Expenses generally paid by a buyer to research the title of real property.
Active conduct of a trade or business:(p115)
Generally, for the section 179 deduction, a taxpayer is considered to conduct a trade or business actively if he or she meaningfully participates in the management or operations of the trade or business. A mere passive investor in a trade or business does not actively conduct the trade or business.
The original cost of property, plus certain additions and improvements, minus certain deductions such as depreciation allowed or allowable and casualty losses.
A ratable deduction for the cost of intangible property over its useful life.
The total of all money received plus the fair market value of all property or services received from a sale or exchange. The amount realized also includes any liabilities assumed by the buyer and any liabilities to which the property transferred is subject, such as real estate taxes or a mortgage.
A measure of an individual's investment in property for tax purposes.
Usually, a percentage showing how much an item of property, such as an automobile, is used for business and investment purposes.
Expended or treated as an item of a capital nature. A capitalized amount is not deductible as a current expense and must be included in the basis of property.
Details or facts which indirectly point to other facts.
A number of years that establishes the property class and recovery period for most types of property under the General Depreciation System (GDS) and Alternative Depreciation System (ADS).
Travel between a personal home and work or job site within the area of an individual's tax home.
A method established under the Modified Accelerated Cost Recovery System (MACRS) to determine the portion of the year to depreciate property both in the year the property is placed in service and in the year of disposition.
Declining balance method:(p115)
An accelerated method to depreciate property. The General Depreciation System (GDS) of MACRS uses the 150% and 200% declining balance methods for certain types of property. A depreciation rate (percentage) is determined by dividing the declining balance percentage by the recovery period for the property.
The permanent withdrawal from use in a trade or business or from the production of income.
Written records that establish certain facts.
To barter, swap, part with, give, or transfer property for other property or services.
Fair market value (FMV):(p115)
The price that property brings when it is offered for sale by one who is willing but not obligated to sell, and is bought by one who is willing or desires to buy but is not compelled to do so.
The one who acts on behalf of another as a guardian, trustee, executor, administrator, receiver, or conservator.
A commodity of a nature that one part may be used in place of another part.
An intangible property such as the advantage or benefit received in property beyond its mere value. It is not confined to a name but can also be attached to a particular area where business is transacted, to a list of customers, or to other elements of value in business as a going concern.
The one who transfers property to another.
An addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use.
Property that has value but cannot be seen or touched, such as goodwill, patents, copyrights, and computer software.
Passenger automobiles; any other property used for transportation; property of a type generally used for entertainment, recreation or amusement; computers and their peripheral equipment (unless used only at a regular business establishment and owned or leased by the person operating the establishment); and cellular telephones or similar telecommunications equipment.
Nonresidential real property:(p115)
Most real property other than residential rental property.
Placed in service:(p115)
Ready and available for a specific use whether in a trade or business, the production of income, a tax-exempt activity, or a personal activity.
A category for property under MACRS. It generally determines the depreciation method, recovery period, and convention.
To include as income on your return an amount allowed or allowable as a deduction in a prior year.
The number of years over which the basis of an item of property is recovered.
That part of an estate that is left after all the other provisions of a will have been satisfied.
Residential rental property:(p116)
Real property, generally buildings or structures, if 80% or more of its annual gross rental income is from dwelling units.
An estimated value of property at the end of its useful life. Not used under MACRS.
Section 1245 property:(p116)
Property that is or has been subject to an allowance for depreciation or amortization. Section 1245 property includes personal property, single purpose agricultural and horticultural structures, storage facilities used in connection with the distribution of petroleum or primary products of petroleum, and railroad grading or tunnel bores.
Section 1250 property:(p116)
Real property (other than section 1245 property) which is or has been subject to an allowance for depreciation.
Standard mileage rate:(p116)
The established amount for optional use in determining a tax deduction for automobiles instead of deducting depreciation and actual operating expenses.
Straight line method:(p116)
A way to figure depreciation for property that ratably deducts the same amount for each year in the recovery period. The rate (in percentage terms) is determined by dividing 1 by the number of years in the recovery period.
Parts that together form an entire structure, such as a building. The term includes those parts of a building such as walls, partitions, floors, and ceilings, as well as any permanent coverings such as paneling or tiling, windows and doors, and all components of a central air conditioning or heating system including motors, compressors, pipes and ducts. It also includes plumbing fixtures such as sinks, bathtubs, electrical wiring and lighting fixtures, and other parts that form the structure.
Property you can see or touch, such as buildings, machinery, vehicles, furniture, and equipment.
Not subject to tax.
A life interest in property, an interest in property for a term of years, or an income interest in a trust. It generally refers to a present or future interest in income from property or the right to use property that terminates or fails upon the lapse of time, the occurrence of an event, or the failure of an event to occur.
The basis of an item of property for purposes of figuring gain on a sale without taking into account any depreciation taken in earlier years but with adjustments for other amounts, including amortization, the section 179 deduction, any special depreciation allowance, any deduction claimed for clean-fuel vehicles or clean-fuel vehicle refueling property placed in service before January 1, 2006, and any electric vehicle credit.
A way to figure depreciation for certain property. It is determined by estimating the number of units that can be produced before the property is worn out. For example, if it is estimated that a machine will produce 1000 units before its useful life ends, and it actually produces 100 units in a year, the percentage to figure depreciation for that year is 10% of the machine's cost less its salvage value.
An estimate of how long an item of property can be expected to be usable in trade or business or to produce income.taxmap/pubs/p946-035.htm#w13081f02
Tax Publications for Business Taxpayers See How To Get Tax Help for a variety of ways to get publications, including by computer, phone, and mail.
|1||Your Rights as a Taxpayer|
|17||Your Federal Income Tax (For Individuals)|
|334||Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)|
|910||IRS Guide to Free Tax Services|
|15||(Circular E), Employer's Tax Guide|
|15-A||Employer's Supplemental Tax Guide|
|15-B||Employer's Tax Guide to Fringe Benefits|
|51||(Circular A), Agricultural Employer's Tax Guide|
|80||(Circular SS), Federal Tax Guide For Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands|
|926||Household Employer's Tax Guide|
|225||Farmer's Tax Guide|
|463||Travel, Entertainment, Gift, and Car Expenses|
|505||Tax Withholding and Estimated Tax|
|515||Withholding of Tax on Nonresident Aliens and Foreign Entities|
|517||Social Security and Other Information for Members of the Clergy and Religious Workers|
|527||Residential Rental Property (Including Rental of Vacation Homes)|
|534||Depreciating Property Placed in Service Before 1987|
|536||Net Operating Losses (NOLs) for Individuals, Estates, and Trusts|
|538||Accounting Periods and Methods|
|544||Sales and Other Dispositions of Assets|
|551||Basis of Assets|
|556||Examination of Returns, Appeal Rights, and Claims for Refund|
|560||Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)|
|561||Determining the Value of Donated Property|
|583||Starting a Business and Keeping Records|
|587||Business Use of Your Home (Including Use by Daycare Providers)|
|594||What You Should Know About The IRS Collection Process|
|595||Capital Construction Fund for Commercial Fishermen|
|597||Information on the United States-Canada Income Tax Treaty|
|598||Tax on Unrelated Business Income of Exempt Organizations|
|686||Certification for Reduced Tax Rates in Tax Treaty Countries|
|901||U.S. Tax Treaties|
|908||Bankruptcy Tax Guide|
|925||Passive Activity and At-Risk Rules|
|946||How To Depreciate Property|
|947||Practice Before the IRS and Power of Attorney|
|954||Tax Incentives for Distressed Communities|
|1544||Reporting Cash Payments of Over $10,000 (Received in a Trade or Business)|
|1546||The Taxpayer Advocate Service of the IRS|
|Spanish Language Publications|
|1SP||Derechos del Contribuyente|
|179||(Circular PR) Guía Contributiva Federal Para Patronos Puertorriqueños|
|579SP||Cómo Preparar la Declaración de Impuesto Federal|
|594SP||Qué es lo Debemos Saber sobre El Proceso de Cobro del IRS|
|850||English-Spanish Glossary of Words and Phrases Used in Publications Issued by the Internal Revenue Service|
|1544SP||Informe de Pagos en Efectivo en Exceso de $10,000 (Recibidos en una Ocupación o Negocio)|
Commonly Used Tax Forms See How To Get Tax Help for a variety of ways to get forms, including by computer, phone, and mail.
|Form Number and Form Title|
|W-2||Wage and Tax Statement|
|W-4||Employee's Withholding Allowance Certificate|
|940||Employer's Annual Federal Unemployment (FUTA) Tax Return|
|941||Employer's QUARTERLY Federal Tax Return|
|944||Employer's ANNUAL Federal Tax Return|
|1040||U.S. Individual Income Tax Return|
| Sch. A & B|| Itemized Deductions & Interest and Ordinary Dividends|
| Sch. C|| Profit or Loss From Business|
| Sch. C-EZ|| Net Profit From Business|
| Sch. D|| Capital Gains and Losses|
| Sch. D-1|| Continuation Sheet for Schedule D|
| Sch. E|| Supplemental Income and Loss|
| Sch. F|| Profit or Loss From Farming|
| Sch. H|| Household Employment Taxes|
| Sch. J|| Income Averaging for Farmers and Fishermen|
| Sch. R|| Credit for the Elderly or the Disabled|
| Sch. SE|| Self-Employment Tax|
|1040-ES||Estimated Tax for Individuals|
|1040X||Amended U.S. Individual Income Tax Return|
|1065||U.S. Return of Partnership Income|
| Sch. D|| Capital Gains and Losses|
| Sch. K-1|| Partner's Share of Income, Deductions, Credits, etc.|
|1120||U.S. Corporation Income Tax Return|
|1120S||U.S. Income Tax Return for an S Corporation|
| Sch. D|| Capital Gains and Losses and Built-In Gains|
| Sch. K-1|| Shareholder's Share of Income, Deductions, Credits, etc.|
|2106||Employee Business Expenses|
|2106-EZ||Unreimbursed Employee Business Expenses|
|2210||Underpayment of Estimated Tax by Individuals, Estates, and Trusts|
|2441||Child and Dependent Care Expenses|
|2848||Power of Attorney and Declaration of Representative|
|3800||General Business Credit|
|4562||Depreciation and Amortization|
|4797||Sales of Business Property|
|4868||Application for Automatic Extension of Time To File U.S. Individual Income Tax Return|
|5329||Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts|
|6252||Installment Sale Income|
|7004||Application for Automatic 6-Month Extension of Time To File Certain Business Income Tax, Information, and Other Returns|
|8283||Noncash Charitable Contributions|
|8300||Report of Cash Payments Over $10,000 Received in a Trade or Business|
|8582||Passive Activity Loss Limitations|
|8822||Change of Address|
|8829||Expenses for Business Use of Your Home|