Tag Archives: Expenses

Deductions

Deductions

Code Sections about Deductions

  • Sec. 67. 2-percent floor on miscellaneous itemized deductions
  • Sec. 68. Overall limitation on itemized deductions
  • Sec. 151. Allowance of deductions for personal exemptions
  • Sec. 161. Allowance of deductions
  • Sec. 211. Allowance of deductions
  • Sec. 241. Allowance of special deductions
  • Sec. 246. Rules applying to deductions for dividends received
  • Sec. 261. General rule for disallowance of deductions
  • Sec. 277. Deductions incurred by certain membership organizations in transactions with members
  • Sec. 464. Limitations on deductions for certain farming
  • Sec. 465. Deductions limited to amount at risk
  • Sec. 470. Limitation on deductions allocable to property used by governments or other tax-exempt entities
  • Sec. 482. Allocation of income and deductions among taxpayers
  • Sec. 642. Special rules for credits and deductions
  • Sec. 671. Trust income, deductions, and credits attributable to grantors and others as substantial owners
  • Sec. 804. Life insurance deductions
  • Sec. 805. General deductions
  • Sec. 809. Reduction in certain deductions of mutual life insurance companies – REPEALED
  • Sec. 873. Deductions
  • Sec. 874. Allowance of deductions and credits
  • Sec. 1358. Allocation of credits, income, and deductions
  • Sec. 2524. Extent of deductions
  • Sec. 3123. Deductions as constructive payments
  • Sec. 3307. Deductions as constructive payments
  • Sec. 6034. Returns by trusts described in section 4947(a)(2) or claiming charitable deductions under section 642(c)
  • Some Content about Deductions

  • Alimony Paid
  • Autos, Computers, Electronic Devices (Listed Property) (IRS FAQ)
  • Bad Debt Deduction
  • Business Entertainment Expenses
  • Business Travel Expenses
  • Business Use of Car
  • Business Use of Home
  • Business Use of Home – Is It Deductible?
  • Car Donations
  • Casualty and Theft Losses
  • Casualty, Disaster, and Theft Losses
  • Clean-Fuel Deduction
  • Contributions
  • Contributions (IRS FAQ)
  • Contributions of Motor Vehicles, Boats, and Airplanes
  • Deductible Taxes
  • Deducting a Sec. 754 Depreciation Adjustment
  • Domestic Production Activities Deduction
  • Education & Work-Related Expenses (IRS FAQ)
  • Educational Expenses
  • Educator Expense Deduction
  • Employee Business Expenses
  • Equitable or Beneficial Ownership
  • Gifts & Charitable Contributions (IRS FAQ)
  • Home Mortgage Points
  • Home Office Expenses of a One-Man Corporation
  • Individual Retirement Arrangements (IRAs)
  • Interest Expense
  • Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.) (IRS FAQ)
  • Meals
  • Medical and Dental Expenses
  • Medical, Nursing Home, Special Care Expenses (IRS FAQ)
  • Miscellaneous Expenses
  • Mortgage Interest Deduction on Sale of Second Home Held for Investment Purposes
  • Moving Expenses
  • Other Deduction Questions (IRS FAQ)
  • Partner Section 179 Expense Deduction
  • Points Paid by Seller
  • Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses) (IRS FAQ)
  • Sales Tax Deduction – Optional Table Method
  • Should I Itemize?
  • State Deductions (CA – NOL Deductions Suspended then Reinstated and PA – Section 179 Deduction)
  • Student Loan Interest Deduction
  • Tax Shelters
  • Tuition and Fees Deduction
  • Description and Definition of Deductions

    Items that directly reduce taxable income. Deductions such as alimony, capital losses, moving expenses, business losses, and deductible IRA and Keogh contributions can offset gross income even if you don't have enough deductions to itemize. Personal expenses such as medical costs, mortgage interest, state and local taxes, employee business expenses, and charitable contributions are deductible only if you itemize your deductions. All taxpayers may claim a standard deduction. If your qualifying expenses exceed your standard deduction, you may claim the higher amount by itemizing your deductions. Although no records are needed to back up your right to the standard deduction, you must maintain records of qualifying expenditures if you itemize.

    Section 179 Deductions Issue

    You may find information about Section 179 Deductions in this Tax Platform of the American Encyclopedia of Law.

    Resources

    See Also

    Further Reading

    Income

    Income

    Income means: economic benefit; money or value received. Former IRC (check if this IRC provision is current here) §61.

    Code Sections about Income

    • Sec. 61. Gross income defined
    • Sec. 62. Adjusted gross income defined
    • Sec. 63. Taxable income defined
    • Sec. 64. Ordinary income defined

    Some Information related with Income

    1099-DIV Dividend Income (2004 IRS FAQ)
    1099-INT Interest Income (2004 IRS FAQ)
    1099-MISC, Independent Contractors, and Self-employed (2004 IRS FAQ)
    1099 Information Returns (All Other) (2004 IRS FAQ)
    401(k) Plans
    Alimony Received
    Alimony, Child Support, Court Awards, Damages (2004 IRS FAQ)
    Bartering Income
    Business Income
    Capital Gains and Losses
    Dividends
    Earnings for Clergy
    Employee Reimbursements, Form W-2, Wage Inquiries (2004 IRS FAQ)
    Exchange of Policyholder Interest for Stock
    Farming and Fishing Income
    Gambling Income and Expenses
    Gifts & Inheritances (2004 IRS FAQ)
    Grants, Scholarships, Student Loans, Work Study (2004 IRS FAQ)
    Gross Income
    Interest Received
    Life Insurance & Disability Insurance Proceeds (2004 IRS FAQ)
    Lump-Sum Distributions
    Ministers’ Compensation & Housing Allowance (2004 IRS FAQ)
    Nontaxable Income
    Other Income
    Passive Activities – Losses and Credits
    Pensions and Annuities
    Pensions – The General Rule and the Simplified Method
    Refunds of State and Local Taxes
    Rental Income and Expenses
    Renting Residential and Vacation Property
    Rollovers from Retirement Plans
    Roth IRA Distributions
    Sale of Assets Held for More Than Five Years
    Savings Bonds (2004 IRS FAQ)
    Scholarship and Fellowship Grants
    Social Security and Equivalent Railroad Retirement Benefits
    Sole Proprietorship
    Stock Options
    Tips
    Tips (2004 IRS FAQ)
    Traders in Securities (Information for Form 1040 Filers)
    Unemployment Compensation
    Wages and Salaries

    Income Related Tax Concepts and Issues

    • Academic Scholarships
    • Accrued Annual Leave
    • Accelerated Death Benefits
    • Advance Commissions
    • Alimony Received
    • Allocated Tips
    • Allowances for Housing
    • Annuity Benefits
    • Awards
    • Awards-Prizes
    • Back Pay Awards
    • Bartering Income
    • Bequests
    • Bonuses
    • Businesses-Part Time
    • Campaign Contributions Received
    • Cancellation of Employment, Payments for
    • Capital Gains
    • Child Support Payments Received
    • Clergy
    • Commissions Paid in Advance
    • Court Awards
    • Damages for Emotional Distress
    • Directors Fees
    • Disaster Relief Act Grants
    • Disaster Unemployment Assistance
    • Dividends
    • Dividends – Cooperative Banks
    • Dividends – Credit Unions
    • Dividends – Federal Savings & Loans
    • Dividends – Life Insurance Policies
    • Dividends – Mutual Funds
    • Dividends – Mutual Savings Banks
    • Dividends – Savings and Loans
    • Dividends – Reinvested
    • Educational Assistance Exclusion
    • Election Official Fees
    • Employee Achievement Awards
    • Employee Gifts
    • Employee Stock Options
    • Farming Income
    • Fishing Income
    • Foreclosures-Home
    • Foreign Earnings
    • Fulbright Awards
    • Gambling Winnings
    • Gifts
    • Gifts to Employees
    • Historic Preservation Grants
    • Hobby Income
    • Holiday Gifts to Employees
    • Home Foreclosures
    • Home Sale Proceeds
    • Housing Allowances
    • Illegally Obtained Money or Property
    • Incentive Stock Options
    • Independent Contractors
    • Installment Sales
    • Installment Sale Interest
    • Interest Received – Generally
    • Interest Received – Banks
    • Interest Received – Cooperative Banks
    • Interest Received – Credit Unions
    • Interest Received – Fed. Savings & Loans
    • Interest Received – Life Insurance Policies
    • Interest Received – Mutual Savings Banks
    • Interest Received – Nominee
    • Interest Received – Original Issue Discount
    • Interest Received – Sale of Home
    • Interest Received – Savings and Loans
    • Interest Received – Tax Exempt
    • Interest Received – Tax Refunds
    • Interest Received – Treasury Bills
    • Interest Received – Treasury Bonds
    • Interest Received – Treasury Notes
    • Interest Received – US Savings Bonds
    • Interest Received – Veterans Ins. Dividends
    • IRA Rollovers
    • Job Interview Expenses Received
    • Legal Settlements
    • Life Insurance Proceeds
    • Long Term Disability Payments
    • Lump Sum Distributions
    • Lump Sum Payments-Cancel Employment
    • Meals and Lodging
    • Military Retirement Pay
    • Mutual Fund Dividends
    • Notary Public Fees
    • Part Time Businesses
    • Partnership Income
    • Pension Benefits
    • Prizes
    • Property Received for Services
    • Rebates
    • Reinvested Dividends
    • Rental Income
    • Retirement Distributions – IRA Rollovers
    • Salaries
    • Sale of Home
    • Severance Pay
    • Sick Pay
    • Sick Pay-Railroad Employees
    • Sideline Business
    • Social Security Benefits
    • Sole Proprietorships
    • Sole Proprietorships-Income and Expenses
    • State Tax Refunds
    • Stock Options-Employee
    • Stock Options-Incentive
    • Stock Purchased from Employer
    • Stolen Money or Property
    • Supplemental Unemployment
    • Unemployment-Supplemental
    • Union Benefits
    • VA Rehabilitation Payments
    • Veteran’s Benefits
    • Veteran’s Life Insurance
    • Viatical Settlements
    • Wages
    • Worker’s Compensation

    See also other Tax Terms and Definitions in U.S.A.

    gross income; net income; taxable income.

    Pension and Annuity Income, I.R.S. Pub. 575 Issue

    You may find information about Pension and Annuity Income, I.R.S. Pub. 575 in this Tax Platform of the American Encyclopedia of Law.

    Depreciation

    Depreciation

    Depreciation means:
    an accounting technique in which the cost of an asset is allocated over its useful life. A deduction to reflect the gradual loss of value of business property as it wears out. Former IRC (check if this IRC provision is current here) §167. See Accelerated Cost Recovery System; Modified Accelerated Cost Recovery System.

    See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

    The law assigns a tax life to various types of property, and his or her basis (cost) in such property is deducted over that period of time. (For assets put in service after September 8, 2010 and before January 1, 2012, a special rule allowing 100% “bonus” depreciation allows businesses to write off the full cost of qualifying assets in the year they are purchased and placed in service.) See Accelerated Depreciation.

    U.S. and other Developed Countries International Tax Meaning

    An accounting technique in which the cost of an asset is allocated over its useful life.

    Sum-of-the-years’-digits Depreciation (SYD)

    A depreciation calculated by a method of allocating the cost of an asset over its useful life. A fraction is computed each year, which is applied against the depreciable amount. The numerator is the number of years left to be depreciated; the denominator is the sum of the years’ digits of the depreciable life. The formula for the denominator is N (N +1)/2 where N = the depreciable life. Sum-of-the-years’-digits depreciation is generally in use for tax purposes only for assets placed in service before 1981.

    See also other Tax Terms and Definitions in U.S.A.

    accelerated depreciation.

    Example of Depreciation:

    Learn more about tax examples, explanations and calculations here.

    An automobile used in business cost $10,000 and has a 4-year depreciable life. Sum-of-the-years’-digits depreciation results in the deductions shown in Table 7 below.

    See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

    Code Sections about Depreciation

    • Sec. 167. Depreciation
    • Sec. 216. Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder
    • Sec. 280F. Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes
    • Sec. 1357. Items not subject to regular tax; depreciation; interest

    IRS Publications about Depreciation

    • Publication 463, Travel, Entertainment, Gift and Car Expenses
    • Publication 527, Residential Rental Property
    • Publication 534, Depreciating Property Placed In Service Prior to 1987
    • Publication 535, Business Expenses
    • Publication 538, Accounting Periods and Methods
    • Publication 550, Investment Income and Expenses
    • Publication 551, Basis of Assets
    • Publication 587, Business Use of Your Home
    • Publication 946, How to Depreciate Property

    State Law about Depreciation

    • CA – Bonus Depreciation
    • ME – Depreciation/Section 179
    • NY – Bonus Depreciation
    • NY – Depreciation
    • OK – Bonus Depreciation
    • PA – Bonus Depreciation

    Description and Definition of Depreciation

    A deduction to reflect the gradual loss of value of business property – such as office equipment, vehicles, buildings, and furniture – as it wears out or becomes obsolete. The tax law assigns a life to various types of property and your basis in such property is deducted over that period of time. The tax law specifies the depreciation term for specific types of assets.

    If the expense is assumed to be incurred in equal amounts in each business period over the life of the asset the depreciation method used is straight line (SL). If the expense is assumed to be incurred in decreasing amounts in each business period over the life of the asset the method used is said to be accelerated. Two commonly used variations of the accelerated method of depreciating an asset are the sum-of-years digits (SYD) and the double-declining balance (DDB) methods. Frequently, accelerated depreciation is chosen for a business' tax expense but straight line is chosen for its financial reporting purposes.

    Resources

    See Also

    Further Reading

    Miscellaneous

    Miscellaneous

    Below are articles related to miscellaneous subjects.

    Alternative Filing Methods

    Age-Name-SSN Rejects, Errors, Correction Procedures (IRS FAQ)
    Amended Returns (IRS FAQ)
    Due Dates & Extension Dates for e-file (IRS FAQ)
    Electronic Filing
    Electronic Signatures
    Filing Business Returns Electronically
    Forms W-2 & Other Attachments (IRS FAQ)
    How to Choose a Paid Tax Preparer
    Substitute Tax Forms
    TeleFile
    TeleFile (IRS FAQ)

    Basis of Assets, Depreciation, and Sale of Assets

    Basis of Assets
    Depreciation
    Installment Sales
    Sale of Your Home

    Employer Tax Information

    Employer Identification Number (EIN) – How to Apply
    Employment Taxes for Household Employees
    Form 940 and 940-EZ – Deposit Requirements
    Form 940 and 940-EZ – Employer’s Annual Federal Unemployment Tax Returns
    Form 941 – Deposit Requirements
    Form 941 – Employer’s Quarterly Federal Tax Return
    Form W-2 – Where, When, and How to File
    Form W-4 – Employee’s Withholding Allowance Certificate
    Form W-5 – Advance Earned Income Credit
    Independent Contractor vs. Employee
    Social Security and Medicare Withholding Rates
    Tips – Withholding and Reporting

    Foreign Taxes

    Income Tax Treaties
    Australian tax
    Canadian Tax

    Magnetic Media Filers

    Applications, Forms, and Information
    Electronic Filing of Information Returns
    Magnetic Media Filers (2004 IRS FAQ)
    Test Files and Combined Federal and State Filing
    Waivers and Extensions
    Who Must File Magnetically

    IRS Collection

    Failure to Pay Child Support, Federal Non-Tax and State Income Tax Obligations
    Innocent Spouse Relief (And Separation of Liability and Equitable Relief)
    Offers-in-Compromise
    The Collection Process
    What To Do If You Can’t Pay Your Tax

    IRS Help Available

    IRS Services – Volunteer Tax Assistance, Toll-Free Telephone, Walk-in Assistance, and Outreach Programs
    Tax Assistance for Individuals with Disabilities and the Hearing Impaired
    Tax Help for Small Businesses and Self-Employed
    Tax Relief for Victims of Terrorist Attacks
    Taxpayer Advocate Program – Help for Problem Situations

    IRS Links

    IRS Home Page
    IRS Fact Sheets
    Forms And Publications
    Frequently Asked Questions
    IRS Hot Topics
    IRS News Releases
    Tax Professionals
    IRS Tax Tips

    IRS Notices

    IRS Notices and Bills, Penalties and Interest Charges
    Notice of Underreported Income CP2000
    Notices – What to Do

    IRS Procedures

    Circular 230 Information
    2004 Forms W-2 and Form 1099-R (What to Do if Not Received)
    Address Changes (IRS FAQ)
    Amended Returns & Form 1040X (IRS FAQ)
    Change of Address – How to Notify IRS
    Code, Revenue Procedures, Regulations, Letter Rulings (IRS FAQ)
    Collection Procedural Questions (IRS FAQ)
    Copies & Transcripts (IRS FAQ)
    Copy of Your Tax Return – How to Get One
    Ensuring Proper Credit of Payments
    Extensions (IRS FAQ)
    Forms & Publications (IRS FAQ)
    Forms and Publications – How to Order
    General Procedural Questions (IRS FAQ)
    Injured & Innocent Spouse (IRS FAQ)
    Name Changes & Social Security Number Matching Issues (IRS FAQ)
    Notices & Letters (IRS FAQ)
    Refund Inquiries (IRS FAQ)
    Prior Year(s) Form W-2 – (How to Get a Copy of)
    Refunds – How Long They Should Take
    Reporting Fraud (IRS FAQ)
    Signing the Return (IRS FAQ)
    W-2 – Additional, Incorrect, Lost, Non-receipt, Omitted (IRS FAQ)
    W-4 – Allowances, Excess FICA, Students, Withholding
    What To Do if You Haven’t Filed Your Tax Return
    Your Appeal Rights

    Earnings for Clergy
    Minister / Clergy Taxation
    Ministers’ Compensation & Housing Allowance (IRS FAQ)
    Minister’s Housing Allowance
    Sec. 107. Rental value of parsonages
    Publication 1828 – Tax Guide for Churches and Religious Organizations

    IRS Tax Tips

    IRS Tax Tips

    You can access IRS tax tips back to 1997 on the IRS website: IRS Tax Tips.
    The search box on that page is in this order:
    News Releases (IR-year-#)
    Fact Sheets (FS-year-#)
    Tax Tips (AT-year-#)

    IRS Tax Tips Examples

    • Updated ITIN Procedure Changes Announced
    • Earned Income Tax Credit for 2012; Do I Qualify?
    • IRS Combats Identity Theft and Refund Fraud on Many Fronts
    • Tips for Taxpayers, Victims about Identity Theft and Tax Returns
    • IRS Criminal Investigation Targets Identity Theft Refund Fraud
    • IRS Achieves $1 Billion in Cost Savings and Efficiencies
    • Highlights from the IRS Report
    • IRS Offers New Streamlined Option to Certain 501(c)(4) Groups Caught in Application Backlog
    • Tips for Employers Who Outsource Payroll Duties
    • IRS Combats Identity Theft and Refund Fraud on Many Fronts
    • Tips for Taxpayers, Victims about Identity Theft and Tax Returns
    • IRS Criminal Investigation Combats Identity Theft Refund Fraud
    • Earned Income Tax Credit; Do I Qualify?
    • IRS Offshore Voluntary Disclosure Efforts Produce $6.5 Billion; 45,000 Taxpayers Participate
    • Offshore Income and Filing Information for Taxpayers with Offshore Accounts
    • IRS Urges Taxpayers to Choose a Tax Preparer Wisely for the Filing Season Ahead
    • IRS Combats Identity Theft and Refund Fraud on Many Fronts
    • Identity Theft Information for Taxpayers and Victims
    • Taxpayer Bill of Rights- #1 The Right to Be Informed
    • Earned Income Tax Credit; Do I Qualify?
    • Taxpayer Bill of Rights- #2 The Right to Quality Service
    • Understanding Who You Pay to Prepare Your Tax Return
    • Taxpayer Bill of Rights- #3 The Right to Pay No More than the Correct Amount of Tax
    • Tips Versus Service Charges: How to Report
    • 2014 Tax Changes: Health Care Law Brings Updates to Tax Forms; Other Benefits Renewed
    • Taxpayer Bill of Rights: #4, The Right to Challenge the IRS’s Position and Be Heard
    • Taxpayer Bill of Rights: #5, The Right to Appeal an IRS Decision in an Independent Forum
    • Taxpayer Bill of Rights: #6, The Right to Finality
    • Taxpayer Bill of Rights: #7, The Right to Privacy
    • Health Coverage Exemptions: What Are They, How to Obtain Them, and How to Claim Them
    • Taxpayer Bill of Rights: #8, The Right to Confidentiality
    • Payment Alternatives When You Owe the IRS
    • Taxpayer Bill of Rights- #9, The Right to Retain Representation
    • Taxpayer Bill of Rights: #10, The Right to a Fair and Just Tax System
    • New Tangible Property Regulations; Simplified Option Available to Many Small Businesses
    • Payments to Independent Contractors
    • Business Taxes for the Self-Employed: The Basics
    • IRS, States and Industry Partners Provide Update on Collaborative Fight Against Tax-Related Identity Theft
    • Tax Return Preparers: Data Thefts and Protecting Client Tax Information
    • General Employment Tax Issues
    • Tax Preparedness Series: Gathering Essential Documents for Next Filing Season
    • Tax Professionals Should Perform Periodic Check of EFIN Status
    • How Do I Get My Tax Transcript?
    • IRS, States and Tax Industry Combat Identity Theft and Refund Fraud on Many Fronts
    • IRS, States and Tax Industry Urge Taxpayers to Join the Effort to Combat Identity Theft
    • IRS Identity Theft Victim Assistance: How It Works
    • How New Identity Security Changes May Affect Taxpayers for 2016
    • Earned Income Tax Credit; Do I Qualify?
    • Taxpayer Bill of Rights: The Right to Be Informed
    • 2015 Tax Changes Include: Key Benefits Renewed; A New Way to Save for Retirement; New Accounts for People With Disabilities; Health Care Updates

    Credits

    Credits

    The Credits are, under the Social Security Act, the determiners of eligibility for Social Security programs. A person earns credits by working in a job covered by Social Security and by paying Social Security taxes. In 1991, one credit was earned for each $540 in Social Security earnings. A maximum of four credits can be earned in a year. A minimum of 40 credits is required to qualify for retirement benefits.

    IRS Publications about Credits

  • Fuel Tax Credits and Refunds
  • Foreign Tax Credit for Individuals
  • Credit for the Elderly or the Disabled
  • Earned Income Credit
  • Child Tax Credit
  • Code Sections about Credits

  • Sec. 22. Credit for the elderly and the permanently and totally disabled
  • Sec. 24. Child tax credit
  • Sec. 27. Taxes of foreign countries and possessions of the United States; possession tax credit
  • Sec. 30A. Puerto Rico economic activity credit
  • Sec. 30B. Alternative motor vehicle credit
  • Sec. 30C. Alternative fuel vehicle refueling property credit
  • Sec. 38. General business credit
  • Sec. 41. Credit for increasing research activities
  • Sec. 42. Low-income housing credit
  • Sec. 43. Enhanced oil recovery credit
  • Sec. 45A. Indian employment credit
  • Sec. 45B. Credit for portion of employer social security taxes paid with respect to employee cash tips
  • Sec. 45D. New markets tax credit
  • Sec. 45F. Employer-provided child care credit
  • Sec. 45G. Railroad track maintenance credit
  • Sec. 45H. Credit for production of low sulfur diesel fuel
  • Sec. 45I. Credit for producing oil and gas from marginal wells
  • Sec. 45J. Credit for production from advanced nuclear power facilities
  • Sec. 45K. Credit for producing fuel from a nonconventional source
  • Sec. 45L. New Energy Efficient Home Credit
  • Sec. 45M. Energy Efficient Appliance Credit
  • Sec. 46. Amount of credit
  • Sec. 47. Rehabilitation credit
  • Sec. 48. Energy credit
  • Sec. 48A. Qualifying advanced coal project credit
  • Sec. 48B. Qualifying gasification project credit
  • Sec. 51. Amount of credit
  • Sec. 53. Credit for prior year minimum tax liability
  • Sec. 54. Credit to holders of clean renewable energy bonds.
  • Sec. 77. Commodity credit loans
  • Sec. 78. Dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit
  • Sec. 409. Qualifications for tax credit employee stock ownership plans
  • Sec. 418C. Overburden credit against minimum contribution requirement
  • Sec. 841. Credit for foreign taxes
  • Sec. 853. Foreign tax credit allowed to shareholders
  • Sec. 902. Deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation
  • Sec. 903. Credit for taxes in lieu of income, etc., taxes
  • Sec. 904. Limitation on credit
  • Sec. 908. Reduction of credit for participation in or co-operation with an international boycott
  • Sec. 936. Puerto Rico and possession tax credit
  • Sec. 960. Special rules for foreign tax credit
  • Sec. 1396. Empowerment zone employment credit
  • Sec. 1397E. Credit to holders of qualified zone academy bonds
  • Sec. 1400C. First-time homebuyer credit for District of Columbia
  • Sec. 1400H. Renewal community employment credit
  • Sec. 1462. Withheld tax as credit to recipient of income
  • Sec. 1551. Disallowance of the benefits of the graduated corporate rates and accumulated earnings credit
  • Sec. 2010. Unified credit against estate tax
  • Sec. 2011. Credit for State death taxes
  • Sec. 2012. Credit for gift tax
  • Sec. 2013. Credit for tax on prior transfers
  • Sec. 2014. Credit for foreign death taxes
  • Sec. 2015. Credit for death taxes on remainders
  • Sec. 2016. Recovery of taxes claimed as credit
  • Sec. 2505. Unified credit against gift tax
  • Sec. 2604. Credit for certain State taxes
  • Sec. 3303. Conditions of additional credit allowance
  • Sec. 3507. Advance payment of earned income credit
  • Sec. 5010. Credit for wine content and for flavors content
  • Sec. 5011. Income Tax Credit for Average Cost of Carrying Excise Tax.
  • Sec. 5056. Refund and credit of tax, or relief from liability
  • Sec. 5705. Credit, refund, or allowance of tax
  • Sec. 6407. Date of allowance of refund or credit
  • Sec. 6511. Limitations on credit or refund
  • Sec. 6709. Penalties with respect to mortgage credit certificates
  • Sec. 7486. Refund, credit, or abatement of amounts disallowed
  • Sec. 6429. Advance Payment of Portion of Increased Child Credit for 2003.
  • Sec. 7527. Advance payment of credit for health insurance costs of eligible individuals
  • Sec. 6050T. Returns relating to credit for health insurance costs of eligible individuals
  • Sec. 6426. Credit for certain alternative fuel mixtures
  • See also other Tax Terms and Definitions in the U.S.

    Tax credits.

    Business

    Business Tax Law

    Business General Information

    Business Entertainment Expenses
    Business Income
    Business Travel Expenses
    Business Use of Car
    Business Use of Home
    Business Use of Home – Is It Deductible?
    Business Use of Home – Taxes and Interest
    Principal Business Activity Codes

    Partnership / 1065

    2005 1065 K-1 instructions
    Basis Limitations for K-1 Losses
    Dispositions with Prior Section 179 Expense
    Form 1065
    Partner Health Insurance Premiums
    Partner Section 179 Expense Deduction
    Partner’s Capital Account Analysis
    Schedule K-1 (Forms 1065 and 1120S)
    Schedule K-1 – Line 20 (Form 1065) Code Definition

    Corporate / 1120

    Alternative Taxation of Income from Qualifying Shipping Activities
    Corporate Extensions
    Form 1120
    Schedule M-3 FAQs
    Unrecaptured 1250 Gain
    Retroactive 1120 Tax Return
    RE in a Corp

    S Corporate / 1120S

    Basis Limitations for K-1 Losses
    Dispositions with Prior Section 179 Expense
    Distributions from AAA
    Electing S Corporation Status
    Election: Family as Single Shareholders for “S” Corps.
    Form 1120S
    S Corporation Distributions
    S Corporation Excess Net Passive Income Tax
    S Corporation Termination of Shareholders Interest
    Schedule K-1 (Forms 1065 and 1120S)

    Fiduciary / 1041

    Fiduciary Terms
    Form 1041

    Estates and Trusts

    Bankruptcy Estates
    Complex Trusts
    Decedent’s Estates
    Electing Small Business Trusts (ESBT)
    Estate Tax Filing Requirement
    Estate Terms
    Estate and Gift Tax Reporting of Gifts from Prior Periods
    Grantor Trusts
    GST Exemption
    Guide to Types of Estate and Trust Entities
    How to File a Trust Return
    Qualified Disability Trusts
    Qualified Funeral Trusts
    Simple Trusts
    Split-Interest Charitable Trusts
    Trust 1041-A
    Trust 1041-T
    Trust Depreciation
    Trust Schedule D

    Gift Tax / 709

    Annual Exclusion for Gift Tax
    Estate and Gift Tax Reporting of Gifts from Prior Periods
    Gift Tax Filing Requirement
    GST Exemption
    Unified Credit for Gift and Estate Tax
    Related Internal Revenue Code Sections
    Sec. 2012. Credit for gift tax
    Sec. 2505. Unified credit against gift tax
    Sec. 6019. Gift tax returns
    Sec. 6075. Time for filing estate and gift tax returns

    Exempt Organizations (Non-Profit) / 990s

    Exempt Organization Reference Chart
    Exempt Organization Return Filing
    990-N Filing ePostcard
    Gross Receipts Normally $25,000 or Less Test

    Benefit Plan / 5500

    Dwelling Unit

    Dwelling Unit

    Renting Residential and Vacation Property

    If you receive rental income from renting to others a dwelling unit, such as a house or an apartment, you may deduct certain expenses. These expenses, which may include interest, taxes, casualty losses, maintenance, utilities, insurance, and depreciation, will reduce the amount of rental income that is taxed. You will generally report such income and expenses on Schedule E, Form 1040. If you are renting to make a profit and do not use the dwelling unit as a home, your deductible rental expenses can be more than your gross rental income, subject to certain limits. For information on these limits, refer to Passive Activities – Losses and Credits, Passive Activities – Losses and Credits. However, if you rent a dwelling unit that you also use as a home, your deductible rental expenses are subject to stricter limitations.

    You are considered to use a dwelling unit as a home if you use it for personal purposes during the tax year for more than the greater of: 14 days or 10% of the total days it is rented to others at a fair rental price. It is possible that you will use more than one dwelling unit as a home during the year. For example, if you live in your main home for 11 months, your home is a dwelling unit used as a home. If you live in your vacation home for the other 30 days of the year, your vacation home is also a dwelling unit used as a home unless you rent your vacation home to others at a fair rental value for more than 300 days during the year.

    A day of personal use of a dwelling unit is any day that it is used by:

    You or any other person who has an interest in it, unless you rent your interest to another owner as his or her main home under a shared equity financing agreement;
    A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as his or her main home and pays a fair rental price;
    Anyone under an agreement that lets you use some other dwelling unit; or
    Anyone at less than fair rental price.

    If you use the dwelling unit for both rental and personal purposes, you generally must divide your total expenses between the rental use and the personal use based on the number of days used for each purpose. However, you will not be able to deduct all your expenses of rental use if your rental expenses exceed your gross rental income. If you itemize your deductions on Schedule A, Form 1040, you may still be able to deduct mortgage interest, property taxes, and casualty losses on that schedule.

    There is a special rule if you use a dwelling as a home and rent it for fewer than 15 days. In this case, do not report any of the rental income and do not deduct any expenses as rental expenses.

    Another special rule applies if you rent part of your home to your employer and provide services for your employer in that rented space. In this case, report the rental income, but do not deduct any expenses as rental expenses.
    Refer to Publication 527, Residential Rental Property (Including Rental of Vacation Homes).

    Rental Expenses

    Rental Expenses

    Some examples of expenses that may be deducted from your total rental income are depreciation, repairs, and operating expenses. You can recover some or all of your original investment in the rental property (including furnishings) and the cost of later improvements through depreciation. You must use Form 4562 (to report depreciation) beginning in the year your rental property is first placed in service, and beginning in any year you make an improvement or add furnishings. For information on depreciation, refer to Publication 946, How To Depreciate Property. The cost of repairs may be deducted in full in the year paid. If you personally repair something on your rental property, you may not deduct the value of your own labor. Only out-of-pocket repair costs, such as materials, are deductible.

    For a discussion of the difference between repairs and improvements, refer to Publication 527, Residential Rental Property (Including Rental of Vacation Homes). Other rental expenses you may deduct include advertising, fire and liability insurance, taxes, interest, and commissions paid for the collection of rent.

    If you rent only a part of your property, you must divide the expenses between the part used for rental purposes and the part used for other purposes. You may use any reasonable method for dividing the expenses, but a method based on square footage is usually the most accurate.

    There are special rules relating to the rental of real property that you also use as your main home or your vacation home. For information on income from these rentals, or from renting at an amount less than the fair market value, refer to Renting Residential and Vacation Property, Renting Residential and Vacation Property (formerly Renting Vacation Property and Renting to Relative).

    If you do not use the rental property as a home and you are renting to make a profit, your deductible rental expenses can be more than your gross rental income, subject to certain limits. For information on these limitations, refer to Passive Activities – Losses and Credits, Passive Activities – Losses and Credits.

    For more information on rental income and expenses, including passive activity loss limits, refer to Publication 527.