Federal Taxes

How Much Should I Depreciate My Oil Royalties for Income Tax Purpose?
How Much Should I Depreciate My Oil Royalties for Income Tax Purpose?

Technically, you don't depreciate royalties. The Internal Revenue Service lets you depreciate buildings and capital equipment as it deteriorates, but the agency has you deplete oil and gas investments as the wells generally empty out. Depletion might not be depreciation, but it ...

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More in Federal Taxes

What Is a Taxable Entity?
What Is a Taxable Entity?

The IRS considers most individuals, married couples and corporations as taxable entities. Taxable entities must file tax returns each year if they have any taxable income. Except for qualified ...Read More

How to Claim Tax Treaty Benefits on a Form 1040
How to Claim Tax Treaty Benefits on a Form 1040

The United States is the only country to tax its citizens regardless of where they earn their income. In addition, the U.S. taxes non-citizens' earnings from activities while they live here. ...Read More

What Determines What Form You Will Fill out for Your Tax Returns?
What Determines What Form You Will Fill out for Your Tax Returns?

Using the right form is the important first step in filing your federal income tax return. The Internal Revenue Service offers three basic choices: 1040EZ, 1040A and 1040. EZ is the simplest, the ...Read More

How to Reduce Alternative Minimum Tax
How to Reduce Alternative Minimum Tax

Enacted in 1969, the alternative minimum tax started out as a tool to prevent a small number of high-income earners from paying absolutely no taxes. The AMT eliminates personal exemptions and ...Read More

How to Determine Capital Loss From Stocks in the Short-Term Vs. Long-Term Carry Forward
How to Determine Capital Loss From Stocks in the Short-Term Vs. Long-Term Carry Forward

If you've had a rough year selling stocks, tax relief is in sight. Not only can you use your losses to offset any gains, you can also take a limited tax deduction. In addition, you can carry forward ...Read More

How to Report the Rollover of a 401(k) to a Traditional IRA on a 1040
How to Report the Rollover of a 401(k) to a Traditional IRA on a 1040

Whether you're looking for new investment options or just want to consolidate your retirement assets, you can move your 401(k) money to a traditional individual retirement account tax-free with a ...Read More

How Will a 1099-C Affect Our Income Taxes?
How Will a 1099-C Affect Our Income Taxes?

When a creditor decides not to pursue – or can’t pursue -- you on a debt, it will send you a Form 1099-C. By doing so, the creditor triggers various tax consequences. The creditor writes off the ...Read More

How Does a Death in the Family Affect My Taxes?
How Does a Death in the Family Affect My Taxes?

Depending on your particular situation, the death of a family member usually has tax implications. According to Internal Revenue Service guidelines, the spouse or person in charge of the estate must ...Read More

The Tax Effects of a Liquidation of a Partnership
The Tax Effects of a Liquidation of a Partnership

When a business operates as a partnership, the partners each report a percentage -- which is usually the same as their percentage of ownership -- of annual earnings on their personal returns. As a ...Read More

If I Owe Back Taxes, Will My Lottery Winnings Be Withheld?
If I Owe Back Taxes, Will My Lottery Winnings Be Withheld?

When you owe back taxes, the Internal Revenue Service uses a number of methods to collect the money from you if you don't pay voluntarily. If you win the lottery, your prize is always taxable, and ...Read More

How Much Can I Claim on My Taxes for a Charitable Donation Without Evidence?
How Much Can I Claim on My Taxes for a Charitable Donation Without Evidence?

Tax deductible donations are one way to ease your tax burden, but you have to do so carefully. As always, the IRS has very specific criteria that must be met before you're able to claim any ...Read More

Does a Trust Have a Federal Gift Tax Exemption?
Does a Trust Have a Federal Gift Tax Exemption?

A trust offers a way to set aside assets for heirs or to manage money for a beneficiary. If you bequeath money or property to heirs through a trust, your estate will avoid probate court, although the ...Read More

Tax Treatment of Dividends From Trusts
Tax Treatment of Dividends From Trusts

A trust is a financial entity set up to shelter assets from probate court, or to control the use of funds by a trustee for a specific purpose. The Internal Revenue Service normally taxes dividends ...Read More

Is Interest on a Minor's Bank Accounts Taxable?
Is Interest on a Minor's Bank Accounts Taxable?

Interest paid on a minor's account is taxable. However, people younger than 18 seldom earn sufficient income to create tax problems, so it rarely matters what types of accounts they have. Two primary ...Read More