Adding to Stani's answer:
1) Academics, historians, and textbooks now often use the terms CE and BCE ("common era" and "before common era") instead of AD and BC. This maintains a more neutral point of view with regard to religion, and it avoids the obvious problem of Jesus Christ having been born in the year 4 BC (i.e. "before Christ.") If you are writing in an academic context, consider using BC and BCE. I will use AD and BC for the rest of this posting, because they are more common in everyday life.
2) There isn't any year 0 AD. There should be, but there isn't. This drives software engineers like me absolutely crazy. It's wrong. It's a bug! But it is what it is.
The first year AD was 1 AD. The year before 1 AD was 1 BC. This is why people obsess over what years constitute "the twentieth century." The first century began on January 1, 1 AD and ended on December 31st of the year 100 AD. That is, it consists of years 1 through 100, not 0 through 99. The result is that the nineteenth century was 1801 through 1900, inclusive, and the twentieth century was 1901 through 2000, inclusive. Of course, everybody always celebrates "the turn of the century" a year too early, when the 9's change to 0's. Everyone breaks out the champagne and ignores the party pooper in the corner who says "but the new millennium doesn't begin until 2001."
3) When there are less than four digits, it doesn't sound like a year. Therefore, it is common to include the words "the year," as in "the year three-twenty-five."