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Hr Block Tax Filing

Hr block tax filing Publication 542 - Main Content Table of Contents Businesses Taxed as CorporationsPersonal services. Hr block tax filing Employee-owners. Hr block tax filing Other rules. Hr block tax filing Other rules. Hr block tax filing Property Exchanged for StockNonqualified preferred stock. Hr block tax filing Liabilities. Hr block tax filing Election to reduce basis. Hr block tax filing Capital Contributions Filing and Paying Income TaxesIncome Tax Return Penalties Estimated Tax U. Hr block tax filing S. Hr block tax filing Real Property Interest Accounting MethodsSection 481(a) adjustment. Hr block tax filing Accounting Periods Recordkeeping Income, Deductions, and Special ProvisionsCosts of Going Into Business Related Persons Income From Qualifying Shipping Activities Election to Expense Qualified Refinery Property Deduction to Comply With EPA Sulfur Regulations Energy-Efficient Commercial Building Property Deduction Corporate Preference Items Dividends-Received Deduction Extraordinary Dividends Below-Market Loans Charitable Contributions Capital Losses Net Operating Losses At-Risk Limits Passive Activity Limits Figuring TaxTax Rate Schedule Alternative Minimum Tax (AMT) Credits Recapture Taxes Accumulated Earnings Tax Distributions to ShareholdersMoney or Property Distributions Distributions of Stock or Stock Rights Constructive Distributions Reporting Dividends and Other Distributions How To Get Tax Help Businesses Taxed as Corporations The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996. Hr block tax filing Business formed before 1997. Hr block tax filing   A business formed before 1997 and taxed as a corporation under the old rules will generally continue to be taxed as a corporation. Hr block tax filing Business formed after 1996. Hr block tax filing   The following businesses formed after 1996 are taxed as corporations. Hr block tax filing A business formed under a federal or state law that refers to it as a corporation, body corporate, or body politic. Hr block tax filing A business formed under a state law that refers to it as a joint-stock company or joint-stock association. Hr block tax filing An insurance company. Hr block tax filing Certain banks. Hr block tax filing A business wholly owned by a state or local government. Hr block tax filing A business specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). Hr block tax filing Certain foreign businesses. Hr block tax filing Any other business that elects to be taxed as a corporation. Hr block tax filing For example, a limited liability company (LLC) can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. Hr block tax filing For more information about LLCs, see Publication 3402, Taxation of Limited Liability Companies. Hr block tax filing S corporations. Hr block tax filing   Some corporations may meet the qualifications for electing to be S corporations. Hr block tax filing For information on S corporations, see the instructions for Form 1120S, U. Hr block tax filing S. Hr block tax filing Income Tax Return for an S Corporation. Hr block tax filing Personal service corporations. Hr block tax filing   A corporation is a personal service corporation if it meets all of the following requirements. Hr block tax filing Its principal activity during the “testing period” is performing personal services (defined later). Hr block tax filing Generally, the testing period for any tax year is the prior tax year. Hr block tax filing If the corporation has just been formed, the testing period begins on the first day of its tax year and ends on the earlier of: The last day of its tax year, or The last day of the calendar year in which its tax year begins. Hr block tax filing Its employee-owners substantially perform the services in (1), above. Hr block tax filing This requirement is met if more than 20% of the corporation's compensation cost for its activities of performing personal services during the testing period is for personal services performed by employee-owners. Hr block tax filing Its employee-owners own more than 10% of the fair market value of its outstanding stock on the last day of the testing period. Hr block tax filing Personal services. Hr block tax filing   Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts. Hr block tax filing Employee-owners. Hr block tax filing   A person is an employee-owner of a personal service corporation if both of the following apply. Hr block tax filing He or she is an employee of the corporation or performs personal services for, or on behalf of, the corporation (even if he or she is an independent contractor for other purposes) on any day of the testing period. Hr block tax filing He or she owns any stock in the corporation at any time during the testing period. Hr block tax filing Other rules. Hr block tax filing   For other rules that apply to personal service corporations see Accounting Periods, later. Hr block tax filing Closely held corporations. Hr block tax filing   A corporation is closely held if all of the following apply. Hr block tax filing It is not a personal service corporation. Hr block tax filing At any time during the last half of the tax year, more than 50% of the value of its outstanding stock is, directly or indirectly, owned by or for five or fewer individuals. Hr block tax filing “Individual” includes certain trusts and private foundations. Hr block tax filing Other rules. Hr block tax filing   For the at-risk rules that apply to closely held corporations, seeAt-Risk Limits, later. Hr block tax filing Property Exchanged for Stock If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. Hr block tax filing This rule applies both to individuals and to groups who transfer property to a corporation. Hr block tax filing It also applies whether the corporation is being formed or is already operating. Hr block tax filing It does not apply in the following situations. Hr block tax filing The corporation is an investment company. Hr block tax filing You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors. Hr block tax filing The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt. Hr block tax filing Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. Hr block tax filing For more information, see section 1. Hr block tax filing 351-3 of the Regulations. Hr block tax filing Control of a corporation. Hr block tax filing   To be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock. Hr block tax filing Example 1. Hr block tax filing You and Bill Jones buy property for $100,000. Hr block tax filing You both organize a corporation when the property has a fair market value of $300,000. Hr block tax filing You transfer the property to the corporation for all its authorized capital stock, which has a par value of $300,000. Hr block tax filing No gain is recognized by you, Bill, or the corporation. Hr block tax filing Example 2. Hr block tax filing You and Bill transfer the property with a basis of $100,000 to a corporation in exchange for stock with a fair market value of $300,000. Hr block tax filing This represents only 75% of each class of stock of the corporation. Hr block tax filing The other 25% was already issued to someone else. Hr block tax filing You and Bill recognize a taxable gain of $200,000 on the transaction. Hr block tax filing Services rendered. Hr block tax filing   The term property does not include services rendered or to be rendered to the issuing corporation. Hr block tax filing The value of stock received for services is income to the recipient. Hr block tax filing Example. Hr block tax filing You transfer property worth $35,000 and render services valued at $3,000 to a corporation in exchange for stock valued at $38,000. Hr block tax filing Right after the exchange, you own 85% of the outstanding stock. Hr block tax filing No gain is recognized on the exchange of property. Hr block tax filing However, you recognize ordinary income of $3,000 as payment for services you rendered to the corporation. Hr block tax filing Property of relatively small value. Hr block tax filing   The term property does not include property of a relatively small value when it is compared to the value of stock and securities already owned or to be received for services by the transferor if the main purpose of the transfer is to qualify for the nonrecognition of gain or loss by other transferors. Hr block tax filing   Property transferred will not be considered to be of relatively small value if its fair market value is at least 10% of the fair market value of the stock and securities already owned or to be received for services by the transferor. Hr block tax filing Stock received in disproportion to property transferred. Hr block tax filing   If a group of transferors exchange property for corporate stock, each transferor does not have to receive stock in proportion to his or her interest in the property transferred. Hr block tax filing If a disproportionate transfer takes place, it will be treated for tax purposes in accordance with its true nature. Hr block tax filing It may be treated as if the stock were first received in proportion and then some of it used to make gifts, pay compensation for services, or satisfy the transferor's obligations. Hr block tax filing Money or other property received. Hr block tax filing   If, in an otherwise nontaxable exchange of property for corporate stock, you also receive money or property other than stock, you may have to recognize gain. Hr block tax filing You must recognize gain only up to the amount of money plus the fair market value of the other property you receive. Hr block tax filing The rules for figuring the recognized gain in this situation generally follow those for a partially nontaxable exchange discussed in Publication 544 under Like-Kind Exchanges. Hr block tax filing If the property you give up includes depreciable property, the recognized gain may have to be reported as ordinary income from depreciation. Hr block tax filing See chapter 3 of Publication 544. Hr block tax filing No loss is recognized. Hr block tax filing Nonqualified preferred stock. Hr block tax filing   Nonqualified preferred stock is treated as property other than stock. Hr block tax filing Generally, it is preferred stock with any of the following features. Hr block tax filing The holder has the right to require the issuer or a related person to redeem or buy the stock. Hr block tax filing The issuer or a related person is required to redeem or buy the stock. Hr block tax filing The issuer or a related person has the right to redeem or buy the stock and, on the issue date, it is more likely than not that the right will be exercised. Hr block tax filing The dividend rate on the stock varies with reference to interest rates, commodity prices, or similar indices. Hr block tax filing For a detailed definition of nonqualified preferred stock, see section 351(g)(2) of the Internal Revenue Code. Hr block tax filing Liabilities. Hr block tax filing   If the corporation assumes your liabilities, the exchange generally is not treated as if you received money or other property. Hr block tax filing There are two exceptions to this treatment. Hr block tax filing If the liabilities the corporation assumes are more than your adjusted basis in the property you transfer, gain is recognized up to the difference. Hr block tax filing However, if the liabilities assumed give rise to a deduction when paid, such as a trade account payable or interest, no gain is recognized. Hr block tax filing If there is no good business reason for the corporation to assume your liabilities, or if your main purpose in the exchange is to avoid federal income tax, the assumption is treated as if you received money in the amount of the liabilities. Hr block tax filing For more information on the assumption of liabilities, see section 357(d) of the Internal Revenue Code. Hr block tax filing Example. Hr block tax filing You transfer property to a corporation for stock. Hr block tax filing Immediately after the transfer, you control the corporation. Hr block tax filing You also receive $10,000 in the exchange. Hr block tax filing Your adjusted basis in the transferred property is $20,000. Hr block tax filing The stock you receive has a fair market value (FMV) of $16,000. Hr block tax filing The corporation also assumes a $5,000 mortgage on the property for which you are personally liable. Hr block tax filing Gain is realized as follows. Hr block tax filing FMV of stock received $16,000 Cash received 10,000 Liability assumed by corporation 5,000 Total received $31,000 Minus: Adjusted basis of property transferred 20,000 Realized gain $11,000   The liability assumed is not treated as money or other property. Hr block tax filing The recognized gain is limited to $10,000, the cash received. Hr block tax filing Loss on exchange. Hr block tax filing   If you have a loss from an exchange and own, directly or indirectly, more than 50% of the corporation's stock, you cannot deduct the loss. Hr block tax filing For more information, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Hr block tax filing Basis of stock or other property received. Hr block tax filing   The basis of the stock you receive is generally the adjusted basis of the property you transfer. Hr block tax filing Increase this amount by any amount treated as a dividend, plus any gain recognized on the exchange. Hr block tax filing Decrease this amount by any cash you received, the fair market value of any other property you received, and any loss recognized on the exchange. Hr block tax filing Also decrease this amount by the amount of any liability the corporation or another party to the exchange assumed from you, unless payment of the liability gives rise to a deduction when paid. Hr block tax filing    Further decreases may be required when the corporation or another party to the exchange assumes from you a liability that gives rise to a deduction when paid, if the basis of the stock would otherwise be higher than its fair market value on the date of the exchange. Hr block tax filing This rule does not apply if the entity assuming the liability acquired either substantially all of the assets or the trade or business with which the liability is associated. Hr block tax filing The basis of any other property you receive is its fair market value on the date of the trade. Hr block tax filing Basis of property transferred. Hr block tax filing   A corporation that receives property from you in exchange for its stock generally has the same basis you had in the property, increased by any gain you recognized on the exchange. Hr block tax filing However, the increase for the gain recognized may be limited. Hr block tax filing For more information, see section 362 of the Internal Revenue Code. Hr block tax filing Election to reduce basis. Hr block tax filing   In a section 351 transaction, if the adjusted basis of the property transferred exceeds the property's fair market value, the transferor and transferee may make an irrevocable election to treat the basis of the stock received by the transferor as having a basis equal to the fair market value of the property transferred. Hr block tax filing The transferor and transferee make this election by attaching a statement to their tax returns filed by the due date (including extensions) for the tax year in which the transaction occurred. Hr block tax filing However, if the transferor makes the election by including the certification provided in Notice 2005-70, 2005-41, I. Hr block tax filing R. Hr block tax filing B. Hr block tax filing 694, on or with its tax return filed by the due date (including extensions), then no election need be made by the transferee. Hr block tax filing    For more information on making this election, see section 362(e)(2)(C) of the Internal Revenue Code, and Notice 2005-70. Hr block tax filing Capital Contributions This section explains the tax treatment of contributions from shareholders and nonshareholders. Hr block tax filing Paid-in capital. Hr block tax filing   Contributions to the capital of a corporation, whether or not by shareholders, are paid-in capital. Hr block tax filing These contributions are not taxable to the corporation. Hr block tax filing Basis. Hr block tax filing   The corporation's basis of property contributed to capital by a shareholder is the same as the basis the shareholder had in the property, increased by any gain the shareholder recognized on the exchange. Hr block tax filing However, the increase for the gain recognized may be limited. Hr block tax filing For more information, see Basis of property transferred, above, and section 362 of the Internal Revenue Code. Hr block tax filing   The basis of property contributed to capital by a person other than a shareholder is zero. Hr block tax filing   If a corporation receives a cash contribution from a person other than a shareholder, the corporation must reduce the basis of any property acquired with the contribution during the 12-month period beginning on the day it received the contribution by the amount of the contribution. Hr block tax filing If the amount contributed is more than the cost of the property acquired, then reduce, but not below zero, the basis of the other properties held by the corporation on the last day of the 12-month period in the following order. Hr block tax filing Depreciable property. Hr block tax filing Amortizable property. Hr block tax filing Property subject to cost depletion but not to percentage depletion. Hr block tax filing All other remaining properties. Hr block tax filing   Reduce the basis of property in each category to zero before going on to the next category. Hr block tax filing   There may be more than one piece of property in each category. Hr block tax filing Base the reduction of the basis of each property on the following ratio:   Basis of each piece of property   Bases of all properties (within that category) If the corporation wishes to make this adjustment in some other way, it must get IRS approval. Hr block tax filing The corporation files a request for approval with its income tax return for the tax year in which it receives the contribution. Hr block tax filing Filing and Paying Income Taxes The federal income tax is a pay-as-you-go tax. Hr block tax filing A corporation generally must make estimated tax payments as it earns or receives income during its tax year. Hr block tax filing After the end of the year, the corporation must file an income tax return. Hr block tax filing This section will help you determine when and how to pay and file corporate income taxes. Hr block tax filing For certain corporations affected by Presidentially declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. Hr block tax filing The IRS may also forgive the interest and penalties on any underpaid tax for the length of any extension. Hr block tax filing For more information, visit www. Hr block tax filing irs. Hr block tax filing gov/newsroom/article/0,,id=108362. Hr block tax filing 00. Hr block tax filing Income Tax Return This section will help you determine when and how to report a corporation's income tax. Hr block tax filing Who must file. Hr block tax filing   Unless exempt under section 501 of the Internal Revenue Code, all domestic corporations in existence for any part of a tax year (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Hr block tax filing Which form to file. Hr block tax filing   A corporation generally must file Form 1120, U. Hr block tax filing S. Hr block tax filing Corporation Income Tax Return, to report its income, gains, losses, deductions, credits, and to figure its income tax liability. Hr block tax filing Certain organizations and entities must file special returns. Hr block tax filing For more information, see Special Returns for Certain Organizations, in the Instructions for Form 1120. Hr block tax filing Electronic filing. Hr block tax filing   Corporations can generally electronically file (e-file) Form 1120 and certain related forms, schedules, and attachments. Hr block tax filing Certain corporations with total assets of $10 million or more, that file at least 250 returns a year must e-file Form 1120. Hr block tax filing However, in certain instances, these corporations can request a waiver. Hr block tax filing For more information regarding electronic filing, visit www. Hr block tax filing irs. Hr block tax filing gov/efile. Hr block tax filing When to file. Hr block tax filing   Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of its tax year. Hr block tax filing A new corporation filing a short-period return must generally file by the 15th day of the 3rd month after the short period ends. Hr block tax filing A corporation that has dissolved must generally file by the 15th day of the 3rd month after the date it dissolved. Hr block tax filing Example 1. Hr block tax filing A corporation's tax year ends December 31. Hr block tax filing It must file its income tax return by March 15th. Hr block tax filing Example 2. Hr block tax filing A corporation's tax year ends June 30. Hr block tax filing It must file its income tax return by September 15th. Hr block tax filing   If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. Hr block tax filing Extension of time to file. Hr block tax filing   File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, to request an extension of time to file a corporation income tax return. Hr block tax filing The IRS will grant the extension if you complete the form properly, file it, and pay any tax due by the original due date for the return. Hr block tax filing   Form 7004 does not extend the time for paying the tax due on the return. Hr block tax filing Interest, and possibly penalties, will be charged on any part of the final tax due not shown as a balance due on Form 7004. Hr block tax filing The interest is figured from the original due date of the return to the date of payment. Hr block tax filing   For more information, see the instructions for Form 7004. Hr block tax filing How to pay your taxes. Hr block tax filing   A corporation must pay its tax due in full no later than the 15th day of the 3rd month after the end of its tax year. Hr block tax filing Electronic Federal Tax Payment System (EFTPS). Hr block tax filing   Corporations generally must use EFTPS to make deposits of all tax liabilities (including social security, Medicare, withheld income, excise, and corporate income taxes). Hr block tax filing For more information on EFTPS and enrollment, visit www. Hr block tax filing eftps. Hr block tax filing gov or call 1-800-555-4477. Hr block tax filing Also see Publication 966, The Secure Way to Pay Your Federal Taxes. Hr block tax filing Note. Hr block tax filing Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used to make federal tax deposits. Hr block tax filing Penalties Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. Hr block tax filing Do not attach an explanation when the corporation's return is filed. Hr block tax filing See the instructions for your income tax return. Hr block tax filing Late filing of return. Hr block tax filing    A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. Hr block tax filing If the corporation is charged a penalty for late payment of tax (discussed next) for the same period of time, the penalty for late filing is reduced by the amount of the penalty for late payment. Hr block tax filing The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $100. Hr block tax filing The penalty will not be imposed if the corporation can show the failure to file on time was due to a reasonable cause. Hr block tax filing Late payment of tax. Hr block tax filing    A corporation that does not pay the tax when due may be penalized ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. Hr block tax filing The penalty will not be imposed if the corporation can show that the failure to pay on time was due to a reasonable cause. Hr block tax filing Trust fund recovery penalty. Hr block tax filing   If income, social security, and Medicare taxes that a corporation must withhold from employee wages are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Hr block tax filing The penalty is the full amount of the unpaid trust fund tax. Hr block tax filing This penalty may apply to you if these unpaid taxes cannot be immediately collected from the business. Hr block tax filing   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying these taxes, and who acted willfully in not doing so. Hr block tax filing   A responsible person can be an officer or employee of a corporation, an accountant, or a volunteer director/trustee. Hr block tax filing A responsible person also may include one who signs checks for the corporation or otherwise has authority to cause the spending of business funds. Hr block tax filing   Willfully means voluntarily, consciously, and intentionally. Hr block tax filing A responsible person acts willfully if the person knows the required actions are not taking place. Hr block tax filing   For more information on withholding and paying these taxes, see Publication 15 (Circular E), Employer's Tax Guide, and Publication 51, (Circular A), Agricultural Employer's Tax Guide. Hr block tax filing Other penalties. Hr block tax filing   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. Hr block tax filing See sections 6662, 6662A, and 6663 of the Internal Revenue Code. Hr block tax filing Estimated Tax Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. Hr block tax filing If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. Hr block tax filing This section will explain how to avoid this penalty. Hr block tax filing When to pay estimated tax. Hr block tax filing   Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. Hr block tax filing Example 1. Hr block tax filing Your corporation's tax year ends December 31. Hr block tax filing Installment payments are due on April 15, June 15, September 15, and December 15. Hr block tax filing Example 2. Hr block tax filing Your corporation's tax year ends June 30. Hr block tax filing Installment payments are due on October 15, December 15, March 15, and June 15. Hr block tax filing   If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day. Hr block tax filing How to figure each required installment. Hr block tax filing   Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated tax. Hr block tax filing You will generally use one of the following two methods to figure each required installment. Hr block tax filing You should use the method that yields the smallest installment payments. Hr block tax filing Note. Hr block tax filing In these discussions, “return” generally refers to the corporation's original return. Hr block tax filing However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. Hr block tax filing Method 1. Hr block tax filing   Each required installment is 25% of the income tax the corporation will show on its return for the current year. Hr block tax filing Method 2. Hr block tax filing   Each required installment is 25% of the income tax shown on the corporation's return for the previous year. Hr block tax filing   To use Method 2: The corporation must have filed a return for the previous year, The return must have been for a full 12 months, and The return must have shown a positive tax liability (not zero). Hr block tax filing Also, if the corporation is a large corporation, it can use Method 2 to figure the first installment only. Hr block tax filing   See the Instructions for Form 1120-W, for the definition of a large corporation and other special rules for large corporations. Hr block tax filing Other methods. Hr block tax filing   If a corporation's income is expected to vary during the year because, for example, its business is seasonal, it may be able to lower the amount of one or more required installments by using one or both of the following methods. Hr block tax filing The annualized income installment method. Hr block tax filing The adjusted seasonal installment method. Hr block tax filing Use Schedule A of Form 1120-W to determine if using one or both of these methods will lower the amount of any required installments. Hr block tax filing Refiguring required installments. Hr block tax filing   If after the corporation figures and deposits its estimated tax it finds that its tax liability for the year will be more or less than originally estimated, it may have to refigure its required installments to see if an underpayment penalty may apply. Hr block tax filing An immediate catchup payment should be made to reduce any penalty resulting from the underpayment of any earlier installments. Hr block tax filing Underpayment penalty. Hr block tax filing   If the corporation does not pay a required installment of estimated tax by its due date, it may be subject to a penalty. Hr block tax filing The penalty is figured separately for each installment due date. Hr block tax filing The corporation may owe a penalty for an earlier due date, even if it paid enough tax later to make up the underpayment. Hr block tax filing This is true even if the corporation is due a refund when its return is filed. Hr block tax filing Form 2220. Hr block tax filing   Use Form 2220, Underpayment of Estimated Tax by Corporations, to determine if a corporation is subject to the penalty for underpayment of estimated tax and to figure the amount of the penalty. Hr block tax filing   If the corporation is charged a penalty, the amount of the penalty depends on the following three factors. Hr block tax filing The amount of the underpayment. Hr block tax filing The period during which the underpayment was due and unpaid. Hr block tax filing The interest rate for underpayments published quarterly by the IRS in the Internal Revenue Bulletin. Hr block tax filing   A corporation generally does not have to file Form 2220 with its income tax return because the IRS will figure any penalty and bill the corporation. Hr block tax filing However, even if the corporation does not owe a penalty, complete and attach the form to the corporation's tax return if any of the following apply. Hr block tax filing The annualized income installment method was used to figure any required installment. Hr block tax filing The adjusted seasonal installment method was used to figure any required installment. Hr block tax filing The corporation is a large corporation figuring its first required installment based on the prior year's tax. Hr block tax filing How to pay estimated tax. Hr block tax filing   A corporation is generally required to use EFTPS to pay its taxes. Hr block tax filing See Electronic Federal Tax Payment System (EFTPS), earlier. Hr block tax filing Also see the Instructions for Form 1120-W. Hr block tax filing Quick refund of overpayments. Hr block tax filing   A corporation that has overpaid its estimated tax for the tax year may be able to apply for a quick refund. Hr block tax filing Use Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund of an overpayment of estimated tax. Hr block tax filing A corporation can apply for a quick refund if the overpayment is: At least 10% of its expected tax liability, and At least $500. Hr block tax filing Use Form 4466 to figure the corporation's expected tax liability and the overpayment of estimated tax. Hr block tax filing File Form 4466 before the 16th day of the 3rd month after the end of the tax year, but before the corporation files its income tax return. Hr block tax filing Do not file Form 4466 before the end of the corporation's tax year. Hr block tax filing An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. Hr block tax filing The IRS will act on the form within 45 days from the date you file it. Hr block tax filing U. Hr block tax filing S. Hr block tax filing Real Property Interest If a domestic corporation acquires a U. Hr block tax filing S. Hr block tax filing real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. Hr block tax filing The amount paid includes cash, the fair market value of other property, and any assumed liability. Hr block tax filing If a domestic corporation distributes a U. Hr block tax filing S. Hr block tax filing real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. Hr block tax filing A corporation that fails to withhold may be liable for the tax, and any penalties and interest that apply. Hr block tax filing For more information, see section 1445 of the Internal Revenue Code; Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U. Hr block tax filing S. Hr block tax filing Withholding Tax Return for Dispositions by Foreign Persons of U. Hr block tax filing S. Hr block tax filing Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. Hr block tax filing S. Hr block tax filing Real Property Interests. Hr block tax filing Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. Hr block tax filing Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. Hr block tax filing In all cases, the method used must clearly show taxable income. Hr block tax filing Generally, permissible methods include: Cash, Accrual, or Any other method authorized by the Internal Revenue Code. Hr block tax filing Accrual method. Hr block tax filing   Generally, a corporation (other than a qualified personal service corporation) must use the accrual method of accounting if its average annual gross receipts exceed $5 million. Hr block tax filing A corporation engaged in farming operations also must use the accrual method. Hr block tax filing   If inventories are required, the accrual method generally must be used for sales and purchases of merchandise. Hr block tax filing However, qualifying taxpayers and eligible businesses of qualifying small business taxpayers are excepted from using the accrual method for eligible trades or businesses and may account for inventoriable items as materials and supplies that are not incidental. Hr block tax filing   Under the accrual method, an amount is includable in income when: All the events have occurred that fix the right to receive the income, which is the earliest of the date: The required performance takes place, Payment is due, or Payment is received; and The amount can be determined with reasonable accuracy. Hr block tax filing   Generally, an accrual basis taxpayer can deduct accrued expenses in the tax year when: All events that determine the liability have occurred, The amount of the liability can be figured with reasonable accuracy, and Economic performance takes place with respect to the expense. Hr block tax filing   There are exceptions to the economic performance rule for certain items, including recurring expenses. Hr block tax filing See section 461(h) of the Internal Revenue Code and the related regulations for the rules for determining when economic performance takes place. Hr block tax filing Nonaccrual experience method. Hr block tax filing   Accrual method corporations are not required to maintain accruals for certain amounts from the performance of services that, on the basis of their experience, will not be collected, if: The services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting; or The corporation's average annual gross receipts for the 3 prior tax years does not exceed $5 million. Hr block tax filing   This provision does not apply if interest is required to be paid on the amount or if there is any penalty for failure to pay the amount timely. Hr block tax filing Percentage of completion method. Hr block tax filing   Long-term contracts (except for certain real property construction contracts) must generally be accounted for using the percentage of completion method described in section 460 of the Internal Revenue Code. Hr block tax filing Mark-to-market accounting method. Hr block tax filing   Generally, dealers in securities must use the mark-to-market accounting method described in section 475 of the Internal Revenue Code. Hr block tax filing Under this method any security held by a dealer as inventory must be included in inventory at its FMV. Hr block tax filing Any security not held as inventory at the close of the tax year is treated as sold at its FMV on the last business day of the tax year. Hr block tax filing Any gain or loss must be taken into account in determining gross income. Hr block tax filing The gain or loss taken into account is treated as ordinary gain or loss. Hr block tax filing   Dealers in commodities and traders in securities and commodities can elect to use the mark-to-market accounting method. Hr block tax filing Change in accounting method. Hr block tax filing   A corporation can change its method of accounting used to report taxable income (for income as a whole or for the treatment of any material item). Hr block tax filing The corporation must file Form 3115, Application for Change in Accounting Method. Hr block tax filing For more information, see Form 3115 and Publication 538. Hr block tax filing Section 481(a) adjustment. Hr block tax filing   The corporation may have to make an adjustment under section 481(a) of the Internal Revenue Code to prevent amounts of income or expense from being duplicated or omitted. Hr block tax filing The section 481(a) adjustment period is generally 1 year for a net negative adjustment and 4 years for a net positive adjustment. Hr block tax filing However, a corporation can elect to use a 1-year adjustment period if the net section 481(a) adjustment for the change is less than $25,000. Hr block tax filing The corporation must complete the appropriate lines of Form 3115 to make the election. Hr block tax filing See the Instructions for Form 3115. Hr block tax filing Accounting Periods A corporation must figure its taxable income on the basis of a tax year. Hr block tax filing A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. Hr block tax filing Generally, corporations can use either a calendar year or a fiscal year as its tax year. Hr block tax filing Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. Hr block tax filing For more information, see Publication 538. Hr block tax filing Personal service corporation. Hr block tax filing   A personal service corporation must use a calendar year as its tax year unless: It elects to use a 52–53 week tax year that ends with reference to the calendar year; It can establish a business purpose for a different tax year and obtains approval of the IRS. Hr block tax filing See Form 1128, Application To Adopt, Change, or Retain a Tax Year, and Publication 538; or It elects under section 444 of the Internal Revenue Code to have a tax year other than a calendar year. Hr block tax filing Use Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, to make the election. Hr block tax filing   If a personal service corporation makes a section 444 election, its deduction for certain amounts paid to employee-owners may be limited. Hr block tax filing See Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), to figure the maximum deduction. Hr block tax filing Change of tax year. Hr block tax filing   Generally, a corporation must get the consent of the IRS before changing its tax year by filing Form 1128. Hr block tax filing However, under certain conditions, a corporation can change its tax year without getting the consent. Hr block tax filing For more information, see Form 1128 and Publication 538. Hr block tax filing Recordkeeping A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. Hr block tax filing Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. Hr block tax filing Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property. Hr block tax filing The corporation should keep copies of all filed returns. Hr block tax filing They help in preparing future and amended returns and in the calculation of earnings and profits. Hr block tax filing Income, Deductions, and Special Provisions Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. Hr block tax filing However, the following special provisions apply only to corporations. Hr block tax filing Costs of Going Into Business When you go into business, treat all costs you incur to get your business started as capital expenses. Hr block tax filing However, a corporation can elect to deduct a limited amount of start-up or organizational costs. Hr block tax filing Any costs not deducted can be amortized. Hr block tax filing Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. Hr block tax filing Organizational costs are the direct costs of creating the corporation. Hr block tax filing For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. Hr block tax filing Also see, Publication 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization. Hr block tax filing Related Persons A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. Hr block tax filing Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. Hr block tax filing If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. Hr block tax filing These rules also deny the deduction of losses on the sale or exchange of property between related persons. Hr block tax filing Related persons. Hr block tax filing   For purposes of this rule, the following persons are related to a corporation. Hr block tax filing Another corporation, that is a member of the same controlled group (as defined in section 267(f) of the Internal Revenue Code). Hr block tax filing An individual who owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. Hr block tax filing A trust fiduciary, when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. Hr block tax filing An S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Hr block tax filing A partnership, if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. Hr block tax filing Any employee-owner, if the corporation is a personal service corporation (see Personal service corporation, earlier), regardless of the amount of stock owned by the employee-owner. Hr block tax filing Ownership of stock. Hr block tax filing   To determine whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following apply. Hr block tax filing Stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, is treated as being owned proportionately by or for its shareholders, partners, or beneficiaries. Hr block tax filing An individual is treated as owning the stock owned, directly or indirectly, by or for the individual's family. Hr block tax filing Family includes only brothers and sisters (including half brothers and half sisters), a spouse, ancestors, and lineal descendants. Hr block tax filing Any individual owning (other than by applying (2), above) stock in a corporation, is treated as also owning the stock owned directly or indirectly by that individual's partner. Hr block tax filing To apply (1), (2), or (3), above, stock constructively owned by a person under (1) is treated as actually owned by that person. Hr block tax filing But stock constructively owned by an individual under (2) or (3) is not treated as actually owned by the individual for applying either (2) or (3) to make another person the constructive owner of that stock. Hr block tax filing Reallocation of income and deductions. Hr block tax filing   Where it is necessary to clearly show income or prevent tax evasion, the IRS can reallocate gross income, deductions, credits, or allowances between two or more organizations, trades, or businesses owned or controlled directly, or indirectly, by the same interests. Hr block tax filing Complete liquidations. Hr block tax filing   The disallowance of losses from the sale or exchange of property between related persons does not apply to liquidating distributions. Hr block tax filing More information. Hr block tax filing   For more information about the related person rules, see Publication 544. Hr block tax filing Income From Qualifying Shipping Activities A corporation may make an election to be taxed on its notional shipping income at the highest corporate tax rate. Hr block tax filing If a corporation makes this election it may exclude income from qualifying shipping activities from gross income. Hr block tax filing Also if the election is made, the corporation generally may not claim any loss, deduction, or credit with respect to qualifying shipping activities. Hr block tax filing A corporation making this election may also elect to defer gain on the disposition of a qualifying vessel. Hr block tax filing A corporation uses Form 8902, Alternative Tax on Qualifying Shipping Activities, to make the election and figure the alternative tax. Hr block tax filing For more information regarding the election, see Form 8902. Hr block tax filing Election to Expense Qualified Refinery Property A corporation can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct 50% of the cost of qualified refinery property (defined in section 179C(c) of the Internal Revenue Code), placed in service before January 1, 2014. Hr block tax filing The deduction is allowed for the year in which the property is placed in service. Hr block tax filing A subchapter T cooperative can make an irrevocable election on its return by the due date (including extensions) to allocate this deduction to its owners based on their ownership interest. Hr block tax filing For more information, see section 179C of the Internal Revenue Code and the related Regulations. Hr block tax filing Deduction to Comply With EPA Sulfur Regulations A small business refiner can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct up to 75% of qualified costs paid or incurred to comply with the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency (EPA). Hr block tax filing A subchapter T cooperative can make an irrevocable election on its return filed by the due date (including extensions) to allocate the deduction to its owners based on their ownership interest. Hr block tax filing For more information, see sections 45H and 179B of the Internal Revenue Code and the related Regulations. Hr block tax filing Energy-Efficient Commercial Building Property Deduction A corporation can claim a deduction for costs associated with energy-efficient commercial building property, placed in service before January 1, 2014. Hr block tax filing In order to qualify for the deduction: The costs must be associated with depreciable or amortizable property in a Standard 90. Hr block tax filing 1-2001 domestic building; The property must be either a part of the interior lighting system, the heating, cooling, ventilation and hot water system, or the building envelope (defined in section 179D(c)(1)(C) of the Internal Revenue Code); and The property must be installed as part of a plan to reduce the total annual energy and power costs of the building by 50% or more. Hr block tax filing The deduction is limited to $1. Hr block tax filing 80 per square foot of the building less the total amount of deductions taken for this property in prior tax years. Hr block tax filing Other rules and limitations apply. Hr block tax filing The corporation must reduce the basis of any property by any deduction taken. Hr block tax filing The deduction is subject to recapture if the corporation fails to fully implement an energy savings plan. Hr block tax filing For more information, see section 179D of the Internal Revenue Code. Hr block tax filing Also see Notice 2006-52, 2006-26 I. Hr block tax filing R. Hr block tax filing B. Hr block tax filing 1175, clarified and amplified by Notice 2008-40, 2008-14 I. Hr block tax filing R. Hr block tax filing B. Hr block tax filing 725, and any successor. Hr block tax filing Corporate Preference Items A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. Hr block tax filing These items are known as corporate preference items and they include the following. Hr block tax filing Gain on the disposition of section 1250 property. Hr block tax filing For more information, see section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. Hr block tax filing Percentage depletion for iron ore and coal (including lignite). Hr block tax filing For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Publication 535. Hr block tax filing Amortization of pollution control facilities. Hr block tax filing For more information, see Pollution Control Facilities in chapter 8 of Publication 535 and section 291(a)(5) of the Internal Revenue Code. Hr block tax filing Mineral exploration and development costs. Hr block tax filing For more information, see Exploration Costs and Development Costs in chapter 7 of Publication 535. Hr block tax filing For more information on corporate preference items, see section 291 of the Internal Revenue Code. Hr block tax filing Dividends-Received Deduction A corporation can deduct a percentage of certain dividends received during its tax year. Hr block tax filing This section discusses the general rules that apply. Hr block tax filing The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. Hr block tax filing For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return. Hr block tax filing Dividends from domestic corporations. Hr block tax filing   A corporation can deduct, within certain limits, 70% of the dividends received if the corporation receiving the dividend owns less than 20% of the corporation distributing the dividend. Hr block tax filing If the corporation owns 20% or more of the distributing corporation's stock, it can, subject to certain limits, deduct 80% of the dividends received. Hr block tax filing Ownership. Hr block tax filing   Determine ownership, for these rules, by the amount of voting power and value of the paying corporation's stock (other than certain preferred stock) the receiving corporation owns. Hr block tax filing Small business investment companies. Hr block tax filing   Small business investment companies can deduct 100% of the dividends received from taxable domestic corporations. Hr block tax filing Dividends from regulated investment companies. Hr block tax filing   Regulated investment company dividends received are subject to certain limits. Hr block tax filing Capital gain dividends received from a regulated investment company do not qualify for the deduction. Hr block tax filing For more information, see section 854 of the Internal Revenue Code. Hr block tax filing No deduction allowed for certain dividends. Hr block tax filing   Corporations cannot take a deduction for dividends received from the following entities. Hr block tax filing A real estate investment trust (REIT). Hr block tax filing A corporation exempt from tax under section 501 or 521 of the Internal Revenue Code either for the tax year of the distribution or the preceding tax year. Hr block tax filing A corporation whose stock was held less than 46 days during the 91-day period beginning 45 days before the stock became ex-dividend with respect to the dividend. Hr block tax filing Ex-dividend means the holder has no rights to the dividend. Hr block tax filing A corporation whose preferred stock was held less than 91 days during the 181-day period beginning 90 days before the stock became ex-dividend with respect to the dividend if the dividends received are for a period or periods totaling more than 366 days. Hr block tax filing Any corporation, if your corporation is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. Hr block tax filing Dividends on deposits. Hr block tax filing   Dividends on deposits or withdrawable accounts in domestic building and loan associations, mutual savings banks, cooperative banks, and similar organizations are interest, not dividends. Hr block tax filing They do not qualify for this deduction. Hr block tax filing Limit on deduction for dividends. Hr block tax filing   The total deduction for dividends received or accrued is generally limited (in the following order) to: 80% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from 20%-owned corporations, then 70% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from less-than-20%-owned corporations (reducing taxable income by the total dividends received from 20%-owned corporations). Hr block tax filing Figuring the limit. Hr block tax filing   In figuring the limit, determine taxable income without the following items. Hr block tax filing The net operating loss deduction. Hr block tax filing The domestic production activities deduction. Hr block tax filing The deduction for dividends received. Hr block tax filing Any adjustment due to the nontaxable part of an extraordinary dividend (see Extraordinary Dividends, below). Hr block tax filing Any capital loss carryback to the tax year. Hr block tax filing Effect of net operating loss. Hr block tax filing   If a corporation has a net operating loss (NOL) for a tax year, the limit of 80% (or 70%) of taxable income does not apply. Hr block tax filing To determine whether a corporation has an NOL, figure the dividends-received deduction without the 80% (or 70%) of taxable income limit. Hr block tax filing Example 1. Hr block tax filing A corporation loses $25,000 from operations. Hr block tax filing It receives $100,000 in dividends from a 20%-owned corporation. Hr block tax filing Its taxable income is $75,000 ($100,000 – $25,000) before the deduction for dividends received. Hr block tax filing If it claims the full dividends-received deduction of $80,000 ($100,000 × 80%) and combines it with an operations loss of $25,000, it will have an NOL of ($5,000). Hr block tax filing Therefore, the 80% of taxable income limit does not apply. Hr block tax filing The corporation can deduct the full $80,000. Hr block tax filing Example 2. Hr block tax filing Assume the same facts as in Example 1, except that the corporation only loses $15,000 from operations. Hr block tax filing Its taxable income is $85,000 before the deduction for dividends received. Hr block tax filing After claiming the dividends-received deduction of $80,000 ($100,000 × 80%), its taxable income is $5,000. Hr block tax filing Because the corporation will not have an NOL after applying a full dividends-received deduction, its allowable dividends-received deduction is limited to 80% of its taxable income, or $68,000 ($85,000 × 80%). Hr block tax filing Extraordinary Dividends If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. Hr block tax filing The nontaxed part is any dividends-received deduction allowable for the dividends. Hr block tax filing Extraordinary dividend. Hr block tax filing   An extraordinary dividend is any dividend on stock that equals or exceeds a certain percentage of the corporation's adjusted basis in the stock. Hr block tax filing The percentages are: 5% for stock preferred as to dividends, or 10% for other stock. Hr block tax filing Treat all dividends received that have ex-dividend dates within an 85-consecutive-day period as one dividend. Hr block tax filing Treat all dividends received that have ex-dividend dates within a 365-consecutive-day period as extraordinary dividends if the total of the dividends exceeds 20% of the corporation's adjusted basis in the stock. Hr block tax filing Disqualified preferred stock. Hr block tax filing   Any dividend on disqualified preferred stock is treated as an extraordinary dividend regardless of the period of time the corporation held the stock. Hr block tax filing   Disqualified preferred stock is any stock preferred as to dividends if any of the following apply. Hr block tax filing The stock when issued has a dividend rate that declines (or can reasonably be expected to decline) in the future. Hr block tax filing The issue price of the stock exceeds its liquidation rights or stated redemption price. Hr block tax filing The stock is otherwise structured to avoid the rules for extraordinary dividends and to enable corporate shareholders to reduce tax through a combination of dividends-received deductions and loss on the disposition of the stock. Hr block tax filing   These rules apply to stock issued after July 10, 1989, unless it was issued under a written binding contract in effect on that date, and thereafter, before the issuance of the stock. Hr block tax filing More information. Hr block tax filing   For more information on extraordinary dividends, see section 1059 of the Internal Revenue Code. Hr block tax filing Below-Market Loans If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest. Hr block tax filing A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Hr block tax filing A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following: A loan in exchange for a note that requires payment of interest at the applicable federal rate, and An additional payment in an amount equal to the forgone interest. Hr block tax filing Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. Hr block tax filing Foregone interest. Hr block tax filing   For any period, forgone interest is equal to: The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Hr block tax filing See Below-market loans, in chapter 4 of Publication 535 for more information. Hr block tax filing Charitable Contributions A corporation can claim a limited deduction for charitable contributions made in cash or other property. Hr block tax filing The contribution is deductible if made to, or for the use of, a qualified organization. Hr block tax filing For more information on qualified organizations, see Publication 526, Charitable Contributions. Hr block tax filing Also see, Exempt Organizations Select Check (EO Select Check) at www. Hr block tax filing irs. Hr block tax filing gov/charities, the on-line search tool for finding information on organizations eligible to receive tax-deductible contributions. Hr block tax filing Note. Hr block tax filing You cannot take a deduction if any of the net earnings of an organization receiving contributions benefit any private shareholder or individual. Hr block tax filing Cash method corporation. Hr block tax filing   A corporation using the cash method of accounting deducts contributions in the tax year paid. Hr block tax filing Accrual method corporation. Hr block tax filing   A corporation using an accrual method of accounting can choose to deduct unpaid contributions for the tax year the board of directors authorizes them if it pays them by the 15th day of the 3rd month after the close of that tax year. Hr block tax filing Make the choice by reporting the contribution on the corporation's return for the tax year. Hr block tax filing A declaration stating that the board of directors adopted the resolution during the tax year must accompany the return. Hr block tax filing The declaration must include the date the resolution was adopted. Hr block tax filing Limitations on deduction. Hr block tax filing   A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. Hr block tax filing Figure taxable income for this purpose without the following. Hr block tax filing The deduction for charitable contributions. Hr block tax filing The dividends-received deduction. Hr block tax filing The deduction allowed under section 249 of the Internal Revenue Code. Hr block tax filing The domestic production activities deduction. Hr block tax filing Any net operating loss carryback to the tax year. Hr block tax filing Any capital loss carryback to the tax year. Hr block tax filing Farmers and ranchers. Hr block tax filing    Corporations that are farmers and ranchers should see section 170(b)(2) of the Internal Revenue Code for special rules that may affect the deduction limit. Hr block tax filing Carryover of excess contributions. Hr block tax filing   You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. Hr block tax filing You lose any excess not used within that period. Hr block tax filing For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. Hr block tax filing Any excess not used in 2015 is lost. Hr block tax filing Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). Hr block tax filing You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover. Hr block tax filing Cash contributions. Hr block tax filing   A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. Hr block tax filing The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. Hr block tax filing Keep the record of the contribution with the other corporate records. Hr block tax filing Do not attach the records to the corporation's return. Hr block tax filing For more information on cash contributions, see Publication 526. Hr block tax filing Gifts of $250 or more. Hr block tax filing   Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. Hr block tax filing The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. Hr block tax filing The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. Hr block tax filing Keep the acknowledgement with other corporate records. Hr block tax filing Do not attach the acknowledgement to the return. Hr block tax filing Contributions of property other than cash. Hr block tax filing   If a corporation (other than a closely-held or a personal service corporation) claims a deduction of more than $500 for contributions of property other than cash, a schedule describing the property and the method used to determine its fair market value must be attached to the corporation's return. Hr block tax filing In addition the corporation should keep a record of: The approximate date and manner of acquisition of the donated property and The cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. Hr block tax filing   Closely held and personal service corporations must complete and attach Form 8283, Noncash Charitable Contributions, to their returns if they claim a deduction of more than $500 for non-cash contributions. Hr block tax filing For all other corporations, if the deduction claimed for donated property exceeds $5,000, complete Form 8283 and attach it to the corporation's return. Hr block tax filing   A corporation must obtain a qualified appraisal for all deductions of property claimed in excess of $5,000. Hr block tax filing A qualified appraisal is not required for the donation of cash, publicly traded securities, inventory, and any qualified vehicles sold by a donee organization without any significant intervening use or material improvement. Hr block tax filing The appraisal should be maintained with other corporate records and only attached to the corporation's return when the deduction claimed exceeds $500,000; $20,000 for donated art work. Hr block tax filing   See Form 8283 for more information. Hr block tax filing Qualified conservation contributions. Hr block tax filing   If a corporation makes a qualified conservation contribution, the corporation must provide information regarding the legal interest being donated, the fair market value of the underlying property before and after the donation, and a description of the conservation purpose for which the property will be used. Hr block tax filing For more information, see section 170(h) of the Internal Revenue Code. Hr block tax filing Contributions of used vehicles. Hr block tax filing   A corporation is allowed a deduction for the contribution of used motor vehicles, boats, and airplanes. Hr block tax filing The deduction is limited, and other special rules apply. Hr block tax filing For more information, see Publication 526. Hr block tax filing Reduction for contributions of certain property. Hr block tax filing   For a charitable contribution of property, the corporation must reduce the contribution by the sum of: The ordinary income and short-term capital gain that would have resulted if the property were sold at its FMV and For certain contributions, the long-term capital gain that would have resulted if the property were sold at its FMV. Hr block tax filing   The reduction for the long-term capital gain applies to: Contributions of tangible personal property for use by an exempt organization for a purpose or function unrelated to the basis for its exemption; Contributions of any property to or for the use of certain private foundations except for stock for which market quotations are readily available; and Contributions of any patent, certain copyrights, trademark, trade name, trade secret, know-how, software (that is a section 197 intangible), or similar property, or applications or registrations of such property. Hr block tax filing Larger deduction. Hr block tax filing   A corporation (other than an S corporation) may be able to claim a deduction equal to the lesser of (a) the basis of the donated inventory or property plus one-half of the inventory or property's appreciation (gain if the donated inventory or property was sold at fair market value on the date of the donation), or (b) two times basis of the donated inventory or property. Hr block tax filing This deduction may be allowed for certain contributions of: Certain inventory and other property made to a donee organization and used solely for the care of the ill, the needy, and infants. Hr block tax filing Scientific property constructed by the corporation (other than an S corporation, personal holding company, or personal service corporation) and donated no later than 2 years after substantial completion of the construction. Hr block tax filing The property must be donated to a qualified organization and its original use must be by the donee for research, experimentation, or research training within the United States in the area of physical or biological science. Hr block tax filing Computer technology and equipment acquired or constructed and donated no later than 3 years after either acquisition or substantial completion of construction to an educational organization for educational purposes within the United States. Hr block tax filing Contributions to organizations conducting lobbying activities. Hr block tax filing   Contributions made to an organization that conducts lobbying activities are not deductible if: The lobbying activities relate to matters of direct financial interest to the donor's trade or business and The principal purpose of the contribution was to avoid federal income tax by obtaining a deduction for activities that would have been nondeductible under the lobbying expense rules if conducted directly by the donor. Hr block tax filing More information. Hr block tax filing   For more information on charitable contributions, including substantiation and recordkeeping requirements, see section 170 of the Internal Revenue Code, the related regulations, and Publication 526. Hr block tax filing Capital Losses A corporation can deduct capital losses only up to the amount of its capital gains. Hr block tax filing In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. Hr block tax filing Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years. Hr block tax filing A capital loss is carried to other years in the following order. Hr block tax filing 3 years prior to the loss year. Hr block tax filing 2 years prior to the loss year. Hr block tax filing 1 year prior to the loss year. Hr block tax filing Any loss remaining is carried forward for 5 years. Hr block tax filing When you carry a net capital loss to another tax year, treat it as a short-term loss. Hr block tax filing It does not retain its original identity as long term or short term. Hr block tax filing Example. Hr block tax filing A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. Hr block tax filing The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. Hr block tax filing The corporation treats this $6,000 as a short-term loss when carried back or forward. Hr block tax filing The corporation carries the $6,000 short-term loss back 3 years. Hr block tax filing In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. Hr block tax filing It subtracts the $6,000 short-term loss first from the net short-term gain. Hr block tax filing This results in a net capital gain for year 1 of $7,000. Hr block tax filing This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000. Hr block tax filing S corporation status. Hr block tax filing   A corporation may not carry a capital loss from, or to, a year for which it is an S corporation. Hr block tax filing Rules for carryover and carryback. Hr block tax filing   When carrying a capital loss from one year to another, the following rules apply. Hr block tax filing When figuring the current year's net capital loss, you cannot combine it with a capital loss carried from another year. Hr block tax filing In other words, you can carry capital losses only to years that would otherwise have a total net capital gain. Hr block tax filing If you carry capital losses from 2 or more years to the same year, deduct the loss from the earliest year first. Hr block tax filing You cannot use a capital loss carried from another year to produce or increase a net operating loss in the year to which you carry it back. Hr block tax filing Refunds. Hr block tax filing   When you carry back a capital loss to an earlier tax year, refigure your tax for that year. Hr block tax filing If your corrected tax is less than the tax you originally owed, use either Form 1139, Corporate Application for Tentative Refund, or Form 1120X, Amended U. Hr block tax filing S. Hr block tax filing Corporation Income Tax Return, to apply for a refund. Hr block tax filing Form 1139. Hr block tax filing    A corporation can get a refund faster by using Form 1139. Hr block tax filing It cannot file Form 1139 before filing the return for the corporation's capital loss year, but it must file Form 1139 no later than 1 year after the year it sustains the capital loss. Hr block tax filing Form 1120X. Hr block tax filing   If the corporation does not file Form 1139, it must file Form 1120X to apply for a refund. Hr block tax filing The corporation must file the Form 1120X within 3 years of the due date, includin
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SOI Tax Stats - Domestic Private Foundation and Charitable Trust Statistics

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Snapshot of Private Foundation Statistics

Private foundations organized for charitable purposes are exempt from income taxes. They are differentiated from tax-exempt public charities by their narrow bases of control and financial support. Statistics on private foundations are compiled from Form 990-PF, an annual information return that includes data on excise tax liability, charitable distributions, administrative expenditures, as well as income statement and balance sheet information. Data are available for the following types of organizations:

  • Operating Foundations—Generally conduct their own charitable activities, e.g., museums
  • Nonoperating Foundations—Generally provide charitable support through grants and other financial means to charitable organizations; the majority of foundations are nonoperating
  • Section 4947(a)(1) Nonexempt Charitable Trusts—Charitable trusts treated as private foundations for tax purposes; may be operating or nonoperating

Statistical Tables   Publications and Papers   Microdata   Other IRS Data
 

For information about selected terms and concepts, a description of the data sources and limitations, and links to recent revisions of Form 990-PF, please visit the Private Foundations Study Metadata page.


Statistical Tables

The following tables are available as Microsoft Excel® files. A free Excel viewer is available for download, if needed.

NOTE: Statistics for the years denoted by an asterisk (*) include information reported by both domestic and foreign foundations and charitable trusts.

Domestic Private Foundations:
     Number and Selected Financial Data
      Classified by: Type of Foundation and Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992  1991  1990  1989  1988  1987  1986  1985
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
    Selected Data Items in Current Dollars
      Classified by: Asset Size
      Tax Years: 1993–2002

 
Domestic Nonoperating Private Foundations:
     Disbursements for Charitable Purposes—in Constant Dollars
      Tax Years: 1985–2010
 
     Disbursements for Charitable Purposes—in Current Dollars
      Tax Years: 1985–2010
 
     Noncharitable-Use Assets and Qualifying Distributions
      Tax Years: 1985–2010
 
     Largest 100 Nonoperating Private Foundations—Selected Financial Data
      Tax Years: Panel Study, 1985–1997
 
     Selected Data Items by Asset Size—in Current Dollars
      Tax Years: 1993–2002

 
Domestic IRC Section 4947(a)(1) Charitable Trusts Treated as Foundations:
     Number and Selected Financial Data
      Classified by: Type of Charitable Trust and Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*

 
Excise Taxes Reported by Charities, Private Foundations, and Split-Interest Trusts on Form 4720
      Classified by: Type of Excise Tax
      Calendar Years: 2011  2010  2009  2008  2007  2006  2005  2004  2003

 
To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard

 
Historical Table:
Table 16—Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Tax-Exempt Organization Business Income Tax Returns: Selected Financial Data, Expanded
      Published as: SOI Bulletin Historical Table 16

 
Projections
For selected tax returns, including the Form 990-PF, IRS's Office of Research produces annual forecasts of the number of returns that will be filed in future years.
     Projections of Returns to be Filed in Future Calendar Years
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Publications and Papers

The following are available as PDF files. A free Adobe® reader is available for download, if needed.

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Other SOI Data on Trusts

Form 5227 is an information return filed by split-interest trusts, those who make distributions to both charitable and noncharitable beneficiaries, while providing tax benefits to their donor. Form 1041 is the income tax return filed by fiduciaries to report income, distributions, and tax liability of estates and trusts.

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Microdata Files

Microdata are individual organization-level data that can be used for research purposes.

The data are contained in XML, ASCII flat files, Microsoft Excel spreadsheets and Adobe Acrobat PDF. Documentation to assist with the files is included. (Free Adobe Acrobat reader, WinZip utility, and Microsoft Excel viewer software is available for download, if needed.)
 

SOI Sample Data Files

This section contains microdata files for all Forms 990-PF sampled for the annual SOI studies of private foundations. The data for each of the annual studies are included in a comprehensive, "harmonized" dataset, with standardized variable names and codes based on the form revision of the latest available Tax Year.

The sample include returns filed by private foundations, exempt under Internal Revenue Code section 501(c)(3), and section 4947(a)(1) nonexempt charitable trusts. The stratified random samples are based on asset size and represent approximately 10 percent of Forms 990-PF filed; sampling rates of 100 percent are applied to large-asset classes. Microdata records contain most financial information from Forms 990-PF, as well as weights (to estimate the population), for each organization.

Available Data:  Tax Years 1985-2010 

Data Element Reference List

Click on one of the following links to access a page with links to data in the desired format.

         ASCII text     XML     

To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard.  
 

IRS Population Data

This page contains microdata files for all Forms 990, 990-EZ, and 990-PF returns filed by active organizations.  Data are from the IRS Exempt Organization Master File.

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Other IRS Data and Related Links

For tax administration data on this topic, as well as other types of taxes, choose from the links below.

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Page Last Reviewed or Updated: 14-Jan-2014

The Hr Block Tax Filing

Hr block tax filing 35. Hr block tax filing   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Hr block tax filing Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Hr block tax filing Este capítulo explica en términos generales estos créditos tributarios por estudios. Hr block tax filing Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Hr block tax filing ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Hr block tax filing Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Hr block tax filing   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Hr block tax filing   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Hr block tax filing Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Hr block tax filing    Tabla 35-1. Hr block tax filing Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Hr block tax filing   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Hr block tax filing   Existen varias diferencias entre estos dos créditos. Hr block tax filing Estas diferencias se resumen en la Tabla 35-1, más adelante. Hr block tax filing Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Hr block tax filing Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Hr block tax filing Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Hr block tax filing Período académico. Hr block tax filing   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Hr block tax filing En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. Hr block tax filing Institución de enseñanza superior que reúne los requisitos. Hr block tax filing   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. Hr block tax filing Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Hr block tax filing La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Hr block tax filing   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Hr block tax filing ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Hr block tax filing Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Hr block tax filing Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Hr block tax filing Gastos pagados por un tercero. Hr block tax filing   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Hr block tax filing Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Hr block tax filing Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Hr block tax filing Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Hr block tax filing ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Hr block tax filing Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Hr block tax filing Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Hr block tax filing Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Hr block tax filing Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Hr block tax filing   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Hr block tax filing No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Hr block tax filing Para más detalles, vea la Publicación 970, en inglés. Hr block tax filing   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Hr block tax filing    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Hr block tax filing Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Hr block tax filing En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Hr block tax filing Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Hr block tax filing Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Hr block tax filing No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Hr block tax filing Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Hr block tax filing Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Hr block tax filing Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Hr block tax filing Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Hr block tax filing Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Hr block tax filing Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Hr block tax filing Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Hr block tax filing Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Hr block tax filing Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Hr block tax filing Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Hr block tax filing Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Hr block tax filing Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Hr block tax filing Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Hr block tax filing Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Hr block tax filing Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Hr block tax filing Gastos pagados por adelantado. Hr block tax filing   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Hr block tax filing Vea Período académico , anteriormente. Hr block tax filing Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Hr block tax filing No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Hr block tax filing Gastos pagados con un préstamo. Hr block tax filing   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Hr block tax filing Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Hr block tax filing Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Hr block tax filing Si el estudiante se retira de uno o más cursos. Hr block tax filing   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Hr block tax filing No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Hr block tax filing Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Hr block tax filing Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Hr block tax filing Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Hr block tax filing Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Hr block tax filing Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Hr block tax filing El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Hr block tax filing Ayuda económica para estudios exenta de impuestos. Hr block tax filing   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Hr block tax filing Vea Período académico , anteriormente. Hr block tax filing   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Hr block tax filing   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Hr block tax filing Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Hr block tax filing Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Hr block tax filing Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Hr block tax filing Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Hr block tax filing Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Hr block tax filing Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Hr block tax filing Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Hr block tax filing Reembolsos. Hr block tax filing   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Hr block tax filing Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Hr block tax filing Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Hr block tax filing Reembolsos recibidos en 2013. Hr block tax filing   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Hr block tax filing Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Hr block tax filing   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Hr block tax filing Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Hr block tax filing   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Hr block tax filing Vea Recuperar (reintegrar) el crédito, a continuación. Hr block tax filing Recuperar (reintegrar) el crédito. Hr block tax filing   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Hr block tax filing Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Hr block tax filing Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Hr block tax filing Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Hr block tax filing Ejemplo. Hr block tax filing   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Hr block tax filing Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Hr block tax filing 20). Hr block tax filing Usted no reclamó otros créditos tributarios. Hr block tax filing Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Hr block tax filing Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Hr block tax filing El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Hr block tax filing Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Hr block tax filing Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Hr block tax filing    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Hr block tax filing Cantidades que no reducen los gastos de estudios calificados. Hr block tax filing   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Hr block tax filing   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Hr block tax filing El uso del dinero no está limitado. Hr block tax filing   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Hr block tax filing Please click here for the text description of the image. Hr block tax filing Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications