Form 5213

Form 5213

A form that an individual, trust, partnership, or corporation files with the IRS to ask the IRS to postpone determination of whether the filer engages in an activity to earn a profit. Most activities are assumed to be for profit if a profit results. However, if there is no profit, the IRS may, under some circumstances, determine that the activity is not for profit, which would limit the tax deductions for which the filer is eligible.
References in periodicals archive ?
Form 5213 can be filed within four years after the taxpayer engaged in the activity--for example, if an activity started in 2006, the taxpayer should file the form before April 15, 2010: however, if the IRS already has sent a notice.
This requires filing Form 5213, Election to Postpone Determination as to Whether the Presumption that an Activity is Engaged in for Profit Applies.
It is possible to combine a special presumption with the general presumption and to shift the burden of proof for the years 1987 and 1988 to the Service by filing Form 5213, Election To Postpone Determination as To Whether the Presumption That an Activity Is Engaged in for Profit Applies.
C filed a timely 1983 return and included Form 5213 (which postpones determination of whether a Sec.
C made the required election by including Form 5213 with his timely filed 1983 return.