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Amending A Return

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Amending A Return

Amending a return Publication 509 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Amending a return Tax questions. Amending a return Background Information for Using the Tax CalendarsElectronic deposit requirement. Amending a return Legal holidays. Amending a return Statewide legal holidays. Amending a return Future Developments For the latest information about developments related to Publication 509, such as legislation enacted after it was published, go to www. Amending a return irs. Amending a return gov/pub509. Amending a return What's New Publication 1518 discontinued after 2013. Amending a return  Publication 1518, IRS Tax Calendar for Small Businesses and Self-Employed, is discontinued after 2013. Amending a return An IRS Tax Calendar and most of the information previously contained in Publication 1518 can be found at www. Amending a return irs. Amending a return gov/taxcalendar. Amending a return Reminders Photographs of missing children. Amending a return  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Amending a return Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Amending a return You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Amending a return Introduction A tax calendar is a 12-month calendar divided into quarters. Amending a return The calendar gives specific due dates for: Filing tax forms, Paying taxes, and Taking other actions required by federal tax law. Amending a return What does this publication contain?   This publication contains the following. Amending a return A section on how to use the tax calendars. Amending a return Three tax calendars: General Tax Calendar, Employer's Tax Calendar, and Excise Tax Calendar. Amending a return A table showing the semiweekly deposit due dates for payroll taxes for 2014. Amending a return   Most of the due dates discussed in this publication are also included in the IRS Tax Calendar available at www. Amending a return irs. Amending a return gov/taxcalendar. Amending a return Who should use this publication?   Primarily, employers need to use this publication. Amending a return However, the General Tax Calendar has important due dates for all businesses and individuals. Amending a return Anyone who must pay excise taxes may need the Excise Tax Calendar . Amending a return What are the advantages of using a tax calendar?   The following are advantages of using a calendar. Amending a return You do not have to figure the due dates yourself. Amending a return You can file or pay timely and avoid penalties. Amending a return You do not have to adjust the due dates for Saturdays, Sundays, and legal holidays. Amending a return You do not have to adjust the due dates for special banking rules if you use the Employer's Tax Calendar or Excise Tax Calendar . Amending a return Which calendar(s) should I use?   To decide which calendar(s) to use, first look at the General Tax Calendar and highlight the dates that apply to you. Amending a return If you are an employer, also use the Employer's Tax Calendar . Amending a return If you must pay excise taxes, use the Excise Tax Calendar . Amending a return Depending on your situation, you may need to use more than one calendar. Amending a return Table 1. Amending a return Useful Publications IF you are. Amending a return . Amending a return . Amending a return THEN you may need. Amending a return . Amending a return . Amending a return An employer • Publication 15 (Circular E), Employer's Tax Guide. Amending a return  • Publication 15-A, Employer's Supplemental Tax Guide. Amending a return  • Publication 15-B, Employer's Tax Guide to Fringe Benefits. Amending a return  • Publication 926, Household Employer's Tax Guide. Amending a return A farmer • Publication 51 (Circular A), Agricultural Employer's Tax Guide. Amending a return  • Publication 225, Farmer's Tax Guide. Amending a return An individual • Publication 505, Tax Withholding and Estimated Tax. Amending a return Required to pay excise taxes • Publication 510, Excise Taxes. Amending a return What is not in these calendars?   The calendars do not cover the employment or excise tax deposit rules. Amending a return You can find the deposit rules for employment taxes in Publication 15 (Circular E), Employer's Tax Guide. Amending a return The deposit rules for excise taxes are in Publication 510, Excise Taxes, and in the Instructions for Form 720, Quarterly Federal Excise Tax Return. Amending a return In addition, the calendars do not cover filing forms and other requirements for: Estate taxes, Gift taxes, Trusts, Exempt organizations, Certain types of corporations, or Foreign partnerships. Amending a return What other publications and tax forms will I need?   Table 1 lists other publications you may need to order. Amending a return Each calendar lists the forms you may need. Amending a return   See How To Get Tax Help near the end of this publication for information about getting publications and forms. Amending a return Comments and suggestions. Amending a return   We welcome your comments about this publication and your suggestions for future editions. Amending a return   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Amending a return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amending a return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amending a return   You can send us comments from www. Amending a return irs. Amending a return gov/formspubs. Amending a return Click on More Information and then click on Comment on Tax Forms and Publications. Amending a return   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our forms and publications. Amending a return Ordering forms and publications. Amending a return   Visit www. Amending a return irs. Amending a return gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Amending a return Internal Revenue Service 1201 N. Amending a return Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Amending a return   If you have a tax question, check the information available on IRS. Amending a return gov or call 1-800-829-1040. Amending a return We cannot answer tax questions sent to either of the above addresses. Amending a return Background Information for Using the Tax Calendars The following brief explanations may be helpful to you in using the tax calendars. Amending a return IRS e-services make taxes easier. Amending a return   Now more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Amending a return Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make taxes easier. Amending a return    You can e-file your Form 1040; certain business tax returns such as Forms 1120, 1120S, and 1065; certain employment tax returns such as Forms 940 and 941; certain excise tax returns such as Forms 720, 2290, and 8849; and Form 1099 and other information returns. Amending a return Visit www. Amending a return irs. Amending a return gov/efile for more information. Amending a return You can pay taxes online or by phone using the Electronic Federal Tax Payments System (EFTPS). Amending a return For detailed information about using this free service, see Electronic deposit requirement below. Amending a return   Use these electronic options to make filing and paying taxes easier. Amending a return For more information on electronic payments, visit the IRS website at www. Amending a return irs. Amending a return gov/e-pay. Amending a return Tax deposits. Amending a return   Some taxes can be paid with the return on which they are reported. Amending a return However, in many cases, you have to deposit the tax before the due date for filing the return. Amending a return Tax deposits are figured for periods of time that are shorter than the time period covered by the return. Amending a return See Publication 15 (Circular E) for the employment tax deposit rules. Amending a return For the excise tax deposit rules, see Publication 510 or the Instructions for Form 720. Amending a return    Electronic deposit requirement. Amending a return   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Amending a return Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Amending a return EFTPS is a free service provided by the Department of Treasury. Amending a return If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Amending a return   To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD/TTY). Amending a return You can also visit the EFTPS website at www. Amending a return eftps. Amending a return gov. Amending a return Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Amending a return    If you fail to timely, properly, and in full make your federal tax deposit, you may be subject to a failure-to-deposit penalty. Amending a return For an EFTPS deposit to be on time, you must initiate the deposit by 8 p. Amending a return m. Amending a return Eastern time the day before the date the deposit is due. Amending a return Saturday, Sunday, or legal holiday. Amending a return   Generally, if a due date for performing any act for tax purposes falls on a Saturday, Sunday, or legal holiday, the act is considered to be performed timely if it is performed no later than the next day that is not a Saturday, Sunday, or legal holiday. Amending a return The term legal holiday means any legal holiday in the District of Columbia. Amending a return The calendars provided in this publication make the adjustment for Saturdays, Sundays, and legal holidays. Amending a return But you must make any adjustments for statewide legal holidays, as discussed next. Amending a return An exception to this rule for certain excise taxes is noted later under the Excise Tax Calendar. Amending a return Legal holidays. Amending a return   Legal holidays for 2014 are listed below. Amending a return January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. Amending a return / Inauguration Day February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans Day November 27— Thanksgiving Day December 25— Christmas Day Statewide legal holidays. Amending a return   A statewide legal holiday delays a due date for filing a return only if the IRS office where you are required to file is located in that state. Amending a return A statewide legal holiday does not delay a due date for making a federal tax deposit. Amending a return Extended due date for Forms 1098, 1099, and W-2 if filed electronically. Amending a return   If you file Forms 1098, 1099, or W-2 electronically, your due date for filing them with the IRS or the Social Security Administration (SSA) will be extended to March 31. Amending a return   For 2014, the due date for giving the recipient these forms is January 31. Amending a return   For information about filing Forms 1098, 1099, or W-2G electronically, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Amending a return For information about filing Form W-2 electronically with the SSA, visit www. Amending a return ssa. Amending a return gov/employer or call 1-800-772-6270. Amending a return Penalties. Amending a return   Whenever possible, you should take action before the listed due date. Amending a return If you are late, you may have to pay a penalty as well as interest on any overdue taxes. Amending a return   Be sure to follow all the tax laws that apply to you. Amending a return In addition to civil penalties, criminal penalties may be imposed for intentionally not paying taxes, for intentionally filing a false return, or for not filing a required return. Amending a return Use of private delivery services. Amending a return   You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns and payments. Amending a return These private delivery services include only the following. Amending a return DHL Express (DHL): DHL Same Day Service. Amending a return Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First. Amending a return United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Amending a return M. Amending a return , UPS Worldwide Express Plus, and UPS Worldwide Express. Amending a return   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Amending a return gov and enter “private delivery service” in the search box. Amending a return   The private delivery service can tell you how to get written proof of the mailing date. Amending a return    The U. Amending a return S. Amending a return Postal Service advises that private delivery services cannot deliver items to P. Amending a return O. Amending a return boxes. Amending a return You must use the U. Amending a return S. Amending a return Postal Service to mail any item to an IRS P. Amending a return O. Amending a return box address. Amending a return Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Nebraska Office of the Attorney General

Website: Nebraska Office of the Attorney General

Address: Nebraska Office of the Attorney General
Consumer Protection Division
2115 State Capitol
Lincoln, NE 68509

Phone Number: 402-471-2682

Toll-free: 1-800-727-6432 (NE) 1-888-850-7555 (in Spanish)

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking and Finance

Website: Department of Banking and Finance

Address: Department of Banking and Finance
PO Box 95006
Lincoln, NE 68509-5006

Phone Number: 402-471-2171

Toll-free: 1-877-471-3445

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
PO Box 82089
Lincoln, NE 68501-2089

Phone Number: 402-471-2201

Toll-free: 1-877-564-7323 (NE)

TTY: 1-800-833-7352

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Banking and Finance

Website: Department of Banking and Finance

Address: Department of Banking and Finance
Bureau of Securities
PO Box 95006
Lincoln, NE 68509-5006

Phone Number: 402-471-3445

Toll-free: 1-877-471-3445

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
1200 N St., Suite 300
Lincoln, NE 68508

Phone Number: 402-471-3101

Toll-free: 1-800-526-0017 (NE)

TTY: 402-471-0213

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The Amending A Return

Amending a return 6. Amending a return   Basis of Assets Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Cost BasisReal Property Allocating the Basis Uniform Capitalization Rules Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostTaxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Received as a Gift Property Transferred From a Spouse Inherited Property Property Distributed From a Partnership or Corporation Introduction Your basis is the amount of your investment in property for tax purposes. Amending a return Use basis to figure the gain or loss on the sale, exchange, or other disposition of property. Amending a return Also use basis to figure depreciation, amortization, depletion, and casualty losses. Amending a return If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. Amending a return Only the basis allocated to the business or investment use of the property can be depreciated. Amending a return Your original basis in property is adjusted (increased or decreased) by certain events. Amending a return For example, if you make improvements to the property, increase your basis. Amending a return If you take deductions for depreciation, or casualty losses, or claim certain credits, reduce your basis. Amending a return Keep accurate records of all items that affect the basis of your assets. Amending a return For information on keeping records, see chapter 1. Amending a return Topics - This chapter discusses: Cost basis Adjusted basis Basis other than cost Useful Items - You may want to see: Publication 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property See chapter 16 for information about getting publications and forms. Amending a return Cost Basis The basis of property you buy is usually its cost. Amending a return Cost is the amount you pay in cash, debt obligations, other property, or services. Amending a return Your cost includes amounts you pay for sales tax, freight, installation, and testing. Amending a return The basis of real estate and business assets will include other items, discussed later. Amending a return Basis generally does not include interest payments. Amending a return However, see Carrying charges and Capitalized interest in chapter 4 of Publication 535. Amending a return You also may have to capitalize (add to basis) certain other costs related to buying or producing property. Amending a return Under the uniform capitalization rules, discussed later, you may have to capitalize direct costs and certain indirect costs of producing property. Amending a return Loans with low or no interest. Amending a return   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus the amount considered to be unstated interest. Amending a return You generally have unstated interest if your interest rate is less than the applicable federal rate. Amending a return See the discussion of unstated interest in Publication 537, Installment Sales. Amending a return Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. Amending a return If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. Amending a return Some of these expenses are discussed next. Amending a return Lump sum purchase. Amending a return   If you buy improvements, such as buildings, and the land on which they stand for a lump sum, allocate your cost basis between the land and improvements. Amending a return Allocate the cost basis according to the respective fair market values (FMVs) of the land and improvements at the time of purchase. Amending a return Figure the basis of each asset by multiplying the lump sum by a fraction. Amending a return The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. Amending a return Fair market value (FMV). Amending a return   FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Amending a return Sales of similar property on or about the same date may help in figuring the FMV of the property. Amending a return If you are not certain of the FMV of the land and improvements, you can allocate the basis according to their assessed values for real estate tax purposes. Amending a return Real estate taxes. Amending a return   If you pay the real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. Amending a return   If you reimburse the seller for taxes the seller paid for you, you generally can deduct that amount as a tax expense. Amending a return Whether or not you reimburse the seller, do not include that amount in the basis of your property. Amending a return Settlement costs. Amending a return   Your basis includes the settlement fees and closing costs for buying the property. Amending a return See Publication 551 for a detailed list of items you can and cannot include in basis. Amending a return   Do not include fees and costs for getting a loan on the property. Amending a return Also, do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Amending a return Points. Amending a return   If you pay points to get a loan (including a mortgage, second mortgage, or line-of-credit), do not add the points to the basis of the related property. Amending a return You may be able to deduct the points currently or over the term of the loan. Amending a return For more information about deducting points, see Points in chapter 4 of Publication 535. Amending a return Assumption of a mortgage. Amending a return   If you buy property and assume (or buy the property subject to) an existing mortgage, your basis includes the amount you pay for the property plus the amount you owe on the mortgage. Amending a return Example. Amending a return If you buy a farm for $100,000 cash and assume a mortgage of $400,000, your basis is $500,000. Amending a return Constructing assets. Amending a return   If you build property or have assets built for you, your expenses for this construction are part of your basis. Amending a return Some of these expenses include the following costs: Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. Amending a return   In addition, if you use your own employees, farm materials, and equipment to build an asset, do not deduct the following expenses. Amending a return You must capitalize them (include them in the asset's basis). Amending a return Employee wages paid for the construction work, reduced by any employment credits allowed. Amending a return Depreciation on equipment you own while it is used in the construction. Amending a return Operating and maintenance costs for equipment used in the construction. Amending a return The cost of business supplies and materials used in the construction. Amending a return    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. Amending a return Allocating the Basis In some instances, the rules for determining basis apply to a group of assets acquired in the same transaction or to property that consists of separate items. Amending a return To determine the basis of these assets or separate items, there must be an allocation of basis. Amending a return Group of assets acquired. Amending a return   If you buy multiple assets for a lump sum, allocate the amount you pay among the assets. Amending a return Use this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. Amending a return You and the seller may agree in the sales contract to a specific allocation of the purchase price among the assets. Amending a return If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. Amending a return Farming business acquired. Amending a return   If you buy a group of assets that makes up a farming business, there are special rules you must use to allocate the purchase price among the assets. Amending a return Generally, reduce the purchase price by any cash received. Amending a return Allocate the remaining purchase price to the other business assets received in proportion to (but not more than) their FMV and in a certain order. Amending a return See Trade or Business Acquired under Allocating the Basis in Publication 551 for more information. Amending a return Transplanted embryo. Amending a return   If you buy a cow that is pregnant with a transplanted embryo, allocate to the basis of the cow the part of the purchase price equal to the FMV of the cow without the implant. Amending a return Allocate the rest of the purchase price to the basis of the calf. Amending a return Neither the cost allocated to the cow nor the cost allocated to the calf is deductible as a current business expense. Amending a return Uniform Capitalization Rules Under the uniform capitalization rules, you must include certain direct and indirect costs in the basis of property you produce or in your inventory costs, rather than claim them as a current deduction. Amending a return You recover these costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Amending a return Generally, you are subject to the uniform capitalization rules if you do any of the following: Produce real or tangible personal property, or Acquire property for resale. Amending a return However, this rule does not apply to personal property if your average annual gross receipts for the 3-tax-year period ending with the year preceding the current tax year are $10 million or less. Amending a return You produce property if you construct, build, install, manufacture, develop, improve, or create the property. Amending a return You are not subject to the uniform capitalization rules if the property is produced for personal use. Amending a return In a farming business, you produce property if you raise or grow any agricultural or horticultural commodity, including plants and animals. Amending a return Plants. Amending a return   A plant produced in a farming business includes the following items: A fruit, nut, or other crop-bearing tree; An ornamental tree; A vine; A bush; Sod; and The crop or yield of a plant that will have more than one crop or yield. Amending a return Animals. Amending a return   An animal produced in a farming business includes any stock, poultry or other bird, and fish or other sea life. Amending a return The direct and indirect costs of producing plants or animals include preparatory costs and preproductive period costs. Amending a return Preparatory costs include the acquisition costs of the seed, seedling, plant, or animal. Amending a return For plants, preproductive period costs include the costs of items such as irrigation, pruning, frost protection, spraying, and harvesting. Amending a return For animals, preproductive period costs include the costs of items such as feed, maintaining pasture or pen areas, breeding, veterinary services, and bedding. Amending a return Exceptions. Amending a return   In a farming business, the uniform capitalization rules do not apply to: Any animal, Any plant with a preproductive period of 2 years or less, or Any costs of replanting certain plants lost or damaged due to casualty. Amending a return   Exceptions (1) and (2) do not apply to a corporation, partnership, or tax shelter required to use an accrual method of accounting. Amending a return See Accrual Method Required under Accounting Methods in chapter 2. Amending a return   In addition, you can elect not to use the uniform capitalization rules for plants with a preproductive period of more than 2 years. Amending a return If you make this election, special rules apply. Amending a return This election cannot be made by a corporation, partnership, or tax shelter required to use an accrual method of accounting. Amending a return This election also does not apply to any costs incurred for the planting, cultivation, maintenance, or development of any citrus or almond grove (or any part thereof) within the first 4 years the trees were planted. Amending a return    If you elect not to use the uniform capitalization rules, you must use the alternative depreciation system for all property used in any of your farming businesses and placed in service in any tax year during which the election is in effect. Amending a return See chapter 7, for additional information on depreciation. Amending a return Example. Amending a return You grow trees that have a preproductive period of more than 2 years. Amending a return The trees produce an annual crop. Amending a return You are an individual and the uniform capitalization rules apply to your farming business. Amending a return You must capitalize the direct costs and an allocable part of indirect costs incurred due to the production of the trees. Amending a return You are not required to capitalize the costs of producing the annual crop because its preproductive period is 2 years or less. Amending a return Preproductive period of more than 2 years. Amending a return   The preproductive period of plants grown in commercial quantities in the United States is based on their nationwide weighted average preproductive period. Amending a return Plants producing the crops or yields shown in Table 6-1 have a nationwide weighted average preproductive period of more than 2 years. Amending a return Other plants (not shown in Table 6-1) may also have a nationwide weighted average preproductive period of more than 2 years. Amending a return More information. Amending a return   For more information on the uniform capitalization rules that apply to property produced in a farming business, see Regulations section 1. Amending a return 263A-4. Amending a return Table 6-1. Amending a return Plants With a Preproductive Period of More Than 2 Years Plants producing the following crops or yields have a nationwide weighted average preproductive period of more than 2 years. Amending a return Almonds Apples Apricots Avocados Blueberries Cherries Chestnuts Coffee beans Currants Dates Figs Grapefruit Grapes Guavas Kiwifruit Kumquats Lemons Limes Macadamia nuts Mangoes Nectarines Olives Oranges Peaches Pears Pecans Persimmons Pistachio nuts Plums Pomegranates Prunes Tangelos Tangerines Tangors Walnuts Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the cost basis or basis other than cost (discussed later) of the property. Amending a return The adjustments to the original basis are increases or decreases to the cost basis or other basis which result in the adjusted basis of the property. Amending a return Increases to Basis Increase the basis of any property by all items properly added to a capital account. Amending a return These include the cost of any improvements having a useful life of more than 1 year. Amending a return The following costs increase the basis of property. Amending a return The cost of extending utility service lines to property. Amending a return Legal fees, such as the cost of defending and perfecting title. Amending a return Legal fees for seeking a decrease in an assessment levied against property to pay for local improvements. Amending a return Assessments for items such as paving roads and building ditches that increase the value of the property assessed. Amending a return Do not deduct these expenses as taxes. Amending a return However, you can deduct as taxes amounts assessed for maintenance or repairs, or for meeting interest charges related to the improvements. Amending a return If you make additions or improvements to business property, depreciate the basis of each addition or improvement as separate depreciable property using the rules that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. Amending a return See chapter 7. Amending a return Deducting vs. Amending a return capitalizing costs. Amending a return   Do not add to your basis costs you can deduct as current expenses. Amending a return For example, amounts paid for incidental repairs or maintenance are deductible as business expenses and are not added to basis. Amending a return However, you can elect either to deduct or to capitalize certain other costs. Amending a return See chapter 7 in Publication 535. Amending a return Decreases to Basis The following are some items that reduce the basis of property. Amending a return Section 179 deduction. Amending a return Deductions previously allowed or allowable for amortization, depreciation, and depletion. Amending a return Alternative motor vehicle credit. Amending a return See Form 8910. Amending a return Alternative fuel vehicle refueling property credit. Amending a return See Form 8911. Amending a return Residential energy efficient property credits. Amending a return See Form 5695. Amending a return Investment credit (part or all) taken. Amending a return Casualty and theft losses and insurance reimbursements. Amending a return Payments you receive for granting an easement. Amending a return Exclusion from income of subsidies for energy conservation measures. Amending a return Certain canceled debt excluded from income. Amending a return Rebates from a manufacturer or seller. Amending a return Patronage dividends received from a cooperative association as a result of a purchase of property. Amending a return See Patronage Dividends in chapter 3. Amending a return Gas-guzzler tax. Amending a return See Form 6197. Amending a return Some of these items are discussed next. Amending a return For a more detailed list of items that decrease basis, see section 1016 of the Internal Revenue Code and Publication 551. Amending a return Depreciation and section 179 deduction. Amending a return   The adjustments you must make to the basis of the property if you take the section 179 deduction or depreciate the property are explained next. Amending a return For more information on these deductions, see chapter 7. Amending a return Section 179 deduction. Amending a return   If you take the section 179 expense deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. Amending a return Depreciation. Amending a return   Decrease the basis of property by the depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. Amending a return If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. Amending a return If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. Amending a return   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for any year. Amending a return   See chapter 7 for information on figuring the depreciation you should have claimed. Amending a return   In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation you must capitalize under the uniform capitalization rules. Amending a return Casualty and theft losses. Amending a return   If you have a casualty or theft loss, decrease the basis of the property by any insurance or other reimbursement. Amending a return Also, decrease it by any deductible loss not covered by insurance. Amending a return See chapter 11 for information about figuring your casualty or theft loss. Amending a return   You must increase your basis in the property by the amount you spend on clean-up costs (such as debris removal) and repairs that restore the property to its pre-casualty condition. Amending a return To make this determination, compare the repaired property to the property before the casualty. Amending a return Easements. Amending a return   The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. Amending a return It reduces the basis of the affected part of the property. Amending a return If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. Amending a return See Easements and rights-of-way in chapter 3. Amending a return Exclusion from income of subsidies for energy conservation measures. Amending a return   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. Amending a return Reduce the basis of the property by the excluded amount. Amending a return Canceled debt excluded from income. Amending a return   If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. Amending a return A debt includes any indebtedness for which you are liable or which attaches to property you hold. Amending a return   You can exclude your canceled debt from income if the debt is any of the following. Amending a return Debt canceled in a bankruptcy case or when you are insolvent. Amending a return Qualified farm debt. Amending a return Qualified real property business debt (provided you are not a C corporation). Amending a return Qualified principal residence indebtedness. Amending a return Discharge of certain indebtedness of a qualified individual because of Midwestern disasters. Amending a return If you exclude canceled debt described in (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. Amending a return If you exclude canceled debt described in (3), you must only reduce the basis of your depreciable property by the excluded amount. Amending a return   For more information about canceled debt in a bankruptcy case, see Publication 908, Bankruptcy Tax Guide. Amending a return For more information about insolvency and canceled debt that is qualified farm debt or qualified principal residence indebtedness, see chapter 3. Amending a return For more information about qualified real property business debt, see Publication 334, Tax Guide for Small Business. Amending a return For more information about canceled debt in Midwestern disaster areas, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Amending a return Basis Other Than Cost There are times when you cannot use cost as basis. Amending a return In these situations, the fair market value or the adjusted basis of property may be used. Amending a return Examples are discussed next. Amending a return Property changed from personal to business or rental use. Amending a return   When you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. Amending a return An example of changing property from personal to business use would be changing the use of your pickup truck that you originally purchased for your personal use to use in your farming business. Amending a return   The basis for depreciation is the lesser of: The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. Amending a return   If you later sell or dispose of this property, the basis you use will depend on whether you are figuring a gain or loss. Amending a return The basis for figuring a gain is your adjusted basis in the property when you sell the property. Amending a return Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. Amending a return Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . Amending a return Property received for services. Amending a return   If you receive property for services, include the property's FMV in income. Amending a return The amount you include in income becomes your basis. Amending a return If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. Amending a return Example. Amending a return George Smith is an accountant and also operates a farming business. Amending a return George agreed to do some accounting work for his neighbor in exchange for a dairy cow. Amending a return The accounting work and the cow are each worth $1,500. Amending a return George must include $1,500 in income for his accounting services. Amending a return George's basis in the cow is $1,500. Amending a return Taxable Exchanges A taxable exchange is one in which the gain is taxable, or the loss is deductible. Amending a return A taxable gain or deductible loss also is known as a recognized gain or loss. Amending a return A taxable exchange occurs when you receive cash or get property that is not similar or related in use to the property exchanged. Amending a return If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. Amending a return Example. Amending a return You trade a tract of farmland with an adjusted basis of $2,000 for a tractor that has an FMV of $6,000. Amending a return You must report a taxable gain of $4,000 for the land. Amending a return The tractor has a basis of $6,000. Amending a return Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property you receive using the basis of the converted property. Amending a return Similar or related property. Amending a return   If the replacement property is similar or related in service or use to the converted property, the replacement property's basis is the same as the old property's basis on the date of the conversion. Amending a return However, make the following adjustments. Amending a return Decrease the basis by the following amounts. Amending a return Any loss you recognize on the involuntary conversion. Amending a return Any money you receive that you do not spend on similar property. Amending a return Increase the basis by the following amounts. Amending a return Any gain you recognize on the involuntary conversion. Amending a return Any cost of acquiring the replacement property. Amending a return Money or property not similar or related. Amending a return   If you receive money or property not similar or related in service or use to the converted property and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the involuntary conversion. Amending a return Allocating the basis. Amending a return   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. Amending a return Basis for depreciation. Amending a return   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. Amending a return For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Amending a return For more information about involuntary conversions, see chapter 11. Amending a return Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. Amending a return A nontaxable gain or loss also is known as an unrecognized gain or loss. Amending a return If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. Amending a return Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. Amending a return For an exchange to qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. Amending a return There must also be an exchange of like-kind property. Amending a return For more information, see Like-Kind Exchanges in  chapter 8. Amending a return The basis of the property you receive generally is the same as the adjusted basis of the property you gave up. Amending a return Example 1. Amending a return You traded a truck you used in your farming business for a new smaller truck to use in farming. Amending a return The adjusted basis of the old truck was $10,000. Amending a return The FMV of the new truck is $30,000. Amending a return Because this is a nontaxable exchange, you do not recognize any gain, and your basis in the new truck is $10,000, the same as the adjusted basis of the truck you traded. Amending a return Example 2. Amending a return You trade a field cultivator (adjusted basis of $8,000) for a planter (FMV of $9,000). Amending a return You use both the field cultivator and the planter in your farming business. Amending a return The basis of the planter you receive is $8,000, the same as the field cultivator traded Exchange expenses. Amending a return   Exchange expenses generally are the closing costs that you pay. Amending a return They include such items as brokerage commissions, attorney fees, and deed preparation fees. Amending a return Add them to the basis of the like-kind property you receive. Amending a return Property plus cash. Amending a return   If you trade property in a like-kind exchange and also pay money, the basis of the property you receive is the adjusted basis of the property you gave up plus the money you paid. Amending a return Example. Amending a return You trade in a truck (adjusted basis of $3,000) for another truck (FMV of $7,500) and pay $4,000. Amending a return Your basis in the new truck is $7,000 (the $3,000 adjusted basis of the old truck plus the $4,000 cash). Amending a return Special rules for related persons. Amending a return   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. Amending a return Each person must report any gain or loss not recognized on the original exchange unless the loss is not deductible under the related party rules. Amending a return Each person reports it on the tax return filed for the year in which the later disposition occurred. Amending a return If this rule applies, the basis of the property received in the original exchange will be its FMV. Amending a return For more information, see chapter 8. Amending a return Exchange of business property. Amending a return   Exchanging the property of one business for the property of another business generally is a multiple property exchange. Amending a return For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. Amending a return Basis for depreciation. Amending a return   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind transaction. Amending a return For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Amending a return Partially Nontaxable Exchanges A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. Amending a return The basis of the property you receive is the same as the adjusted basis of the property you gave up with the following adjustments. Amending a return Decrease the basis by the following amounts. Amending a return Any money you receive. Amending a return Any loss you recognize on the exchange. Amending a return Increase the basis by the following amounts. Amending a return Any additional costs you incur. Amending a return Any gain you recognize on the exchange. Amending a return If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. Amending a return Example 1. Amending a return You trade farmland (basis of $100,000) for another tract of farmland (FMV of $110,000) and $30,000 cash. Amending a return You realize a gain of $40,000. Amending a return This is the FMV of the land received plus the cash minus the basis of the land you traded ($110,000 + $30,000 − $100,000). Amending a return Include your gain in income (recognize gain) only to the extent of the cash received. Amending a return Your basis in the land you received is figured as follows. Amending a return Basis of land traded $100,000 Minus: Cash received (adjustment 1(a)) − 30,000   $70,000 Plus: Gain recognized (adjustment 2(b)) + 30,000 Basis of land received $100,000 Example 2. Amending a return You trade a truck (adjusted basis of $22,750) for another truck (FMV of $20,000) and $10,000 cash. Amending a return You realize a gain of $7,250. Amending a return This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($20,000 + $10,000 − $22,750). Amending a return You include all the gain in your income (recognize gain) because the gain is less than the cash you received. Amending a return Your basis in the truck you received is figured as follows. Amending a return Adjusted basis of truck traded $22,750 Minus: Cash received (adjustment 1(a)) −10,000   $12,750 Plus: Gain recognized (adjustment 2(b)) + 7,250 Basis of truck received $20,000 Allocation of basis. Amending a return   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. Amending a return The rest is the basis of the like-kind property. Amending a return Example. Amending a return You traded a tractor with an adjusted basis of $15,000 for another tractor that had an FMV of $12,500. Amending a return You also received $1,000 cash and a truck that had an FMV of $3,000. Amending a return The truck is unlike property. Amending a return You realized a gain of $1,500. Amending a return This is the FMV of the tractor received plus the FMV of the truck received plus the cash minus the adjusted basis of the tractor you traded ($12,500 + $3,000 + $1,000 − $15,000). Amending a return You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. Amending a return Your basis in the properties you received is figured as follows. Amending a return Adjusted basis of old tractor $15,000 Minus: Cash received (adjustment 1(a)) − 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) + 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property—the truck ($3,000). Amending a return This is the truck's FMV. Amending a return The rest ($12,500) is the basis of the tractor. Amending a return Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. Amending a return Example. Amending a return You used a tractor on your farm for 3 years. Amending a return Its adjusted basis is $22,000 and its FMV is $40,000. Amending a return You are interested in a new tractor, which sells for $60,000. Amending a return Ordinarily, you would trade your old tractor for the new one and pay the dealer $20,000. Amending a return Your basis for depreciating the new tractor would then be $42,000 ($20,000 + $22,000, the adjusted basis of your old tractor). Amending a return However, you want a higher basis for depreciating the new tractor, so you agree to pay the dealer $60,000 for the new tractor if he will pay you $40,000 for your old tractor. Amending a return Because the two transactions are dependent on each other, you are treated as having exchanged your old tractor for the new one and paid $20,000 ($60,000 − $40,000). Amending a return Your basis for depreciating the new tractor is $42,000, the same as if you traded the old tractor. Amending a return Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you. Amending a return You also must know its FMV at the time it was given to you and any gift tax paid on it. Amending a return FMV equal to or greater than donor's adjusted basis. Amending a return   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis when you received the gift. Amending a return Increase your basis by all or part of any gift tax paid, depending on the date of the gift. Amending a return   Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. Amending a return See Adjusted Basis , earlier. Amending a return   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. Amending a return Figure the increase by multiplying the gift tax paid by the following fraction. Amending a return Net increase in value of the gift Amount of the gift   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. Amending a return The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Amending a return Example. Amending a return In 2013, you received a gift of property from your mother that had an FMV of $50,000. Amending a return Her adjusted basis was $20,000. Amending a return The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). Amending a return She paid a gift tax of $7,320. Amending a return Your basis, $26,076, is figured as follows. Amending a return Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000 Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . Amending a return 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. Amending a return If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. Amending a return However, your basis cannot exceed the FMV of the gift when it was given to you. Amending a return FMV less than donor's adjusted basis. Amending a return   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Amending a return Your basis for figuring gain is the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. Amending a return Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. Amending a return (See Adjusted Basis , earlier. Amending a return )   If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither gain nor loss on the sale or other disposition of the property. Amending a return Example. Amending a return You received farmland as a gift from your parents when they retired from farming. Amending a return At the time of the gift, the land had an FMV of $80,000. Amending a return Your parents' adjusted basis was $100,000. Amending a return After you received the land, no events occurred that would increase or decrease your basis. Amending a return If you sell the land for $120,000, you will have a $20,000 gain because you must use the donor's adjusted basis at the time of the gift ($100,000) as your basis to figure a gain. Amending a return If you sell the land for $70,000, you will have a $10,000 loss because you must use the FMV at the time of the gift ($80,000) as your basis to figure a loss. Amending a return If the sales price is between $80,000 and $100,000, you have neither gain nor loss. Amending a return For instance, if the sales price was $90,000 and you tried to figure a gain using the donor's adjusted basis ($100,000), you would get a $10,000 loss. Amending a return If you then tried to figure a loss using the FMV ($80,000), you would get a $10,000 gain. Amending a return Business property. Amending a return   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. Amending a return Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. Amending a return The same rule applies to a transfer by your former spouse if the transfer is incident to divorce. Amending a return However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed plus the liabilities to which the property is subject are more than the adjusted basis of the property transferred. Amending a return The transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. Amending a return For more information, see Property Settlements in Publication 504, Divorced or Separated Individuals. Amending a return Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. Amending a return If a federal estate return is filed, you can use its appraised value. Amending a return The FMV on the alternate valuation date, if the personal representative for the estate elects to use alternate valuation. Amending a return For information on the alternate valuation, see the Instructions for Form 706. Amending a return The decedent's adjusted basis in land to the extent of the value that is excluded from the decedent's taxable estate as a qualified conservation easement. Amending a return If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. Amending a return Special-use valuation method. Amending a return   Under certain conditions, when a person dies, the executor or personal representative of that person's estate may elect to value qualified real property at other than its FMV. Amending a return If so, the executor or personal representative values the qualified real property based on its use as a farm or other closely held business. Amending a return If the executor or personal representative elects this method of valuation for estate tax purposes, this value is the basis of the property for the qualified heirs. Amending a return The qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. Amending a return   If you are a qualified heir who received special-use valuation property, increase your basis by any gain recognized by the estate or trust because of post-death appreciation. Amending a return Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or on the alternate valuation date. Amending a return Figure all FMVs without regard to the special-use valuation. Amending a return   You may be liable for an additional estate tax if, within 10 years after the death of the decedent, you transfer the property or the property stops being used as a farm. Amending a return This tax does not apply if you dispose of the property in a like-kind exchange or in an involuntary conversion in which all of the proceeds are reinvested in qualified replacement property. Amending a return The tax also does not apply if you transfer the property to a member of your family and certain requirements are met. Amending a return   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. Amending a return To increase your basis, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of payment of the additional estate tax. Amending a return If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. Amending a return The increase in your basis is considered to have occurred immediately before the event that resulted in the additional estate tax. Amending a return   You make the election by filing, with Form 706-A, United States Additional Estate Tax Return, a statement that: Contains your (and the estate's) name, address, and taxpayer identification number; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which you are making the election; and Provides any additional information required by the Form 706-A instructions. Amending a return   For more information, see Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-A, and the related instructions. Amending a return Property inherited from a decedent who died in 2010. Amending a return   If you inherited property from a decedent who died in 2010, different rules may apply. Amending a return See Publication 4895, Tax Treatment of Property Acquired From a Decendent Dying in 2010, for details. Amending a return Property Distributed From a Partnership or Corporation The following rules apply to determine a partner's basis and a shareholder's basis in property distributed respectively from a partnership to the partner with respect to the partner's interest in the partnership and from a corporation to the shareholder with respect to the shareholder's ownership of stock in the corporation. Amending a return Partner's basis. Amending a return   Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed by a partnership to the partner is its adjusted basis to the partnership immediately before the distribution. Amending a return However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction. Amending a return For more information, see Partner's Basis for Distributed Property in Publication 541, Partnerships. Amending a return Shareholder's basis. Amending a return   The basis of property distributed by a corporation to a shareholder is its fair market value. Amending a return For more information about corporate distributions, see Distributions to Shareholders in Publication 542, Corporations. Amending a return Prev  Up  Next   Home   More Online Publications