Knowledge Base

12090: 1040 - Elections

1040 Individual

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
(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. 

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