quota Buyout Program Payments Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments Trade-in, Sale and Purchase Travel expenses, Travel Expenses Truck expenses, Truck and Car Expenses Trust fund recovery penalty, Trust fund recovery penalty. H&r block online TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Basis of assets, Uniform Capitalization Rules Inventory, Uniform capitalization rules. H&r block online Unstated interest, Unstated interest. H&r block online W Wages and salaries, Wages and salaries. H&r block online Water conservation, Conservation Expenses Water well, Water well. H&r block online , Water wells. H&r block online Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. 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H&r block online 7. H&r block online   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. H&r block online Costs not included. H&r block online Intangible Drilling Costs Exploration CostsPartnerships and S corporations. H&r block online Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. H&r block online Film and Television Production Costs What's New Film and television productions costs. H&r block online  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. H&r block online See Film and Television Production Costs , later. H&r block online Introduction This chapter discusses costs you can elect to deduct or capitalize. H&r block online You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. H&r block online If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. H&r block online When you capitalize a cost, you add it to the basis of property to which it relates. H&r block online A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. H&r block online Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. H&r block online You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. H&r block online For more information on the alternative minimum tax, see the instructions for the following forms. H&r block online Form 6251, Alternative Minimum Tax—Individuals. H&r block online Form 4626, Alternative Minimum Tax—Corporations. H&r block online Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. H&r block online Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. H&r block online Certain carrying charges must be capitalized under the uniform capitalization rules. H&r block online (For information on capitalization of interest, see chapter 4 . H&r block online ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. H&r block online You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. H&r block online For unimproved and unproductive real property, your election is good for only 1 year. H&r block online You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. H&r block online For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. H&r block online For personal property, your election is effective until the date you install or first use it, whichever is later. H&r block online How to make the election. H&r block online   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. H&r block online However, 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). H&r block online Attach the statement to the amended return and write “Filed pursuant to section 301. H&r block online 9100-2” on the statement. H&r block online File the amended return at the same address you filed the original return. H&r block online Research and Experimental Costs The costs of research and experimentation are generally capital expenses. H&r block online However, you can elect to deduct these costs as a current business expense. H&r block online Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. H&r block online If you meet certain requirements, you may elect to defer and amortize research and experimental costs. H&r block online For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. H&r block online Research and experimental costs defined. H&r block online   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. H&r block online Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. H&r block online Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. H&r block online      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. H&r block online However, costs paid or incurred to obtain another's patent are not research and experimental costs. H&r block online Product. H&r block online   The term “product” includes any of the following items. H&r block online Formula. H&r block online Invention. H&r block online Patent. H&r block online Pilot model. H&r block online Process. H&r block online Technique. H&r block online Property similar to the items listed above. H&r block online It also includes products used by you in your trade or business or held for sale, lease, or license. H&r block online Costs not included. H&r block online   Research and experimental costs do not include expenses for any of the following activities. H&r block online Advertising or promotions. H&r block online Consumer surveys. H&r block online Efficiency surveys. H&r block online Management studies. H&r block online Quality control testing. H&r block online Research in connection with literary, historical, or similar projects. H&r block online The acquisition of another's patent, model, production, or process. H&r block online When and how to elect. H&r block online   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. H&r block online If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. H&r block online Deducting or Amortizing Research and Experimentation Costs IF you . H&r block online . H&r block online . H&r block online THEN . H&r block online . H&r block online . H&r block online Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. H&r block online Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. H&r block online See Research and Experimental Costs in chapter 8. H&r block online Research credit. H&r block online   If you pay or incur qualified research expenses, you may be able to take the research credit. H&r block online For more information see Form 6765, Credit for Increasing Research Activities and its instructions. H&r block online Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. H&r block online You can usually recover them through depreciation or depletion. H&r block online However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. H&r block online These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. H&r block online You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. H&r block online You can elect to deduct only the costs of items with no salvage value. H&r block online These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. H&r block online Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. H&r block online However, see Amounts paid to contractor that must be capitalized , later. H&r block online You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. H&r block online It does not matter whether there is any intent to produce hydrocarbons. H&r block online If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. H&r block online Amounts paid to contractor that must be capitalized. H&r block online   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. H&r block online How to make the election. H&r block online   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. H&r block online No formal statement is required. H&r block online If you file Schedule C (Form 1040), enter these costs under “Other expenses. H&r block online ”   For oil and gas wells, your election is binding for the year it is made and for all later years. H&r block online For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. H&r block online You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. H&r block online Energy credit for costs of geothermal wells. H&r block online   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. H&r block online See the Instructions for Form 3468 for more information. H&r block online Nonproductive well. H&r block online   If you capitalize your IDCs, you have another option if the well is nonproductive. H&r block online You can deduct the IDCs of the nonproductive well as an ordinary loss. H&r block online You must indicate and clearly state your election on your tax return for the year the well is completed. H&r block online Once made, the election for oil and gas wells is binding for all later years. H&r block online You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. H&r block online Costs incurred outside the United States. H&r block online   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. H&r block online However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. H&r block online If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. H&r block online These rules do not apply to a nonproductive well. H&r block online Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. H&r block online You recover these costs through depletion as the mineral is removed from the ground. H&r block online However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). H&r block online How to make the election. H&r block online   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. H&r block online Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. H&r block online The election applies to the tax year you make this election and all later tax years. H&r block online Partnerships and S corporations. H&r block online   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. H&r block online Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. H&r block online Reduced corporate deductions for exploration costs. H&r block online   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. H&r block online It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. H&r block online A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. H&r block online For more information on this method of amortization, see Internal Revenue Code section 59(e). H&r block online   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. H&r block online However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. H&r block online See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. H&r block online   These rules also apply to the deduction of development costs by corporations. H&r block online See Development Costs , later. H&r block online Recapture of exploration expenses. H&r block online   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. H&r block online Use either of the following methods. H&r block online Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. H&r block online Your election must be clearly indicated on the return. H&r block online Increase your adjusted basis in the mine by the amount included in income. H&r block online Generally, you must elect this recapture method by the due date (including extensions) of your return. H&r block online However, 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). H&r block online Make the election on your amended return and write “Filed pursuant to section 301. H&r block online 9100-2” on the form where you are including the income. H&r block online File the amended return at the same address you filed the original return. H&r block online Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. H&r block online   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. H&r block online Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. H&r block online   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. H&r block online Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. H&r block online If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. H&r block online Foreign exploration costs. H&r block online   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. H&r block online You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. H&r block online (Cost depletion is discussed in chapter 9 . H&r block online ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. H&r block online These rules also apply to foreign development costs. H&r block online Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. H&r block online These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. H&r block online Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. H&r block online Development costs do not include the costs for the acquisition or improvement of depreciable property. H&r block online Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. H&r block online This election applies each tax year to expenses paid or incurred in that year. H&r block online Once made, the election is binding for the year and cannot be revoked for any reason. H&r block online How to make the election. H&r block online   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. H&r block online Generally, you must make the election by the due date of the return (including extensions). H&r block online However, 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). H&r block online Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block online 9100-2. H&r block online ” File the amended return at the same address you filed the original return. H&r block online Foreign development costs. H&r block online   The rules discussed earlier for foreign exploration costs apply to foreign development costs. H&r block online Reduced corporate deductions for development costs. H&r block online   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. H&r block online Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. H&r block online For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. H&r block online Circulation costs are deductible even if they normally would be capitalized. H&r block online This rule does not apply to the following costs that must be capitalized. H&r block online The purchase of land or depreciable property. H&r block online The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. H&r block online Other treatment of circulation costs. H&r block online   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. H&r block online Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). H&r block online Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. H&r block online How to make the election. H&r block online   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. H&r block online Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. H&r block online Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. H&r block online However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. H&r block online The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. H&r block online Any remaining costs must be amortized. H&r block online For information about amortizing start-up and organizational costs, see chapter 8 . H&r block online Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. H&r block online Organizational costs include the costs of creating a corporation. H&r block online For more information on start-up and organizational costs, see chapter 8 . H&r block online How to make the election. H&r block online   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. H&r block online However, 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). H&r block online Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block online 9100-2. H&r block online ” File the amended return at the same address you filed the original return. H&r block online The election applies when computing taxable income for the current tax year and all subsequent years. H&r block online Reforestation Costs Reforestation costs are generally capital expenditures. H&r block online However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. H&r block online The remaining costs can be amortized over an 84-month period. H&r block online For information about amortizing reforestation costs, see chapter 8 . H&r block online Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. H&r block online Qualified timber property is property that contains trees in significant commercial quantities. H&r block online See chapter 8 for more information on qualifying reforestation costs and qualified timber property. H&r block online If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. H&r block online Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. H&r block online How to make the election. H&r block online   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. H&r block online If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. H&r block online If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. H&r block online The unique stand identification numbers. H&r block online The total number of acres reforested during the tax year. H&r block online The nature of the reforestation treatments. H&r block online The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. H&r block 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). H&r block online Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block online 9100-2. H&r block online ” File the amended return at the same address you filed the original return. H&r block online The election applies when computing taxable income for the current tax year and all subsequent years. H&r block online   For additional information on reforestation costs, see chapter 8 . H&r block online Recapture. H&r block online   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. H&r block online For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. H&r block online Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. H&r block online However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. H&r block online Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. H&r block online However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. H&r block online You must own or lease the facility or vehicle for use in connection with your trade or business. H&r block online A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. H&r block online A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). H&r block online You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. H&r block online Deduction limit. H&r block online   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. H&r block online However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. H&r block online Partners and partnerships. H&r block online   The $15,000 limit applies to a partnership and also to each partner in the partnership. H&r block online A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. H&r block online If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. H&r block online   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). H&r block online If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. H&r block online Example. H&r block online Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. H&r block online Emilio had $12,000 of similar expenses in his sole proprietorship. H&r block online He elected to deduct $7,000 of them. H&r block online Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. H&r block online Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. H&r block online Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. H&r block online Qualification standards. H&r block online   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. H&r block online You can view the Americans with Disabilities Act at www. H&r block online ada. H&r block online gov/pubs/ada. H&r block online htm. H&r block online   The following is a list of some architectural barrier removal costs that can be deducted. H&r block online Ground and floor surfaces. H&r block online Walks. H&r block online Parking lots. H&r block online Ramps. H&r block online Entrances. H&r block online Doors and doorways. H&r block online Stairs. H&r block online Floors. H&r block online Toilet rooms. H&r block online Water fountains. H&r block online Public telephones. H&r block online Elevators. H&r block online Controls. H&r block online Signage. H&r block online Alarms. H&r block online Protruding objects. H&r block online Symbols of accessibility. H&r block online You can find the ADA guidelines and requirements for architectural barrier removal at www. H&r block online usdoj. H&r block online gov/crt/ada/reg3a. H&r block online html. H&r block online   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. H&r block online You can find the guidelines and requirements for transportation barrier removal at www. H&r block online fta. H&r block online dot. H&r block online gov. H&r block online   Also, you can access the ADA website at www. H&r block online ada. H&r block online gov for additional information. H&r block online Other barrier removals. H&r block online   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. H&r block online The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. H&r block online The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). H&r block online The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. H&r block online How to make the election. H&r block online   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. H&r block online Identify the deduction as a separate item. H&r block online The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. H&r block online If you make this election, you must maintain adequate records to support your deduction. H&r block online   For your election to be valid, you generally must file your return by its due date, including extensions. H&r block online However, 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). H&r block online Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block online 9100-2. H&r block online ” File the amended return at the same address you filed the original return. H&r block online Your election is irrevocable after the due date, including extensions, of your return. H&r block online Disabled access credit. H&r block online   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. H&r block online If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. H&r block online   For more information, see Form 8826, Disabled Access Credit. H&r block online Film and Television Production Costs Film and television production costs are generally capital expenses. H&r block online However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. H&r block online For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. H&r block online Prev  Up  Next   Home   More Online Publications