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Timestamp: 2018-08-18 19:47:29
Document Index: 210801024

Matched Legal Cases: ['§48', '§ 4081', '§ 4041', '§4041', '§ 6427', '§ 6416', '§ 6427']

Print Free 2010 1040ez Tax Form
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Print free 2010 1040ez tax form 2. Print free 2010 1040ez tax form Electing the Section 179 Deduction Table of Contents Introduction Useful Items - You may want to see: What Property Qualifies?Eligible Property Property Acquired for Business Use Property Acquired by Purchase What Property Does Not Qualify?Land and Improvements Excepted Property How Much Can You Deduct?Dollar Limits Business Income Limit Partnerships and Partners S Corporations Other Corporations How Do You Elect the Deduction? When Must You Recapture the Deduction? Introduction You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. Print free 2010 1040ez tax form This is the section 179 deduction. Print free 2010 1040ez tax form You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions. Print free 2010 1040ez tax form Estates and trusts cannot elect the section 179 deduction. Print free 2010 1040ez tax form This chapter explains what property does and does not qualify for the section 179 deduction, what limits apply to the deduction (including special rules for partnerships and corporations), and how to elect it. Print free 2010 1040ez tax form It also explains when and how to recapture the deduction. Print free 2010 1040ez tax form Useful Items - You may want to see: Publication 537 Installment Sales 544 Sales and Other Dispositions of Assets 954 Tax Incentives for Distressed Communities Form (and Instructions) 4562 Depreciation and Amortization 4797 Sales of Business Property See chapter 6 for information about getting publications and forms. Print free 2010 1040ez tax form What Property Qualifies? To qualify for the section 179 deduction, your property must meet all the following requirements. Print free 2010 1040ez tax form It must be eligible property. Print free 2010 1040ez tax form It must be acquired for business use. Print free 2010 1040ez tax form It must have been acquired by purchase. Print free 2010 1040ez tax form It must not be property described later under What Property Does Not Qualify . Print free 2010 1040ez tax form The following discussions provide information about these requirements and exceptions. Print free 2010 1040ez tax form Eligible Property To qualify for the section 179 deduction, your property must be one of the following types of depreciable property. Print free 2010 1040ez tax form Tangible personal property. Print free 2010 1040ez tax form Other tangible property (except buildings and their structural components) used as: An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services, A research facility used in connection with any of the activities in (a) above, or A facility used in connection with any of the activities in (a) for the bulk storage of fungible commodities. Print free 2010 1040ez tax form Single purpose agricultural (livestock) or horticultural structures. Print free 2010 1040ez tax form See chapter 7 of Publication 225 for definitions and information regarding the use requirements that apply to these structures. Print free 2010 1040ez tax form Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum. Print free 2010 1040ez tax form Off-the-shelf computer software. Print free 2010 1040ez tax form Qualified real property (described below). Print free 2010 1040ez tax form Tangible personal property. Print free 2010 1040ez tax form Tangible personal property is any tangible property that is not real property. Print free 2010 1040ez tax form It includes the following property. Print free 2010 1040ez tax form Machinery and equipment. Print free 2010 1040ez tax form Property contained in or attached to a building (other than structural components), such as refrigerators, grocery store counters, office equipment, printing presses, testing equipment, and signs. Print free 2010 1040ez tax form Gasoline storage tanks and pumps at retail service stations. Print free 2010 1040ez tax form Livestock, including horses, cattle, hogs, sheep, goats, and mink and other furbearing animals. Print free 2010 1040ez tax form The treatment of property as tangible personal property for the section 179 deduction is not controlled by its treatment under local law. Print free 2010 1040ez tax form For example, property may not be tangible personal property for the deduction even if treated so under local law, and some property (such as fixtures) may be tangible personal property for the deduction even if treated as real property under local law. Print free 2010 1040ez tax form Off-the-shelf computer software. Print free 2010 1040ez tax form Off-the-shelf computer software placed in service during the tax year is qualifying property for purposes of the section 179 deduction. Print free 2010 1040ez tax form This is computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Print free 2010 1040ez tax form It includes any program designed to cause a computer to perform a desired function. Print free 2010 1040ez tax form However, a database or similar item is not considered computer software unless it is in the public domain and is incidental to the operation of otherwise qualifying software. Print free 2010 1040ez tax form Qualified real property. Print free 2010 1040ez tax form You can elect to treat certain qualified real property you placed in service as section 179 property for tax years beginning in 2013. Print free 2010 1040ez tax form If this election is made, the term “section 179 property” will include any qualified real property that is: Qualified leasehold improvement property, Qualified restaurant property, or Qualified retail improvement property. Print free 2010 1040ez tax form The maximum section 179 expense deduction that can be elected for qualified section 179 real property is $250,000 of the maximum section 179 deduction of $500,000 in 2013. Print free 2010 1040ez tax form For more information, see Special rules for qualified section 179 real property, later. Print free 2010 1040ez tax form Also, see Election for certain qualified section 179 real property, later, for information on how to make this election. Print free 2010 1040ez tax form Qualified leasehold improvement property. Print free 2010 1040ez tax form Generally, this is any improvement to an interior part of a building (placed in service before January 1, 2014) that is nonresidential real property, provided all of the requirements discussed in chapter 3 under Qualified leasehold improvement property are met. Print free 2010 1040ez tax form In addition, an improvement made by the lessor does not qualify as qualified leasehold improvement property to any subsequent owner unless it is acquired from the original lessor by reason of the lessor’s death or in any of the following types of transactions. Print free 2010 1040ez tax form A transaction to which section 381(a) applies, A mere change in the form of conducting the trade or business so long as the property is retained in the trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in the trade or business, A like-kind exchange, involuntary conversion, or re-acquisition of real property to the extent that the basis in the property represents the carryover basis, or Certain nonrecognition transactions to the extent that your basis in the property is determined by reference to the transferor’s or distributor’s basis in the property. Print free 2010 1040ez tax form Examples include the following. Print free 2010 1040ez tax form A complete liquidation of a subsidiary. Print free 2010 1040ez tax form A transfer to a corporation controlled by the transferor. Print free 2010 1040ez tax form An exchange of property by a corporation solely for stock or securities in another corporation in a reorganization. Print free 2010 1040ez tax form Qualified restaurant property. Print free 2010 1040ez tax form Qualified restaurant property is any section 1250 property that is a building or an improvement to a building placed in service after December 31, 2008, and before January 1, 2014. Print free 2010 1040ez tax form Also, more than 50% of the building’s square footage must be devoted to preparation of meals and seating for on-premise consumption of prepared meals. Print free 2010 1040ez tax form Qualified retail improvement property. Print free 2010 1040ez tax form Generally, this is any improvement (placed in service after December 31, 2008, and before January 1, 2014) to an interior portion of nonresidential real property if it meets the following requirements. Print free 2010 1040ez tax form The portion is open to the general public and is used in the retail trade or business of selling tangible property to the general public. Print free 2010 1040ez tax form The improvement is placed in service more than 3 years after the date the building was first placed in service. Print free 2010 1040ez tax form The expenses are not for the enlargement of the building, any elevator or escalator, any structural components benefiting a common area, or the internal structural framework of the building. Print free 2010 1040ez tax form In addition, an improvement made by the lessor does not qualify as qualified retail improvement property to any subsequent owner unless it is acquired from the original lessor by reason of the lessor’s death or in any of the following types of transactions. Print free 2010 1040ez tax form A transaction to which section 381(a) applies, A mere change in the form of conducting the trade or business so long as the property is retained in the trade or business as qualified leasehold improvement property and the taxpayer retains a substantial interest in the trade or business, A like-kind exchange, involuntary conversion, or re-acquisition of real property to the extent that the basis in the property represents the carryover basis, or Certain nonrecognition transactions to the extent that your basis in the property is determined by reference to the transferor’s or distributor’s basis in the property. Print free 2010 1040ez tax form Examples include the following. Print free 2010 1040ez tax form A complete liquidation of a subsidiary. Print free 2010 1040ez tax form A transfer to a corporation controlled by the transferor. Print free 2010 1040ez tax form An exchange of property by a corporation solely for stock or securities in another corporation in a reorganization. Print free 2010 1040ez tax form Property Acquired for Business Use To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Print free 2010 1040ez tax form Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify. Print free 2010 1040ez tax form Partial business use. Print free 2010 1040ez tax form When you use property for both business and nonbusiness purposes, you can elect the section 179 deduction only if you use the property more than 50% for business in the year you place it in service. Print free 2010 1040ez tax form If you use the property more than 50% for business, multiply the cost of the property by the percentage of business use. Print free 2010 1040ez tax form Use the resulting business cost to figure your section 179 deduction. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form May Oak bought and placed in service an item of section 179 property costing $11,000. Print free 2010 1040ez tax form She used the property 80% for her business and 20% for personal purposes. Print free 2010 1040ez tax form The business part of the cost of the property is $8,800 (80% × $11,000). Print free 2010 1040ez tax form Property Acquired by Purchase To qualify for the section 179 deduction, your property must have been acquired by purchase. Print free 2010 1040ez tax form For example, property acquired by gift or inheritance does not qualify. Print free 2010 1040ez tax form Property is not considered acquired by purchase in the following situations. Print free 2010 1040ez tax form It is acquired by one component member of a controlled group from another component member of the same group. Print free 2010 1040ez tax form Its basis is determined either— In whole or in part by its adjusted basis in the hands of the person from whom it was acquired, or Under the stepped-up basis rules for property acquired from a decedent. Print free 2010 1040ez tax form It is acquired from a related person. Print free 2010 1040ez tax form Related persons. Print free 2010 1040ez tax form Related persons are described under Related persons earlier. Print free 2010 1040ez tax form However, to determine whether property qualifies for the section 179 deduction, treat as an individual's family only his or her spouse, ancestors, and lineal descendants and substitute "50%" for "10%" each place it appears. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form Ken Larch is a tailor. Print free 2010 1040ez tax form He bought two industrial sewing machines from his father. Print free 2010 1040ez tax form He placed both machines in service in the same year he bought them. Print free 2010 1040ez tax form They do not qualify as section 179 property because Ken and his father are related persons. Print free 2010 1040ez tax form He cannot claim a section 179 deduction for the cost of these machines. Print free 2010 1040ez tax form What Property Does Not Qualify? Certain property does not qualify for the section 179 deduction. Print free 2010 1040ez tax form This includes the following. Print free 2010 1040ez tax form Land and Improvements Land and land improvements do not qualify as section 179 property. Print free 2010 1040ez tax form Land improvements include swimming pools, paved parking areas, wharves, docks, bridges, and fences. Print free 2010 1040ez tax form Excepted Property Even if the requirements explained earlier under What Property Qualifies are met, you cannot elect the section 179 deduction for the following property. Print free 2010 1040ez tax form Certain property you lease to others (if you are a noncorporate lessor). Print free 2010 1040ez tax form Certain property used predominantly to furnish lodging or in connection with the furnishing of lodging. Print free 2010 1040ez tax form Air conditioning or heating units. Print free 2010 1040ez tax form Property used predominantly outside the United States, except property described in section 168(g)(4) of the Internal Revenue Code. Print free 2010 1040ez tax form Property used by certain tax-exempt organizations, except property used in connection with the production of income subject to the tax on unrelated trade or business income. Print free 2010 1040ez tax form Property used by governmental units or foreign persons or entities, except property used under a lease with a term of less than 6 months. Print free 2010 1040ez tax form Leased property. Print free 2010 1040ez tax form Generally, you cannot claim a section 179 deduction based on the cost of property you lease to someone else. Print free 2010 1040ez tax form This rule does not apply to corporations. Print free 2010 1040ez tax form However, you can claim a section 179 deduction for the cost of the following property. Print free 2010 1040ez tax form Property you manufacture or produce and lease to others. Print free 2010 1040ez tax form Property you purchase and lease to others if both the following tests are met. Print free 2010 1040ez tax form The term of the lease (including options to renew) is less than 50% of the property's class life. Print free 2010 1040ez tax form For the first 12 months after the property is transferred to the lessee, the total business deductions you are allowed on the property (other than rents and reimbursed amounts) are more than 15% of the rental income from the property. Print free 2010 1040ez tax form Property used for lodging. Print free 2010 1040ez tax form Generally, you cannot claim a section 179 deduction for property used predominantly to furnish lodging or in connection with the furnishing of lodging. Print free 2010 1040ez tax form However, this does not apply to the following types of property. Print free 2010 1040ez tax form Nonlodging commercial facilities that are available to those not using the lodging facilities on the same basis as they are available to those using the lodging facilities. Print free 2010 1040ez tax form Property used by a hotel or motel in connection with the trade or business of furnishing lodging where the predominant portion of the accommodations is used by transients. Print free 2010 1040ez tax form Any certified historic structure to the extent its basis is due to qualified rehabilitation expenditures. Print free 2010 1040ez tax form Any energy property. Print free 2010 1040ez tax form Energy property. Print free 2010 1040ez tax form Energy property is property that meets the following requirements. Print free 2010 1040ez tax form It is one of the following types of property. Print free 2010 1040ez tax form Equipment that uses solar energy to generate electricity, to heat or cool a structure, to provide hot water for use in a structure, or to provide solar process heat, except for equipment used to generate energy to heat a swimming pool. Print free 2010 1040ez tax form Equipment placed in service after December 31, 2005, and before January 1, 2017, that uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight. Print free 2010 1040ez tax form Equipment used to produce, distribute, or use energy derived from a geothermal deposit. Print free 2010 1040ez tax form For electricity generated by geothermal power, this includes equipment up to (but not including) the electrical transmission stage. Print free 2010 1040ez tax form Qualified fuel cell property or qualified microturbine property placed in service after December 31, 2005, and before January 1, 2017. Print free 2010 1040ez tax form The construction, reconstruction, or erection of the property must be completed by you. Print free 2010 1040ez tax form For property you acquire, the original use of the property must begin with you. Print free 2010 1040ez tax form The property must meet the performance and quality standards, if any, prescribed by Income Tax Regulations in effect at the time you get the property. Print free 2010 1040ez tax form For periods before February 14, 2008, energy property does not include any property that is public utility property as defined by section 46(f)(5) of the Internal Revenue Code (as in effect on November 4, 1990). Print free 2010 1040ez tax form How Much Can You Deduct? Your section 179 deduction is generally the cost of the qualifying property. Print free 2010 1040ez tax form However, the total amount you can elect to deduct under section 179 is subject to a dollar limit and a business income limit. Print free 2010 1040ez tax form These limits apply to each taxpayer, not to each business. Print free 2010 1040ez tax form However, see Married Individuals under Dollar Limits , later. Print free 2010 1040ez tax form For a passenger automobile, the total section 179 deduction and depreciation deduction are limited. Print free 2010 1040ez tax form See Do the Passenger Automobile Limits Apply in chapter 5 . Print free 2010 1040ez tax form If you deduct only part of the cost of qualifying property as a section 179 deduction, you can generally depreciate the cost you do not deduct. Print free 2010 1040ez tax form Trade-in of other property. Print free 2010 1040ez tax form If you buy qualifying property with cash and a trade-in, its cost for purposes of the section 179 deduction includes only the cash you paid. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form Silver Leaf, a retail bakery, traded two ovens having a total adjusted basis of $680 for a new oven costing $1,320. Print free 2010 1040ez tax form They received an $800 trade-in allowance for the old ovens and paid $520 in cash for the new oven. Print free 2010 1040ez tax form The bakery also traded a used van with an adjusted basis of $4,500 for a new van costing $9,000. Print free 2010 1040ez tax form They received a $4,800 trade-in allowance on the used van and paid $4,200 in cash for the new van. Print free 2010 1040ez tax form Only the portion of the new property's basis paid by cash qualifies for the section 179 deduction. Print free 2010 1040ez tax form Therefore, Silver Leaf's qualifying costs for the section 179 deduction are $4,720 ($520 + $4,200). Print free 2010 1040ez tax form Dollar Limits The total amount you can elect to deduct under section 179 for most property placed in service in 2013 generally cannot be more than $500,000. Print free 2010 1040ez tax form If you acquire and place in service more than one item of qualifying property during the year, you can allocate the section 179 deduction among the items in any way, as long as the total deduction is not more than $500,000. Print free 2010 1040ez tax form You do not have to claim the full $500,000. Print free 2010 1040ez tax form Qualified real property (described earlier) that you elected to treat as section 179 real property is limited to $250,000 of the maximum deduction of $500,000 for 2013. Print free 2010 1040ez tax form The amount you can elect to deduct is not affected if you place qualifying property in service in a short tax year or if you place qualifying property in service for only a part of a 12-month tax year. Print free 2010 1040ez tax form After you apply the dollar limit to determine a tentative deduction, you must apply the business income limit (described later) to determine your actual section 179 deduction. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form In 2013, you bought and placed in service $500,000 in machinery and a $25,000 circular saw for your business. Print free 2010 1040ez tax form You elect to deduct $475,000 for the machinery and the entire $25,000 for the saw, a total of $500,000. Print free 2010 1040ez tax form This is the maximum amount you can deduct. Print free 2010 1040ez tax form Your $25,000 deduction for the saw completely recovered its cost. Print free 2010 1040ez tax form Your basis for depreciation is zero. Print free 2010 1040ez tax form The basis for depreciation of your machinery is $25,000. Print free 2010 1040ez tax form You figure this by subtracting your $475,000 section 179 deduction for the machinery from the $500,000 cost of the machinery. Print free 2010 1040ez tax form Situations affecting dollar limit. Print free 2010 1040ez tax form Under certain circumstances, the general dollar limits on the section 179 deduction may be reduced or increased or there may be additional dollar limits. Print free 2010 1040ez tax form The general dollar limit is affected by any of the following situations. Print free 2010 1040ez tax form The cost of your section 179 property placed in service exceeds $2,000,000. Print free 2010 1040ez tax form Your business is an enterprise zone business. Print free 2010 1040ez tax form You placed in service a sport utility or certain other vehicles. Print free 2010 1040ez tax form You are married filing a joint or separate return. Print free 2010 1040ez tax form Costs exceeding $2,000,000 If the cost of your qualifying section 179 property placed in service in a year is more than $2,000,000, you generally must reduce the dollar limit (but not below zero) by the amount of cost over $2,000,000. Print free 2010 1040ez tax form If the cost of your section 179 property placed in service during 2013 is $2,500,000 or more, you cannot take a section 179 deduction. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form In 2013, Jane Ash placed in service machinery costing $2,100,000. Print free 2010 1040ez tax form This cost is $100,000 more than $2,000,000, so she must reduce her dollar limit to $400,000 ($500,000 − $100,000). Print free 2010 1040ez tax form Enterprise Zone Businesses An increased section 179 deduction is available to enterprise zone businesses for qualified zone property placed in service during the tax year, in an empowerment zone. Print free 2010 1040ez tax form For more information including the definitions of “enterprise zone business” and “qualified zone property,” see sections 1397A, 1397C, and 1397D of the Internal Revenue Code. Print free 2010 1040ez tax form The dollar limit on the section 179 deduction is increased by the smaller of: $35,000, or The cost of section 179 property that is also qualified zone property placed in service before January 1, 2014 (including such property placed in service by your spouse, even if you are filing a separate return). Print free 2010 1040ez tax form Note. Print free 2010 1040ez tax form You take into account only 50% (instead of 100%) of the cost of qualified zone property placed in service in a year when figuring the reduced dollar limit for costs exceeding $2,000,000 (explained earlier). Print free 2010 1040ez tax form Sport Utility and Certain Other Vehicles You cannot elect to expense more than $25,000 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service during the tax year. Print free 2010 1040ez tax form This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. Print free 2010 1040ez tax form However, the $25,000 limit does not apply to any vehicle: Designed to seat more than nine passengers behind the driver's seat, Equipped with a cargo area (either open or enclosed by a cap) of at least six feet in interior length that is not readily accessible from the passenger compartment, or That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield. Print free 2010 1040ez tax form Married Individuals If you are married, how you figure your section 179 deduction depends on whether you file jointly or separately. Print free 2010 1040ez tax form If you file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service. Print free 2010 1040ez tax form If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit, including the reduction for costs over $2,000,000. Print free 2010 1040ez tax form You must allocate the dollar limit (after any reduction) between you equally, unless you both elect a different allocation. Print free 2010 1040ez tax form If the percentages elected by each of you do not total 100%, 50% will be allocated to each of you. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form Jack Elm is married. Print free 2010 1040ez tax form He and his wife file separate returns. Print free 2010 1040ez tax form Jack bought and placed in service $2,000,000 of qualified farm machinery in 2013. Print free 2010 1040ez tax form His wife has her own business, and she bought and placed in service $30,000 of qualified business equipment. Print free 2010 1040ez tax form Their combined dollar limit is $470,000. Print free 2010 1040ez tax form This is because they must figure the limit as if they were one taxpayer. Print free 2010 1040ez tax form They reduce the $500,000 dollar limit by the $30,000 excess of their costs over $2,000,000. Print free 2010 1040ez tax form They elect to allocate the $470,000 dollar limit as follows. Print free 2010 1040ez tax form $446,500 ($470,000 x 95%) to Mr. Print free 2010 1040ez tax form Elm's machinery. Print free 2010 1040ez tax form $23,500 ($470,000 x 5%) to Mrs. Print free 2010 1040ez tax form Elm's equipment. Print free 2010 1040ez tax form If they did not make an election to allocate their costs in this way, they would have to allocate $235,000 ($470,000 × 50%) to each of them. Print free 2010 1040ez tax form Joint return after filing separate returns. Print free 2010 1040ez tax form If you and your spouse elect to amend your separate returns by filing a joint return after the due date for filing your return, the dollar limit on the joint return is the lesser of the following amounts. Print free 2010 1040ez tax form The dollar limit (after reduction for any cost of section 179 property over $2,000,000). Print free 2010 1040ez tax form The total cost of section 179 property you and your spouse elected to expense on your separate returns. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form The facts are the same as in the previous example except that Jack elected to deduct $30,000 of the cost of section 179 property on his separate return and his wife elected to deduct $2,000. Print free 2010 1040ez tax form After the due date of their returns, they file a joint return. Print free 2010 1040ez tax form Their dollar limit for the section 179 deduction is $32,000. Print free 2010 1040ez tax form This is the lesser of the following amounts. Print free 2010 1040ez tax form $470,000—The dollar limit less the cost of section 179 property over $2,000,000. Print free 2010 1040ez tax form $32,000—The total they elected to expense on their separate returns. Print free 2010 1040ez tax form Business Income Limit The total cost you can deduct each year after you apply the dollar limit is limited to the taxable income from the active conduct of any trade or business during the year. Print free 2010 1040ez tax form Generally, you are considered to actively conduct a trade or business if you meaningfully participate in the management or operations of the trade or business. Print free 2010 1040ez tax form Any cost not deductible in one year under section 179 because of this limit can be carried to the next year. Print free 2010 1040ez tax form Special rules apply to a 2013 deduction of qualified section 179 real property that is disallowed because of the business income limit. Print free 2010 1040ez tax form See Special rules for qualified section 179 property under Carryover of disallowed deduction, later. Print free 2010 1040ez tax form Taxable income. Print free 2010 1040ez tax form In general, figure taxable income for this purpose by totaling the net income and losses from all trades and businesses you actively conducted during the year. Print free 2010 1040ez tax form Net income or loss from a trade or business includes the following items. Print free 2010 1040ez tax form Section 1231 gains (or losses). Print free 2010 1040ez tax form Interest from working capital of your trade or business. Print free 2010 1040ez tax form Wages, salaries, tips, or other pay earned as an employee. Print free 2010 1040ez tax form For information about section 1231 gains and losses, see chapter 3 in Publication 544. Print free 2010 1040ez tax form In addition, figure taxable income without regard to any of the following. Print free 2010 1040ez tax form The section 179 deduction. Print free 2010 1040ez tax form The self-employment tax deduction. Print free 2010 1040ez tax form Any net operating loss carryback or carryforward. Print free 2010 1040ez tax form Any unreimbursed employee business expenses. Print free 2010 1040ez tax form Two different taxable income limits. Print free 2010 1040ez tax form In addition to the business income limit for your section 179 deduction, you may have a taxable income limit for some other deduction. Print free 2010 1040ez tax form You may have to figure the limit for this other deduction taking into account the section 179 deduction. Print free 2010 1040ez tax form If so, complete the following steps. Print free 2010 1040ez tax form Step Action 1 Figure taxable income without the section 179 deduction or the other deduction. Print free 2010 1040ez tax form 2 Figure a hypothetical section 179 deduction using the taxable income figured in Step 1. Print free 2010 1040ez tax form 3 Subtract the hypothetical section 179 deduction figured in Step 2 from the taxable income figured in Step 1. Print free 2010 1040ez tax form 4 Figure a hypothetical amount for the other deduction using the amount figured in Step 3 as taxable income. Print free 2010 1040ez tax form 5 Subtract the hypothetical other deduction figured in Step 4 from the taxable income figured in Step 1. Print free 2010 1040ez tax form 6 Figure your actual section 179 deduction using the taxable income figured in Step 5. Print free 2010 1040ez tax form 7 Subtract your actual section 179 deduction figured in Step 6 from the taxable income figured in Step 1. Print free 2010 1040ez tax form 8 Figure your actual other deduction using the taxable income figured in Step 7. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form On February 1, 2013, the XYZ corporation purchased and placed in service qualifying section 179 property that cost $500,000. Print free 2010 1040ez tax form It elects to expense the entire $500,000 cost under section 179. Print free 2010 1040ez tax form In June, the corporation gave a charitable contribution of $10,000. Print free 2010 1040ez tax form A corporation's limit on charitable contributions is figured after subtracting any section 179 deduction. Print free 2010 1040ez tax form The business income limit for the section 179 deduction is figured after subtracting any allowable charitable contributions. Print free 2010 1040ez tax form XYZ's taxable income figured without the section 179 deduction or the deduction for charitable contributions is $520,000. Print free 2010 1040ez tax form XYZ figures its section 179 deduction and its deduction for charitable contributions as follows. Print free 2010 1040ez tax form Step 1– Taxable income figured without either deduction is $520,000. Print free 2010 1040ez tax form Step 2– Using $520,000 as taxable income, XYZ's hypothetical section 179 deduction is $500,000. Print free 2010 1040ez tax form Step 3– $20,000 ($520,000 − $500,000). Print free 2010 1040ez tax form Step 4– Using $20,000 (from Step 3) as taxable income, XYZ's hypothetical charitable contribution (limited to 10% of taxable income) is $2,000. Print free 2010 1040ez tax form Step 5– $518,000 ($520,000 − $2,000). Print free 2010 1040ez tax form Step 6– Using $518,000 (from Step 5) as taxable income, XYZ figures the actual section 179 deduction. Print free 2010 1040ez tax form Because the taxable income is at least $500,000, XYZ can take a $500,000 section 179 deduction. Print free 2010 1040ez tax form Step 7– $20,000 ($520,000 − $500,000). Print free 2010 1040ez tax form Step 8– Using $20,000 (from Step 7) as taxable income, XYZ's actual charitable contribution (limited to 10% of taxable income) is $2,000. Print free 2010 1040ez tax form Carryover of disallowed deduction. Print free 2010 1040ez tax form You can carry over for an unlimited number of years the cost of any section 179 property you elected to expense but were unable to because of the business income limit. Print free 2010 1040ez tax form This disallowed deduction amount is shown on line 13 of Form 4562. Print free 2010 1040ez tax form You use the amount you carry over to determine your section 179 deduction in the next year. Print free 2010 1040ez tax form Enter that amount on line 10 of your Form 4562 for the next year. Print free 2010 1040ez tax form If you place more than one property in service in a year, you can select the properties for which all or a part of the costs will be carried forward. Print free 2010 1040ez tax form Your selections must be shown in your books and records. Print free 2010 1040ez tax form For this purpose, treat section 179 costs allocated from a partnership or an S corporation as one item of section 179 property. Print free 2010 1040ez tax form If you do not make a selection, the total carryover will be allocated equally among the properties you elected to expense for the year. Print free 2010 1040ez tax form If costs from more than one year are carried forward to a subsequent year in which only part of the total carryover can be deducted, you must deduct the costs being carried forward from the earliest year first. Print free 2010 1040ez tax form Special rules for qualified section 179 real property. Print free 2010 1040ez tax form You can carry over to 2013 a 2012 deduction attributable to qualified section 179 real property that you elected to expense but were unable to take because of the business income limitation. Print free 2010 1040ez tax form Any such 2012 carryover amounts that are not deducted in 2013, plus any 2013 disallowed section 179 expense deductions attributable to qualified real property, are not carried over to 2014. Print free 2010 1040ez tax form Instead these amounts are treated as property placed in service on the first day of 2013 for purposes of computing depreciation (including the special depreciation allowance, if applicable). Print free 2010 1040ez tax form See section 179(f) of the Internal Revenue Code and Notice 2013-59 for more information. Print free 2010 1040ez tax form If there is a sale or other disposition of your property (including a transfer at death) before you can use the full amount of any outstanding carryover of your disallowed section 179 deduction, neither you nor the new owner can deduct any of the unused amount. Print free 2010 1040ez tax form Instead, you must add it back to the property's basis. Print free 2010 1040ez tax form Partnerships and Partners The section 179 deduction limits apply both to the partnership and to each partner. Print free 2010 1040ez tax form The partnership determines its section 179 deduction subject to the limits. Print free 2010 1040ez tax form It then allocates the deduction among its partners. Print free 2010 1040ez tax form Each partner adds the amount allocated from partnerships (shown on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Print free 2010 1040ez tax form ) to his or her nonpartnership section 179 costs and then applies the dollar limit to this total. Print free 2010 1040ez tax form To determine any reduction in the dollar limit for costs over $2,000,000, the partner does not include any of the cost of section 179 property placed in service by the partnership. Print free 2010 1040ez tax form After the dollar limit (reduced for any nonpartnership section 179 costs over $2,000,000) is applied, any remaining cost of the partnership and nonpartnership section 179 property is subject to the business income limit. Print free 2010 1040ez tax form Partnership's taxable income. Print free 2010 1040ez tax form For purposes of the business income limit, figure the partnership's taxable income by adding together the net income and losses from all trades or businesses actively conducted by the partnership during the year. Print free 2010 1040ez tax form See the Instructions for Form 1065 for information on how to figure partnership net income (or loss). Print free 2010 1040ez tax form However, figure taxable income without regard to credits, tax-exempt income, the section 179 deduction, and guaranteed payments under section 707(c) of the Internal Revenue Code. Print free 2010 1040ez tax form Partner's share of partnership's taxable income. Print free 2010 1040ez tax form For purposes of the business income limit, the taxable income of a partner engaged in the active conduct of one or more of a partnership's trades or businesses includes his or her allocable share of taxable income derived from the partnership's active conduct of any trade or business. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form In 2013, Beech Partnership placed in service section 179 property with a total cost of $2,025,000. Print free 2010 1040ez tax form The partnership must reduce its dollar limit by $25,000 ($2,025,000 − $2,000,000). Print free 2010 1040ez tax form Its maximum section 179 deduction is $475,000 ($500,000 − $25,000), and it elects to expense that amount. Print free 2010 1040ez tax form The partnership's taxable income from the active conduct of all its trades or businesses for the year was $600,000, so it can deduct the full $475,000. Print free 2010 1040ez tax form It allocates $40,000 of its section 179 deduction and $50,000 of its taxable income to Dean, one of its partners. Print free 2010 1040ez tax form In addition to being a partner in Beech Partnership, Dean is also a partner in the Cedar Partnership, which allocated to him a $30,000 section 179 deduction and $35,000 of its taxable income from the active conduct of its business. Print free 2010 1040ez tax form He also conducts a business as a sole proprietor and, in 2013, placed in service in that business qualifying section 179 property costing $55,000. Print free 2010 1040ez tax form He had a net loss of $5,000 from that business for the year. Print free 2010 1040ez tax form Dean does not have to include section 179 partnership costs to figure any reduction in his dollar limit, so his total section 179 costs for the year are not more than $2,000,000 and his dollar limit is not reduced. Print free 2010 1040ez tax form His maximum section 179 deduction is $500,000. Print free 2010 1040ez tax form He elects to expense all of the $70,000 in section 179 deductions allocated from the partnerships ($40,000 from Beech Partnership plus $30,000 from Cedar Partnership), plus $55,000 of his sole proprietorship's section 179 costs, and notes that information in his books and records. Print free 2010 1040ez tax form However, his deduction is limited to his business taxable income of $80,000 ($50,000 from Beech Partnership, plus $35,000 from Cedar Partnership minus $5,000 loss from his sole proprietorship). Print free 2010 1040ez tax form He carries over $45,000 ($125,000 − $80,000) of the elected section 179 costs to 2014. Print free 2010 1040ez tax form He allocates the carryover amount to the cost of section 179 property placed in service in his sole proprietorship, and notes that allocation in his books and records. Print free 2010 1040ez tax form Different tax years. Print free 2010 1040ez tax form For purposes of the business income limit, if the partner's tax year and that of the partnership differ, the partner's share of the partnership's taxable income for a tax year is generally the partner's distributive share for the partnership tax year that ends with or within the partner's tax year. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form John and James Oak are equal partners in Oak Partnership. Print free 2010 1040ez tax form Oak Partnership uses a tax year ending January 31. Print free 2010 1040ez tax form John and James both use a tax year ending December 31. Print free 2010 1040ez tax form For its tax year ending January 31, 2013, Oak Partnership's taxable income from the active conduct of its business is $80,000, of which $70,000 was earned during 2012. Print free 2010 1040ez tax form John and James each include $40,000 (each partner's entire share) of partnership taxable income in computing their business income limit for the 2013 tax year. Print free 2010 1040ez tax form Adjustment of partner's basis in partnership. Print free 2010 1040ez tax form A partner must reduce the basis of his or her partnership interest by the total amount of section 179 expenses allocated from the partnership even if the partner cannot currently deduct the total amount. Print free 2010 1040ez tax form If the partner disposes of his or her partnership interest, the partner's basis for determining gain or loss is increased by any outstanding carryover of disallowed section 179 expenses allocated from the partnership. Print free 2010 1040ez tax form Adjustment of partnership's basis in section 179 property. Print free 2010 1040ez tax form The basis of a partnership's section 179 property must be reduced by the section 179 deduction elected by the partnership. Print free 2010 1040ez tax form This reduction of basis must be made even if a partner cannot deduct all or part of the section 179 deduction allocated to that partner by the partnership because of the limits. Print free 2010 1040ez tax form S Corporations Generally, the rules that apply to a partnership and its partners also apply to an S corporation and its shareholders. Print free 2010 1040ez tax form The deduction limits apply to an S corporation and to each shareholder. Print free 2010 1040ez tax form The S corporation allocates its deduction to the shareholders who then take their section 179 deduction subject to the limits. Print free 2010 1040ez tax form Figuring taxable income for an S corporation. Print free 2010 1040ez tax form To figure taxable income (or loss) from the active conduct by an S corporation of any trade or business, you total the net income and losses from all trades or businesses actively conducted by the S corporation during the year. Print free 2010 1040ez tax form To figure the net income (or loss) from a trade or business actively conducted by an S corporation, you take into account the items from that trade or business that are passed through to the shareholders and used in determining each shareholder's tax liability. Print free 2010 1040ez tax form However, you do not take into account any credits, tax-exempt income, the section 179 deduction, and deductions for compensation paid to shareholder-employees. Print free 2010 1040ez tax form For purposes of determining the total amount of S corporation items, treat deductions and losses as negative income. Print free 2010 1040ez tax form In figuring the taxable income of an S corporation, disregard any limits on the amount of an S corporation item that must be taken into account when figuring a shareholder's taxable income. Print free 2010 1040ez tax form Other Corporations A corporation's taxable income from its active conduct of any trade or business is its taxable income figured with the following changes. Print free 2010 1040ez tax form It is figured before deducting the section 179 deduction, any net operating loss deduction, and special deductions (as reported on the corporation's income tax return). Print free 2010 1040ez tax form It is adjusted for items of income or deduction included in the amount figured in 1, above, not derived from a trade or business actively conducted by the corporation during the tax year. Print free 2010 1040ez tax form How Do You Elect the Deduction? You elect to take the section 179 deduction by completing Part I of Form 4562. Print free 2010 1040ez tax form If you elect the deduction for listed property (described in chapter 5), complete Part V of Form 4562 before completing Part I. Print free 2010 1040ez tax form For property placed in service in 2013, file Form 4562 with either of the following. Print free 2010 1040ez tax form Your original 2013 tax return, whether or not you file it timely. Print free 2010 1040ez tax form An amended return for 2013 filed within the time prescribed by law. Print free 2010 1040ez tax form An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. Print free 2010 1040ez tax form The amended return must also include any resulting adjustments to taxable income. Print free 2010 1040ez tax form You must keep records that show the specific identification of each piece of qualifying section 179 property. Print free 2010 1040ez tax form These records must show how you acquired the property, the person you acquired it from, and when you placed it in service. Print free 2010 1040ez tax form Election for certain qualified section 179 real property. Print free 2010 1040ez tax form You can elect to expense certain qualified real property that you placed in service as section 179 property for tax years beginning in 2013. Print free 2010 1040ez tax form If you elect to treat this property as section 179 property, you must elect the application of the special rules for qualified real property described in section 179(f) of the Internal Revenue Code. Print free 2010 1040ez tax form To make the election, attach a statement indicating you are “electing the application of section 179(f) of the Internal Revenue Code” with either of the following. Print free 2010 1040ez tax form Your original 2013 tax return, whether or not you file it timely. Print free 2010 1040ez tax form An amended return for 2013 filed within the time prescribed by law. Print free 2010 1040ez tax form The amended return must also include any adjustments to taxable income. Print free 2010 1040ez tax form The statement should indicate your election to expense certain qualified real property under section 179(f) on your return. Print free 2010 1040ez tax form It must specify one or more of the three types of qualified property (described under Qualified real property ) to which the election applies, the cost of each such type, and the portion of the cost of each such property to be taken into account. Print free 2010 1040ez tax form Also, report this on line 6 of Form 4562. Print free 2010 1040ez tax form The maximum section 179 expense deduction that can be taken for qualified section 179 real property is limited to $250,000. Print free 2010 1040ez tax form Revoking an election. Print free 2010 1040ez tax form An election (or any specification made in the election) to take a section 179 deduction for 2013 can be revoked without IRS approval by filing an amended return. Print free 2010 1040ez tax form The amended return must be filed within the time prescribed by law. Print free 2010 1040ez tax form The amended return must also include any resulting adjustments to taxable income. Print free 2010 1040ez tax form Once made, the revocation is irrevocable. Print free 2010 1040ez tax form When Must You Recapture the Deduction? You may have to recapture the section 179 deduction if, in any year during the property's recovery period, the percentage of business use drops to 50% or less. Print free 2010 1040ez tax form In the year the business use drops to 50% or less, you include the recapture amount as ordinary income in Part IV of Form 4797. Print free 2010 1040ez tax form You also increase the basis of the property by the recapture amount. Print free 2010 1040ez tax form Recovery periods for property are discussed under Which Recovery Period Applies in chapter 4 . Print free 2010 1040ez tax form If you sell, exchange, or otherwise dispose of the property, do not figure the recapture amount under the rules explained in this discussion. Print free 2010 1040ez tax form Instead, use the rules for recapturing depreciation explained in chapter 3 of Publication 544 under Section 1245 Property. Print free 2010 1040ez tax form For qualified real property (described earlier), see Notice 2013-59 for determining the portion of the gain that is attributable to section 1245 property upon the sale or other disposition of qualified real property. Print free 2010 1040ez tax form If the property is listed property (described in chapter 5 ), do not figure the recapture amount under the rules explained in this discussion when the percentage of business use drops to 50% or less. Print free 2010 1040ez tax form Instead, use the rules for recapturing excess depreciation in chapter 5 under What Is the Business-Use Requirement. Print free 2010 1040ez tax form Figuring the recapture amount. Print free 2010 1040ez tax form To figure the amount to recapture, take the following steps. Print free 2010 1040ez tax form Figure the depreciation that would have been allowable on the section 179 deduction you claimed. Print free 2010 1040ez tax form Begin with the year you placed the property in service and include the year of recapture. Print free 2010 1040ez tax form Subtract the depreciation figured in (1) from the section 179 deduction you claimed. Print free 2010 1040ez tax form The result is the amount you must recapture. Print free 2010 1040ez tax form Example. Print free 2010 1040ez tax form In January 2011, Paul Lamb, a calendar year taxpayer, bought and placed in service section 179 property costing $10,000. Print free 2010 1040ez tax form The property is not listed property. Print free 2010 1040ez tax form The property is 3-year property. Print free 2010 1040ez tax form He elected a $5,000 section 179 deduction for the property and also elected not to claim a special depreciation allowance. Print free 2010 1040ez tax form He used the property only for business in 2011 and 2012. Print free 2010 1040ez tax form In 2013, he used the property 40% for business and 60% for personal use. Print free 2010 1040ez tax form He figures his recapture amount as follows. Print free 2010 1040ez tax form Section 179 deduction claimed (2011) $5,000. Print free 2010 1040ez tax form 00 Minus: Allowable depreciation using Table A-1 (instead of section 179 deduction): 2011 $1,666. Print free 2010 1040ez tax form 50 2012 2,222. Print free 2010 1040ez tax form 50 2013 ($740. Print free 2010 1040ez tax form 50 × 40% (business)) 296. Print free 2010 1040ez tax form 20 4,185. Print free 2010 1040ez tax form 20 2013 — Recapture amount $ 814. Print free 2010 1040ez tax form 80 Paul must include $814. Print free 2010 1040ez tax form 80 in income for 2013. Print free 2010 1040ez tax form If any qualified zone property placed in service during the year ceases to be used in an empowerment zone by an enterprise zone business in a later year, the benefit of the increased section 179 deduction must be reported as other income on your return. Print free 2010 1040ez tax form Prev Up Next Home More Online Publications
The Print Free 2010 1040ez Tax Form
Print free 2010 1040ez tax form 18. Print free 2010 1040ez tax form Appendix This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One. Print free 2010 1040ez tax form Model Certificate A STATEMENT OF SUBSEQUENT SELLER 1. Print free 2010 1040ez tax form Name, address, and employer identification number of seller in subsequent sale 2. Print free 2010 1040ez tax form Name, address, and employer identification number of the buyer in subsequent sale 3. Print free 2010 1040ez tax form Date and location of subsequent sale 4. Print free 2010 1040ez tax form Volume and type of taxable fuel sold The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in connection with Seller's purchase of the taxable fuel described in this statement. Print free 2010 1040ez tax form Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying schedules and statements, and, to the best of Seller's knowledge and belief, they are true, correct and complete. Print free 2010 1040ez tax form Signature and date signed Printed or typed name of person signing this report Title— Model Certificate B FIRST TAXPAYER'S REPORT 1. Print free 2010 1040ez tax form First Taxpayer's name, address and employer identification number 2. Print free 2010 1040ez tax form Name, address, and employer identification number of the buyer of the taxable fuel subject to tax 3. Print free 2010 1040ez tax form Date and location of removal, entry, or sale 4. Print free 2010 1040ez tax form Volume and type of taxable fuel removed, entered or sold 5. Print free 2010 1040ez tax form Check type of taxable event: Removal from refinery Entry into United States Bulk transfer from terminal by unregistered position holder Bulk transfer not received at an approved terminal Sale within the bulk transfer/terminal system Removal at the terminal rack Removal or sale by the blender 6. Print free 2010 1040ez tax form Amount of federal excise tax paid on account of the removal, entry, or sale The undersigned taxpayer (“Taxpayer”) has not received, and will not claim, a credit with respect to, or a refund of, the tax on the taxable fuel to which this form relates. Print free 2010 1040ez tax form Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying schedules and statements, and to the best of Taxpayer's knowledge and belief, they are true, correct and complete. Print free 2010 1040ez tax form Signature and date signed Printed or typed name of person signing this report Title Model Certificate C NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT Name, address, and employer identification number of person receiving certificate The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered by the Internal Revenue Service with registration number and that Registrant's registration has not been revoked or suspended by the Internal Revenue Service. Print free 2010 1040ez tax form Registrant understands that the fraudulent use of this certificate may subject Registrant and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Signature and date signed Printed or typed name of person signing Title of person signing Name of Registrant Employer identification number Address of Registrant Model Certificate D CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE (To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, address, and employer identification number of seller The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury: The gasoline blendstocks to which this certificate relates will not be used to produce finished gasoline. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): If this is a single purchase certificate, check here and enter: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form (number of gallons) of(type of gasoline blendstocks) If this is a certificate covering all purchases under a specified account or order number, check here and enter: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Type (or types) of gasoline blendstocks 4. Print free 2010 1040ez tax form Buyer's account or order number Buyer will not claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks covered by this certificate. Print free 2010 1040ez tax form Buyer will provide a new certificate to the seller if any information in this certificate changes. Print free 2010 1040ez tax form If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a certificate from the purchaser stating that the gasoline blendstocks will not be used to produce finished gasoline and otherwise complies with the conditions of §48. Print free 2010 1040ez tax form 4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations. Print free 2010 1040ez tax form Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. Print free 2010 1040ez tax form Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Print free 2010 1040ez tax form In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Signature and date signed Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Model Certificate G CERTIFICATE OF REGISTERED FEEDSTOCK USER (To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue Code. Print free 2010 1040ez tax form ) (Buyer) certifies the following under penalties of perjury: Name of buyer Buyer is a registered feedstock user with registration number . Print free 2010 1040ez tax form Buyer's registration has not been revoked or suspended. Print free 2010 1040ez tax form The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose. Print free 2010 1040ez tax form This certificate applies to percent of Buyer's purchases from (name, address, and employer identification number of seller) as follows (complete as applicable): 1. Print free 2010 1040ez tax form A single purchase on invoice or delivery ticket number . Print free 2010 1040ez tax form 2. Print free 2010 1040ez tax form All purchases between (effective date) and (expiration date) (period not to exceed one year after the effective date) under account or order number(s) . Print free 2010 1040ez tax form If this certificate applies only to Buyer's purchases for certain locations, check here and list the locations. Print free 2010 1040ez tax form If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale. Print free 2010 1040ez tax form Buyer will provide a new certificate to the seller if any information in this certificate changes. Print free 2010 1040ez tax form If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Employer identification number Address of Buyer Signature and date signed Model Certificate J CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE (To support tax-free sales of CNG under section 4041 of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, address, and employer identification number of seller (“Buyer”) certifies the following under penalties of perjury: Name of buyer The CNG to which this certificate relates will be used in a nontaxable use. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): If this is a single purchase certificate, check here and enter: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form (Gasoline gallon equivalents) If this is a certificate covering all purchases under a specified account or order number, check here and enter: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Buyer's account or order number Buyer will not claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates. Print free 2010 1040ez tax form Buyer will provide a new certificate to the seller if any information in this certificate changes. Print free 2010 1040ez tax form Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. Print free 2010 1040ez tax form Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Print free 2010 1040ez tax form In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells CNG tax free. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Employer identification number Address of Buyer Signature and date signed Model Certificate K CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR COMMERCIAL AVIATION OR NONTAXABLE USE (To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082. Print free 2010 1040ez tax form ) Name, address, and employer identification number of position holder The undersigned aircraft operator (“Buyer”) hereby certifies the following under the penalties of perjury: The kerosene for use in aviation to which this certificate relates is purchased (check one): for use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixed-wing air ambulance uses; for use other than as a fuel in the propulsion engine of an aircraft; for the exclusive use of a qualified blood collector organization; for the exclusive use of a nonprofit educational organization; for the exclusive use of a state; for use in an aircraft owned by an aircraft museum; for use in military aircraft; or for use in commercial aviation (other than foreign trade). Print free 2010 1040ez tax form With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation (other than foreign trade), Buyer's registration number is. Print free 2010 1040ez tax form Buyer's registration has not been suspended or revoked by the Internal Revenue Service. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): This is a single purchase certificate: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form Number of gallons This is a certificate covering all purchases under a specified account or order number: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Buyer's account number Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes. Print free 2010 1040ez tax form If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government. Print free 2010 1040ez tax form If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use stated above, Buyer will be liable for tax. Print free 2010 1040ez tax form Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the fuel purchased under this certificate was used. Print free 2010 1040ez tax form Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Print free 2010 1040ez tax form If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. Print free 2010 1040ez tax form The fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Waiver L WAIVER FOR USE BY ULTIMATE PURCHASERS OF KEROSENE FOR CERTAIN USES IN AVIATION (To support vendor's claim for a credit or payment under § 6427(l)(4)(C)(i) of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, Address, and Employer Identification Number of Ultimate Vendor The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury: A. Print free 2010 1040ez tax form The kerosene to which this waiver relates is purchased for — (check one): 1. Print free 2010 1040ez tax form □ Use on a farm for farming purposes, 2. Print free 2010 1040ez tax form □ Use in foreign trade (reciprocal benefits required for foreign registered airlines), 3. Print free 2010 1040ez tax form □ Use in certain helicopter and fixed-wing air ambulance uses, 4. Print free 2010 1040ez tax form □ The exclusive use of a qualified blood collector organization, 5. Print free 2010 1040ez tax form □ The exclusive use of a nonprofit educational organization, 6. Print free 2010 1040ez tax form □ Use in an aircraft owned by an aircraft museum, 7. Print free 2010 1040ez tax form □ Use in military aircraft, or 8. Print free 2010 1040ez tax form □ Use in commercial aviation (other than foreign trade). Print free 2010 1040ez tax form B. Print free 2010 1040ez tax form This waiver applies to the following (complete as applicable): This is a single purchase waiver: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form Number of gallons This is a waiver covering all purchases under a specified account or order number: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Buyer's account number Buyer will provide a new waiver to the vendor if any information in this waiver changes. Print free 2010 1040ez tax form If Buyer uses the kerosene for use in aviation to which this waiver relates for a use other than the use stated above, Buyer will be liable for tax. Print free 2010 1040ez tax form Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the kerosene for use in aviation used in a nontaxable use. Print free 2010 1040ez tax form Buyer acknowledges that it has not and will not claim any credit or payment for the kerosene for use in aviation to which this waiver relates. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Certificate M CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL ORGANIZATION USE (To support vendor's claim for a credit or payment under § 6416(a)(4) of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, address, and employer identification number of ultimate vendor The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury: Buyer will use the gasoline or aviation gasoline to which this certificate relates (check one): For the exclusive use of a state or local government; or For the exclusive use of a nonprofit educational organization. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): This is a single purchase certificate: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form Number of gallons This is a certificate covering all purchases under a specified account or order number: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Buyer's account number Buyer will provide a new certificate to the vendor if any information in this certificate changes. Print free 2010 1040ez tax form Buyer understands that by signing this certificate, Buyer gives up its right to claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Print free 2010 1040ez tax form Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Waiver N WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR KEROSENE USED IN INTERCITY BUS TRANSPORTATION (To support vendor's claim for a credit or payment under § 6427 of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, address, and employer identification number of ultimate vendor The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury: The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation. Print free 2010 1040ez tax form This waiver applies to the following (complete as applicable): This is a single purchase waiver: 1. Print free 2010 1040ez tax form Invoice or delivery ticket number 2. Print free 2010 1040ez tax form Number of gallons This is a waiver covering all purchases under a specified account or order number: 1. Print free 2010 1040ez tax form Effective date 2. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after the effective date) 3. Print free 2010 1040ez tax form Buyer's account number Buyer will provide a new waiver to the vendor if any information in this waiver changes. Print free 2010 1040ez tax form If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax. Print free 2010 1040ez tax form Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the diesel fuel or kerosene used in intercity bus transportation. Print free 2010 1040ez tax form Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates. Print free 2010 1040ez tax form Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Certificate O CERTIFICATE FOR BIODIESEL Certificate Identification Number: (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Print free 2010 1040ez tax form ) The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury: 1. Print free 2010 1040ez tax form Producer's name, address, and employer identification number (EIN) 2. Print free 2010 1040ez tax form Name, address, and EIN of person buying the biodiesel from Producer 3. Print free 2010 1040ez tax form Date and location of sale to buyer 4. Print free 2010 1040ez tax form This certificate applies to gallons of biodiesel. Print free 2010 1040ez tax form 5. Print free 2010 1040ez tax form Producer certifies that the biodiesel to which this certificate relates is: % Agri-biodiesel (derived solely from virgin oils) % Biodiesel other than agri-biodiesel This certificate applies to the following sale: Invoice or delivery ticket number Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate) Total number of certificates issued for that invoice or delivery ticket number 6. Print free 2010 1040ez tax form Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate) 7. Print free 2010 1040ez tax form Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate). Print free 2010 1040ez tax form Producer is registered as a biodiesel producer with registration number . Print free 2010 1040ez tax form Producer's registration has not been suspended or revoked by the Internal Revenue Service. Print free 2010 1040ez tax form Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U. Print free 2010 1040ez tax form S. Print free 2010 1040ez tax form C. Print free 2010 1040ez tax form 7545). Print free 2010 1040ez tax form Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing this certificate Title of person signing Signature and date signed Model Certificate P CERTIFICATE OF STATE USE (To support vendor's claim for credit or payment under section 6427 of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, Address, and Employer Identification Number of Vendor The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury: A. Print free 2010 1040ez tax form Buyer will use the diesel fuel or kerosene to which this certificate relates for the exclusive use of a state or local government, or the District of Columbia. Print free 2010 1040ez tax form B. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): 1. Print free 2010 1040ez tax form If this is a single purchase certificate, check here □ and enter: a. Print free 2010 1040ez tax form Invoice or delivery ticket number b. Print free 2010 1040ez tax form Number of gallons 2. Print free 2010 1040ez tax form If this is a certificate covering all purchases under a specified account or order number, check here □ and enter: a. Print free 2010 1040ez tax form Effective date b. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after effective date) c. Print free 2010 1040ez tax form Buyer's account or order number ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Print free 2010 1040ez tax form ▪ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a purpose other than stated in the certificate, Buyer will be liable for any tax. Print free 2010 1040ez tax form ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this certificate relates. Print free 2010 1040ez tax form ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Certificate Q CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN NONEXEMPT, NONCOMMERCIAL AVIATION (To support vendor's claim for credit or payment under section 6427(l)(4)(C)(ii) of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, Address, and Employer Identification Number of Ultimate Vendor The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury: A. Print free 2010 1040ez tax form The kerosene to which this certificate relates is purchased for a nonexempt use in noncommercial aviation. Print free 2010 1040ez tax form B. Print free 2010 1040ez tax form This certificate applies to the following (complete as applicable): 1. Print free 2010 1040ez tax form If this is a single purchase certificate, check here □ and enter: a. Print free 2010 1040ez tax form Invoice or delivery ticket number b. Print free 2010 1040ez tax form Number of gallons 2. Print free 2010 1040ez tax form This is a certificate covering all purchases under a specified account or order number: a. Print free 2010 1040ez tax form Effective date b. Print free 2010 1040ez tax form Expiration date (period not to exceed 1 year after effective date) c. Print free 2010 1040ez tax form Buyer's account number ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Print free 2010 1040ez tax form ▪ If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer will be liable for tax. Print free 2010 1040ez tax form ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Certificate R CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL ORGANIZATION (To support credit card issuer's claim for credit, refund, or payment under section 6416(a)(4)(B) or section 6427(l)(5)(D) of the Internal Revenue Code. Print free 2010 1040ez tax form ) Name, Address, and Employer Identification Number of Credit Card Issuer. Print free 2010 1040ez tax form The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury: A. Print free 2010 1040ez tax form Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or B. Print free 2010 1040ez tax form Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational organization. Print free 2010 1040ez tax form C. Print free 2010 1040ez tax form This certificate applies to all purchases made with the credit card identified below during the period specified: a. Print free 2010 1040ez tax form Effective date of certificate b. Print free 2010 1040ez tax form Expiration date of certificate (period not to exceed 2 years after effective date) c. Print free 2010 1040ez tax form Buyer's account number ▪ Buyer will provide a new certificate to the credit card issuer if any information in this certificate changes. Print free 2010 1040ez tax form ▪ Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Print free 2010 1040ez tax form ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Print free 2010 1040ez tax form ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing Title of person signing Name of Buyer Employer identification number Address of Buyer Signature and date signed Model Statement S STATEMENT OF BIODIESEL RESELLER (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Print free 2010 1040ez tax form ) The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury: 1. Print free 2010 1040ez tax form Reseller's name, address, and employer identification number (EIN) 2. Print free 2010 1040ez tax form Name, address, and EIN of Reseller's buyer 3. Print free 2010 1040ez tax form Date and location of sale to buyer 4. Print free 2010 1040ez tax form Volume of biodiesel sold 5. Print free 2010 1040ez tax form Certificate Identification Number on the Certificate for Biodiesel Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false. Print free 2010 1040ez tax form Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn. Print free 2010 1040ez tax form Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. Print free 2010 1040ez tax form Printed or typed name of person signing this certificate Title of person signing Signature and date signed Prev Up Next Home More Online Publications