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I Need To File 2012 Taxes

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I Need To File 2012 Taxes

I need to file 2012 taxes 5. I need to file 2012 taxes   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. I need to file 2012 taxes Short-term lease. I need to file 2012 taxes Retail space. I need to file 2012 taxes Qualified long-term real property. I need to file 2012 taxes Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. I need to file 2012 taxes If there is a connection between any income you receive and your business, the income is business income. I need to file 2012 taxes A connection exists if it is clear that the payment of income would not have been made if you did not have the business. I need to file 2012 taxes You can have business income even if you are not involved in the activity on a regular full-time basis. I need to file 2012 taxes Income from work you do on the side in addition to your regular job can be business income. I need to file 2012 taxes You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. I need to file 2012 taxes But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. I need to file 2012 taxes For information on selling business assets, see chapter 3. I need to file 2012 taxes Nonemployee compensation. I need to file 2012 taxes Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. I need to file 2012 taxes This includes amounts reported as nonemployee compensation in box 7 of the form. I need to file 2012 taxes You can find more information in the instructions on the back of the Form 1099-MISC you received. I need to file 2012 taxes Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. I need to file 2012 taxes In most cases, your business income will be in the form of cash, checks, and credit card charges. I need to file 2012 taxes But business income can be in other forms, such as property or services. I need to file 2012 taxes These and other types of income are explained next. I need to file 2012 taxes If you are a U. I need to file 2012 taxes S. I need to file 2012 taxes citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. I need to file 2012 taxes S. I need to file 2012 taxes law. I need to file 2012 taxes If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. I need to file 2012 taxes For details, see Publication 54, Tax Guide for U. I need to file 2012 taxes S. I need to file 2012 taxes Citizens and Resident Aliens Abroad. I need to file 2012 taxes Bartering for Property or Services Bartering is an exchange of property or services. I need to file 2012 taxes You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. I need to file 2012 taxes If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. I need to file 2012 taxes Example 1. I need to file 2012 taxes You are a self-employed lawyer. I need to file 2012 taxes You perform legal services for a client, a small corporation. I need to file 2012 taxes In payment for your services, you receive shares of stock in the corporation. I need to file 2012 taxes You must include the fair market value of the shares in income. I need to file 2012 taxes Example 2. I need to file 2012 taxes You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. I need to file 2012 taxes You must include the fair rental value of the apartment in your gross receipts. I need to file 2012 taxes Your landlord must include the fair market value of the work of art in his or her rental income. I need to file 2012 taxes Example 3. I need to file 2012 taxes You are a self-employed accountant. I need to file 2012 taxes Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. I need to file 2012 taxes Members get in touch with other members directly and bargain for the value of the services to be performed. I need to file 2012 taxes In return for accounting services you provided for the house painter's business, the house painter painted your home. I need to file 2012 taxes You must include in gross receipts the fair market value of the services you received from the house painter. I need to file 2012 taxes The house painter must include the fair market value of your accounting services in his or her gross receipts. I need to file 2012 taxes Example 4. I need to file 2012 taxes You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. I need to file 2012 taxes As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. I need to file 2012 taxes You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. I need to file 2012 taxes The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. I need to file 2012 taxes It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. I need to file 2012 taxes See Publication 15 (Circular E), Employer's Tax Guide. I need to file 2012 taxes Example 5. I need to file 2012 taxes You operate a plumbing business and use the cash method of accounting. I need to file 2012 taxes You join a barter club and agree to provide plumbing services to any member for a specified number of hours. I need to file 2012 taxes Each member has access to a directory that lists the members of the club and the services available. I need to file 2012 taxes Members contact each other directly and request services to be performed. I need to file 2012 taxes You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. I need to file 2012 taxes You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. I need to file 2012 taxes Information returns. I need to file 2012 taxes   If you are involved in a bartering transaction, you may have to file either of the following forms. I need to file 2012 taxes Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. I need to file 2012 taxes Form 1099-MISC, Miscellaneous Income. I need to file 2012 taxes For information about these forms, see the General Instructions for Certain Information Returns. I need to file 2012 taxes Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. I need to file 2012 taxes , who provides services (maid services, etc. I need to file 2012 taxes ) for guests, report the rental income and expenses on Schedule C or C-EZ. I need to file 2012 taxes If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. I need to file 2012 taxes For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). I need to file 2012 taxes Real estate dealer. I need to file 2012 taxes   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. I need to file 2012 taxes Rent you receive from real estate held for sale to customers is subject to SE tax. I need to file 2012 taxes However, rent you receive from real estate held for speculation or investment is not subject to SE tax. I need to file 2012 taxes Trailer park owner. I need to file 2012 taxes   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. I need to file 2012 taxes    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. I need to file 2012 taxes Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. I need to file 2012 taxes   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. I need to file 2012 taxes   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. I need to file 2012 taxes Hotels, boarding houses, and apartments. I need to file 2012 taxes   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. I need to file 2012 taxes   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. I need to file 2012 taxes An example of a service that is not normally provided for the convenience of the occupants is maid service. I need to file 2012 taxes However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. I need to file 2012 taxes Prepaid rent. I need to file 2012 taxes   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. I need to file 2012 taxes This is true no matter what accounting method or period you use. I need to file 2012 taxes Lease bonus. I need to file 2012 taxes   A bonus you receive from a lessee for granting a lease is an addition to the rent. I need to file 2012 taxes Include it in your gross receipts in the year received. I need to file 2012 taxes Lease cancellation payments. I need to file 2012 taxes   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. I need to file 2012 taxes Payments to third parties. I need to file 2012 taxes   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. I need to file 2012 taxes A common example of this kind of income is a lessee's payment of your property taxes on leased real property. I need to file 2012 taxes Settlement payments. I need to file 2012 taxes   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. I need to file 2012 taxes Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. I need to file 2012 taxes ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. I need to file 2012 taxes Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. I need to file 2012 taxes If you receive any of those payments, include them in your gross receipts as explained in that discussion. I need to file 2012 taxes Interest and Dividend Income Interest and dividends may be considered business income. I need to file 2012 taxes Interest. I need to file 2012 taxes   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. I need to file 2012 taxes Interest received on loans is business income if you are in the business of lending money. I need to file 2012 taxes Uncollectible loans. I need to file 2012 taxes   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. I need to file 2012 taxes If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. I need to file 2012 taxes See Bad Debts in chapter 8. I need to file 2012 taxes Unstated interest. I need to file 2012 taxes   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. I need to file 2012 taxes See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. I need to file 2012 taxes Dividends. I need to file 2012 taxes   Generally, dividends are business income to dealers in securities. I need to file 2012 taxes For most sole proprietors and statutory employees, however, dividends are nonbusiness income. I need to file 2012 taxes If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. I need to file 2012 taxes   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. I need to file 2012 taxes To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. I need to file 2012 taxes Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. I need to file 2012 taxes General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. I need to file 2012 taxes Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. I need to file 2012 taxes If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. I need to file 2012 taxes Exceptions The following discussion covers some exceptions to the general rule for canceled debt. I need to file 2012 taxes Price reduced after purchase. I need to file 2012 taxes   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. I need to file 2012 taxes Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. I need to file 2012 taxes Deductible debt. I need to file 2012 taxes   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. I need to file 2012 taxes Example. I need to file 2012 taxes You get accounting services for your business on credit. I need to file 2012 taxes Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. I need to file 2012 taxes Your accountant forgives part of the amount you owe for the accounting services. I need to file 2012 taxes How you treat the canceled debt depends on your method of accounting. I need to file 2012 taxes Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. I need to file 2012 taxes Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. I need to file 2012 taxes   For information on the cash and accrual methods of accounting, see chapter 2. I need to file 2012 taxes Exclusions Do not include canceled debt in income in the following situations. I need to file 2012 taxes However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. I need to file 2012 taxes For more information, see Form 982. I need to file 2012 taxes The cancellation takes place in a bankruptcy case under title 11 of the U. I need to file 2012 taxes S. I need to file 2012 taxes Code (relating to bankruptcy). I need to file 2012 taxes See Publication 908, Bankruptcy Tax Guide. I need to file 2012 taxes The cancellation takes place when you are insolvent. I need to file 2012 taxes You can exclude the canceled debt to the extent you are insolvent. I need to file 2012 taxes See Publication 908. I need to file 2012 taxes The canceled debt is a qualified farm debt owed to a qualified person. I need to file 2012 taxes See chapter 3 in Publication 225, Farmer's Tax Guide. I need to file 2012 taxes The canceled debt is a qualified real property business debt. I need to file 2012 taxes This situation is explained later. I need to file 2012 taxes The canceled debt is qualified principal residence indebtedness which is discharged after 2006. I need to file 2012 taxes See Form 982. I need to file 2012 taxes If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. I need to file 2012 taxes If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. I need to file 2012 taxes Debt. I need to file 2012 taxes   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. I need to file 2012 taxes Qualified real property business debt. I need to file 2012 taxes   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. I need to file 2012 taxes If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. I need to file 2012 taxes Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. I need to file 2012 taxes However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. I need to file 2012 taxes Cancellation of qualified real property business debt. I need to file 2012 taxes   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. I need to file 2012 taxes It was incurred or assumed in connection with real property used in a trade or business. I need to file 2012 taxes It was secured by such real property. I need to file 2012 taxes It was incurred or assumed at either of the following times. I need to file 2012 taxes Before January 1, 1993. I need to file 2012 taxes After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. I need to file 2012 taxes It is debt to which you choose to apply these rules. I need to file 2012 taxes   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. I need to file 2012 taxes   You cannot exclude more than either of the following amounts. I need to file 2012 taxes The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. I need to file 2012 taxes The total adjusted bases of depreciable real property held by you immediately before the cancellation. I need to file 2012 taxes These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. I need to file 2012 taxes Do not take into account depreciable real property acquired in contemplation of the cancellation. I need to file 2012 taxes Election. I need to file 2012 taxes   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. I need to file 2012 taxes You must file your return by the due date (including extensions). I need to file 2012 taxes If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). I need to file 2012 taxes For more information, see When To File in the form instructions. I need to file 2012 taxes Other Income The following discussion explains how to treat other types of business income you may receive. I need to file 2012 taxes Restricted property. I need to file 2012 taxes   Restricted property is property that has certain restrictions that affect its value. I need to file 2012 taxes If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. I need to file 2012 taxes However, you can choose to be taxed in the year you receive the property. I need to file 2012 taxes For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. I need to file 2012 taxes Gains and losses. I need to file 2012 taxes   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. I need to file 2012 taxes Instead, you must report these gains and losses on other forms. I need to file 2012 taxes For more information, see chapter 3. I need to file 2012 taxes Promissory notes. I need to file 2012 taxes   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. I need to file 2012 taxes In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. I need to file 2012 taxes Lost income payments. I need to file 2012 taxes   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. I need to file 2012 taxes Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. I need to file 2012 taxes Damages. I need to file 2012 taxes   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. I need to file 2012 taxes Patent infringement. I need to file 2012 taxes Breach of contract or fiduciary duty. I need to file 2012 taxes Antitrust injury. I need to file 2012 taxes Economic injury. I need to file 2012 taxes   You may be entitled to a deduction against the income if it compensates you for actual economic injury. I need to file 2012 taxes Your deduction is the smaller of the following amounts. I need to file 2012 taxes The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. I need to file 2012 taxes Your loss from the injury that you have not yet deducted. I need to file 2012 taxes Punitive damages. I need to file 2012 taxes   You must also include punitive damages in income. I need to file 2012 taxes Kickbacks. I need to file 2012 taxes   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. I need to file 2012 taxes However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. I need to file 2012 taxes Recovery of items previously deducted. I need to file 2012 taxes   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. I need to file 2012 taxes However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. I need to file 2012 taxes If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. I need to file 2012 taxes Example. I need to file 2012 taxes Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. I need to file 2012 taxes He also had 2 personal exemptions for a total of $7,800. I need to file 2012 taxes He would not pay income tax even if he did not deduct the bad debt. I need to file 2012 taxes Therefore, he will not report as income any part of the $300 he may recover in any future year. I need to file 2012 taxes Exception for depreciation. I need to file 2012 taxes   This rule does not apply to depreciation. I need to file 2012 taxes You recover depreciation using the rules explained next. I need to file 2012 taxes Recapture of depreciation. I need to file 2012 taxes   In the following situations, you have to recapture the depreciation deduction. I need to file 2012 taxes This means you include in income part or all of the depreciation you deducted in previous years. I need to file 2012 taxes Listed property. I need to file 2012 taxes   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. I need to file 2012 taxes You do this by including in income on Schedule C part of the depreciation you deducted in previous years. I need to file 2012 taxes Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. I need to file 2012 taxes For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. I need to file 2012 taxes That chapter explains how to determine whether property is used more than 50% in your business. I need to file 2012 taxes Section 179 property. I need to file 2012 taxes   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. I need to file 2012 taxes You do this by including in income on Schedule C part of the deduction you took. I need to file 2012 taxes Use Part IV of Form 4797 to figure the amount to include on Schedule C. I need to file 2012 taxes See chapter 2 in Publication 946 to find out when you recapture the deduction. I need to file 2012 taxes Sale or exchange of depreciable property. I need to file 2012 taxes   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. I need to file 2012 taxes You figure the income due to depreciation recapture in Part III of Form 4797. I need to file 2012 taxes For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. I need to file 2012 taxes Items That Are Not Income In some cases the property or money you receive is not income. I need to file 2012 taxes Appreciation. I need to file 2012 taxes   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. I need to file 2012 taxes Consignments. I need to file 2012 taxes   Consignments of merchandise to others to sell for you are not sales. I need to file 2012 taxes The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. I need to file 2012 taxes Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. I need to file 2012 taxes Merchandise you have shipped out on consignment is included in your inventory until it is sold. I need to file 2012 taxes   Do not include merchandise you receive on consignment in your inventory. I need to file 2012 taxes Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. I need to file 2012 taxes Construction allowances. I need to file 2012 taxes   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. I need to file 2012 taxes Under a short-term lease of retail space. I need to file 2012 taxes For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. I need to file 2012 taxes Amount you can exclude. I need to file 2012 taxes   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. I need to file 2012 taxes Short-term lease. I need to file 2012 taxes   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. I need to file 2012 taxes The following rules apply in determining whether the lease is for 15 years or less. I need to file 2012 taxes Take into account options to renew when figuring whether the lease is for 15 years or less. I need to file 2012 taxes But do not take into account any option to renew at fair market value determined at the time of renewal. I need to file 2012 taxes Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. I need to file 2012 taxes Retail space. I need to file 2012 taxes   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. I need to file 2012 taxes Qualified long-term real property. I need to file 2012 taxes   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. I need to file 2012 taxes Exchange of like-kind property. I need to file 2012 taxes   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. I need to file 2012 taxes This means that the gain is not taxable and the loss is not deductible. I need to file 2012 taxes A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. I need to file 2012 taxes For more information, see Form 8824. I need to file 2012 taxes Leasehold improvements. I need to file 2012 taxes   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. I need to file 2012 taxes However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. I need to file 2012 taxes Loans. I need to file 2012 taxes   Money borrowed through a bona fide loan is not income. I need to file 2012 taxes Sales tax. I need to file 2012 taxes   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. I need to file 2012 taxes Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). I need to file 2012 taxes Direct seller. I need to file 2012 taxes   You must report all income you receive as a direct seller on Schedule C or C-EZ. I need to file 2012 taxes This includes any of the following. I need to file 2012 taxes Income from sales—payments you receive from customers for products they buy from you. I need to file 2012 taxes Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. I need to file 2012 taxes Prizes, awards, and gifts you receive from your selling business. I need to file 2012 taxes You must report this income regardless of whether it is reported to you on an information return. I need to file 2012 taxes   You are a direct seller if you meet all the following conditions. I need to file 2012 taxes You are engaged in one of the following trades or businesses. I need to file 2012 taxes Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. I need to file 2012 taxes Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). I need to file 2012 taxes Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. I need to file 2012 taxes Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. I need to file 2012 taxes Executor or administrator. I need to file 2012 taxes   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. I need to file 2012 taxes A nonprofessional fiduciary (personal representative) and both of the following apply. I need to file 2012 taxes The estate includes an active trade or business in which you actively participate. I need to file 2012 taxes Your fees are related to the operation of that trade or business. I need to file 2012 taxes A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. I need to file 2012 taxes    If the fees do not meet the above requirements, report them on line 21 of Form 1040. I need to file 2012 taxes Fishing crew member. I need to file 2012 taxes    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . I need to file 2012 taxes Insurance agent, former. I need to file 2012 taxes   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. I need to file 2012 taxes You received payments after your agreement to perform services for the company ended. I need to file 2012 taxes You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. I need to file 2012 taxes You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. I need to file 2012 taxes The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. I need to file 2012 taxes The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). I need to file 2012 taxes Insurance agent, retired. I need to file 2012 taxes   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. I need to file 2012 taxes Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. I need to file 2012 taxes   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. I need to file 2012 taxes Newspaper carrier or distributor. I need to file 2012 taxes   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. I need to file 2012 taxes You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). I need to file 2012 taxes Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. I need to file 2012 taxes You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. I need to file 2012 taxes   This rule applies whether or not you hire others to help you make deliveries. I need to file 2012 taxes It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. I need to file 2012 taxes Newspaper or magazine vendor. I need to file 2012 taxes   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. I need to file 2012 taxes You sell newspapers or magazines to ultimate consumers. I need to file 2012 taxes You sell them at a fixed price. I need to file 2012 taxes Your earnings are based on the difference between the sales price and your cost of goods sold. I need to file 2012 taxes   This rule applies whether or not you are guaranteed a minimum amount of earnings. I need to file 2012 taxes It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. I need to file 2012 taxes Notary public. I need to file 2012 taxes   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. I need to file 2012 taxes These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). I need to file 2012 taxes Public official. I need to file 2012 taxes   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. I need to file 2012 taxes This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. I need to file 2012 taxes Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. I need to file 2012 taxes   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. I need to file 2012 taxes Real estate agent or direct seller. I need to file 2012 taxes   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. I need to file 2012 taxes Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. I need to file 2012 taxes You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. I need to file 2012 taxes Securities dealer. I need to file 2012 taxes   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. I need to file 2012 taxes For more information, see sections 1256 and 1402(i). I need to file 2012 taxes Securities trader. I need to file 2012 taxes   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. I need to file 2012 taxes As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. I need to file 2012 taxes However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. I need to file 2012 taxes For more information about securities traders, see Publication 550, Investment Income and Expenses. I need to file 2012 taxes Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. I need to file 2012 taxes This section discusses some of the more common differences that may affect business transactions. I need to file 2012 taxes Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). I need to file 2012 taxes If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. I need to file 2012 taxes Dealers in real estate are not allowed to use inventories. I need to file 2012 taxes For more information on inventories, see chapter 2. I need to file 2012 taxes Income paid to a third party. I need to file 2012 taxes   All income you earn is taxable to you. I need to file 2012 taxes You cannot avoid tax by having the income paid to a third party. I need to file 2012 taxes Example. I need to file 2012 taxes You rent out your property and the rental agreement directs the lessee to pay the rent to your son. I need to file 2012 taxes The amount paid to your son is gross income to you. I need to file 2012 taxes Cash discounts. I need to file 2012 taxes   These are amounts the seller permits you to deduct from the invoice price for prompt payment. I need to file 2012 taxes For income tax purposes, you can use either of the following two methods to account for cash discounts. I need to file 2012 taxes Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). I need to file 2012 taxes Credit the cash discount to a discount income account. I need to file 2012 taxes You must use the chosen method every year for all your purchase discounts. I need to file 2012 taxes   If you use the second method, the credit balance in the account at the end of your tax year is business income. I need to file 2012 taxes Under this method, you do not reduce the cost of goods sold by the cash discounts you received. I need to file 2012 taxes When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. I need to file 2012 taxes Trade discounts. I need to file 2012 taxes   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. I need to file 2012 taxes Do not enter these discounts on your books of account. I need to file 2012 taxes Instead, use only the net amount as the cost of the merchandise purchased. I need to file 2012 taxes For more information, see Trade discounts in chapter 6. I need to file 2012 taxes Payment placed in escrow. I need to file 2012 taxes   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. I need to file 2012 taxes However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. I need to file 2012 taxes Sales returns and allowances. I need to file 2012 taxes   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. I need to file 2012 taxes Advance payments. I need to file 2012 taxes   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. I need to file 2012 taxes Insurance proceeds. I need to file 2012 taxes   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. I need to file 2012 taxes You cannot deduct the reimbursed part of a casualty or theft loss. I need to file 2012 taxes   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. I need to file 2012 taxes Prev  Up  Next   Home   More Online Publications
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Understanding your CP49 Notice

We sent you this notice to tell you we used all or part of your refund to pay a tax debt.


What you need to do

  • Read your notice carefully — it'll explain how we used your refund.
  • Contact us if you disagree.

You may want to...


Answers to Common Questions

What should I do if I disagree with the notice?
Call us at the toll free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call.

Part of the refund you used is mine. You used it to pay taxes my spouse owes. I don't owe any taxes. What can I do?
You can file a Form 8379, Injured Spouse Allocation to claim your share of the refund.

You only used part of my refund. What happens to the part you didn't use?
You'll receive a refund check for any part we didn't use.

What happens when the refund you used didn't pay the full amount I owe and I can't pay the rest?
You can make a payment plan with us when you can't pay the full amount you owe.

How can I make a payment plan?
Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 

Page Last Reviewed or Updated: 04-Mar-2014

The I Need To File 2012 Taxes

I need to file 2012 taxes Part Five -   Standard Deduction and Itemized Deductions After you have figured your adjusted gross income, you are ready to subtract the deductions used to figure taxable income. I need to file 2012 taxes You can subtract either the standard deduction or itemized deductions. I need to file 2012 taxes Itemized deductions are deductions for certain expenses that are listed on Schedule A (Form 1040). I need to file 2012 taxes The ten chapters in this part discuss the standard deduction, each itemized deduction, and a limit on some of your itemized deductions if your adjusted gross income is more than certain amounts. I need to file 2012 taxes See chapter 20 for the factors to consider when deciding whether to subtract the standard deduction or itemized deductions. I need to file 2012 taxes Table of Contents 20. I need to file 2012 taxes   Standard DeductionWhat's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. I need to file 2012 taxes Married persons who filed separate returns. I need to file 2012 taxes 21. I need to file 2012 taxes   Medical and Dental ExpensesWhat's New Introduction Useful Items - You may want to see: What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. I need to file 2012 taxes How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Yourself Spouse Dependent Decedent What Medical Expenses Are Includible?Insurance Premiums Meals and Lodging Transportation Disabled Dependent Care Expenses How Do You Treat Reimbursements?Insurance Reimbursement Damages for Personal Injuries How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons 22. I need to file 2012 taxes   TaxesIntroductionIndian tribal government. I need to file 2012 taxes Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. I need to file 2012 taxes Real Estate TaxesReal estate taxes for prior years. I need to file 2012 taxes Examples. I need to file 2012 taxes Form 1099-S. I need to file 2012 taxes Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct 23. I need to file 2012 taxes   Interest ExpenseIntroduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. I need to file 2012 taxes Mortgage proceeds used for business or investment. I need to file 2012 taxes 24. I need to file 2012 taxes   ContributionsIntroduction Useful Items - You may want to see: Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions of PropertyException. I need to file 2012 taxes Household items. I need to file 2012 taxes Deduction more than $500. I need to file 2012 taxes Form 1098-C. I need to file 2012 taxes Filing deadline approaching and still no Form 1098-C. I need to file 2012 taxes Exception 1—vehicle used or improved by organization. I need to file 2012 taxes Exception 2—vehicle given or sold to needy individual. I need to file 2012 taxes Deduction $500 or less. I need to file 2012 taxes Right to use property. I need to file 2012 taxes Tangible personal property. I need to file 2012 taxes Future interest. I need to file 2012 taxes Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. I need to file 2012 taxes Text message. I need to file 2012 taxes Credit card. I need to file 2012 taxes Pay-by-phone account. I need to file 2012 taxes Stock certificate. I need to file 2012 taxes Promissory note. I need to file 2012 taxes Option. I need to file 2012 taxes Borrowed funds. I need to file 2012 taxes Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report 25. I need to file 2012 taxes   Nonbusiness Casualty and Theft LossesWhat's New Introduction Useful Items - You may want to see: CasualtyFamily pet. I need to file 2012 taxes Progressive deterioration. I need to file 2012 taxes Damage from corrosive drywall. I need to file 2012 taxes Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses 26. I need to file 2012 taxes   Car Expenses and Other Employee Business ExpensesWhat's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. I need to file 2012 taxes Parking fees. I need to file 2012 taxes Advertising display on car. I need to file 2012 taxes Car pools. I need to file 2012 taxes Hauling tools or instruments. I need to file 2012 taxes Union members' trips from a union hall. I need to file 2012 taxes Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. I need to file 2012 taxes Statutory employees. I need to file 2012 taxes Reimbursements Completing Forms 2106 and 2106-EZ Special Rules 27. I need to file 2012 taxes   Tax Benefits for Work-Related EducationWhat's New Introduction Useful Items - You may want to see: Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. I need to file 2012 taxes Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping 28. I need to file 2012 taxes   Miscellaneous DeductionsWhat's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses 29. I need to file 2012 taxes   Limit on Itemized DeductionsIntroduction Useful Items - You may want to see: Are You Subject to the Limit? Which Itemized Deductions Are Limited? Which Itemized Deductions Are Not Limited? How Do You Figure the Limit?Example. I need to file 2012 taxes Prev  Up  Next   Home   More Online Publications