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Ohio State Tax Form 2013

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Ohio State Tax Form 2013

Ohio state tax form 2013 Publication 525 - Main Content Table of Contents Employee CompensationBabysitting. Ohio state tax form 2013 Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Business and Investment IncomeRents From Personal Property Royalties Partnership Income S Corporation Income Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Miscellaneous IncomeBartering Canceled Debts Host or Hostess Life Insurance Proceeds Recoveries Survivor Benefits Unemployment Benefits Welfare and Other Public Assistance Benefits Other Income RepaymentsMethod 1. Ohio state tax form 2013 Method 2. Ohio state tax form 2013 How To Get Tax HelpLow Income Taxpayer Clinics Employee Compensation In most cases, you must include in gross income everything you receive in payment for personal services. Ohio state tax form 2013 In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. Ohio state tax form 2013 You should receive a Form W-2 from your employer or former employer showing the pay you received for your services. Ohio state tax form 2013 Include all your pay on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ, even if you do not receive Form W-2, or you receive a Form W-2 that does not include all pay that should be included on the Form W-2. Ohio state tax form 2013 If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. Ohio state tax form 2013 These wages must be included on line 7 of Form 1040. Ohio state tax form 2013 See Form 8919 for more information. Ohio state tax form 2013 Childcare providers. Ohio state tax form 2013   If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. Ohio state tax form 2013 If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Ohio state tax form 2013 You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. Ohio state tax form 2013 Babysitting. Ohio state tax form 2013   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. Ohio state tax form 2013 Bankruptcy. Ohio state tax form 2013   If you filed for bankruptcy under Chapter 11 of the Bankruptcy Code, you must allocate your wages and withheld income tax. Ohio state tax form 2013 Your W-2 will show your total wages and withheld income tax for the year. Ohio state tax form 2013 On your tax return, you report the wages and withheld income tax for the period before you filed for bankruptcy. Ohio state tax form 2013 Your bankruptcy estate reports the wages and withheld income tax for the period after you filed for bankruptcy. Ohio state tax form 2013 If you receive other information returns (such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income) that report gross income to you, rather than to the bankruptcy estate, you must allocate that income. Ohio state tax form 2013   The only exception is for purposes of figuring your self-employment tax, if you are self-employed. Ohio state tax form 2013 For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Ohio state tax form 2013   You must file a statement with your income tax return stating you filed a Chapter 11 bankruptcy case. Ohio state tax form 2013 The statement must show the allocation and describe the method used to make the allocation. Ohio state tax form 2013 For a sample of this statement and other information, see Notice 2006-83, 2006-40 I. Ohio state tax form 2013 R. Ohio state tax form 2013 B. Ohio state tax form 2013 596, available at www. Ohio state tax form 2013 irs. Ohio state tax form 2013 gov/irb/2006-40_IRB/ar12. Ohio state tax form 2013 html. Ohio state tax form 2013 Miscellaneous Compensation This section discusses many types of employee compensation. Ohio state tax form 2013 The subjects are arranged in alphabetical order. Ohio state tax form 2013 Advance commissions and other earnings. Ohio state tax form 2013   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. Ohio state tax form 2013    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. Ohio state tax form 2013 If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), Itemized Deductions, or you may be able to take a credit for that year. Ohio state tax form 2013 See Repayments , later. Ohio state tax form 2013 Allowances and reimbursements. Ohio state tax form 2013    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Ohio state tax form 2013 If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. Ohio state tax form 2013 Back pay awards. Ohio state tax form 2013   Include in income amounts you are awarded in a settlement or judgment for back pay. Ohio state tax form 2013 These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. Ohio state tax form 2013 They should be reported to you by your employer on Form W-2. Ohio state tax form 2013 Bonuses and awards. Ohio state tax form 2013    Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. Ohio state tax form 2013 These include prizes such as vacation trips for meeting sales goals. Ohio state tax form 2013 If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. Ohio state tax form 2013 However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. Ohio state tax form 2013 Employee achievement award. Ohio state tax form 2013   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. Ohio state tax form 2013 However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Ohio state tax form 2013 Your employer can tell you whether your award is a qualified plan award. Ohio state tax form 2013 Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. Ohio state tax form 2013   However, the exclusion does not apply to the following awards. Ohio state tax form 2013 A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. Ohio state tax form 2013 A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. Ohio state tax form 2013 Example. Ohio state tax form 2013 Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. Ohio state tax form 2013 Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. Ohio state tax form 2013 However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 − $1,600) in his income. Ohio state tax form 2013 Differential wage payments. Ohio state tax form 2013   This is any payment made by an employer to an individual for any period during which the individual is, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages the individual would have received from the employer for that period. Ohio state tax form 2013 These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. Ohio state tax form 2013 The payments are reported as wages on Form W-2. Ohio state tax form 2013 Government cost-of-living allowances. Ohio state tax form 2013   Most payments received by U. Ohio state tax form 2013 S. Ohio state tax form 2013 Government civilian employees for working abroad are taxable. Ohio state tax form 2013 However, certain cost-of-living allowances are tax free. Ohio state tax form 2013 Publication 516, U. Ohio state tax form 2013 S. Ohio state tax form 2013 Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Ohio state tax form 2013 Nonqualified deferred compensation plans. Ohio state tax form 2013   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. Ohio state tax form 2013 This amount is shown on Form W-2, box 12, using code Y. Ohio state tax form 2013 This amount is not included in your income. Ohio state tax form 2013   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. Ohio state tax form 2013 This amount is included in your wages shown on Form W-2, box 1. Ohio state tax form 2013 It is also shown on Form W-2, box 12, using code Z. Ohio state tax form 2013 Nonqualified deferred compensation plans of nonqualified entities. Ohio state tax form 2013   In most cases, any compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is included in gross income when there is no substantial risk of forfeiture of the rights to such compensation. Ohio state tax form 2013 For this purpose, a nonqualified entity is: A foreign corporation unless substantially all of its income is: Effectively connected with the conduct of a trade or business in the United States, or Subject to a comprehensive foreign income tax. Ohio state tax form 2013 A partnership unless substantially all of its income is allocated to persons other than: Foreign persons for whom the income is not subject to a comprehensive foreign income tax, and Tax-exempt organizations. Ohio state tax form 2013 Note received for services. Ohio state tax form 2013   If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. Ohio state tax form 2013 When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. Ohio state tax form 2013 Do not include that part again in your income. Ohio state tax form 2013 Include the rest of the payment in your income in the year of payment. Ohio state tax form 2013   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. Ohio state tax form 2013 Severance pay. Ohio state tax form 2013   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. Ohio state tax form 2013 Accrued leave payment. Ohio state tax form 2013   If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. Ohio state tax form 2013   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. Ohio state tax form 2013 You can reduce gross wages by the amount you repaid in the same tax year in which you received it. Ohio state tax form 2013 Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on your return and the wages on your Forms W-2. Ohio state tax form 2013 Outplacement services. Ohio state tax form 2013   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. Ohio state tax form 2013    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). Ohio state tax form 2013 Sick pay. Ohio state tax form 2013   Pay you receive from your employer while you are sick or injured is part of your salary or wages. Ohio state tax form 2013 In addition, you must include in your income sick pay benefits received from any of the following payers. Ohio state tax form 2013 A welfare fund. Ohio state tax form 2013 A state sickness or disability fund. Ohio state tax form 2013 An association of employers or employees. Ohio state tax form 2013 An insurance company, if your employer paid for the plan. Ohio state tax form 2013 However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. Ohio state tax form 2013 For more information, see Other Sickness and Injury Benefits under Sickness and Injury Benefits, later. Ohio state tax form 2013 Social security and Medicare taxes paid by employer. Ohio state tax form 2013   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. Ohio state tax form 2013 The payment is also treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. Ohio state tax form 2013 However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. Ohio state tax form 2013 Stock appreciation rights. Ohio state tax form 2013   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. Ohio state tax form 2013 When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. Ohio state tax form 2013 You include the cash payment in income in the year you use the right. Ohio state tax form 2013 Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. Ohio state tax form 2013 Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. Ohio state tax form 2013 See Valuation of Fringe Benefits , later in this discussion, for information on how to determine the amount to include in income. Ohio state tax form 2013 Recipient of fringe benefit. Ohio state tax form 2013   You are the recipient of a fringe benefit if you perform the services for which the fringe benefit is provided. Ohio state tax form 2013 You are considered to be the recipient even if it is given to another person, such as a member of your family. Ohio state tax form 2013 An example is a car your employer gives to your spouse for services you perform. Ohio state tax form 2013 The car is considered to have been provided to you and not to your spouse. Ohio state tax form 2013   You do not have to be an employee of the provider to be a recipient of a fringe benefit. Ohio state tax form 2013 If you are a partner, director, or independent contractor, you also can be the recipient of a fringe benefit. Ohio state tax form 2013 Provider of benefit. Ohio state tax form 2013   Your employer or another person for whom you perform services is the provider of a fringe benefit regardless of whether that person actually provides the fringe benefit to you. Ohio state tax form 2013 The provider can be a client or customer of an independent contractor. Ohio state tax form 2013 Accounting period. Ohio state tax form 2013   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. Ohio state tax form 2013 Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. Ohio state tax form 2013 The general rule: benefits are reported for a full calendar year (January 1–December 31). Ohio state tax form 2013 The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. Ohio state tax form 2013 For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. Ohio state tax form 2013 Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. Ohio state tax form 2013   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). Ohio state tax form 2013 Form W-2. Ohio state tax form 2013   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. Ohio state tax form 2013 Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). Ohio state tax form 2013 However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). Ohio state tax form 2013 Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. Ohio state tax form 2013 Benefits you receive from the plan may be taxable, as explained, later, under Sickness and Injury Benefits . Ohio state tax form 2013 For information on the items covered in this section, other than Long-term care coverage , see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Ohio state tax form 2013 Long-term care coverage. Ohio state tax form 2013   Contributions by your employer to provide coverage for long-term care services generally are not included in your income. Ohio state tax form 2013 However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. Ohio state tax form 2013 This amount will be reported as wages in box 1 of your Form W-2. Ohio state tax form 2013 Archer MSA contributions. Ohio state tax form 2013    Contributions by your employer to your Archer MSA generally are not included in your income. Ohio state tax form 2013 Their total will be reported in box 12 of Form W-2, with code R. Ohio state tax form 2013 You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Ohio state tax form 2013 File the form with your return. Ohio state tax form 2013 Health flexible spending arrangement (health FSA). Ohio state tax form 2013   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. Ohio state tax form 2013   Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. Ohio state tax form 2013 The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. Ohio state tax form 2013 For more information, see Notice 2012-40, 2012-26 I. Ohio state tax form 2013 R. Ohio state tax form 2013 B. Ohio state tax form 2013 1046, available at www. Ohio state tax form 2013 irs. Ohio state tax form 2013 gov/irb/2012-26 IRB/ar09. Ohio state tax form 2013 html. Ohio state tax form 2013 Health reimbursement arrangement (HRA). Ohio state tax form 2013   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. Ohio state tax form 2013 Health savings accounts (HSA). Ohio state tax form 2013   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. Ohio state tax form 2013 Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. Ohio state tax form 2013 Contributions made by your employer are not included in your income. Ohio state tax form 2013 Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. Ohio state tax form 2013 Distributions not used for qualified medical expenses are included in your income. Ohio state tax form 2013 See Publication 969 for the requirements of an HSA. Ohio state tax form 2013   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Ohio state tax form 2013 The contributions are treated as a distribution of money and are not included in the partner's gross income. Ohio state tax form 2013 Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. Ohio state tax form 2013 In both situations, the partner can deduct the contribution made to the partner's HSA. Ohio state tax form 2013   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. Ohio state tax form 2013 The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Ohio state tax form 2013 Qualified HSA funding distribution. Ohio state tax form 2013   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. Ohio state tax form 2013 See Publication 590, Individual Retirement Arrangements (IRAs), for the requirements for these qualified HSA funding distributions. Ohio state tax form 2013 Failure to maintain eligibility. Ohio state tax form 2013   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. Ohio state tax form 2013 If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. Ohio state tax form 2013 This income is also subject to an additional 10% tax. Ohio state tax form 2013 Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. Ohio state tax form 2013 See Instructions for Form 8839, Qualified Adoption Expenses, for more information. Ohio state tax form 2013 Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. Ohio state tax form 2013 They also are included as social security and Medicare wages in boxes 3 and 5. Ohio state tax form 2013 However, they are not included as wages in box 1. Ohio state tax form 2013 To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. Ohio state tax form 2013 File the form with your return. Ohio state tax form 2013 Athletic Facilities If your employer provides you with the free or low-cost use of an employer-operated gym or other athletic club on your employer's premises, the value is not included in your compensation. Ohio state tax form 2013 The gym must be used primarily by employees, their spouses, and their dependent children. Ohio state tax form 2013 If your employer pays for a fitness program provided to you at an off-site resort hotel or athletic club, the value of the program is included in your compensation. Ohio state tax form 2013 De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. Ohio state tax form 2013 In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. Ohio state tax form 2013 Also see Employee Discounts , later. Ohio state tax form 2013 Holiday gifts. Ohio state tax form 2013   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. Ohio state tax form 2013 However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. Ohio state tax form 2013 Dependent Care Benefits If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Ohio state tax form 2013 Dependent care benefits include: Amounts your employer pays directly to either you or your care provider for the care of your qualifying person while you work, and The fair market value of care in a daycare facility provided or sponsored by your employer. Ohio state tax form 2013 The amount you can exclude is limited to the lesser of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Ohio state tax form 2013 Your employer must show the total amount of dependent care benefits provided to you during the year under a qualified plan in box 10 of your Form W-2. Ohio state tax form 2013 Your employer also will include any dependent care benefits over $5,000 in your wages shown in box 1 of your Form W-2. Ohio state tax form 2013 To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Ohio state tax form 2013 See the Instructions for Form 2441 for more information. Ohio state tax form 2013 Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. Ohio state tax form 2013 For more information, see Publication 970. Ohio state tax form 2013 Employee Discounts If your employer sells you property or services at a discount, you may be able to exclude the amount of the discount from your income. Ohio state tax form 2013 The exclusion applies to discounts on property or services offered to customers in the ordinary course of the line of business in which you work. Ohio state tax form 2013 However, it does not apply to discounts on real property or property commonly held for investment (such as stocks or bonds). Ohio state tax form 2013 The exclusion is limited to the price charged nonemployee customers multiplied by the following percentage. Ohio state tax form 2013 For a discount on property, your employer's gross profit percentage (gross profit divided by gross sales) on all property sold during the employer's previous tax year. Ohio state tax form 2013 (Ask your employer for this percentage. Ohio state tax form 2013 ) For a discount on services, 20%. Ohio state tax form 2013 Financial Counseling Fees Financial counseling fees paid for you by your employer are included in your income and must be reported as part of wages. Ohio state tax form 2013 If the fees are for tax or investment counseling, they can be deducted on Schedule A (Form 1040) as a miscellaneous deduction (subject to the 2%-of-AGI limit). Ohio state tax form 2013 Qualified retirement planning services paid for you by your employer may be excluded from your income. Ohio state tax form 2013 For more information, see Retirement Planning Services , later. Ohio state tax form 2013 Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. Ohio state tax form 2013 However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. Ohio state tax form 2013 For exceptions to this rule, see Entire cost excluded , and Entire cost taxed , later. Ohio state tax form 2013 If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. Ohio state tax form 2013 Also, it is shown separately in box 12 with code C. Ohio state tax form 2013 Group-term life insurance. Ohio state tax form 2013   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. Ohio state tax form 2013 Permanent benefits. Ohio state tax form 2013   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. Ohio state tax form 2013 Your employer should be able to tell you the amount to include in your income. Ohio state tax form 2013 Accidental death benefits. Ohio state tax form 2013   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. Ohio state tax form 2013 Former employer. Ohio state tax form 2013   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Ohio state tax form 2013 Also, it is shown separately in box 12 with code C. Ohio state tax form 2013 Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. Ohio state tax form 2013 You must pay these taxes with your income tax return. Ohio state tax form 2013 Include them on line 60, Form 1040, and follow the instructions forline 60. Ohio state tax form 2013 For more information, see the Instructions for Form 1040. Ohio state tax form 2013 Two or more employers. Ohio state tax form 2013   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. Ohio state tax form 2013 If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. Ohio state tax form 2013 You must figure how much to include in your income. Ohio state tax form 2013 Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. Ohio state tax form 2013 Figuring the taxable cost. Ohio state tax form 2013    Use the following worksheet to figure the amount to include in your income. Ohio state tax form 2013   If you pay any part of the cost of the insurance, your entire payment reduces, dollar for dollar, the amount you otherwise would include in your income. Ohio state tax form 2013 However, you cannot reduce the amount to include in your income by: Payments for coverage in a different tax year, Payments for coverage through a cafeteria plan, unless the payments are after-tax contributions, or Payments for coverage not taxed to you because of the exceptions discussed later under Entire cost excluded . Ohio state tax form 2013 Worksheet 1. Ohio state tax form 2013 Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Ohio state tax form 2013 Enter the total amount of your insurance coverage from your employer(s) 1. Ohio state tax form 2013   2. Ohio state tax form 2013 Limit on exclusion for employer-provided group-term life insurance coverage 2. Ohio state tax form 2013 50,000 3. Ohio state tax form 2013 Subtract line 2 from line 1 3. Ohio state tax form 2013   4. Ohio state tax form 2013 Divide line 3 by $1,000. Ohio state tax form 2013 Figure to the nearest tenth 4. Ohio state tax form 2013   5. Ohio state tax form 2013 Go to Table 1. Ohio state tax form 2013 Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Ohio state tax form 2013   6. Ohio state tax form 2013 Multiply line 4 by line 5 6. Ohio state tax form 2013     7. Ohio state tax form 2013 Enter the number of full months of coverage at this cost 7. Ohio state tax form 2013   8. Ohio state tax form 2013 Multiply line 6 by line 7 8. Ohio state tax form 2013   9. Ohio state tax form 2013 Enter the premiums you paid per month 9. Ohio state tax form 2013       10. Ohio state tax form 2013 Enter the number of months you paid the  premiums 10. Ohio state tax form 2013       11. Ohio state tax form 2013 Multiply line 9 by line 10. Ohio state tax form 2013 11. Ohio state tax form 2013   12. Ohio state tax form 2013 Subtract line 11 from line 8. Ohio state tax form 2013 Include this amount in your income as wages 12. Ohio state tax form 2013   Table 1. Ohio state tax form 2013 Cost of $1,000 of Group-Term Life Insurance for One Month   Age Cost     Under 25 $ . Ohio state tax form 2013 05     25 through 29 . Ohio state tax form 2013 06     30 through 34 . Ohio state tax form 2013 08     35 through 39 . Ohio state tax form 2013 09     40 through 44 . Ohio state tax form 2013 10     45 through 49 . Ohio state tax form 2013 15     50 through 54 . Ohio state tax form 2013 23     55 through 59 . Ohio state tax form 2013 43     60 through 64 . Ohio state tax form 2013 66     65 through 69 1. Ohio state tax form 2013 27     70 and older 2. Ohio state tax form 2013 06   Example. Ohio state tax form 2013 You are 51 years old and work for employers A and B. Ohio state tax form 2013 Both employers provide group-term life insurance coverage for you for the entire year. Ohio state tax form 2013 Your coverage is $35,000 with employer A and $45,000 with employer B. Ohio state tax form 2013 You pay premiums of $4. Ohio state tax form 2013 15 a month under the employer B group plan. Ohio state tax form 2013 You figure the amount to include in your income as follows. Ohio state tax form 2013   Worksheet 1. Ohio state tax form 2013 Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated 1. Ohio state tax form 2013 Enter the total amount of your insurance coverage from your employer(s) 1. Ohio state tax form 2013 80,000 2. Ohio state tax form 2013 Limit on exclusion for employer-provided group-term life insurance coverage 2. Ohio state tax form 2013 50,000 3. Ohio state tax form 2013 Subtract line 2 from line 1 3. Ohio state tax form 2013 30,000 4. Ohio state tax form 2013 Divide line 3 by $1,000. Ohio state tax form 2013 Figure to the nearest tenth 4. Ohio state tax form 2013 30. Ohio state tax form 2013 0 5. Ohio state tax form 2013 Go to Table 1. Ohio state tax form 2013 Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. Ohio state tax form 2013 . Ohio state tax form 2013 23 6. Ohio state tax form 2013 Multiply line 4 by line 5 6. Ohio state tax form 2013 6. Ohio state tax form 2013 90 7. Ohio state tax form 2013 Enter the number of full months of coverage at this cost. Ohio state tax form 2013 7. Ohio state tax form 2013 12 8. Ohio state tax form 2013 Multiply line 6 by line 7 8. Ohio state tax form 2013 82. Ohio state tax form 2013 80 9. Ohio state tax form 2013 Enter the premiums you paid per month 9. Ohio state tax form 2013 4. Ohio state tax form 2013 15     10. Ohio state tax form 2013 Enter the number of months you paid the premiums 10. Ohio state tax form 2013 12     11. Ohio state tax form 2013 Multiply line 9 by line 10. Ohio state tax form 2013 11. Ohio state tax form 2013 49. Ohio state tax form 2013 80 12. Ohio state tax form 2013 Subtract line 11 from line 8. Ohio state tax form 2013 Include this amount in your income as wages 12. Ohio state tax form 2013 33. Ohio state tax form 2013 00 The total amount to include in income for the cost of excess group-term life insurance is $33. Ohio state tax form 2013 Neither employer provided over $50,000 insurance coverage, so the wages shown on your Forms W-2 do not include any part of that $33. Ohio state tax form 2013 You must add it to the wages shown on your Forms W-2 and include the total on your return. Ohio state tax form 2013 Entire cost excluded. Ohio state tax form 2013   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. Ohio state tax form 2013 You are permanently and totally disabled and have ended your employment. Ohio state tax form 2013 Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. Ohio state tax form 2013 A charitable organization to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. Ohio state tax form 2013 (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. Ohio state tax form 2013 ) The plan existed on January 1, 1984, and: You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. Ohio state tax form 2013 Entire cost taxed. Ohio state tax form 2013   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply. Ohio state tax form 2013 The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. Ohio state tax form 2013 You are a key employee and your employer's plan discriminates in favor of key employees. Ohio state tax form 2013 Meals and Lodging You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met. Ohio state tax form 2013 The meals are: Furnished on the business premises of your employer, and Furnished for the convenience of your employer. Ohio state tax form 2013 The lodging is: Furnished on the business premises of your employer, Furnished for the convenience of your employer, and A condition of your employment. Ohio state tax form 2013 (You must accept it in order to be able to properly perform your duties. Ohio state tax form 2013 ) You also do not include in your income the value of meals or meal money that qualifies as a de minimis fringe benefit. Ohio state tax form 2013 See De Minimis (Minimal) Benefits , earlier. Ohio state tax form 2013 Faculty lodging. Ohio state tax form 2013   If you are an employee of an educational institution or an academic health center and you are provided with lodging that does not meet the three conditions given earlier, you still may not have to include the value of the lodging in income. Ohio state tax form 2013 However, the lodging must be qualified campus lodging, and you must pay an adequate rent. Ohio state tax form 2013 Academic health center. Ohio state tax form 2013   This is an organization that meets the following conditions. Ohio state tax form 2013 Its principal purpose or function is to provide medical or hospital care or medical education or research. Ohio state tax form 2013 It receives payments for graduate medical education under the Social Security Act. Ohio state tax form 2013 One of its principal purposes or functions is to provide and teach basic and clinical medical science and research using its own faculty. Ohio state tax form 2013 Qualified campus lodging. Ohio state tax form 2013   Qualified campus lodging is lodging furnished to you, your spouse, or one of your dependents by, or on behalf of, the institution or center for use as a home. Ohio state tax form 2013 The lodging must be located on or near a campus of the educational institution or academic health center. Ohio state tax form 2013 Adequate rent. Ohio state tax form 2013   The amount of rent you pay for the year for qualified campus lodging is considered adequate if it is at least equal to the lesser of: 5% of the appraised value of the lodging, or The average of rentals paid by individuals (other than employees or students) for comparable lodging held for rent by the educational institution. Ohio state tax form 2013 If the amount you pay is less than the lesser of these amounts, you must include the difference in your income. Ohio state tax form 2013   The lodging must be appraised by an independent appraiser and the appraisal must be reviewed on an annual basis. Ohio state tax form 2013 Example. Ohio state tax form 2013 Carl Johnson, a sociology professor for State University, rents a home from the university that is qualified campus lodging. Ohio state tax form 2013 The house is appraised at $200,000. Ohio state tax form 2013 The average rent paid for comparable university lodging by persons other than employees or students is $14,000 a year. Ohio state tax form 2013 Carl pays an annual rent of $11,000. Ohio state tax form 2013 Carl does not include in his income any rental value because the rent he pays equals at least 5% of the appraised value of the house (5% × $200,000 = $10,000). Ohio state tax form 2013 If Carl paid annual rent of only $8,000, he would have to include $2,000 in his income ($10,000 − $8,000). Ohio state tax form 2013 Moving Expense Reimbursements In most cases, if your employer pays for your moving expenses (either directly or indirectly) and the expenses would have been deductible if you paid them yourself, the value is not included in your income. Ohio state tax form 2013 See Publication 521 for more information. Ohio state tax form 2013 No-Additional-Cost Services The value of services you receive from your employer for free, at cost, or for a reduced price is not included in your income if your employer: Offers the same service for sale to customers in the ordinary course of the line of business in which you work, and Does not have a substantial additional cost (including any sales income given up) to provide you with the service (regardless of what you paid for the service). Ohio state tax form 2013 In most cases, no-additional-cost services are excess capacity services, such as airline, bus, or train tickets, hotel rooms, and telephone services. Ohio state tax form 2013 Example. Ohio state tax form 2013 You are employed as a flight attendant for a company that owns both an airline and a hotel chain. Ohio state tax form 2013 Your employer allows you to take personal flights (if there is an unoccupied seat) and stay in any one of their hotels (if there is an unoccupied room) at no cost to you. Ohio state tax form 2013 The value of the personal flight is not included in your income. Ohio state tax form 2013 However, the value of the hotel room is included in your income because you do not work in the hotel business. Ohio state tax form 2013 Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. Ohio state tax form 2013 Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. Ohio state tax form 2013 You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. Ohio state tax form 2013 Also, see Financial Counseling Fees , earlier. Ohio state tax form 2013 Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. Ohio state tax form 2013 A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. Ohio state tax form 2013 Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. Ohio state tax form 2013 However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. Ohio state tax form 2013 Exclusion limit. Ohio state tax form 2013   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. Ohio state tax form 2013   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. Ohio state tax form 2013   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. Ohio state tax form 2013   If the benefits have a value that is more than these limits, the excess must be included in your income. Ohio state tax form 2013 You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. Ohio state tax form 2013 Commuter highway vehicle. Ohio state tax form 2013   This is a highway vehicle that seats at least six adults (not including the driver). Ohio state tax form 2013 At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). Ohio state tax form 2013 Transit pass. Ohio state tax form 2013   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. Ohio state tax form 2013 Qualified parking. Ohio state tax form 2013   This is parking provided to an employee at or near the employer's place of business. Ohio state tax form 2013 It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. Ohio state tax form 2013 It does not include parking at or near the employee's home. Ohio state tax form 2013 Qualified bicycle commuting. Ohio state tax form 2013   This is reimbursement based on the number of qualified bicycle commuting months for the year. Ohio state tax form 2013 A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. Ohio state tax form 2013 The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. Ohio state tax form 2013 Tuition Reduction You can exclude a qualified tuition reduction from your income. Ohio state tax form 2013 This is the amount of a reduction in tuition: For education (below graduate level) furnished by an educational institution to an employee, former employee who retired or became disabled, or his or her spouse and dependent children. Ohio state tax form 2013 For education furnished to a graduate student at an educational institution if the graduate student is engaged in teaching or research activities for that institution. Ohio state tax form 2013 Representing payment for teaching, research, or other services if you receive the amount under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance program. Ohio state tax form 2013 For more information, see Publication 970. Ohio state tax form 2013 Working Condition Benefits If your employer provides you with a product or service and the cost of it would have been allowable as a business or depreciation deduction if you paid for it yourself, the cost is not included in your income. Ohio state tax form 2013 Example. Ohio state tax form 2013 You work as an engineer and your employer provides you with a subscription to an engineering trade magazine. Ohio state tax form 2013 The cost of the subscription is not included in your income because the cost would have been allowable to you as a business deduction if you had paid for the subscription yourself. Ohio state tax form 2013 Valuation of Fringe Benefits If a fringe benefit is included in your income, the amount included is generally its value determined under the general valuation rule or under the special valuation rules. Ohio state tax form 2013 For an exception, see Group-Term Life Insurance , earlier. Ohio state tax form 2013 General valuation rule. Ohio state tax form 2013   You must include in your income the amount by which the fair market value of the fringe benefit is more than the sum of: The amount, if any, you paid for the benefit, plus The amount, if any, specifically excluded from your income by law. Ohio state tax form 2013 If you pay fair market value for a fringe benefit, no amount is included in your income. Ohio state tax form 2013 Fair market value. Ohio state tax form 2013   The fair market value of a fringe benefit is determined by all the facts and circumstances. Ohio state tax form 2013 It is the amount you would have to pay a third party to buy or lease the benefit. Ohio state tax form 2013 This is determined without regard to: Your perceived value of the benefit, or The amount your employer paid for the benefit. Ohio state tax form 2013 Employer-provided vehicles. Ohio state tax form 2013   If your employer provides a car (or other highway motor vehicle) to you, your personal use of the car is usually a taxable noncash fringe benefit. Ohio state tax form 2013   Under the general valuation rules, the value of an employer-provided vehicle is the amount you would have to pay a third party to lease the same or a similar vehicle on the same or comparable terms in the same geographic area where you use the vehicle. Ohio state tax form 2013 An example of a comparable lease term is the amount of time the vehicle is available for your use, such as a 1-year period. Ohio state tax form 2013 The value cannot be determined by multiplying a cents-per-mile rate times the number of miles driven unless you prove the vehicle could have been leased on a cents-per-mile basis. Ohio state tax form 2013 Flights on employer-provided aircraft. Ohio state tax form 2013   Under the general valuation rules, if your flight on an employer-provided piloted aircraft is primarily personal and you control the use of the aircraft for the flight, the value is the amount it would cost to charter the flight from a third party. Ohio state tax form 2013   If there is more than one employee on the flight, the cost to charter the aircraft must be divided among those employees. Ohio state tax form 2013 The division must be based on all the facts, including which employee or employees control the use of the aircraft. Ohio state tax form 2013 Special valuation rules. Ohio state tax form 2013   You generally can use a special valuation rule for a fringe benefit only if your employer uses the rule. Ohio state tax form 2013 If your employer uses a special valuation rule, you cannot use a different special rule to value that benefit. Ohio state tax form 2013 You always can use the general valuation rule discussed earlier, based on facts and circumstances, even if your employer uses a special rule. Ohio state tax form 2013   If you and your employer use a special valuation rule, you must include in your income the amount your employer determines under the special rule minus the sum of: Any amount you repaid your employer, plus Any amount specifically excluded from income by law. Ohio state tax form 2013 The special valuation rules are the following. Ohio state tax form 2013 The automobile lease rule. Ohio state tax form 2013 The vehicle cents-per-mile rule. Ohio state tax form 2013 The commuting rule. Ohio state tax form 2013 The unsafe conditions commuting rule. Ohio state tax form 2013 The employer-operated eating-facility rule. Ohio state tax form 2013   For more information on these rules, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Ohio state tax form 2013    For information on the non-commercial flight and commercial flight valuation rules, see sections 1. Ohio state tax form 2013 61-21(g) and 1. Ohio state tax form 2013 61-21(h) of the regulations. Ohio state tax form 2013 Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. Ohio state tax form 2013 (Your employer can tell you whether your retirement plan is qualified. Ohio state tax form 2013 ) However, the cost of life insurance coverage included in the plan may have to be included. Ohio state tax form 2013 See Group-Term Life Insurance , earlier, under Fringe Benefits. Ohio state tax form 2013 If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. Ohio state tax form 2013 However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. Ohio state tax form 2013 For information on distributions from retirement plans, see Publication 575 (or Publication 721, Tax Guide to U. Ohio state tax form 2013 S. Ohio state tax form 2013 Civil Service Retirement Benefits, if you are a federal employee or retiree). Ohio state tax form 2013 Elective Deferrals If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. Ohio state tax form 2013 The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. Ohio state tax form 2013 An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. Ohio state tax form 2013 However, it is included in wages subject to social security and Medicare taxes. Ohio state tax form 2013 Elective deferrals include elective contributions to the following retirement plans. Ohio state tax form 2013 Cash or deferred arrangements (section 401(k) plans). Ohio state tax form 2013 The Thrift Savings Plan for federal employees. Ohio state tax form 2013 Salary reduction simplified employee pension plans (SARSEP). Ohio state tax form 2013 Savings incentive match plans for employees (SIMPLE plans). Ohio state tax form 2013 Tax-sheltered annuity plans (403(b) plans). Ohio state tax form 2013 Section 501(c)(18)(D) plans. Ohio state tax form 2013 (But see Reporting by employer , later. Ohio state tax form 2013 ) Section 457 plans. Ohio state tax form 2013 Qualified automatic contribution arrangements. Ohio state tax form 2013   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. Ohio state tax form 2013 You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. Ohio state tax form 2013 The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. Ohio state tax form 2013   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. Ohio state tax form 2013 Overall limit on deferrals. Ohio state tax form 2013   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3), earlier. Ohio state tax form 2013 The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Ohio state tax form 2013 Amounts deferred under specific plan limits are part of the overall limit on deferrals. Ohio state tax form 2013   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. Ohio state tax form 2013 However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Ohio state tax form 2013 Catch-up contributions. Ohio state tax form 2013   You may be allowed catch-up contributions (additional elective deferrals) if you are age 50 or older by the end of your tax year. Ohio state tax form 2013 For more information about catch-up contributions to 403(b) plans, see chapter 6 of Publication 571, Tax Sheltered Annuity Plans. Ohio state tax form 2013   For more information about additional elective deferrals to: SEPs (SARSEPs), see Salary Reduction Simplified Employee Pension in chapter 2 of Publication 560, Retirement Plans for Small Business. Ohio state tax form 2013 SIMPLE plans, see How Much Can Be Contributed on Your Behalf? in chapter 3 of Publication 590. Ohio state tax form 2013 Section 457 plans, see Limit for deferrals under section 457 plans , later. Ohio state tax form 2013 Limit for deferrals under SIMPLE plans. Ohio state tax form 2013   If you are a participant in a SIMPLE plan, you generally should not have deferred more than $12,000 in 2013. Ohio state tax form 2013 Amounts you defer under a SIMPLE plan count toward the overall limit ($17,500 for 2013) and may affect the amount you can defer under other elective deferral plans. Ohio state tax form 2013 Limit for tax-sheltered annuities. Ohio state tax form 2013   If you are a participant in a tax-sheltered annuity plan (403(b) plan), the limit on elective deferrals for 2013 generally is $17,500. Ohio state tax form 2013 However, if you have at least 15 years of service with a public school system, a hospital, a home health service agency, a health and welfare service agency, a church, or a convention or association of churches (or associated organization), the limit on elective deferrals is increased by the least of the following amounts. Ohio state tax form 2013 $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in earlier years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior tax years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Ohio state tax form 2013   If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013. Ohio state tax form 2013   For more information, see Publication 571. Ohio state tax form 2013 Limit for deferral under section 501(c)(18) plans. Ohio state tax form 2013   If you are a participant in a section 501(c)(18) plan (a trust created before June 25, 1959, funded only by employee contributions), you should have deferred no more than the lesser of $7,000 or 25% of your compensation. Ohio state tax form 2013 Amounts you defer under a section 501(c)(18) plan count toward the overall limit ($17,500 in 2013) and may affect the amount you can defer under other elective deferral plans. Ohio state tax form 2013 Limit for deferrals under section 457 plans. Ohio state tax form 2013   If you are a participant in a section 457 plan (a deferred compensation plan for employees of state or local governments or tax-exempt organizations), you should have deferred no more than the lesser of your includible compensation or $17,500 in 2013. Ohio state tax form 2013 However, if you are within 3 years of normal retirement age, you may be allowed an increased limit if the plan allows it. Ohio state tax form 2013 See Increased limit , later. Ohio state tax form 2013 Includible compensation. Ohio state tax form 2013   This is the pay you received for the year from the employer who maintained the section 457 plan. Ohio state tax form 2013 In most cases, it includes all the following payments. Ohio state tax form 2013 Wages and salaries. Ohio state tax form 2013 Fees for professional services. Ohio state tax form 2013 The value of any employer-provided qualified transportation fringe benefit (defined under Transportation , earlier) that is not included in your income. Ohio state tax form 2013 Other amounts received (cash or noncash) for personal services you performed, including, but not limited to, the following items. Ohio state tax form 2013 Commissions and tips. Ohio state tax form 2013 Fringe benefits. Ohio state tax form 2013 Bonuses. Ohio state tax form 2013 Employer contributions (elective deferrals) to: The section 457 plan. Ohio state tax form 2013 Qualified cash or deferred arrangements (section 401(k) plans) that are not included in your income. Ohio state tax form 2013 A salary reduction simplified employee pension (SARSEP). Ohio state tax form 2013 A tax-sheltered annuity (section 403(b) plan). Ohio state tax form 2013 A savings incentive match plan for employees (SIMPLE plan). Ohio state tax form 2013 A section 125 cafeteria plan. Ohio state tax form 2013   Instead of using the amounts listed earlier to determine your includible compensation, your employer can use any of the following amounts. Ohio state tax form 2013 Your wages as defined for income tax withholding purposes. Ohio state tax form 2013 Your wages as reported in box 1 of Form W-2. Ohio state tax form 2013 Your wages that are subject to social security withholding (including elective deferrals). Ohio state tax form 2013 Increased limit. Ohio state tax form 2013   During any, or all, of the last 3 years ending before you reach normal retirement age under the plan, your plan may provide that your limit is the lesser of: Twice the annual limit ($35,000 for 2013), or The basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions). Ohio state tax form 2013 Catch-up contributions. Ohio state tax form 2013   You generally can have additional elective deferrals made to your governmental section 457 plan if: You reached age 50 by the end of the year, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions. Ohio state tax form 2013 If you qualify, your limit can be the lesser of your includible compensation or $17,500, plus $5,500. Ohio state tax form 2013 However, if you are within 3 years of retirement age and your plan provides the increased limit, discussed earlier, that limit may be higher. Ohio state tax form 2013 Designated Roth contributions. Ohio state tax form 2013   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. Ohio state tax form 2013 Designated Roth contributions are treated as elective deferrals, except that they are included in income. Ohio state tax form 2013 Your retirement plan must maintain separate accounts and recordkeeping for the designated Roth contributions. Ohio state tax form 2013   Qualified distributions from a Roth plan are not included in income. Ohio state tax form 2013 In most cases, a distribution made before the end of the 5-tax-year period beginning with the first tax year for which you made a designated Roth contribution to the plan is not a qualified distribution. Ohio state tax form 2013 Reporting by employer. Ohio state tax form 2013   Your employer generally should not include elective deferrals in your wages in box 1 of Form W-2. Ohio state tax form 2013 Instead, your employer should mark the Retirement plan checkbox in box 13 and show the total amount deferred in box 12. Ohio state tax form 2013 Section 501(c)(18)(D) contributions. Ohio state tax form 2013   Wages shown in box 1 of your Form W-2 should not have been reduced for contributions you made to a section 501(c)(18)(D) retirement plan. Ohio state tax form 2013 The amount you contributed should be identified with code “H” in box 12. Ohio state tax form 2013 You may deduct the amount deferred subject to the limits that apply. Ohio state tax form 2013 Include your deduction in the total on Form 1040, line 36. Ohio state tax form 2013 Enter the amount and “501(c)(18)(D)” on the dotted line next to line 36. Ohio state tax form 2013 Designated Roth contributions. Ohio state tax form 2013    These contributions are elective deferrals but are included in your wages in box 1 of Form W-2. Ohio state tax form 2013 Designated Roth contributions to a section 401(k) plan are reported using code AA in box 12, or, for section 403(b) plans, code BB in box 12. Ohio state tax form 2013 Excess deferrals. Ohio state tax form 2013   If your deferrals exceed the limit, you must notify your plan by the date required by the plan. Ohio state tax form 2013 If the plan permits, the excess amount will be distributed to you. Ohio state tax form 2013 If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. Ohio state tax form 2013 You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. Ohio state tax form 2013 The plan then must pay you the amount of the excess, along with any income earned on that amount, by April 15 of the following year. Ohio state tax form 2013   You must include the excess deferral in your income for the year of the deferral unless you have an excess deferral of a designated Roth contribution. Ohio state tax form 2013 File Form 1040 to add the excess deferral amount to your wages on line 7. Ohio state tax form 2013 Do not use Form 1040A or Form 1040EZ to report excess deferral amounts. Ohio state tax form 2013 Excess not distributed. Ohio state tax form 2013   If you do not take out the excess amount, you cannot include it in the cost of the contract even though you included it in your income. Ohio state tax form 2013 Therefore, you are taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution. Ohio state tax form 2013 Excess distributed to you. Ohio state tax form 2013   If you take out the excess after the year of the deferral and you receive the corrective distribution by April 15 of the following year, do not include it in income again in the year you receive it. Ohio state tax form 2013 If you receive it later, you must include it in income in both the year of the deferral and the year you receive it. Ohio state tax form 2013 Any income on the excess deferral taken out is taxable in the tax year in which you take it out. Ohio state tax form 2013 If you take out part of the excess deferral and the income on it, allocate the distribution proportionately between the excess deferral and the income. Ohio state tax form 2013    You should receive a Form 1099-R for the year in which the excess deferral is distributed to you. Ohio state tax form 2013 Use the following rules to report a corrective distribution shown on Form 1099-R for 2013. Ohio state tax form 2013 If the distribution was for a 2013 excess deferral, your Form 1099-R should have the code “8” in box 7. Ohio state tax form 2013 Add the excess deferral amount to your wages on your 2013 tax return. Ohio state tax form 2013 If the distribution was for a 2013 excess deferral to a designated Roth account, your Form 1099-R should have code “B” in box 7. Ohio state tax form 2013 Do not add this amount to your wages on your 2013 return. Ohio state tax form 2013 If the distribution was for a 2012 excess deferral, your Form 1099-R should have the code “P” in box 7. Ohio state tax form 2013 If you did not add the excess deferral amount to your wages on your 2012 tax return, you must file an amended return on Form 1040X, Amended U. Ohio state tax form 2013 S. Ohio state tax form 2013 Individual Income Tax Return. Ohio state tax form 2013 If you did not receive the distribution by April 15, 2013, you also must add it to your wages on your 2013 tax return. Ohio state tax form 2013 If the distribution was for the income earned on an excess deferral, your Form 1099-R should have the code “8” in box 7. Ohio state tax form 2013 Add the income amount to your wages on your 2013 income tax return, regardless of when the excess deferral was made. Ohio state tax form 2013 Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Ohio state tax form 2013 Include the loss as a negative amount on Form 1040, line 21 and identify it as “Loss on Excess Deferral Distribution. Ohio state tax form 2013 ”    Even though a corrective distribution of excess deferrals is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Ohio state tax form 2013 It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Ohio state tax form 2013 Excess Contributions If you are a highly compensated employee, the total of your elective deferrals and other contributions made for you for any year under a section 401(k) plan or SARSEP can be, as a percentage of pay, no more than 125% of the average deferral percentage (ADP) of all eligible non-highly compensated employees. Ohio state tax form 2013 If the total contributed to the plan is more than the amount allowed under the ADP test, the excess contributions must be either distributed to you or recharacterized as after-tax employee contributions by treating them as distributed to you and then contributed by you to the plan. Ohio state tax form 2013 You must include the excess contributions in your income as wages on Form 1040, line 7. Ohio state tax form 2013 You cannot use Form 1040A or Form 1040EZ to report excess contribution amounts. Ohio state tax form 2013 If you receive a corrective distribution of excess contributions (and allocable income), it is included in your income in the year of the distribution. Ohio state tax form 2013 The allocable income is the amount of gain or loss through the end of the plan year for which the contribution was made that is allocable to the excess contributions. Ohio state tax form 2013 You should receive a Form 1099-R for the year the excess contributions are distributed to you. Ohio state tax form 2013 Add the distribution to your wages for that year. Ohio state tax form 2013 Even though a corrective distribution of excess contributions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Ohio state tax form 2013 It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Ohio state tax form 2013 Excess Annual Additions The amount contributed in 2013 to a defined contribution plan is generally limited to the lesser of 100% of your compensation or $51,000. Ohio state tax form 2013 Under certain circumstances, contributions that exceed these limits (excess annual additions) may be corrected by a distribution of your elective deferrals or a return of your after-tax contributions and earnings from these contributions. Ohio state tax form 2013 A corrective payment of excess annual additions consisting of elective deferrals or earnings from your after-tax contributions is fully taxable in the year paid. Ohio state tax form 2013 A corrective payment consisting of your after-tax contributions is not taxable. Ohio state tax form 2013 If you received a corrective payment of excess annual additions, you should receive a separate Form 1099-R for the year of the payment with the code “E” in box 7. Ohio state tax form 2013 Report the total payment shown in box 1 of Form 1099-R on line 16a of Form 1040 or line 12a of Form 1040A. Ohio state tax form 2013 Report the taxable amount shown in box 2a of Form 1099-R on line 16b of Form 1040 or line 12b of Form 1040A. Ohio state tax form 2013 Even though a corrective distribution of excess annual additions is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. Ohio state tax form 2013 It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Ohio state tax form 2013 Stock Options If you receive an option to buy or sell stock or other property as payment for your services, you may have income when you receive the option (the grant), when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option or property acquired through exercise of the option. Ohio state tax form 2013 The timing, type, and amount of income inclusion depend on whether you receive a nonstatutory stock option or a statutory stock option. Ohio state tax form 2013 Your employer can tell you which kind of option you hold. Ohio state tax form 2013 Nonstatutory Stock Options Grant of option. Ohio state tax form 2013   If you are granted a nonstatutory stock option, you may have income when you receive the option. Ohio state tax form 2013 The amount of income to include and the time to include it depend on whether the fair market value of the option can be readily determined. Ohio state tax form 2013 The fair market value of an option can be readily determined if it is actively traded on an established market. Ohio state tax form 2013    The fair market value of an option that is not traded on an established market can be readily determined only if all of the following conditions exist. Ohio state tax form 2013 You can transfer the option. Ohio state tax form 2013 You can exercise the option immediately in full. Ohio state tax form 2013 The option or the property subject to the option is not subject to any condition or restriction (other than a condition to secure payment of the purchase price) that has a significant effect on the fair market value of the option. Ohio state tax form 2013 The fair market value of the option privilege can be readily determined. Ohio state tax form 2013 The option privilege for an option to buy is the opportunity to benefit during the option's exercise period from any increase in the value of property subject to the option without risking any capital. Ohio state tax form 2013 For example, if during the exercise period the fair market value of stock subject to an option is greater than the option's exercise price, a profit may be realized by exercising the option and immediately selling the stock at its higher value. Ohio state tax form 2013 The option privilege for an option to sell is the opportunity to benefit during the exercise period from a decrease in the value of the property subject to the option. Ohio state tax form 2013 If you or a member of your family is an officer, director, or more-than-10% owner of an expatriated corporation, you may owe an excise tax on the value of nonstatutory options and other stock-based compensation from that corporation. Ohio state tax form 2013 For more information on the excise tax, see Internal Revenue Code section 4985. Ohio state tax form 2013 Option with readily determinable value. Ohio state tax form 2013   If you receive a nonstatutory stock option that has a readily determinable fair market value at the time it is granted to you, the option is treated like other property received as compensation. Ohio state tax form 2013 See Restricted Property , later, for rules on how much income to include and when to include it. Ohio state tax form 2013 However, the rule described in that discussion for choosing to include the value of property in your income for the year of the transfer does not apply to a nonstatutory option. Ohio state tax form 2013 Option without readily determinable value. Ohio state tax form 2013   If the fair market value of the option is not readily determinable at the time it is granted to you (even if it is determined later), you do not have income until you exercise or transfer the option. Ohio state tax form 2013    Exercise or transfer of option. Ohio state tax form 2013   When you exercise a nonstatutory stock option, the amount to include in your income depends on whether the option had a readily determinable value. Ohio state tax form 2013 Option with readily determinable value. Ohio state tax form 2013   When you exercise a nonstatutory stock option that had a readily determinable value at the time the option was granted, you do not have to include any amount in income. Ohio state tax form 2013 Option without readily determinable value. Ohio state tax form 2013   When you exercise a nonstatutory stock option that did not have a readily determinable value at the time the option was granted, the restricted prope
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Individual Shared Responsibility Provision - Exemptions

 

The individual shared responsibility provision requires you and each member of your family to have basic health insurance coverage (also known as minimum essential coverage), qualify for an exemption, or make an individual shared responsibility payment when you file your federal income tax return.

How you get the exemption depends upon the type of exemption for which you are eligible. You can obtain some exemptions only from the Marketplace in the area where you live, others only from the IRS, and yet others from either the Marketplace or the IRS.

This chart shows the types of exemptions available and whether they must be granted by the Marketplace, claimed on an income tax return filed with the IRS, or either may be granted by the Marketplace or claimed on a tax return. For additional information about how to get exemptions that may be granted by the Marketplace, visit HealthCare.gov/exemptions.

Information will be made available later about how to report health insurance coverage and claim exemptions on your income tax return.

Exemptions May only be granted by Marketplace May be granted by Marketplace or claimed on tax return May only be claimed on tax return
Coverage is considered unaffordable - The amount you would have paid for employer-sponsored coverage or a bronze level health plan (depending on your circumstances) is more than eight percent of your actual household income for the year as computed on your tax return. Also see the second hardship listed below, which provides a prospective exemption granted by the Marketplace if the amount you would have paid for coverage is more than eight percent of your projected household income for the year.    
Short coverage gap - You went without coverage for less than three consecutive months during the year. For more information, see question 22 of our questions and answers.    
Household income below the return filing threshold - Your household income is below the minimum threshold for filing a tax return. Learn more about household income    
Certain noncitizens - You are neither a U.S. citizen, a U.S. national, nor an alien lawfully present in the U.S.    
Members of a health care sharing ministry - You are a member of a health care sharing ministry, which is an organization described in section 501(c)(3) whose members share a common set of ethical or religious beliefs and have shared medical expenses in accordance with those beliefs continuously since at least December 31, 1999.  

 

 

 

 

 

Members of Federally-recognized Indian Tribes - You are a member of a federally-recognized Indian tribe.    
Incarceration - You are in a jail, prison, or similar penal institution or correctional facility after the disposition of charges.    
Members of certain religious sects - You are a member of a religious sect in existence since December 31, 1950, that is recognized by the Social Security Administration (SSA) as conscientiously opposed to accepting any insurance benefits, including Medicare and Social Security.    
Hardships:      
  • Your gross income is below the filing threshold. To find out if you are required to file, use our Interactive Tax Assistant.
   
  • Two or more family members' aggregate cost of self-only employer-sponsored coverage exceeds 8 percent of household income, as does the cost of any available employer-sponsored coverage for the entire family.
   
  • You purchased insurance through the Marketplace during the initial enrollment period but have a coverage gap at the beginning of 2014. See this HHS Question and Answer.
   
  • You are experiencing circumstances that prevent you from obtaining coverage under a qualified health plan. Learn more about the criteria for this exemption.
   
  • You do not have access to affordable coverage based on your projected household income.
   
  • You are ineligible for Medicaid solely because the State does not participate in the Medicaid expansion under the Affordable Care Act.
   
  • You are an American Indian, Alaska Native, or a spouse or descendant who is eligible for services through an Indian health care provider. Learn more.
   
  • You have been notified that your health insurance policy will not be renewed and you consider the other plans available unaffordable. See HHS guidance and HHS Questions and Answers for more information.
   

 

 

Page Last Reviewed or Updated: 24-Mar-2014

The Ohio State Tax Form 2013

Ohio state tax form 2013 4. Ohio state tax form 2013   Farm Business Expenses Table of Contents What's New for 2013 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible ExpensesReasonable allocation. Ohio state tax form 2013 Prepaid Farm Supplies Prepaid Livestock Feed Labor Hired Repairs and Maintenance Interest Breeding Fees Fertilizer and Lime Taxes Insurance Rent and Leasing Depreciation Business Use of Your Home Truck and Car Expenses Travel Expenses Marketing Quota Penalties Tenant House Expenses Items Purchased for Resale Other Expenses Domestic Production Activities Deduction Capital ExpensesForestation and reforestation costs. Ohio state tax form 2013 Nondeductible ExpensesPersonal, Living, and Family Expenses Other Nondeductible Items Losses From Operating a FarmAt-Risk Limits Passive Activity Limits Excess Farm Loss Limit Not-for-Profit FarmingUsing the presumption later. Ohio state tax form 2013 Category 1. Ohio state tax form 2013 Category 2. Ohio state tax form 2013 Category 3. Ohio state tax form 2013 What's New for 2013 Standard mileage rate. Ohio state tax form 2013  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Ohio state tax form 2013 5 cents. Ohio state tax form 2013 See Truck and Car Expenses , later. Ohio state tax form 2013 Simplified method for business use of home deduction. Ohio state tax form 2013  The IRS now provides a simplified method to determine your expenses for business use of your home. Ohio state tax form 2013 For more information, see Schedule C (Form 1040), Part II, and its instructions. Ohio state tax form 2013 Introduction You can generally deduct the current costs of operating your farm. Ohio state tax form 2013 Current costs are expenses you do not have to capitalize or include in inventory costs. Ohio state tax form 2013 However, your deduction for the cost of livestock feed and certain other supplies may be limited. Ohio state tax form 2013 If you have an operating loss, you may not be able to deduct all of it. Ohio state tax form 2013 Topics - This chapter discusses: Deductible expenses Domestic production activities deduction Capital expenses Nondeductible expenses Losses from operating a farm Not-for-profit farming Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home 925 Passive Activity and At-Risk Rules 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch F (Form 1040) Profit or Loss From Farming 1045 Application for Tentative Refund 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8903 Domestic Production Activities Deduction See chapter 16 for information about getting publications and forms. Ohio state tax form 2013 Deductible Expenses The ordinary and necessary costs of operating a farm for profit are deductible business expenses. Ohio state tax form 2013 “Ordinary” means what most farmers do and “necessary” means what is useful and helpful in farming. Ohio state tax form 2013 Schedule F, Part II, lists some common farm expenses that are typically deductible. Ohio state tax form 2013 This chapter discusses many of these expenses, as well as others not listed on Schedule F. Ohio state tax form 2013 Reimbursed expenses. Ohio state tax form 2013   If the reimbursement is received in the same year that the expense is claimed, reduce the expense by the amount of the reimbursement. Ohio state tax form 2013 If the reimbursement is received in a year after the expense is claimed, include the reimbursement amount in income. Ohio state tax form 2013 See Refund or reimbursement under Income From Other Sources in chapter 3. Ohio state tax form 2013 Personal and business expenses. Ohio state tax form 2013   Some expenses you pay during the tax year may be part personal and part business. Ohio state tax form 2013 These may include expenses for gasoline, oil, fuel, water, rent, electricity, telephone, automobile upkeep, repairs, insurance, interest, and taxes. Ohio state tax form 2013   You must allocate these mixed expenses between their business and personal parts. Ohio state tax form 2013 Generally, the personal part of these expenses is not deductible. Ohio state tax form 2013 The business portion of the expenses is deductible on Schedule F. Ohio state tax form 2013 Example. Ohio state tax form 2013 You paid $1,500 for electricity during the tax year. Ohio state tax form 2013 You used 1/3 of the electricity for personal purposes and 2/3 for farming. Ohio state tax form 2013 Under these circumstances, you can deduct $1,000 (2/3 of $1,500) of your electricity expense as a farm business expense. Ohio state tax form 2013 Reasonable allocation. Ohio state tax form 2013   It is not always easy to determine the business and nonbusiness parts of an expense. Ohio state tax form 2013 There is no method of allocation that applies to all mixed expenses. Ohio state tax form 2013 Any reasonable allocation is acceptable. Ohio state tax form 2013 What is reasonable depends on the circumstances in each case. Ohio state tax form 2013 Prepaid Farm Supplies Prepaid farm supplies include the following items if paid for during the year. Ohio state tax form 2013 Feed, seed, fertilizer, and similar farm supplies not used or consumed during the year, but not including farm supplies that you would have consumed during the year if not for a fire, storm, flood, other casualty, disease, or drought. Ohio state tax form 2013 Poultry (including egg-laying hens and baby chicks) bought for use (or for both use and resale) in your farm business. Ohio state tax form 2013 However, include only the amount that would be deductible in the following year if you had capitalized the cost and deducted it ratably over the lesser of 12 months or the useful life of the poultry. Ohio state tax form 2013 Poultry bought for resale and not resold during the year. Ohio state tax form 2013 Deduction limit. Ohio state tax form 2013   If you use the cash method of accounting to report your income and expenses, your deduction for prepaid farm supplies in the year you pay for them may be limited to 50% of your other deductible farm expenses for the year (all Schedule F deductions except prepaid farm supplies). Ohio state tax form 2013 This limit does not apply if you meet one of the exceptions described later. Ohio state tax form 2013 See Chapter 2 for a discussion of the cash method of accounting. Ohio state tax form 2013   If the limit applies, you can deduct the excess cost of farm supplies other than poultry in the year you use or consume the supplies. Ohio state tax form 2013 The excess cost of poultry bought for use (or for both use and resale) in your farm business is deductible in the year following the year you pay for it. Ohio state tax form 2013 The excess cost of poultry bought for resale is deductible in the year you sell or otherwise dispose of that poultry. Ohio state tax form 2013 Example. Ohio state tax form 2013 You may not qualify for the exception described next. Ohio state tax form 2013 During 2013, you bought fertilizer ($4,000), feed ($1,000), and seed ($500) for use on your farm in the following year. Ohio state tax form 2013 Your total prepaid farm supplies expense for 2013 is $5,500. Ohio state tax form 2013 Your other deductible farm expenses totaled $10,000 for 2013. Ohio state tax form 2013 Therefore, your deduction for prepaid farm supplies cannot be more than $5,000 (50% of $10,000) for 2013. Ohio state tax form 2013 The excess prepaid farm supplies expense of $500 ($5,500 − $5,000) is deductible in a later tax year when you use or consume the supplies. Ohio state tax form 2013 Exceptions. Ohio state tax form 2013   This limit on the deduction for prepaid farm supplies expense does not apply if you are a farm-related taxpayer and either of the following apply. Ohio state tax form 2013 Your prepaid farm supplies expense is more than 50% of your other deductible farm expenses because of a change in business operations caused by unusual circumstances. Ohio state tax form 2013 Your total prepaid farm supplies expense for the preceding 3 tax years is less than 50% of your total other deductible farm expenses for those 3 tax years. Ohio state tax form 2013   You are a farm-related taxpayer if any of the following tests apply. Ohio state tax form 2013 Your main home is on a farm. Ohio state tax form 2013 Your principal business is farming. Ohio state tax form 2013 A member of your family meets (1) or (2). Ohio state tax form 2013 For this purpose, your family includes your brothers and sisters, half-brothers and half-sisters, spouse, parents, grandparents, children, grandchildren, and aunts and uncles and their children. Ohio state tax form 2013    Whether or not the deduction limit for prepaid farm supplies applies, your expenses for prepaid livestock feed may be subject to the rules for advance payment of livestock feed, discussed next. Ohio state tax form 2013 Prepaid Livestock Feed If you report your income and expenses under the cash method of accounting, you cannot deduct in the year paid the cost of feed your livestock will consume in a later year unless you meet all the following tests. Ohio state tax form 2013 The payment is for the purchase of feed rather than a deposit. Ohio state tax form 2013 The prepayment has a business purpose and is not merely for tax avoidance. Ohio state tax form 2013 Deducting the prepayment does not result in a material distortion of your income. Ohio state tax form 2013 If you meet all three tests, you can deduct the prepaid feed, subject to the limit on prepaid farm supplies discussed earlier. Ohio state tax form 2013 If you fail any of these tests, you can deduct the prepaid feed only in the year it is consumed. Ohio state tax form 2013 This rule does not apply to the purchase of commodity futures contracts. Ohio state tax form 2013 Payment for the purchase of feed. Ohio state tax form 2013   Whether a payment is for the purchase of feed or a deposit depends on the facts and circumstances in each case. Ohio state tax form 2013 It is for the purchase of feed if you can show you made it under a binding commitment to accept delivery of a specific quantity of feed at a fixed price and you are not entitled, by contract or business custom, to a refund or repurchase. Ohio state tax form 2013   The following are some factors that show a payment is a deposit rather than for the purchase of feed. Ohio state tax form 2013 The absence of specific quantity terms. Ohio state tax form 2013 The right to a refund of any unapplied payment credit at the end of the contract. Ohio state tax form 2013 The seller's treatment of the payment as a deposit. Ohio state tax form 2013 The right to substitute other goods or products for those specified in the contract. Ohio state tax form 2013   A provision permitting substitution of ingredients to vary the particular feed mix to meet your livestock's current diet requirements will not suggest a deposit. Ohio state tax form 2013 Further, a price adjustment to reflect market value at the date of delivery is not, by itself, proof of a deposit. Ohio state tax form 2013 Business purpose. Ohio state tax form 2013   The prepayment has a business purpose only if you have a reasonable expectation of receiving some business benefit from prepaying the cost of livestock feed. Ohio state tax form 2013 The following are some examples of business benefits. Ohio state tax form 2013 Fixing maximum prices and securing an assured feed supply. Ohio state tax form 2013 Securing preferential treatment in anticipation of a feed shortage. Ohio state tax form 2013   Other factors considered in determining the existence of a business purpose are whether the prepayment was a condition imposed by the seller and whether that condition was meaningful. Ohio state tax form 2013 No material distortion of income. Ohio state tax form 2013   The following are some factors considered in determining whether deducting prepaid livestock feed materially distorts income. Ohio state tax form 2013 Your customary business practice in conducting your livestock operations. Ohio state tax form 2013 The expense in relation to past purchases. Ohio state tax form 2013 The time of year you made the purchase. Ohio state tax form 2013 The expense in relation to your income for the year. Ohio state tax form 2013 Labor Hired You can deduct reasonable wages paid for regular farm labor, piecework, contract labor, and other forms of labor hired to perform your farming operations. Ohio state tax form 2013 You can pay wages in cash or in noncash items such as inventory, capital assets, or assets used in your business. Ohio state tax form 2013 The cost of boarding farm labor is a deductible labor cost. Ohio state tax form 2013 Other deductible costs you incur for farm labor include health insurance, workers' compensation insurance, and other benefits. Ohio state tax form 2013 If you must withhold social security, Medicare, and income taxes from your employees' cash wages, you can still deduct the full amount of wages before withholding. Ohio state tax form 2013 See chapter 13 for more information on employment taxes. Ohio state tax form 2013 Also, deduct the employer's share of the social security and Medicare taxes you must pay on your employees' wages as a farm business expense on Schedule F, line 29. Ohio state tax form 2013 See Taxes , later. Ohio state tax form 2013 Property for services. Ohio state tax form 2013   If you transfer property to an employee in payment for services, you can deduct as wages paid the fair market value of the property on the date of transfer. Ohio state tax form 2013 If the employee pays you anything for the property, deduct as wages the fair market value of the property minus the payment by the employee for the property. Ohio state tax form 2013   Treat the wages deducted as an amount received for the property. Ohio state tax form 2013 You may have a gain or loss to report if the property's adjusted basis on the date of transfer is different from its fair market value. Ohio state tax form 2013 Any gain or loss has the same character the exchanged property had in your hands. Ohio state tax form 2013 For more information, see chapter 8. Ohio state tax form 2013 Child as an employee. Ohio state tax form 2013   You can deduct reasonable wages or other compensation you pay to your child for doing farmwork if a true employer-employee relationship exists between you and your child. Ohio state tax form 2013 Include these wages in the child's income. Ohio state tax form 2013 The child may have to file an income tax return. Ohio state tax form 2013 These wages may also be subject to social security and Medicare taxes if your child is age 18 or older. Ohio state tax form 2013 For more information, see Family Employees in chapter 13. Ohio state tax form 2013    A Form W-2, Wage and Tax Statement, should be issued to the child employee. Ohio state tax form 2013   The fact that your child spends the wages to buy clothes or other necessities you normally furnish does not prevent you from deducting your child's wages as a farm expense. Ohio state tax form 2013 The amount of wages paid to the child could cause a loss of the dependency exemption depending on how the child uses the money. Ohio state tax form 2013 Spouse as an employee. Ohio state tax form 2013   You can deduct reasonable wages or other compensation you pay to your spouse if a true employer-employee relationship exists between you and your spouse. Ohio state tax form 2013 Wages you pay to your spouse are subject to social security and Medicare taxes. Ohio state tax form 2013 For more information, see Family Employees in chapter 13. Ohio state tax form 2013 Nondeductible Pay You cannot deduct wages paid for certain household work, construction work, and maintenance of your home. Ohio state tax form 2013 However, those wages may be subject to the employment taxes discussed in chapter 13. Ohio state tax form 2013 Household workers. Ohio state tax form 2013   Do not deduct amounts paid to persons engaged in household work, except to the extent their services are used in boarding or otherwise caring for farm laborers. Ohio state tax form 2013 Construction labor. Ohio state tax form 2013   Do not deduct wages paid to hired help for the construction of new buildings or other improvements. Ohio state tax form 2013 These wages are part of the cost of the building or other improvement. Ohio state tax form 2013 You must capitalize them. Ohio state tax form 2013 Maintaining your home. Ohio state tax form 2013   If your farm employee spends time maintaining or repairing your home, the wages and employment taxes you pay for that work are nondeductible personal expenses. Ohio state tax form 2013 For example, assume you have a farm employee for the entire tax year and the employee spends 5% of the time maintaining your home. Ohio state tax form 2013 The employee devotes the remaining time to work on your farm. Ohio state tax form 2013 You cannot deduct 5% of the wages and employment taxes you pay for that employee. Ohio state tax form 2013 Employment Credits Reduce your deduction for wages by the amount of any employment credits you claim such as the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans (Form 5884-C). Ohio state tax form 2013 Repairs and Maintenance You can deduct most expenses for the repair and maintenance of your farm property. Ohio state tax form 2013 Common items of repair and maintenance are repainting, replacing shingles and supports on farm buildings, and periodic or routine maintenance of trucks, tractors, and other farm machinery. Ohio state tax form 2013 However, repairs to, or overhauls of, depreciable property that substantially prolong the life of the property, increase its value, or adapt it to a different use are capital expenses. Ohio state tax form 2013 For example, if you repair the barn roof, the cost is deductible. Ohio state tax form 2013 But if you replace the roof, it is a capital expense. Ohio state tax form 2013 For more information, see Capital Expenses , later. Ohio state tax form 2013 Interest You can deduct as a farm business expense interest paid on farm mortgages and other obligations you incur in your farm business. Ohio state tax form 2013 Cash method. Ohio state tax form 2013   If you use the cash method of accounting, you can generally deduct interest paid during the tax year. Ohio state tax form 2013 You cannot deduct interest paid with funds received from the original lender through another loan, advance, or other arrangement similar to a loan. Ohio state tax form 2013 You can, however, deduct the interest when you start making payments on the new loan. Ohio state tax form 2013 For more information, see Cash Method in chapter 2. Ohio state tax form 2013 Prepaid interest. Ohio state tax form 2013   Under the cash method, you generally cannot deduct any interest paid before the year it is due. Ohio state tax form 2013 Interest paid in advance may be deducted only in the tax year in which it is due. Ohio state tax form 2013 Accrual method. Ohio state tax form 2013   If you use an accrual method of accounting, you can deduct only interest that has accrued during the tax year. Ohio state tax form 2013 However, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. Ohio state tax form 2013 For more information, see Accrual Method in chapter 2. Ohio state tax form 2013 Allocation of interest. Ohio state tax form 2013   If you use the proceeds of a loan for more than one purpose, you must allocate the interest on that loan to each use. Ohio state tax form 2013 Allocate the interest to the following categories. Ohio state tax form 2013 Trade or business interest. Ohio state tax form 2013 Passive activity interest. Ohio state tax form 2013 Investment interest. Ohio state tax form 2013 Portfolio interest. Ohio state tax form 2013 Personal interest. Ohio state tax form 2013   You generally allocate interest on a loan the same way you allocate the loan proceeds. Ohio state tax form 2013 You allocate loan proceeds by tracing disbursements to specific uses. Ohio state tax form 2013 The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. Ohio state tax form 2013 Secured loan. Ohio state tax form 2013   The allocation of loan proceeds and the related interest is generally not affected by the use of property that secures the loan. Ohio state tax form 2013 Example. Ohio state tax form 2013 You secure a loan with property used in your farming business. Ohio state tax form 2013 You use the loan proceeds to buy a car for personal use. Ohio state tax form 2013 You must allocate interest expense on the loan to personal use (purchase of the car) even though the loan is secured by farm business property. Ohio state tax form 2013 If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. Ohio state tax form 2013 The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. Ohio state tax form 2013 However, you can choose to treat the loan as not secured by your home. Ohio state tax form 2013 For more information, see Publication 936. Ohio state tax form 2013 Allocation period. Ohio state tax form 2013   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. Ohio state tax form 2013 The date the loan is repaid. Ohio state tax form 2013 The date the loan is reallocated to another use. Ohio state tax form 2013 More information. Ohio state tax form 2013   For more information on interest, see chapter 4 in Publication 535. Ohio state tax form 2013 Breeding Fees You can deduct breeding fees as a farm business expense. Ohio state tax form 2013 However, if you use an accrual method of accounting, you must capitalize breeding fees and allocate them to the cost basis of the calf, foal, etc. Ohio state tax form 2013 For more information on who must use an accrual method of accounting, see Accrual Method Required under Accounting Methods in chapter 2. Ohio state tax form 2013 Fertilizer and Lime You can deduct in the year paid or incurred the cost of fertilizer, lime, and other materials applied to farmland to enrich, neutralize, or condition it if the benefits last a year or less. Ohio state tax form 2013 You can also deduct the cost of applying these materials in the year you pay or incur it. Ohio state tax form 2013 However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these materials. Ohio state tax form 2013 If the benefits of the fertilizer, lime, or other materials last substantially more than one year, you generally capitalize their cost and deduct a part each year the benefits last. Ohio state tax form 2013 However, you can choose to deduct these expenses in the year paid or incurred. Ohio state tax form 2013 If you make this choice, you will need IRS approval if you later decide to capitalize the cost of previously deducted items. Ohio state tax form 2013 If you sell farmland on which fertilizer or lime has been applied and if the selling price of the land includes part or all of the cost of the fertilizer or lime, you report the sale amount attributable to the fertilizer or lime as ordinary income. Ohio state tax form 2013 Farmland, for these purposes, is land used for producing crops, fruits, or other agricultural products or for sustaining livestock. Ohio state tax form 2013 It does not include land you have never used previously for producing crops or sustaining livestock. Ohio state tax form 2013 You cannot deduct initial land preparation costs. Ohio state tax form 2013 (See Capital Expenses , later. Ohio state tax form 2013 ) Include government payments you receive for lime or fertilizer in income. Ohio state tax form 2013 See Fertilizer and Lime under Agricultural Program Payments in chapter 3. Ohio state tax form 2013 Taxes You can deduct as a farm business expense the real estate and personal property taxes on farm business assets, such as farm equipment, animals, farmland, and farm buildings. Ohio state tax form 2013 You also can deduct the social security and Medicare taxes you pay to match the amount withheld from the wages of farm employees and any federal unemployment tax you pay. Ohio state tax form 2013 For information on employment taxes, see chapter 13. Ohio state tax form 2013 Allocation of taxes. Ohio state tax form 2013   The taxes on the part of your farm you use as your home (including the furnishings and surrounding land not used for farming) are nonbusiness taxes. Ohio state tax form 2013 You may be able to deduct these nonbusiness taxes as itemized deductions on Schedule A (Form 1040). Ohio state tax form 2013 To determine the nonbusiness part, allocate the taxes between the farm assets and nonbusiness assets. Ohio state tax form 2013 The allocation can be done from the assessed valuations. Ohio state tax form 2013 If your tax statement does not show the assessed valuations, you can usually get them from the tax assessor. Ohio state tax form 2013 State and local general sales taxes. Ohio state tax form 2013   State and local general sales taxes on nondepreciable farm business expense items are deductible as part of the cost of those items. Ohio state tax form 2013 Include state and local general sales taxes imposed on the purchase of assets for use in your farm business as part of the cost you depreciate. Ohio state tax form 2013 Also treat the taxes as part of your cost if they are imposed on the seller and passed on to you. Ohio state tax form 2013 State and federal income taxes. Ohio state tax form 2013   Individuals cannot deduct state and federal income taxes as farm business expenses. Ohio state tax form 2013 Individuals can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Ohio state tax form 2013 However, you cannot deduct federal income tax. Ohio state tax form 2013 Highway use tax. Ohio state tax form 2013   You can deduct the federal use tax on highway motor vehicles paid on a truck or truck tractor used in your farm business. Ohio state tax form 2013 For information on the tax itself, including information on vehicles subject to the tax, see the Instructions for Form 2290, Heavy Highway Vehicle Use Tax Return. Ohio state tax form 2013 Self-employment tax deduction. Ohio state tax form 2013   You can deduct as an adjustment to income on Form 1040 one-half of your self-employment tax in figuring your adjusted gross income. Ohio state tax form 2013 For more information, see chapter 12. Ohio state tax form 2013 Insurance You generally can deduct the ordinary and necessary cost of insurance for your farm business as a business expense. Ohio state tax form 2013 This includes premiums you pay for the following types of insurance. Ohio state tax form 2013 Fire, storm, crop, theft, liability, and other insurance on farm business assets. Ohio state tax form 2013 Health and accident insurance on your farm employees. Ohio state tax form 2013 Workers' compensation insurance set by state law that covers any claims for job-related bodily injuries or diseases suffered by employees on your farm, regardless of fault. Ohio state tax form 2013 Business interruption insurance. Ohio state tax form 2013 State unemployment insurance on your farm employees (deductible as taxes if they are considered taxes under state law). Ohio state tax form 2013 Insurance to secure a loan. Ohio state tax form 2013   If you take out a policy on your life or on the life of another person with a financial interest in your farm business to get or protect a business loan, you cannot deduct the premiums as a business expense. Ohio state tax form 2013 In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Ohio state tax form 2013 Advance premiums. Ohio state tax form 2013   Deduct advance payments of insurance premiums only in the year to which they apply, regardless of your accounting method. Ohio state tax form 2013 Example. Ohio state tax form 2013 On June 28, 2013, you paid a premium of $3,000 for fire insurance on your barn. Ohio state tax form 2013 The policy will cover a period of 3 years beginning on July 1, 2013. Ohio state tax form 2013 Only the cost for the 6 months in 2013 is deductible as an insurance expense on your 2013 calendar year tax return. Ohio state tax form 2013 Deduct $500, which is the premium for 6 months of the 36-month premium period, or 6/36 of $3,000. Ohio state tax form 2013 In both 2014 and 2015, deduct $1,000 (12/36 of $3,000). Ohio state tax form 2013 Deduct the remaining $500 in 2016. Ohio state tax form 2013 Had the policy been effective on January 1, 2013, the deductible expense would have been $1,000 for each of the years 2013, 2014, and 2015, based on one-third of the premium used each year. Ohio state tax form 2013 Business interruption insurance. Ohio state tax form 2013   Use and occupancy and business interruption insurance premiums are deductible as a business expense. Ohio state tax form 2013 This insurance pays for lost profits if your business is shut down due to a fire or other cause. Ohio state tax form 2013 Report any proceeds in full on Schedule F, Part I. Ohio state tax form 2013 Self-employed health insurance deduction. Ohio state tax form 2013   If you are self-employed, you can deduct as an adjustment to income on Form 1040 your payments for medical, dental, and qualified long-term care insurance coverage for yourself, your spouse, and your dependents when figuring your adjusted gross income on your Form 1040. Ohio state tax form 2013 Effective March 30, 2010, the insurance can also cover any child of yours under age 27 at the end of 2013, even if the child was not your dependent. Ohio state tax form 2013 Generally, this deduction cannot be more than the net profit from the business under which the plan was established. Ohio state tax form 2013   If you or your spouse is also an employee of another person, you cannot take the deduction for any month in which you are eligible to participate in a subsidized health plan maintained by your employer or your spouse's employer. Ohio state tax form 2013   Generally, use the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Form 1040 to figure your deduction. Ohio state tax form 2013 Include the remaining part of the insurance payment in your medical expenses on Schedule A (Form 1040) if you itemize your deductions. Ohio state tax form 2013   For more information, see Deductible Premiums in Publication 535, chapter 6. Ohio state tax form 2013 Rent and Leasing If you lease property for use in your farm business, you can generally deduct the rent you pay on Schedule F. Ohio state tax form 2013 However, you cannot deduct rent you pay in crop shares if you deduct the cost of raising the crops as farm expenses. Ohio state tax form 2013 Advance payments. Ohio state tax form 2013   Deduct advance payments of rent only in the year to which they apply, regardless of your accounting method. Ohio state tax form 2013 Farm home. Ohio state tax form 2013   If you rent a farm, do not deduct the part of the rental expense that represents the fair rental value of the farm home in which you live. Ohio state tax form 2013 Lease or Purchase If you lease a farm building or equipment, you must determine whether or not the agreement must be treated as a conditional sales contract rather than a lease. Ohio state tax form 2013 If the agreement is treated as a conditional sales contract, the payments under the agreement (so far as they do not represent interest or other charges) are payments for the purchase of the property. Ohio state tax form 2013 Do not deduct these payments as rent, but capitalize the cost of the property and recover this cost through depreciation. Ohio state tax form 2013 Conditional sales contract. Ohio state tax form 2013   Whether an agreement is a conditional sales contract depends on the intent of the parties. Ohio state tax form 2013 Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. Ohio state tax form 2013 No single test, or special combination of tests, always applies. Ohio state tax form 2013 However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. Ohio state tax form 2013 The agreement applies part of each payment toward an equity interest you will receive. Ohio state tax form 2013 You get title to the property after you make a stated amount of required payments. Ohio state tax form 2013 The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. Ohio state tax form 2013 You pay much more than the current fair rental value of the property. Ohio state tax form 2013 You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. Ohio state tax form 2013 Determine this value when you make the agreement. Ohio state tax form 2013 You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. Ohio state tax form 2013 The agreement designates part of the payments as interest, or part of the payments can be easily recognized as interest. Ohio state tax form 2013 Example. Ohio state tax form 2013 You lease new farm equipment from a dealer who both sells and leases. Ohio state tax form 2013 The agreement includes an option to purchase the equipment for a specified price. Ohio state tax form 2013 The lease payments and the specified option price equal the sales price of the equipment plus interest. Ohio state tax form 2013 Under the agreement, you are responsible for maintenance, repairs, and the risk of loss. Ohio state tax form 2013 For federal income tax purposes, the agreement is a conditional sales contract. Ohio state tax form 2013 You cannot deduct any of the lease payments as rent. Ohio state tax form 2013 You can deduct interest, repairs, insurance, depreciation, and other expenses related to the equipment. Ohio state tax form 2013 Motor vehicle leases. Ohio state tax form 2013   Special rules apply to lease agreements that have a terminal rental adjustment clause. Ohio state tax form 2013 In general, this is a clause that provides for a rental price adjustment based on the amount the lessor is able to sell the vehicle for at the end of the lease. Ohio state tax form 2013 If your rental agreement contains a terminal rental adjustment clause, treat the agreement as a lease if the agreement otherwise qualifies as a lease. Ohio state tax form 2013 For more information, see Internal Revenue Code (IRC) section 7701(h). Ohio state tax form 2013 Leveraged leases. Ohio state tax form 2013   Special rules apply to leveraged leases of equipment (arrangements in which the equipment is financed by a nonrecourse loan from a third party). Ohio state tax form 2013 For more information, see Publication 535, chapter 3, and Revenue Procedure 2001-28, which begins on page 1156 of Internal Revenue Bulletin 2001-19 at www. Ohio state tax form 2013 irs. Ohio state tax form 2013 gov/pub/irs-irbs/irb01-19. Ohio state tax form 2013 pdf. Ohio state tax form 2013 Depreciation If property you acquire to use in your farm business is expected to last more than one year, you generally cannot deduct the entire cost in the year you acquire it. Ohio state tax form 2013 You must recover the cost over more than one year and deduct part of it each year on Schedule F as depreciation or amortization. Ohio state tax form 2013 However, you can choose to deduct part or all of the cost of certain qualifying property, up to a limit, as a section 179 deduction in the year you place it in service. Ohio state tax form 2013 Depreciation, amortization, and the section 179 deduction are discussed in chapter 7. Ohio state tax form 2013 Business Use of Your Home You can deduct expenses for the business use of your home if you use part of your home exclusively and regularly: As the principal place of business for any trade or business in which you engage, As a place to meet or deal with patients, clients, or customers in the normal course of your trade or business, or In connection with your trade or business, if you are using a separate structure that is not attached to your home. Ohio state tax form 2013 Your home office will qualify as your principal place of business for deducting expenses for its use if you meet both of the following requirements. Ohio state tax form 2013 You use it exclusively and regularly for the administrative or management activities of your trade or business. Ohio state tax form 2013 You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Ohio state tax form 2013 If you use part of your home for business, you must divide the expenses of operating your home between personal and business use. Ohio state tax form 2013 The IRS now provides a simplified method to determine your expenses for business use of your home. Ohio state tax form 2013 For more information, see Schedule C (Form 1040), Part II, and its instructions. Ohio state tax form 2013 Deduction limit. Ohio state tax form 2013   If your gross income from farming equals or exceeds your total farm expenses (including expenses for the business use of your home), you can deduct all your farm expenses. Ohio state tax form 2013 But if your gross income from farming is less than your total farm expenses, your deduction for certain expenses for the use of your home in your farming business is limited. Ohio state tax form 2013   Your deduction for otherwise nondeductible expenses, such as utilities, insurance, and depreciation (with depreciation taken last), cannot be more than the gross income from farming minus the following expenses. Ohio state tax form 2013 The business part of expenses you could deduct even if you did not use your home for business (such as deductible mortgage interest, real estate taxes, and casualty and theft losses). Ohio state tax form 2013 Farm expenses other than expenses that relate to the use of your home. Ohio state tax form 2013 If you are self-employed, do not include your deduction for half of your self-employment tax. Ohio state tax form 2013   Deductions over the current year's limit can be carried over to your next tax year. Ohio state tax form 2013 They are subject to the deduction limit for the next tax year. Ohio state tax form 2013 More information. Ohio state tax form 2013   See Publication 587 for more information on deducting expenses for the business use of your home. Ohio state tax form 2013 Telephone expense. Ohio state tax form 2013   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. Ohio state tax form 2013 However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for your farm business, are deductible business expenses. Ohio state tax form 2013 Cell phone charges for calls relating to your farm business are deductible. Ohio state tax form 2013 If the cell phone you use for your farm business is part of a family cell phone plan, you must allocate and deduct only the portion of the charges attributable to farm business calls. Ohio state tax form 2013 Truck and Car Expenses You can deduct the actual cost of operating a truck or car in your farm business. Ohio state tax form 2013 Only expenses for business use are deductible. Ohio state tax form 2013 These include such items as gasoline, oil, repairs, license tags, insurance, and depreciation (subject to certain limits). Ohio state tax form 2013 Standard mileage rate. Ohio state tax form 2013   Instead of using actual costs, under certain conditions you can use the standard mileage rate. Ohio state tax form 2013 The standard mileage rate for each mile of business use is 56. Ohio state tax form 2013 5 cents in 2013. Ohio state tax form 2013 You can use the standard mileage rate for a car or a light truck, such as a van, pickup, or panel truck, you own or lease. Ohio state tax form 2013   You cannot use the standard mileage rate if you operate five or more cars or light trucks at the same time. Ohio state tax form 2013 You are not using five or more vehicles at the same time if you alternate using the vehicles (you use them at different times) for business. Ohio state tax form 2013 Example. Ohio state tax form 2013 Maureen owns a car and four pickup trucks that are used in her farm business. Ohio state tax form 2013 Her farm employees use the trucks and she uses the car for business. Ohio state tax form 2013 Maureen cannot use the standard mileage rate for the car or the trucks. Ohio state tax form 2013 This is because all five vehicles are used in Maureen's farm business at the same time. Ohio state tax form 2013 She must use actual expenses for all vehicles. Ohio state tax form 2013 Business use percentage. Ohio state tax form 2013   You can claim 75% of the use of a car or light truck as business use without any records if you used the vehicle during most of the normal business day directly in connection with the business of farming. Ohio state tax form 2013 You choose this method of substantiating business use the first year the vehicle is placed in service. Ohio state tax form 2013 Once you make this choice, you may not change to another method later. Ohio state tax form 2013 The following are uses directly connected with the business of farming. Ohio state tax form 2013 Cultivating land. Ohio state tax form 2013 Raising or harvesting any agricultural or horticultural commodity. Ohio state tax form 2013 Raising, shearing, feeding, caring for, training, and managing animals. Ohio state tax form 2013 Driving to the feed or supply store. Ohio state tax form 2013   If you keep records and they show that your business use was more than 75%, you may be able to claim more. Ohio state tax form 2013 See Recordkeeping requirements under Travel Expenses , below. Ohio state tax form 2013 More information. Ohio state tax form 2013   For more information on deductible truck and car expenses, see Publication 463, chapter 4. Ohio state tax form 2013 If you pay your employees for the use of their truck or car in your farm business, see Reimbursements to employees under Travel Expenses next. Ohio state tax form 2013 Travel Expenses You can deduct ordinary and necessary expenses you incur while traveling away from home for your farm business. Ohio state tax form 2013 You cannot deduct lavish or extravagant expenses. Ohio state tax form 2013 Usually, the location of your farm business is considered your home for tax purposes. Ohio state tax form 2013 You are traveling away from home if: Your duties require you to be absent from your farm substantially longer than an ordinary work day, and You need to get sleep or rest to meet the demands of your work while away from home. Ohio state tax form 2013 If you meet these requirements and can prove the time, place, and business purpose of your travel, you can deduct your ordinary and necessary travel expenses. Ohio state tax form 2013 The following are some types of deductible travel expenses. Ohio state tax form 2013 Air, rail, bus, and car transportation; Meals and lodging; Dry cleaning and laundry; Telephone and fax; Transportation between your hotel and your temporary work or business meeting location; and Tips for any of the above expenses. Ohio state tax form 2013 Meals. Ohio state tax form 2013   You ordinarily can deduct only 50% of your business-related meals expenses. Ohio state tax form 2013 You can deduct the cost of your meals while traveling on business only if your business trip is overnight or long enough to require you to stop for sleep or rest to properly perform your duties. Ohio state tax form 2013 You cannot deduct any of the cost of meals if it is not necessary for you to rest, unless you meet the rules for business entertainment. Ohio state tax form 2013 For information on entertainment expenses, see Publication 463, chapter 2. Ohio state tax form 2013   The expense of a meal includes amounts you spend for your food, beverages, taxes, and tips relating to the meal. Ohio state tax form 2013 You can deduct either 50% of the actual cost or 50% of a standard meal allowance that covers your daily meal and incidental expenses. Ohio state tax form 2013    Recordkeeping requirements. Ohio state tax form 2013 You must be able to prove your deductions for travel by adequate records or other evidence that will support your own statement. Ohio state tax form 2013 Estimates or approximations do not qualify as proof of an expense. Ohio state tax form 2013   You should keep an account book or similar record, supported by adequate documentary evidence, such as receipts, that together support each element of an expense. Ohio state tax form 2013 Generally, it is best to record the expense and get documentation of it at the time you pay it. Ohio state tax form 2013   If you choose to deduct a standard meal allowance rather than the actual expense, you do not have to keep records to prove amounts spent for meals and incidental items. Ohio state tax form 2013 However, you must still keep records to prove the actual amount of other travel expenses, and the time, place, and business purpose of your travel. Ohio state tax form 2013 More information. Ohio state tax form 2013   For detailed information on travel, recordkeeping, and the standard meal allowance, see Publication 463. Ohio state tax form 2013 Reimbursements to employees. Ohio state tax form 2013   You generally can deduct reimbursements you pay to your employees for travel and transportation expenses they incur in the conduct of your business. Ohio state tax form 2013 Employees may be reimbursed under an accountable or nonaccountable plan. Ohio state tax form 2013 Under an accountable plan, the employee must provide evidence of expenses. Ohio state tax form 2013 Under a nonaccountable plan, no evidence of expenses is required. Ohio state tax form 2013 If you reimburse expenses under an accountable plan, deduct them as travel and transportation expenses. Ohio state tax form 2013 If you reimburse expenses under a nonaccountable plan, you must report the reimbursements as wages on Form W-2 and deduct them as wages. Ohio state tax form 2013 For more information, see Publication 535, chapter 11. Ohio state tax form 2013 Marketing Quota Penalties You can deduct as Other expenses on Schedule F penalties you pay for marketing crops in excess of farm marketing quotas. Ohio state tax form 2013 However, if you do not pay the penalty, but instead the purchaser of your crop deducts it from the payment to you, include in gross income only the amount you received. Ohio state tax form 2013 Do not take a separate deduction for the penalty. Ohio state tax form 2013 Tenant House Expenses You can deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses. Ohio state tax form 2013 These costs include repairs, utilities, insurance, and depreciation. Ohio state tax form 2013 The value of a dwelling you furnish to a tenant under the usual tenant-farmer arrangement is not taxable income to the tenant. Ohio state tax form 2013 Items Purchased for Resale If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale. Ohio state tax form 2013 You deduct this cost, including freight charges for transporting the livestock to the farm, on Schedule F, Part I. Ohio state tax form 2013 However, see Chickens, seeds, and young plants , below. Ohio state tax form 2013 Example. Ohio state tax form 2013 You use the cash method of accounting. Ohio state tax form 2013 In 2013, you buy 50 steers you will sell in 2014. Ohio state tax form 2013 You cannot deduct the cost of the steers on your 2013 tax return. Ohio state tax form 2013 You deduct their cost on your 2014 Schedule F, Part I. Ohio state tax form 2013 Chickens, seeds, and young plants. Ohio state tax form 2013   If you are a cash method farmer, you can deduct the cost of hens and baby chicks bought for commercial egg production, or for raising and resale, as an expense on Schedule F, Part I, in the year paid if you do it consistently and it does not distort income. Ohio state tax form 2013 You also can deduct the cost of seeds and young plants bought for further development and cultivation before sale as an expense on Schedule F, Part I, when paid if you do this consistently and you do not figure your income on the crop method. Ohio state tax form 2013 However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these items. Ohio state tax form 2013   If you deduct the cost of chickens, seeds, and young plants as an expense, report their entire selling price as income. Ohio state tax form 2013 You cannot also deduct the cost from the selling price. Ohio state tax form 2013   You cannot deduct the cost of seeds and young plants for Christmas trees and timber as an expense. Ohio state tax form 2013 Deduct the cost of these seeds and plants through depletion allowances. Ohio state tax form 2013 For more information, see Depletion in chapter 7. Ohio state tax form 2013   The cost of chickens and plants used as food for your family is never deductible. Ohio state tax form 2013   Capitalize the cost of plants with a preproductive period of more than 2 years, unless you can elect out of the uniform capitalization rules. Ohio state tax form 2013 These rules are discussed in chapter 6. Ohio state tax form 2013 Example. Ohio state tax form 2013 You use the cash method of accounting. Ohio state tax form 2013 In 2013, you buy 500 baby chicks to raise for resale in 2014. Ohio state tax form 2013 You also buy 50 bushels of winter wheat seed in 2013 that you sow in the fall. Ohio state tax form 2013 Unless you previously adopted the method of deducting these costs in the year you sell the chickens or the harvested crops, you can deduct the cost of both the baby chicks and the seed wheat in 2013. Ohio state tax form 2013 Election to use crop method. Ohio state tax form 2013   If you use the crop method, you can delay deducting the cost of seeds and young plants until you sell them. Ohio state tax form 2013 You must get IRS approval to use the crop method. Ohio state tax form 2013 If you follow this method, deduct the cost from the selling price to determine your profit on Schedule F, Part I. Ohio state tax form 2013 For more information, see Crop method under Special Methods of Accounting in chapter 2. Ohio state tax form 2013 Choosing a method. Ohio state tax form 2013   You can adopt either the crop method or the cash method for deducting the cost in the first year you buy egg-laying hens, pullets, chicks, or seeds and young plants. Ohio state tax form 2013   Although you must use the same method for egg-laying hens, pullets, and chicks, you can use a different method for seeds and young plants. Ohio state tax form 2013 Once you use a particular method for any of these items, use it for those items until you get IRS approval to change your method. Ohio state tax form 2013 For more information, see Change in Accounting Method in chapter 2. Ohio state tax form 2013 Other Expenses The following list, while not all-inclusive, shows some expenses you can deduct as other farm expenses on Schedule F, Part II. Ohio state tax form 2013 These expenses must be for business purposes and  (1) paid, if you use the cash method of accounting, or (2) incurred, if you use an accrual method of accounting. Ohio state tax form 2013 Accounting fees. Ohio state tax form 2013 Advertising. Ohio state tax form 2013 Business travel and meals. Ohio state tax form 2013 Commissions. Ohio state tax form 2013 Consultant fees. Ohio state tax form 2013 Crop scouting expenses. Ohio state tax form 2013 Dues to cooperatives. Ohio state tax form 2013 Educational expenses (to maintain and improve farming skills). Ohio state tax form 2013 Farm-related attorney fees. Ohio state tax form 2013 Farm magazines. Ohio state tax form 2013 Ginning. Ohio state tax form 2013 Insect sprays and dusts. Ohio state tax form 2013 Litter and bedding. Ohio state tax form 2013 Livestock fees. Ohio state tax form 2013 Marketing fees. Ohio state tax form 2013 Milk assessment. Ohio state tax form 2013 Recordkeeping expenses. Ohio state tax form 2013 Service charges. Ohio state tax form 2013 Small tools expected to last one year or less. Ohio state tax form 2013 Stamps and stationery. Ohio state tax form 2013 Subscriptions to professional, technical, and trade journals that deal with farming. Ohio state tax form 2013 Tying material and containers. Ohio state tax form 2013 Loan expenses. Ohio state tax form 2013   You prorate and deduct loan expenses, such as legal fees and commissions, you pay to get a farm loan over the term of the loan. Ohio state tax form 2013 Tax preparation fees. Ohio state tax form 2013   You can deduct as a farm business expense on Schedule F the cost of preparing that part of your tax return relating to your farm business. Ohio state tax form 2013 You may be able to deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Ohio state tax form 2013   You also can deduct on Schedule F the amount you pay or incur in resolving tax issues relating to your farm business. Ohio state tax form 2013 Domestic Production Activities Deduction Generally, you are allowed a deduction for income attributable to domestic production activities. Ohio state tax form 2013 You can deduct 9% of the lesser of your qualified production activities income or your taxable income (adjusted gross income for individuals) for the tax year. Ohio state tax form 2013 Your deduction is limited to 50% of the Form W-2 wages you paid for the tax year that are properly allocable to domestic production gross receipts. Ohio state tax form 2013 For this purpose, Form W-2 wages do not include noncash wages paid for agricultural labor, such as compensation paid as commodities. Ohio state tax form 2013 Also, excluded from Form W-2 wages are wages paid to your children under age 18 and nontaxable fringe benefits. Ohio state tax form 2013 Income from cooperatives. Ohio state tax form 2013   If you receive a patronage dividend or qualified per-unit retain allocation from a cooperative which is engaged in the manufacturing, production, growth, or extraction in whole or in significant part of any agricultural or horticultural product or in the marketing of agricultural or horticultural products, your income from the cooperative can give rise to a domestic production activities deduction. Ohio state tax form 2013 This deduction amount is reported on Form 1099-PATR, box 6. Ohio state tax form 2013 In order for you to qualify for the deduction, the cooperative is required to send you a written notice designating your portion of the domestic production activities deduction. Ohio state tax form 2013 More information. Ohio state tax form 2013   For more information on the domestic production activities deduction, see the Instructions for Form 8903. Ohio state tax form 2013 Capital Expenses A capital expense is a payment, or a debt incurred, for the acquisition, improvement, or restoration of an asset that is expected to last more than one year. Ohio state tax form 2013 You include the expense in the basis of the asset. Ohio state tax form 2013 Uniform capitalization rules also require you to capitalize or include in inventory certain other expenses. Ohio state tax form 2013 See chapters 2  and 6. Ohio state tax form 2013 Capital expenses are generally not deductible, but they may be depreciable. Ohio state tax form 2013 However, you can elect to deduct certain capital expenses, such as the following. Ohio state tax form 2013 The cost of fertilizer, lime, etc. Ohio state tax form 2013 (See Fertilizer and Lime under Deductible Expenses , earlier. Ohio state tax form 2013 ) Soil and water conservation expenses. Ohio state tax form 2013 (See chapter 5. Ohio state tax form 2013 ) The cost of property that qualifies for a deduction under section 179. Ohio state tax form 2013 (See chapter 7. Ohio state tax form 2013 ) Business start-up costs. Ohio state tax form 2013 (See Business start-up and organizational costs , later. Ohio state tax form 2013 ) Forestation and reforestation costs. Ohio state tax form 2013 (See Forestation and reforestation costs , later. Ohio state tax form 2013 ) Generally, the costs of the following items, including the costs of material, hired labor, and installation, are capital expenses. Ohio state tax form 2013 Land and buildings. Ohio state tax form 2013 Additions, alterations, and improvements to buildings, etc. Ohio state tax form 2013 Cars and trucks. Ohio state tax form 2013 Equipment and machinery. Ohio state tax form 2013 Fences. Ohio state tax form 2013 Draft, breeding, sport, and dairy livestock. Ohio state tax form 2013 Repairs to machinery, equipment, trucks, and cars that prolong their useful life, increase their value, or adapt them to different use. Ohio state tax form 2013 Water wells, including drilling and equipping costs. Ohio state tax form 2013 Land preparation costs, such as: Clearing land for farming, Leveling and conditioning land, Purchasing and planting trees, Building irrigation canals and ditches, Laying irrigation pipes, Installing drain tile, Modifying channels or streams, Constructing earthen, masonry, or concrete tanks, reservoirs, or dams, and Building roads. Ohio state tax form 2013 Business start-up and organizational costs. Ohio state tax form 2013   You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. Ohio state tax form 2013 The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Ohio state tax form 2013 Any remaining costs must be amortized. Ohio state tax form 2013 See chapter 7. Ohio state tax form 2013   You elect to deduct start-up or organizational costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Ohio state tax form 2013 However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Ohio state tax form 2013 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Ohio state tax form 2013 9100-2” at the top of the amended return. Ohio state tax form 2013 File the amended return at the same address you filed the original return. Ohio state tax form 2013 The election applies when figuring taxable income for the current tax year and all subsequent years. Ohio state tax form 2013   You can choose to forgo the election by clearly electing to capitalize your start-up or organizational costs on an income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. Ohio state tax form 2013 For more information about start-up and organizational costs, see chapter 7. Ohio state tax form 2013 Crop production expenses. Ohio state tax form 2013   The uniform capitalization rules generally require you to capitalize expenses incurred in producing plants. Ohio state tax form 2013 However, except for certain taxpayers required to use an accrual method of accounting, the capitalization rules do not apply to plants with a preproductive period of 2 years or less. Ohio state tax form 2013 For more information, see Uniform Capitalization Rules in chapter 6. Ohio state tax form 2013 Timber. Ohio state tax form 2013   Capitalize the cost of acquiring timber. Ohio state tax form 2013 Do not include the cost of land in the cost of the timber. Ohio state tax form 2013 You must generally capitalize direct costs incurred in reforestation. Ohio state tax form 2013 However, you can elect to deduct some forestation and reforestation costs. Ohio state tax form 2013 See Forestation and reforestation costs next. Ohio state tax form 2013 Reforestation costs include the following. Ohio state tax form 2013 Site preparation costs, such as: Girdling, Applying herbicide, Baiting rodents, and Clearing and controlling brush. Ohio state tax form 2013 The cost of seed or seedlings. Ohio state tax form 2013 Labor and tool expenses. Ohio state tax form 2013 Depreciation on equipment used in planting or seeding. Ohio state tax form 2013 Costs incurred in replanting to replace lost seedlings. Ohio state tax form 2013 You can choose to capitalize certain indirect reforestation costs. Ohio state tax form 2013   These capitalized amounts are your basis for the timber. Ohio state tax form 2013 Recover your basis when you sell the timber or take depletion allowances when you cut the timber. Ohio state tax form 2013 See Depletion in chapter 7. Ohio state tax form 2013 Forestation and reforestation costs. Ohio state tax form 2013   You can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. Ohio state tax form 2013 Any remaining costs can be amortized over an 84-month period. Ohio state tax form 2013 See chapter 7. Ohio state tax form 2013 If you make an election to deduct or amortize qualifying reforestation costs, you should create and maintain separate timber accounts for each qualified timber property. Ohio state tax form 2013 The accounts should include all reforestation treatments and the dates they were applied. Ohio state tax form 2013 Any qualified timber property that is subject to the deduction or amortization election cannot be included in any other timber account for which depletion is allowed. Ohio state tax form 2013 The timber account should be maintained until the timber is disposed of. Ohio state tax form 2013 For more information, see Notice 2006-47, 2006-20 I. Ohio state tax form 2013 R. Ohio state tax form 2013 B. Ohio state tax form 2013 892, available at  www. Ohio state tax form 2013 irs. Ohio state tax form 2013 gov/irb/2006-20_IRB/ar11. Ohio state tax form 2013 html. Ohio state tax form 2013   You elect to deduct forestation and reforestation costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the expenses were paid or incurred. Ohio state tax form 2013 If you are filing Form T (Timber), Forest Activities Schedule, also complete Form T (Timber), Part IV. Ohio state tax form 2013 If you are not filing Form T (Timber), attach a statement to your return with the following information. Ohio state tax form 2013 The unique stand identification numbers. Ohio state tax form 2013 The total number of acres reforested during the tax year. Ohio state tax form 2013 The nature of the reforestation treatments. Ohio state tax form 2013 The total amounts of the qualified reforestation expenditures eligible to be amortized or deducted. Ohio state tax form 2013   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Ohio state tax form 2013 Clearly indicate the election on your amended return and write “Filed pursuant to section 301. Ohio state tax form 2013 9100-2” at the top of the amended return. Ohio state tax form 2013 File the amended return at the same address you filed the original return. Ohio state tax form 2013    For more information about forestation and reforestation costs, see chapter 7. Ohio state tax form 2013    For more information about timber, see Agriculture Handbook Number 731, Forest Landowners' Guide to the Federal Income Tax. Ohio state tax form 2013 You can view this publication on the Internet at  www. Ohio state tax form 2013 fs. Ohio state tax form 2013 fed. Ohio state tax form 2013 us/publications. Ohio state tax form 2013 Christmas tree cultivation. Ohio state tax form 2013   If you are in the business of planting and cultivating Christmas trees to sell when they are more than 6 years old, capitalize expenses incurred for planting and stump culture and add them to the basis of the standing trees. Ohio state tax form 2013 Recover these expenses as part of your adjusted basis when you sell the standing trees or as depletion allowances when you cut the trees. Ohio state tax form 2013 For more information, see Timber Depletion under Depletion in chapter 7. Ohio state tax form 2013   You can deduct as business expenses the costs incurred for shearing and basal pruning of these trees. Ohio state tax form 2013 Expenses incurred for silvicultural practices, such as weeding or cleaning, and noncommercial thinning are also deductible as business expenses. Ohio state tax form 2013   Capitalize the cost of land improvements, such as road grading, ditching, and fire breaks, that have a useful life beyond the tax year. Ohio state tax form 2013 If the improvements do not have a determinable useful life, add their cost to the basis of the land. Ohio state tax form 2013 The cost is recovered when you sell or otherwise dispose of it. Ohio state tax form 2013 If the improvements have a determinable useful life, recover their cost through depreciation. Ohio state tax form 2013 Capitalize the cost of equipment and other depreciable assets, such as culverts and fences, to the extent you do not use them in planting Christmas trees. Ohio state tax form 2013 Recover these costs through depreciation. Ohio state tax form 2013 Nondeductible Expenses You cannot deduct personal expenses and certain other items on your tax return even if they relate to your farm. Ohio state tax form 2013 Personal, Living, and Family Expenses You cannot deduct certain personal, living, and family expenses as business expenses. Ohio state tax form 2013 These include rent and insurance premiums paid on property used as your home, life insurance premiums on yourself or your family, the cost of maintaining cars, trucks, or horses for personal use, allowances to minor children, attorneys' fees and legal expenses incurred in personal matters, and household expenses. Ohio state tax form 2013 Likewise, the cost of purchasing or raising produce or livestock consumed by you or your family is not deductible. Ohio state tax form 2013 Other Nondeductible Items You cannot deduct the following items on your tax return. Ohio state tax form 2013 Loss of growing plants, produce, and crops. Ohio state tax form 2013   Losses of plants, produce, and crops raised for sale are generally not deductible. Ohio state tax form 2013 However, you may have a deductible loss on plants with a preproductive period of more than 2 years. Ohio state tax form 2013 See chapter 11 for more information. Ohio state tax form 2013 Repayment of loans. Ohio state tax form 2013   You cannot deduct the repayment of a loan. Ohio state tax form 2013 However, if you use the proceeds of a loan for farm business expenses, you can deduct the interest on the loan. Ohio state tax form 2013 See Interest , earlier. Ohio state tax form 2013 Estate, inheritance, legacy, succession, and gift taxes. Ohio state tax form 2013   You cannot deduct estate, inheritance, legacy, succession, and gift taxes. Ohio state tax form 2013 Loss of livestock. Ohio state tax form 2013   You cannot deduct as a loss the value of raised livestock that die if you deducted the cost of raising them as an expense. Ohio state tax form 2013 Losses from sales or exchanges between related persons. Ohio state tax form 2013   You cannot deduct losses from sales or exchanges of property between you and certain related persons, including your spouse, brother, sister, ancestor, or lineal descendant. Ohio state tax form 2013 For more information, see chapter 2 of Publication 544, Sales and Other Dispositions of Assets. Ohio state tax form 2013 Cost of raising unharvested crops. Ohio state tax form 2013   You cannot deduct the cost of raising unharvested crops sold with land owned more than one year if you sell both at the same time and to the same person. Ohio state tax form 2013 Add these costs to the basis of the land to determine the gain or loss on the sale. Ohio state tax form 2013 For more information, see Section 1231 Gains and Losses in chapter 9. Ohio state tax form 2013 Cost of unharvested crops bought with land. Ohio state tax form 2013   Capitalize the purchase price of land, including the cost allocable to unharvested crops. Ohio state tax form 2013 You cannot deduct the cost of the crops at the time of purchase. Ohio state tax form 2013 However, you can deduct this cost in figuring net profit or loss in the tax year you sell the crops. Ohio state tax form 2013 Cost related to gifts. Ohio state tax form 2013   You cannot deduct costs related to your gifts of agricultural products or property held for sale in the ordinary course of your business. Ohio state tax form 2013 The costs are not deductible in the year of the gift or any later year. Ohio state tax form 2013 For example, you cannot deduct the cost of raising cattle or the cost of planting and raising unharvested wheat on parcels of land given as a gift to your children. Ohio state tax form 2013 Club dues and membership fees. Ohio state tax form 2013   Generally, you cannot deduct amounts you pay or incur for membership in any club organized for business, pleasure, recreation, or any other social purpose. Ohio state tax form 2013 This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Ohio state tax form 2013 Exception. Ohio state tax form 2013   The following organizations will not be treated as a club organized for business, pleasure, recreation, or other social purposes, unless one of its main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. Ohio state tax form 2013 Boards of trade. Ohio state tax form 2013 Business leagues. Ohio state tax form 2013 Chambers of commerce. Ohio state tax form 2013 Civic or public service organizations. Ohio state tax form 2013 Professional associations. Ohio state tax form 2013 Trade associations. Ohio state tax form 2013 Real estate boards. Ohio state tax form 2013 Fines and penalties. Ohio state tax form 2013   You cannot deduct fines and penalties, except penalties for exceeding marketing quotas, discussed earlier. Ohio state tax form 2013 Losses From Operating a Farm If your deductible farm expenses are more than your farm income, you have a loss from the operation of your farm. Ohio state tax form 2013 The amount of the loss you can deduct when figuring your taxable income may be limited. Ohio state tax form 2013 To figure your deductible loss, you must apply the following limits. Ohio state tax form 2013 The at-risk limits. Ohio state tax form 2013 The passive activity limits. Ohio state tax form 2013 The following discussions explain these limits. Ohio state tax form 2013 If your deductible loss after applying these limits is more than your other income for the year, you may have a net operating loss. Ohio state tax form 2013 See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Ohio state tax form 2013 If you do not carry on your farming activity to make a profit, your loss deduction may be limited by the not-for-profit rules. Ohio state tax form 2013 See Not-for-Profit Farming, later. Ohio state tax form 2013 At-Risk Limits The at-risk rules limit your deduction for losses from most business or income-producing activities, including farming. Ohio state tax form 2013 These rules limit the losses you can deduct when figuring your taxable income. Ohio state tax form 2013 The deductible loss from an activity is limited to the amount you have at risk in the activity. Ohio state tax form 2013 You are at risk in any activity for: The money and adjusted basis of property you contribute to the activity, and Amounts you borrow for use in the activity if: You are personally liable for repayment, or You pledge property (other than property used in the activity) as security for the loan. Ohio state tax form 2013 You are not at risk, however, for amounts you borrow for use in a farming activity from a person who has an interest in the activity (other than as a creditor) or a person related to someone (other than you) having such an interest. Ohio state tax form 2013 For more information, see Publication 925. Ohio state tax form 2013 Passive Activity Limits A passive activity is generally any activity involving the conduct of any trade or business in which you do not materially participate. Ohio state tax form 2013 Generally, a rental activity is a passive activity. Ohio state tax form 2013 If you have a passive activity, special rules limit the loss you can deduct in the tax year. Ohio state tax form 2013 You generally can deduct losses from passive activities only up to income from passive activities. Ohio state tax form 2013 Credits are similarly limited. Ohio state tax form 2013 For more information, see Publication 925. Ohio state tax form 2013 Excess Farm Loss Limit For tax years beginning after 2009, excess farm losses (defined below) are not deductible if you received certain applicable subsidies. Ohio state tax form 2013 This limit applies to any farming businesses, other than a C corporation, that received a direct or counter-cyclical payment (or any payment in lieu of such payments) under title I of the Food, Conservation, and Energy Act of 2008, or from a Commodity Credit Corporation loan. Ohio state tax form 2013 Your farming losses are limited to the greater of: $300,000 ($150,000 for a married person filing a separate return), or The total net farm income for the prior five tax years. Ohio state tax form 2013 Farming losses from casualty losses or losses by reason of disease or drought are disregarded for purposes of figuring this limitation. Ohio state tax form 2013 Also, the limitation on farm losses should be applied before the passive activity loss rules are applied. Ohio state tax form 2013 For more details, see IRC section 461(j). Ohio state tax form 2013 Excess farm loss. Ohio state tax form 2013   Generally, an excess farm loss is the amount of your farming loss that exceeds the amount of the limitation (as described above). Ohio state tax form 2013 This loss can be determined by taking the excess of: The total deductions for the tax year from your farming businesses, over The total gross income or gain for the tax year from your farming businesses, plus the greater of: $300,000 ($150,000 for a married person filing a separate return), or The excess (if any) of the total gross income or gain from your farming businesses for the prior five tax years over the total deductions from your farming businesses for the prior five tax years. Ohio state tax form 2013   Excess farm losses that are disallowed can be carried forward to the next tax year and treated as a deduction from that year. Ohio state tax form 2013 Not-for-Profit Farming If you operate a farm for profit, you can deduct all the ordinary and necessary expenses of carrying on the business of farming on Schedule F. Ohio state tax form 2013 However, if you do not carry on your farming activity, or other activity you engage or invest in, to make a profit, you report the income from the activity on Form 1040, line 21, and you can deduct expenses of carrying on the activity only if you itemize your deductions on Schedule A (Form 1040). Ohio state tax form 2013 Also, there is a limit on the deductions you can take. Ohio state tax form 2013 You cannot use a loss from that activity to offset income from other activities. Ohio state tax form 2013 Activities you do as a hobby, or mainly for sport or recreation, come under this limit. Ohio state tax form 2013 An investment activity intended only to produce tax losses for the investors also comes under this limit. Ohio state tax form 2013 The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. Ohio state tax form 2013 It does not apply to corporations other than S corporations. Ohio state tax form 2013 In determining whether you are carrying on your farming activity for profit, all the facts are taken into account. Ohio state tax form 2013 No one factor alone is decisive. Ohio state tax form 2013 Among the factors to consider are whether: You operate your farm in a businesslike manner; The time and effort you spend on farming indicate you intend to make it profitable; You depend on income from farming for your livelihood; Your losses are due to circumstances beyond your control or are normal in the start-up phase of farming; You change your methods of operation in an attempt to improve profitability; You, or your advisors, have the knowledge needed to carry on the farming activity as a successful business; You were successful in making a profit in similar activities in the past; You make a profit from farming in some years and the amount of profit you make; and You can expect to make a future profit from the appreciation of the assets used in the farming activity. Ohio state tax form 2013 Presumption of profit. Ohio state tax form 2013   Your farming or other activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. Ohio state tax form 2013 Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for profit if they produced a profit in at least 2 of the last 7 tax years, including the current year. Ohio state tax form 2013 The activity must be substantially the same for each year within this period. Ohio state tax form 2013 You have a profit when the gross income from an activity is more than the deductions for it. Ohio state tax form 2013   If a taxpayer dies before the end of the 5-year (or 7-year) period, the period ends on the date of the taxpayer's death. Ohio state tax form 2013   If your business or investment activity passes this 3- (or 2-) years-of-profit test, presume it is carried on for profit. Ohio state tax form 2013 This means the limits discussed here do not apply. Ohio state tax form 2013 You can take all your business deductions from the activity on Schedule F, even for the years that you have a loss. Ohio state tax form 2013 You can rely on this presumption in every case, unless the IRS shows it is not valid. Ohio state tax form 2013   If you fail the 3- (or 2-) years-of-profit test, you still may be considered to operate your farm for profit by considering the factors listed earlier. Ohio state tax form 2013 Using the presumption later. Ohio state tax form 2013   If you are starting out in farming and do not have 3 (or 2) years showing a profit, you may want to take advantage of this presumption later, after you have had the 5 (or 7) years of experience allowed by the test. Ohio state tax form 2013   You can choose to do this by filing Form 5213. Ohio state tax form 2013 Filing this form postpones any determination that your farming activity is not carried on for profit until 5 (or 7) years have passed since you first started farming. Ohio state tax form 2013 You must file Form 5213 within 3 years after the due date of your return for the year in which you first carried on the activity, or, if earlier, within 60 days after receiving a written notice from the IRS proposing to disallow deductions attributable to the activity. Ohio state tax form 2013   The benefit gained by making this choice is that the IRS will not immediately question whether your farming activity is engaged in for profit. Ohio state tax form 2013 Accordingly, it will not limit your deductions. Ohio state tax form 2013 Rather, you will gain time to earn a profit in 3 (or 2) out of the first 5 (or 7) years you carry on the farming activity. Ohio state tax form 2013 If you show 3 (or 2) years of profit at the end of this period, your deductions are not limited under these rules. Ohio state tax form 2013 If you do not have 3 (or 2) years of profit (and cannot otherwise show that you operated your farm for profit), the limit applies retroactively to any year in the 5-year (or 7-year) period with a loss. Ohio state tax form 2013   Filing Form 5213 automatically extends the period of limitations on any year