How do I make an election for Form 1040?
To indicate that a return will be taking an “election” described in the IRS code, check the appropriate box on the ELEC screen. For most of the ELEC screen elections, a checked box automatically produces an explanation for that election on an Election page in View/Print mode. After you check an election, go to View and review the Election page. If an explanation does not appear for that election, or if the explanation is not sufficient, complete the SCH screen, selecting E (Election Explanation) from the Type of attachment drop list, and entering the explanation you want.* This produces a separate Election page that is printed and transmitted with the return.
The following elections are available on the ELEC screen.
Form
1040 |
Schedule A -
Claim decedent medical expenses |
Retirement
plan contribution sec 1.72-6 |
Form 6251 -
SLE 904 limitation to figure AMTFTC |
Elective Safe
Harbor for oil and gas property |
Nonresident
taxed as resident |
Form 1040-NR |
Income treated
as from U.S. business |
Schedule B |
Value of
restricted stock included on Form W-2 |
OID - include
market discount in current income |
Schedules C,
E, F |
Deduct
environmental cleanup costs |
Deduct up to
$5000 business startup costs |
Deduct costs
for developing a mine |
Capitalize
carrying charges |
Real estate
taxes ratable accrued |
Sec. 1.263 (a)
- 1(f) de minimus election |
Sec. 1.263 (a)
- 3(n) election |
Note: The Sec.
1.263 (a) - 3(n) election is made on screen 4562. |
Schedule D |
Sales of
securities to ESOP, postpone gain |
Postpone gain
on QSB stock |
Rollover gain
for empowerment zone assets |
Mark-to-market
election for traders |
Schedule E |
Elective Safe
Harbor for oil and gas property |
Sec.
469(c)(7)(A) - Treat all interests in rental real estate as single rental
activity |
Schedule F |
Deduct
pre-productive expenses |
Elect not to
exclude payments |
Qualifying
forest or reforestation costs |
Treat tree
cutting as sale or exchange |
Use 20YY crop
disaster payments in 20XX |
Form 1099 |
Tax-free
transfers for cash distributions |
92-44 transfer
for sec 403(b) contracts |
Form 1116 |
Use exchange
rate on date paid |
Recapture more
overall loss than required |
Form 6251 SLE
904 limitation to figure AMTFTC |
Claim FTC
without filing Form 1116 drop list |
Form 4562 |
Elect to
exclude property from MACRS |
Tax preference
items amortized - no AMT |
Form 4797 |
Recognize gain
on disposition of intangibles |
Defer gain on
qualifying electric transmission |
Rollover gain
for Empowerment Zone 60 days |
Mark-to-market
election for traders |
Form 6252 |
Election to
pay interest on tax due from 6252 |
Other |
(Three fields
are available for direct entry) |
*An example of this might be making a Section 168(i)(6) election, or other code section elections not separately listed on the ELEC screen.
Some elections are not available on the ELEC screen. For example, a § 83(b) election must be made at the time the stock was awarded. When a § 83(b) election is made, the value of the stock is reported on Form W-2, box 1. There is nothing additional that needs to be done when filing Form 1040. See the IRS guidelines for details.