What is a 52-53-Week Year?
You can elect to use a 52-53-week tax year if you keep your books and records and report your income and expenses on that basis. If you make this election, your 52-53-week tax year must always end on the same day of the week.
Your 52-53-week tax year must always end on:
- Whatever date this same day of the week last occurs in a calendar month, or
- Whatever date this same day of the week falls that is nearest to the last day of the calendar month.
For example, if you elect a tax year that always ends on the last Monday in March, your 2013 tax year will end on March 31, 2014.
How to Make an Election for a 52-53 Week Year
To make the election for the 52-53-week tax year, attach a statement with the following information to your tax return:
- The month in which the new 52-53-week tax year ends.
- The day of the week on which the tax year always ends
- The date the tax year ends. It can be either of the following dates on which the chosen day:
- Last occurs in the month in (1), above, or
- Occurs nearest to the last day of the month in (1), above
When you figure depreciation or amortization, a 52-53-week tax year is generally considered a year of 12 calendar months.
To determine an effective date (or apply provisions of any law) expressed in terms of tax years beginning, including, or ending on the first or last day of a specified calendar month, a 52-53-week tax year is considered to:
- Begin on the first day of the calendar month beginning nearest to the first day of the 52-53-week tax year, and
- End on the last day of the calendar month ending nearest to the last day of the 52-53-week tax year.
Assume a tax provision applies to tax years beginning on or after July 1, 2014, which happens to be a Tuesday. For this purpose, a 52-53-week tax year that begins on the last Tuesday of June, which falls on June 24, 2014, is treated as beginning on July 1, 2014.
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- Return to the Tax Basics for Startups Table of Contents to find related links.