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2012 Free1040x File Online

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2012 Free1040x File Online

2012 free1040x file online 1. 2012 free1040x file online   Gain or Loss Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Sales and ExchangesGain or Loss From Sales and Exchanges Abandonments Foreclosures and RepossessionsAmount realized on a nonrecourse debt. 2012 free1040x file online Amount realized on a recourse debt. 2012 free1040x file online Involuntary ConversionsCondemnations Nontaxable ExchangesLike-Kind Exchanges Other Nontaxable Exchanges Transfers to Spouse Rollover of Gain From Publicly Traded Securities Gains on Sales of Qualified Small Business Stock Exclusion of Gain From Sale of DC Zone Assets Topics - This chapter discusses: Sales and exchanges Abandonments Foreclosures and repossessions Involuntary conversions Nontaxable exchanges Transfers to spouse Rollovers and exclusions for certain capital gains Useful Items - You may want to see: Publication 523 Selling Your Home 537 Installment Sales 547 Casualties, Disasters, and Thefts 550 Investment Income and Expenses 551 Basis of Assets 908 Bankruptcy Tax Guide 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1040 U. 2012 free1040x file online S. 2012 free1040x file online Individual Income Tax Return 1040X Amended U. 2012 free1040x file online S. 2012 free1040x file online Individual Income Tax Return 1099-A Acquisition or Abandonment of Secured Property 1099-C Cancellation of Debt 4797 Sales of Business Property 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets Although the discussions in this chapter may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. 2012 free1040x file online However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. 2012 free1040x file online See chapter 5 for information about getting publications and forms. 2012 free1040x file online Sales and Exchanges A sale is a transfer of property for money or a mortgage, note, or other promise to pay money. 2012 free1040x file online An exchange is a transfer of property for other property or services. 2012 free1040x file online The following discussions describe the kinds of transactions that are treated as sales or exchanges and explain how to figure gain or loss. 2012 free1040x file online Sale or lease. 2012 free1040x file online    Some agreements that seem to be leases may really be conditional sales contracts. 2012 free1040x file online The intention of the parties to the agreement can help you distinguish between a sale and a lease. 2012 free1040x file online   There is no test or group of tests to prove what the parties intended when they made the agreement. 2012 free1040x file online You should consider each agreement based on its own facts and circumstances. 2012 free1040x file online For more information, see chapter 3 in Publication 535, Business Expenses. 2012 free1040x file online Cancellation of a lease. 2012 free1040x file online    Payments received by a tenant for the cancellation of a lease are treated as an amount realized from the sale of property. 2012 free1040x file online Payments received by a landlord (lessor) for the cancellation of a lease are essentially a substitute for rental payments and are taxed as ordinary income in the year in which they are received. 2012 free1040x file online Copyright. 2012 free1040x file online    Payments you receive for granting the exclusive use of (or right to exploit) a copyright throughout its life in a particular medium are treated as received from the sale of property. 2012 free1040x file online It does not matter if the payments are a fixed amount or a percentage of receipts from the sale, performance, exhibition, or publication of the copyrighted work, or an amount based on the number of copies sold, performances given, or exhibitions made. 2012 free1040x file online Nor does it matter if the payments are made over the same period as that covering the grantee's use of the copyrighted work. 2012 free1040x file online   If the copyright was used in your trade or business and you held it longer than a year, the gain or loss may be a section 1231 gain or loss. 2012 free1040x file online For more information, see Section 1231 Gains and Losses in chapter 3. 2012 free1040x file online Easement. 2012 free1040x file online   The amount received for granting an easement is subtracted from the basis of the property. 2012 free1040x file online If only a specific part of the entire tract of property is affected by the easement, only the basis of that part is reduced by the amount received. 2012 free1040x file online If it is impossible or impractical to separate the basis of the part of the property on which the easement is granted, the basis of the whole property is reduced by the amount received. 2012 free1040x file online   Any amount received that is more than the basis to be reduced is a taxable gain. 2012 free1040x file online The transaction is reported as a sale of property. 2012 free1040x file online   If you transfer a perpetual easement for consideration and do not keep any beneficial interest in the part of the property affected by the easement, the transaction will be treated as a sale of property. 2012 free1040x file online However, if you make a qualified conservation contribution of a restriction or easement granted in perpetuity, it is treated as a charitable contribution and not a sale or exchange, even though you keep a beneficial interest in the property affected by the easement. 2012 free1040x file online   If you grant an easement on your property (for example, a right-of-way over it) under condemnation or threat of condemnation, you are considered to have made a forced sale, even though you keep the legal title. 2012 free1040x file online Although you figure gain or loss on the easement in the same way as a sale of property, the gain or loss is treated as a gain or loss from a condemnation. 2012 free1040x file online See Gain or Loss From Condemnations, later. 2012 free1040x file online Property transferred to satisfy debt. 2012 free1040x file online   A transfer of property to satisfy a debt is an exchange. 2012 free1040x file online Note's maturity date extended. 2012 free1040x file online   The extension of a note's maturity date is not treated as an exchange of an outstanding note for a new and different note. 2012 free1040x file online Also, it is not considered a closed and completed transaction that would result in a gain or loss. 2012 free1040x file online However, an extension will be treated as a taxable exchange of the outstanding note for a new and materially different note if the changes in the terms of the note are significant. 2012 free1040x file online Each case must be determined by its own facts. 2012 free1040x file online For more information, see Regulations section 1. 2012 free1040x file online 1001-3. 2012 free1040x file online Transfer on death. 2012 free1040x file online   The transfer of property of a decedent to an executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or exchange or other disposition. 2012 free1040x file online No taxable gain or deductible loss results from the transfer. 2012 free1040x file online Bankruptcy. 2012 free1040x file online   Generally, a transfer (other than by sale or exchange) of property from a debtor to a bankruptcy estate is not treated as a disposition. 2012 free1040x file online Consequently, the transfer generally does not result in gain or loss. 2012 free1040x file online For more information, see Publication 908, Bankruptcy Tax Guide. 2012 free1040x file online Gain or Loss From Sales and Exchanges You usually realize gain or loss when property is sold or exchanged. 2012 free1040x file online A gain is the amount you realize from a sale or exchange of property that is more than its adjusted basis. 2012 free1040x file online A loss is the adjusted basis of the property that is more than the amount you realize. 2012 free1040x file online   Table 1-1. 2012 free1040x file online How To Figure Whether You Have a Gain or Loss IF your. 2012 free1040x file online . 2012 free1040x file online . 2012 free1040x file online THEN you have a. 2012 free1040x file online . 2012 free1040x file online . 2012 free1040x file online Adjusted basis is more than the amount realized, Loss. 2012 free1040x file online Amount realized is more than the adjusted basis, Gain. 2012 free1040x file online Basis. 2012 free1040x file online   You must know the basis of your property to determine whether you have a gain or loss from its sale or other disposition. 2012 free1040x file online The basis of property you buy is usually its cost. 2012 free1040x file online However, if you acquired the property by gift, inheritance, or in some way other than buying it, you must use a basis other than its cost. 2012 free1040x file online See Basis Other Than Cost in Publication 551, Basis of Assets. 2012 free1040x file online Special rules apply to property acquired from a decedent who died in 2010 and the executor made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent. 2012 free1040x file online See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. 2012 free1040x file online Adjusted basis. 2012 free1040x file online   The adjusted basis of property is your original cost or other basis plus (increased by) certain additions and minus (decreased by) certain deductions. 2012 free1040x file online Increases include costs of any improvements having a useful life of more than 1 year. 2012 free1040x file online Decreases include depreciation and casualty losses. 2012 free1040x file online For more details and additional examples, see Adjusted Basis in Publication 551. 2012 free1040x file online Amount realized. 2012 free1040x file online   The amount you realize from a sale or exchange is the total of all money you receive plus the fair market value (defined below) of all property or services you receive. 2012 free1040x file online The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage. 2012 free1040x file online Fair market value. 2012 free1040x file online   Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. 2012 free1040x file online If parties with adverse interests place a value on property in an arm's-length transaction, that is strong evidence of FMV. 2012 free1040x file online If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary. 2012 free1040x file online Example. 2012 free1040x file online You used a building in your business that cost you $70,000. 2012 free1040x file online You made certain permanent improvements at a cost of $20,000 and deducted depreciation totaling $10,000. 2012 free1040x file online You sold the building for $100,000 plus property having an FMV of $20,000. 2012 free1040x file online The buyer assumed your real estate taxes of $3,000 and a mortgage of $17,000 on the building. 2012 free1040x file online The selling expenses were $4,000. 2012 free1040x file online Your gain on the sale is figured as follows. 2012 free1040x file online Amount realized:     Cash $100,000   FMV of property received 20,000   Real estate taxes assumed by buyer 3,000   Mortgage assumed by  buyer 17,000   Total 140,000   Minus: Selling expenses 4,000 $136,000 Adjusted basis:     Cost of building $70,000   Improvements 20,000   Total $90,000   Minus: Depreciation 10,000   Adjusted basis   $80,000 Gain on sale $56,000 Amount recognized. 2012 free1040x file online   Your gain or loss realized from a sale or exchange of property is usually a recognized gain or loss for tax purposes. 2012 free1040x file online Recognized gains must be included in gross income. 2012 free1040x file online Recognized losses are deductible from gross income. 2012 free1040x file online However, your gain or loss realized from certain exchanges of property is not recognized for tax purposes. 2012 free1040x file online See Nontaxable Exchanges, later. 2012 free1040x file online Also, a loss from the sale or other disposition of property held for personal use is not deductible, except in the case of a casualty or theft. 2012 free1040x file online Interest in property. 2012 free1040x file online   The amount you realize from the disposition of a life interest in property, an interest in property for a set number of years, or an income interest in a trust is a recognized gain under certain circumstances. 2012 free1040x file online If you received the interest as a gift, inheritance, or in a transfer from a spouse or former spouse incident to a divorce, the amount realized is a recognized gain. 2012 free1040x file online Your basis in the property is disregarded. 2012 free1040x file online This rule does not apply if all interests in the property are disposed of at the same time. 2012 free1040x file online Example 1. 2012 free1040x file online Your father dies and leaves his farm to you for life with a remainder interest to your younger brother. 2012 free1040x file online You decide to sell your life interest in the farm. 2012 free1040x file online The entire amount you receive is a recognized gain. 2012 free1040x file online Your basis in the farm is disregarded. 2012 free1040x file online Example 2. 2012 free1040x file online The facts are the same as in Example 1, except that your brother joins you in selling the farm. 2012 free1040x file online The entire interest in the property is sold, so your basis in the farm is not disregarded. 2012 free1040x file online Your gain or loss is the difference between your share of the sales price and your adjusted basis in the farm. 2012 free1040x file online Canceling a sale of real property. 2012 free1040x file online   If you sell real property under a sales contract that allows the buyer to return the property for a full refund and the buyer does so, you may not have to recognize gain or loss on the sale. 2012 free1040x file online If the buyer returns the property in the year of sale, no gain or loss is recognized. 2012 free1040x file online This cancellation of the sale in the same year it occurred places both you and the buyer in the same positions you were in before the sale. 2012 free1040x file online If the buyer returns the property in a later tax year, you must recognize gain (or loss, if allowed) in the year of the sale. 2012 free1040x file online When the property is returned in a later year, you acquire a new basis in the property. 2012 free1040x file online That basis is equal to the amount you pay to the buyer. 2012 free1040x file online Bargain Sale If you sell or exchange property for less than fair market value with the intent of making a gift, the transaction is partly a sale or exchange and partly a gift. 2012 free1040x file online You have a gain if the amount realized is more than your adjusted basis in the property. 2012 free1040x file online However, you do not have a loss if the amount realized is less than the adjusted basis of the property. 2012 free1040x file online Bargain sales to charity. 2012 free1040x file online   A bargain sale of property to a charitable organization is partly a sale or exchange and partly a charitable contribution. 2012 free1040x file online If a charitable deduction for the contribution is allowable, you must allocate your adjusted basis in the property between the part sold and the part contributed based on the fair market value of each. 2012 free1040x file online The adjusted basis of the part sold is figured as follows. 2012 free1040x file online Adjusted basis of entire property × Amount realized (fair market value of part sold)   Fair market value of entire property   Based on this allocation rule, you will have a gain even if the amount realized is not more than your adjusted basis in the property. 2012 free1040x file online This allocation rule does not apply if a charitable contribution deduction is not allowable. 2012 free1040x file online   See Publication 526, Charitable Contributions, for information on figuring your charitable contribution. 2012 free1040x file online Example. 2012 free1040x file online You sold property with a fair market value of $10,000 to a charitable organization for $2,000 and are allowed a deduction for your contribution. 2012 free1040x file online Your adjusted basis in the property is $4,000. 2012 free1040x file online Your gain on the sale is $1,200, figured as follows. 2012 free1040x file online Sales price $2,000 Minus: Adjusted basis of part sold ($4,000 × ($2,000 ÷ $10,000)) 800 Gain on the sale $1,200 Property Used Partly for Business or Rental Generally, if you sell or exchange property you used partly for business or rental purposes and partly for personal purposes, you must figure the gain or loss on the sale or exchange as though you had sold two separate pieces of property. 2012 free1040x file online You must subtract depreciation you took or could have taken from the basis of the business or rental part. 2012 free1040x file online However, see the special rule below for a home used partly for business or rental. 2012 free1040x file online You must allocate the selling price, selling expenses, and the basis of the property between the business or rental part and the personal part. 2012 free1040x file online Gain or loss on the business or rental part of the property may be a capital gain or loss or an ordinary gain or loss, as discussed in chapter 3 under Section 1231 Gains and Losses. 2012 free1040x file online Any gain on the personal part of the property is a capital gain. 2012 free1040x file online You cannot deduct a loss on the personal part. 2012 free1040x file online Home used partly for business or rental. 2012 free1040x file online    If you use property partly as a home and partly for business or to produce rental income, the computation and treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. 2012 free1040x file online See Property Used Partly for Business or Rental, in Publication 523. 2012 free1040x file online Property Changed to Business or Rental Use You cannot deduct a loss on the sale of property you purchased or constructed for use as your home and used as your home until the time of sale. 2012 free1040x file online You can deduct a loss on the sale of property you acquired for use as your home but changed to business or rental property and used as business or rental property at the time of sale. 2012 free1040x file online However, if the adjusted basis of the property at the time of the change was more than its fair market value, the loss you can deduct is limited. 2012 free1040x file online Figure the loss you can deduct as follows. 2012 free1040x file online Use the lesser of the property's adjusted basis or fair market value at the time of the change. 2012 free1040x file online Add to (1) the cost of any improvements and other increases to basis since the change. 2012 free1040x file online Subtract from (2) depreciation and any other decreases to basis since the change. 2012 free1040x file online Subtract the amount you realized on the sale from the result in (3). 2012 free1040x file online If the amount you realized is more than the result in (3), treat this result as zero. 2012 free1040x file online The result in (4) is the loss you can deduct. 2012 free1040x file online Example. 2012 free1040x file online You changed your main home to rental property 5 years ago. 2012 free1040x file online At the time of the change, the adjusted basis of your home was $75,000 and the fair market value was $70,000. 2012 free1040x file online This year, you sold the property for $55,000. 2012 free1040x file online You made no improvements to the property but you have depreciation expense of $12,620 over the 5 prior years. 2012 free1040x file online Although your loss on the sale is $7,380 [($75,000 − $12,620) − $55,000], the amount you can deduct as a loss is limited to $2,380, figured as follows. 2012 free1040x file online Lesser of adjusted basis or fair market value at time of the change $70,000 Plus: Cost of any improvements and any other additions to basis after the change -0-   70,000 Minus: Depreciation and any other decreases to basis after the change 12,620   57,380 Minus: Amount you realized from the sale 55,000 Deductible loss $2,380 Gain. 2012 free1040x file online   If you have a gain on the sale, you generally must recognize the full amount of the gain. 2012 free1040x file online You figure the gain by subtracting your adjusted basis from your amount realized, as described earlier. 2012 free1040x file online   You may be able to exclude all or part of the gain if you owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. 2012 free1040x file online However, you may not be able to exclude the part of the gain allocated to any period of nonqualified use. 2012 free1040x file online   For more information, see Business Use or Rental of Home in Publication 523. 2012 free1040x file online In addition, special rules apply if the home sold was acquired in a like-kind exchange. 2012 free1040x file online See Special Situations in Publication 523. 2012 free1040x file online Also see Like-Kind Exchanges, later. 2012 free1040x file online Abandonments The abandonment of property is a disposition of property. 2012 free1040x file online You abandon property when you voluntarily and permanently give up possession and use of the property with the intention of ending your ownership but without passing it on to anyone else. 2012 free1040x file online Generally, abandonment is not treated as a sale or exchange of the property. 2012 free1040x file online If the amount you realize (if any) is more than your adjusted basis, then you have a gain. 2012 free1040x file online If your adjusted basis is more than the amount you realize (if any), then you have a loss. 2012 free1040x file online Loss from abandonment of business or investment property is deductible as a loss. 2012 free1040x file online A loss from an abandonment of business or investment property that is not treated as a sale or exchange generally is an ordinary loss. 2012 free1040x file online This rule also applies to leasehold improvements the lessor made for the lessee that were abandoned. 2012 free1040x file online If the property is foreclosed on or repossessed in lieu of abandonment, gain or loss is figured as discussed later under Foreclosure and Repossessions. 2012 free1040x file online The abandonment loss is deducted in the tax year in which the loss is sustained. 2012 free1040x file online If the abandoned property is secured by debt, special rules apply. 2012 free1040x file online The tax consequences of abandonment of property that is secured by debt depend on whether you are personally liable for the debt (recourse debt) or you are not personally liable for the debt (nonrecourse debt). 2012 free1040x file online For more information, including examples, see chapter 3 of Publication 4681. 2012 free1040x file online You cannot deduct any loss from abandonment of your home or other property held for personal use only. 2012 free1040x file online Cancellation of debt. 2012 free1040x file online   If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you may realize ordinary income equal to the canceled debt. 2012 free1040x file online This income is separate from any loss realized from abandonment of the property. 2012 free1040x file online   You must report this income on your tax return unless one of the following applies. 2012 free1040x file online The cancellation is intended as a gift. 2012 free1040x file online The debt is qualified farm debt. 2012 free1040x file online The debt is qualified real property business debt. 2012 free1040x file online You are insolvent or bankrupt. 2012 free1040x file online The debt is qualified principal residence indebtedness. 2012 free1040x file online File Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the income exclusion. 2012 free1040x file online For more information, including other exceptions and exclusion, see Publication 4681. 2012 free1040x file online Forms 1099-A and 1099-C. 2012 free1040x file online   If you abandon property that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your loss from the abandonment. 2012 free1040x file online However, if your debt is canceled and the lender must file Form 1099-C, the lender may include the information about the abandonment on that form instead of on Form 1099-A, and send you Form 1099-C only. 2012 free1040x file online The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. 2012 free1040x file online For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. 2012 free1040x file online Foreclosures and Repossessions If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. 2012 free1040x file online The foreclosure or repossession is treated as a sale or exchange from which you may realize gain or loss. 2012 free1040x file online This is true even if you voluntarily return the property to the lender. 2012 free1040x file online You also may realize ordinary income from cancellation of debt if the loan balance is more than the fair market value of the property. 2012 free1040x file online Buyer's (borrower's) gain or loss. 2012 free1040x file online   You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale or exchange. 2012 free1040x file online The gain or loss is the difference between your adjusted basis in the transferred property and the amount realized. 2012 free1040x file online See Gain or Loss From Sales and Exchanges, earlier. 2012 free1040x file online You can use Table 1-2 to figure your gain or loss from a foreclosure or repossession. 2012 free1040x file online Amount realized on a nonrecourse debt. 2012 free1040x file online   If you are not personally liable for repaying the debt (nonrecourse debt) secured by the transferred property, the amount you realize includes the full debt canceled by the transfer. 2012 free1040x file online The full canceled debt is included even if the fair market value of the property is less than the canceled debt. 2012 free1040x file online Example 1. 2012 free1040x file online Chris bought a new car for $15,000. 2012 free1040x file online He paid $2,000 down and borrowed the remaining $13,000 from the dealer's credit company. 2012 free1040x file online Chris is not personally liable for the loan (nonrecourse debt), but pledges the new car as security. 2012 free1040x file online The credit company repossessed the car because he stopped making loan payments. 2012 free1040x file online The balance due after taking into account the payments Chris made was $10,000. 2012 free1040x file online The fair market value of the car when repossessed was $9,000. 2012 free1040x file online The amount Chris realized on the repossession is $10,000. 2012 free1040x file online That is the outstanding amount of the debt canceled by the repossession, even though the car's fair market value is less than $10,000. 2012 free1040x file online Chris figures his gain or loss on the repossession by comparing the amount realized ($10,000) with his adjusted basis ($15,000). 2012 free1040x file online He has a $5,000 nondeductible loss. 2012 free1040x file online Example 2. 2012 free1040x file online Abena paid $200,000 for her home. 2012 free1040x file online She paid $15,000 down and borrowed the remaining $185,000 from a bank. 2012 free1040x file online Abena is not personally liable for the loan (nonrecourse debt), but pledges the house as security. 2012 free1040x file online The bank foreclosed on the loan because Abena stopped making payments. 2012 free1040x file online When the bank foreclosed on the loan, the balance due was $180,000, the fair market value of the house was $170,000, and Abena's adjusted basis was $175,000 due to a casualty loss she had deducted. 2012 free1040x file online The amount Abena realized on the foreclosure is $180,000, the balance due and debt canceled by the foreclosure. 2012 free1040x file online She figures her gain or loss by comparing the amount realized ($180,000) with her adjusted basis ($175,000). 2012 free1040x file online She has a $5,000 realized gain. 2012 free1040x file online Amount realized on a recourse debt. 2012 free1040x file online   If you are personally liable for the debt (recourse debt), the amount realized on the foreclosure or repossession includes the lesser of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The fair market value of the transferred property. 2012 free1040x file online You are treated as receiving ordinary income from the canceled debt for the part of the debt that is more than the fair market value. 2012 free1040x file online The amount realized does not include the canceled debt that is your income from cancellation of debt. 2012 free1040x file online See Cancellation of debt, below. 2012 free1040x file online Seller's (lender's) gain or loss on repossession. 2012 free1040x file online   If you finance a buyer's purchase of property and later acquire an interest in it through foreclosure or repossession, you may have a gain or loss on the acquisition. 2012 free1040x file online For more information, see Repossession in Publication 537. 2012 free1040x file online    Table 1-2. 2012 free1040x file online Worksheet for Foreclosures and Repossessions Part 1. 2012 free1040x file online Use Part 1 to figure your ordinary income from the cancellation of debt upon foreclosure or repossession. 2012 free1040x file online Complete this part only  if you were personally liable for the debt. 2012 free1040x file online Otherwise,  go to Part 2. 2012 free1040x file online   1. 2012 free1040x file online Enter the amount of outstanding debt immediately before the transfer of   property reduced by any amount for which you remain personally liable after   the transfer of property   2. 2012 free1040x file online Enter the fair market value of the transferred property   3. 2012 free1040x file online Ordinary income from cancellation of debt upon foreclosure or    repossession. 2012 free1040x file online * Subtract line 2 from line 1. 2012 free1040x file online   If less than zero, enter zero   Part 2. 2012 free1040x file online Figure your gain or loss from foreclosure or repossession. 2012 free1040x file online   4. 2012 free1040x file online If you completed Part 1, enter the smaller of line 1 or line 2. 2012 free1040x file online   If you did not complete Part 1, enter the outstanding debt immediately before   the transfer of property   5. 2012 free1040x file online Enter any proceeds you received from the foreclosure sale   6. 2012 free1040x file online Add lines 4 and 5   7. 2012 free1040x file online Enter the adjusted basis of the transferred property   8. 2012 free1040x file online Gain or loss from foreclosure or repossession. 2012 free1040x file online Subtract line 7  from line 6   * The income may not be taxable. 2012 free1040x file online See Cancellation of debt. 2012 free1040x file online Cancellation of debt. 2012 free1040x file online   If property that is repossessed or foreclosed on secures a debt for which you are personally liable (recourse debt), you generally must report as ordinary income the amount by which the canceled debt is more than the fair market value of the property. 2012 free1040x file online This income is separate from any gain or loss realized from the foreclosure or repossession. 2012 free1040x file online Report the income from cancellation of a debt related to a business or rental activity as business or rental income. 2012 free1040x file online    You can use Table 1-2 to figure your income from cancellation of debt. 2012 free1040x file online   You must report this income on your tax return unless one of the following applies. 2012 free1040x file online The cancellation is intended as a gift. 2012 free1040x file online The debt is qualified farm debt. 2012 free1040x file online The debt is qualified real property business debt. 2012 free1040x file online You are insolvent or bankrupt. 2012 free1040x file online The debt is qualified principal residence indebtedness. 2012 free1040x file online File Form 982 to report the income exclusion. 2012 free1040x file online Example 1. 2012 free1040x file online Assume the same facts as in Example 1 under Amount realized on a nonrecourse debt, earlier, except Chris is personally liable for the car loan (recourse debt). 2012 free1040x file online In this case, the amount he realizes is $9,000. 2012 free1040x file online This is the lesser of the canceled debt ($10,000) or the car's fair market value ($9,000). 2012 free1040x file online Chris figures his gain or loss on the repossession by comparing the amount realized ($9,000) with his adjusted basis ($15,000). 2012 free1040x file online He has a $6,000 nondeductible loss. 2012 free1040x file online He also is treated as receiving ordinary income from cancellation of debt. 2012 free1040x file online That income is $1,000 ($10,000 − $9,000). 2012 free1040x file online This is the part of the canceled debt not included in the amount realized. 2012 free1040x file online Example 2. 2012 free1040x file online Assume the same facts as in Example 2 under Amount realized on a nonrecourse debt, earlier, except Abena is personally liable for the loan (recourse debt). 2012 free1040x file online In this case, the amount she realizes is $170,000. 2012 free1040x file online This is the lesser of the canceled debt ($180,000) or the fair market value of the house ($170,000). 2012 free1040x file online Abena figures her gain or loss on the foreclosure by comparing the amount realized ($170,000) with her adjusted basis ($175,000). 2012 free1040x file online She has a $5,000 nondeductible loss. 2012 free1040x file online She also is treated as receiving ordinary income from cancellation of debt. 2012 free1040x file online (The debt is not exempt from tax as discussed under Cancellation of debt, above. 2012 free1040x file online ) That income is $10,000 ($180,000 − $170,000). 2012 free1040x file online This is the part of the canceled debt not included in the amount realized. 2012 free1040x file online Forms 1099-A and 1099-C. 2012 free1040x file online   A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A showing the information you need to figure your gain or loss. 2012 free1040x file online However, if the lender also cancels part of your debt and must file Form 1099-C, the lender may include the information about the foreclosure or repossession on that form instead of on Form 1099-A and send you Form 1099-C only. 2012 free1040x file online The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. 2012 free1040x file online For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. 2012 free1040x file online Involuntary Conversions An involuntary conversion occurs when your property is destroyed, stolen, condemned, or disposed of under the threat of condemnation and you receive other property or money in payment, such as insurance or a condemnation award. 2012 free1040x file online Involuntary conversions are also called involuntary exchanges. 2012 free1040x file online Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes unless the property is your main home. 2012 free1040x file online You report the gain or deduct the loss on your tax return for the year you realize it. 2012 free1040x file online You cannot deduct a loss from an involuntary conversion of property you held for personal use unless the loss resulted from a casualty or theft. 2012 free1040x file online However, depending on the type of property you receive, you may not have to report a gain on an involuntary conversion. 2012 free1040x file online Generally, you do not report the gain if you receive property that is similar or related in service or use to the converted property. 2012 free1040x file online Your basis for the new property is the same as your basis for the converted property. 2012 free1040x file online This means that the gain is deferred until a taxable sale or exchange occurs. 2012 free1040x file online If you receive money or property that is not similar or related in service or use to the involuntarily converted property and you buy qualifying replacement property within a certain period of time, you can elect to postpone reporting the gain on the property purchased. 2012 free1040x file online This publication explains the treatment of a gain or loss from a condemnation or disposition under the threat of condemnation. 2012 free1040x file online If you have a gain or loss from the destruction or theft of property, see Publication 547. 2012 free1040x file online Condemnations A condemnation is the process by which private property is legally taken for public use without the owner's consent. 2012 free1040x file online The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take it. 2012 free1040x file online The owner receives a condemnation award (money or property) in exchange for the property taken. 2012 free1040x file online A condemnation is like a forced sale, the owner being the seller and the condemning authority being the buyer. 2012 free1040x file online Example. 2012 free1040x file online A local government authorized to acquire land for public parks informed you that it wished to acquire your property. 2012 free1040x file online After the local government took action to condemn your property, you went to court to keep it. 2012 free1040x file online But, the court decided in favor of the local government, which took your property and paid you an amount fixed by the court. 2012 free1040x file online This is a condemnation of private property for public use. 2012 free1040x file online Threat of condemnation. 2012 free1040x file online   A threat of condemnation exists if a representative of a government body or a public official authorized to acquire property for public use informs you that the government body or official has decided to acquire your property. 2012 free1040x file online You must have reasonable grounds to believe that, if you do not sell voluntarily, your property will be condemned. 2012 free1040x file online   The sale of your property to someone other than the condemning authority will also qualify as an involuntary conversion, provided you have reasonable grounds to believe that your property will be condemned. 2012 free1040x file online If the buyer of this property knows at the time of purchase that it will be condemned and sells it to the condemning authority, this sale also qualifies as an involuntary conversion. 2012 free1040x file online Reports of condemnation. 2012 free1040x file online   A threat of condemnation exists if you learn of a decision to acquire your property for public use through a report in a newspaper or other news medium, and this report is confirmed by a representative of the government body or public official involved. 2012 free1040x file online You must have reasonable grounds to believe that they will take necessary steps to condemn your property if you do not sell voluntarily. 2012 free1040x file online If you relied on oral statements made by a government representative or public official, the Internal Revenue Service (IRS) may ask you to get written confirmation of the statements. 2012 free1040x file online Example. 2012 free1040x file online Your property lies along public utility lines. 2012 free1040x file online The utility company has the authority to condemn your property. 2012 free1040x file online The company informs you that it intends to acquire your property by negotiation or condemnation. 2012 free1040x file online A threat of condemnation exists when you receive the notice. 2012 free1040x file online Related property voluntarily sold. 2012 free1040x file online   A voluntary sale of your property may be treated as a forced sale that qualifies as an involuntary conversion if the property had a substantial economic relationship to property of yours that was condemned. 2012 free1040x file online A substantial economic relationship exists if together the properties were one economic unit. 2012 free1040x file online You also must show that the condemned property could not reasonably or adequately be replaced. 2012 free1040x file online You can elect to postpone reporting the gain by buying replacement property. 2012 free1040x file online See Postponement of Gain, later. 2012 free1040x file online Gain or Loss From Condemnations If your property was condemned or disposed of under the threat of condemnation, figure your gain or loss by comparing the adjusted basis of your condemned property with your net condemnation award. 2012 free1040x file online If your net condemnation award is more than the adjusted basis of the condemned property, you have a gain. 2012 free1040x file online You can postpone reporting gain from a condemnation if you buy replacement property. 2012 free1040x file online If only part of your property is condemned, you can treat the cost of restoring the remaining part to its former usefulness as the cost of replacement property. 2012 free1040x file online See Postponement of Gain, later. 2012 free1040x file online If your net condemnation award is less than your adjusted basis, you have a loss. 2012 free1040x file online If your loss is from property you held for personal use, you cannot deduct it. 2012 free1040x file online You must report any deductible loss in the tax year it happened. 2012 free1040x file online You can use Part 2 of Table 1-3 to figure your gain or loss from a condemnation award. 2012 free1040x file online Main home condemned. 2012 free1040x file online   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. 2012 free1040x file online You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). 2012 free1040x file online For information on this exclusion, see Publication 523. 2012 free1040x file online If your gain is more than you can exclude but you buy replacement property, you may be able to postpone reporting the rest of the gain. 2012 free1040x file online See Postponement of Gain, later. 2012 free1040x file online Table 1-3. 2012 free1040x file online Worksheet for Condemnations Part 1. 2012 free1040x file online Gain from severance damages. 2012 free1040x file online  If you did not receive severance damages, skip Part 1 and go to Part 2. 2012 free1040x file online   1. 2012 free1040x file online Enter gross severance damages received   2. 2012 free1040x file online Enter your expenses in getting severance damages   3. 2012 free1040x file online Subtract line 2 from line 1. 2012 free1040x file online If less than zero, enter -0-   4. 2012 free1040x file online Enter any special assessment on remaining property taken out of your award   5. 2012 free1040x file online Net severance damages. 2012 free1040x file online Subtract line 4 from line 3. 2012 free1040x file online If less than zero, enter -0-   6. 2012 free1040x file online Enter the adjusted basis of the remaining property   7. 2012 free1040x file online Gain from severance damages. 2012 free1040x file online Subtract line 6 from line 5. 2012 free1040x file online If less than zero, enter -0-   8. 2012 free1040x file online Refigured adjusted basis of the remaining property. 2012 free1040x file online Subtract line 5 from line 6. 2012 free1040x file online If less than zero, enter -0-   Part 2. 2012 free1040x file online Gain or loss from condemnation award. 2012 free1040x file online   9. 2012 free1040x file online Enter the gross condemnation award received   10. 2012 free1040x file online Enter your expenses in getting the condemnation award   11. 2012 free1040x file online If you completed Part 1, and line 4 is more than line 3, subtract line 3 from line 4. 2012 free1040x file online If you did not complete Part 1, but a special assessment was taken out of your award, enter that amount. 2012 free1040x file online Otherwise, enter -0-   12. 2012 free1040x file online Add lines 10 and 11   13. 2012 free1040x file online Net condemnation award. 2012 free1040x file online Subtract line 12 from line 9   14. 2012 free1040x file online Enter the adjusted basis of the condemned property   15. 2012 free1040x file online Gain from condemnation award. 2012 free1040x file online If line 14 is more than line 13, enter -0-. 2012 free1040x file online Otherwise, subtract line 14 from  line 13 and skip line 16   16. 2012 free1040x file online Loss from condemnation award. 2012 free1040x file online Subtract line 13 from line 14     (Note: You cannot deduct the amount on line 16 if the condemned property was held for personal use. 2012 free1040x file online )   Part 3. 2012 free1040x file online Postponed gain from condemnation. 2012 free1040x file online  (Complete only if line 7 or line 15 is more than zero and you bought qualifying replacement property or made expenditures to restore the usefulness of your remaining property. 2012 free1040x file online )   17. 2012 free1040x file online If you completed Part 1, and line 7 is more than zero, enter the amount from line 5. 2012 free1040x file online Otherwise, enter -0-   18. 2012 free1040x file online If line 15 is more than zero, enter the amount from line 13. 2012 free1040x file online Otherwise, enter -0-   19. 2012 free1040x file online Add lines 17 and 18. 2012 free1040x file online If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   20. 2012 free1040x file online Enter the total cost of replacement property and any expenses to restore the usefulness of your remaining property   21. 2012 free1040x file online Subtract line 20 from line 19. 2012 free1040x file online If less than zero, enter -0-   22. 2012 free1040x file online If you completed Part 1, add lines 7 and 15. 2012 free1040x file online Otherwise, enter the amount from line 15. 2012 free1040x file online If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   23. 2012 free1040x file online Recognized gain. 2012 free1040x file online Enter the smaller of line 21 or line 22. 2012 free1040x file online   24. 2012 free1040x file online Postponed gain. 2012 free1040x file online Subtract line 23 from line 22. 2012 free1040x file online If less than zero, enter -0-   Condemnation award. 2012 free1040x file online   A condemnation award is the money you are paid or the value of other property you receive for your condemned property. 2012 free1040x file online The award is also the amount you are paid for the sale of your property under threat of condemnation. 2012 free1040x file online Payment of your debts. 2012 free1040x file online   Amounts taken out of the award to pay your debts are considered paid to you. 2012 free1040x file online Amounts the government pays directly to the holder of a mortgage or lien against your property are part of your award, even if the debt attaches to the property and is not your personal liability. 2012 free1040x file online Example. 2012 free1040x file online The state condemned your property for public use. 2012 free1040x file online The award was set at $200,000. 2012 free1040x file online The state paid you only $148,000 because it paid $50,000 to your mortgage holder and $2,000 accrued real estate taxes. 2012 free1040x file online You are considered to have received the entire $200,000 as a condemnation award. 2012 free1040x file online Interest on award. 2012 free1040x file online   If the condemning authority pays you interest for its delay in paying your award, it is not part of the condemnation award. 2012 free1040x file online You must report the interest separately as ordinary income. 2012 free1040x file online Payments to relocate. 2012 free1040x file online   Payments you receive to relocate and replace housing because you have been displaced from your home, business, or farm as a result of federal or federally assisted programs are not part of the condemnation award. 2012 free1040x file online Do not include them in your income. 2012 free1040x file online Replacement housing payments used to buy new property are included in the property's basis as part of your cost. 2012 free1040x file online Net condemnation award. 2012 free1040x file online   A net condemnation award is the total award you received, or are considered to have received, for the condemned property minus your expenses of obtaining the award. 2012 free1040x file online If only a part of your property was condemned, you also must reduce the award by any special assessment levied against the part of the property you retain. 2012 free1040x file online This is discussed later under Special assessment taken out of award. 2012 free1040x file online Severance damages. 2012 free1040x file online    Severance damages are not part of the award paid for the property condemned. 2012 free1040x file online They are paid to you if part of your property is condemned and the value of the part you keep is decreased because of the condemnation. 2012 free1040x file online   For example, you may receive severance damages if your property is subject to flooding because you sell flowage easement rights (the condemned property) under threat of condemnation. 2012 free1040x file online Severance damages also may be given to you if, because part of your property is condemned for a highway, you must replace fences, dig new wells or ditches, or plant trees to restore your remaining property to the same usefulness it had before the condemnation. 2012 free1040x file online   The contracting parties should agree on the specific amount of severance damages in writing. 2012 free1040x file online If this is not done, all proceeds from the condemning authority are considered awarded for your condemned property. 2012 free1040x file online   You cannot make a completely new allocation of the total award after the transaction is completed. 2012 free1040x file online However, you can show how much of the award both parties intended for severance damages. 2012 free1040x file online The severance damages part of the award is determined from all the facts and circumstances. 2012 free1040x file online Example. 2012 free1040x file online You sold part of your property to the state under threat of condemnation. 2012 free1040x file online The contract you and the condemning authority signed showed only the total purchase price. 2012 free1040x file online It did not specify a fixed sum for severance damages. 2012 free1040x file online However, at settlement, the condemning authority gave you closing papers showing clearly the part of the purchase price that was for severance damages. 2012 free1040x file online You may treat this part as severance damages. 2012 free1040x file online Treatment of severance damages. 2012 free1040x file online   Your net severance damages are treated as the amount realized from an involuntary conversion of the remaining part of your property. 2012 free1040x file online Use them to reduce the basis of the remaining property. 2012 free1040x file online If the amount of severance damages is based on damage to a specific part of the property you kept, reduce the basis of only that part by the net severance damages. 2012 free1040x file online   If your net severance damages are more than the basis of your retained property, you have a gain. 2012 free1040x file online You may be able to postpone reporting the gain. 2012 free1040x file online See Postponement of Gain, later. 2012 free1040x file online    You can use Part 1 of Table 1-3 to figure any gain from severance damages and to refigure the adjusted basis of the remaining part of your property. 2012 free1040x file online Net severance damages. 2012 free1040x file online   To figure your net severance damages, you first must reduce your severance damages by your expenses in obtaining the damages. 2012 free1040x file online You then reduce them by any special assessment (described later) levied against the remaining part of the property and retained out of the award by the condemning authority. 2012 free1040x file online The balance is your net severance damages. 2012 free1040x file online Expenses of obtaining a condemnation award and severance damages. 2012 free1040x file online   Subtract the expenses of obtaining a condemnation award, such as legal, engineering, and appraisal fees, from the total award. 2012 free1040x file online Also, subtract the expenses of obtaining severance damages, which may include similar expenses, from the severance damages paid to you. 2012 free1040x file online If you cannot determine which part of your expenses is for each part of the condemnation proceeds, you must make a proportionate allocation. 2012 free1040x file online Example. 2012 free1040x file online You receive a condemnation award and severance damages. 2012 free1040x file online One-fourth of the total was designated as severance damages in your agreement with the condemning authority. 2012 free1040x file online You had legal expenses for the entire condemnation proceeding. 2012 free1040x file online You cannot determine how much of your legal expenses is for each part of the condemnation proceeds. 2012 free1040x file online You must allocate one-fourth of your legal expenses to the severance damages and the other three-fourths to the condemnation award. 2012 free1040x file online Special assessment retained out of award. 2012 free1040x file online   When only part of your property is condemned, a special assessment levied against the remaining property may be retained by the governing body out of your condemnation award. 2012 free1040x file online An assessment may be levied if the remaining part of your property benefited by the improvement resulting from the condemnation. 2012 free1040x file online Examples of improvements that may cause a special assessment are widening a street and installing a sewer. 2012 free1040x file online   To figure your net condemnation award, you must reduce the amount of the award by the assessment retained out of the award. 2012 free1040x file online Example. 2012 free1040x file online To widen the street in front of your home, the city condemned a 25-foot deep strip of your land. 2012 free1040x file online You were awarded $5,000 for this and spent $300 to get the award. 2012 free1040x file online Before paying the award, the city levied a special assessment of $700 for the street improvement against your remaining property. 2012 free1040x file online The city then paid you only $4,300. 2012 free1040x file online Your net award is $4,000 ($5,000 total award minus $300 expenses in obtaining the award and $700 for the special assessment retained). 2012 free1040x file online If the $700 special assessment was not retained out of the award and you were paid $5,000, your net award would be $4,700 ($5,000 − $300). 2012 free1040x file online The net award would not change, even if you later paid the assessment from the amount you received. 2012 free1040x file online Severance damages received. 2012 free1040x file online   If severance damages are included in the condemnation proceeds, the special assessment retained out of the severance damages is first used to reduce the severance damages. 2012 free1040x file online Any balance of the special assessment is used to reduce the condemnation award. 2012 free1040x file online Example. 2012 free1040x file online You were awarded $4,000 for the condemnation of your property and $1,000 for severance damages. 2012 free1040x file online You spent $300 to obtain the severance damages. 2012 free1040x file online A special assessment of $800 was retained out of the award. 2012 free1040x file online The $1,000 severance damages are reduced to zero by first subtracting the $300 expenses and then $700 of the special assessment. 2012 free1040x file online Your $4,000 condemnation award is reduced by the $100 balance of the special assessment, leaving a $3,900 net condemnation award. 2012 free1040x file online Part business or rental. 2012 free1040x file online   If you used part of your condemned property as your home and part as business or rental property, treat each part as a separate property. 2012 free1040x file online Figure your gain or loss separately because gain or loss on each part may be treated differently. 2012 free1040x file online   Some examples of this type of property are a building in which you live and operate a grocery, and a building in which you live on the first floor and rent out the second floor. 2012 free1040x file online Example. 2012 free1040x file online You sold your building for $24,000 under threat of condemnation to a public utility company that had the authority to condemn. 2012 free1040x file online You rented half the building and lived in the other half. 2012 free1040x file online You paid $25,000 for the building and spent an additional $1,000 for a new roof. 2012 free1040x file online You claimed allowable depreciation of $4,600 on the rental half. 2012 free1040x file online You spent $200 in legal expenses to obtain the condemnation award. 2012 free1040x file online Figure your gain or loss as follows. 2012 free1040x file online     Resi- dential Part Busi- ness Part 1) Condemnation award received $12,000 $12,000 2) Minus: Legal expenses, $200 100 100 3) Net condemnation award $11,900 $11,900 4) Adjusted basis:       ½ of original cost, $25,000 $12,500 $12,500   Plus: ½ of cost of roof, $1,000 500 500   Total $13,000 $13,000 5) Minus: Depreciation   4,600 6) Adjusted basis, business part   $8,400 7) (Loss) on residential property ($1,100)   8) Gain on business property $3,500 The loss on the residential part of the property is not deductible. 2012 free1040x file online Postponement of Gain Do not report the gain on condemned property if you receive only property that is similar or related in service or use to the condemned property. 2012 free1040x file online Your basis for the new property is the same as your basis for the old. 2012 free1040x file online Money or unlike property received. 2012 free1040x file online   You ordinarily must report the gain if you receive money or unlike property. 2012 free1040x file online You can elect to postpone reporting the gain if you buy property that is similar or related in service or use to the condemned property within the replacement period, discussed later. 2012 free1040x file online You also can elect to postpone reporting the gain if you buy a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the condemned property. 2012 free1040x file online See Controlling interest in a corporation, later. 2012 free1040x file online   To postpone reporting all the gain, you must buy replacement property costing at least as much as the amount realized for the condemned property. 2012 free1040x file online If the cost of the replacement property is less than the amount realized, you must report the gain up to the unspent part of the amount realized. 2012 free1040x file online   The basis of the replacement property is its cost, reduced by the postponed gain. 2012 free1040x file online Also, if your replacement property is stock in a corporation that owns property similar or related in service or use, the corporation generally will reduce its basis in its assets by the amount by which you reduce your basis in the stock. 2012 free1040x file online See Controlling interest in a corporation, later. 2012 free1040x file online You can use Part 3 of Table 1-3 to figure the gain you must report and your postponed gain. 2012 free1040x file online Postponing gain on severance damages. 2012 free1040x file online   If you received severance damages for part of your property because another part was condemned and you buy replacement property, you can elect to postpone reporting gain. 2012 free1040x file online See Treatment of severance damages, earlier. 2012 free1040x file online You can postpone reporting all your gain if the replacement property costs at least as much as your net severance damages plus your net condemnation award (if resulting in gain). 2012 free1040x file online   You also can make this election if you spend the severance damages, together with other money you received for the condemned property (if resulting in gain), to acquire nearby property that will allow you to continue your business. 2012 free1040x file online If suitable nearby property is not available and you are forced to sell the remaining property and relocate in order to continue your business, see Postponing gain on the sale of related property, next. 2012 free1040x file online   If you restore the remaining property to its former usefulness, you can treat the cost of restoring it as the cost of replacement property. 2012 free1040x file online Postponing gain on the sale of related property. 2012 free1040x file online   If you sell property that is related to the condemned property and then buy replacement property, you can elect to postpone reporting gain on the sale. 2012 free1040x file online You must meet the requirements explained earlier under Related property voluntarily sold. 2012 free1040x file online You can postpone reporting all your gain if the replacement property costs at least as much as the amount realized from the sale plus your net condemnation award (if resulting in gain) plus your net severance damages, if any (if resulting in gain). 2012 free1040x file online Buying replacement property from a related person. 2012 free1040x file online   Certain taxpayers cannot postpone reporting gain from a condemnation if they buy the replacement property from a related person. 2012 free1040x file online For information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2. 2012 free1040x file online   This rule applies to the following taxpayers. 2012 free1040x file online C corporations. 2012 free1040x file online Partnerships in which more than 50% of the capital or profits interest is owned by  C corporations. 2012 free1040x file online All others (including individuals, partnerships (other than those in (2)), and S corporations) if the total realized gain for the tax year on all involuntarily converted properties on which there is realized gain of more than $100,000. 2012 free1040x file online   For taxpayers described in (3) above, gains cannot be offset with any losses when determining whether the total gain is more than $100,000. 2012 free1040x file online If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. 2012 free1040x file online If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. 2012 free1040x file online Exception. 2012 free1040x file online   This rule does not apply if the related person acquired the property from an unrelated person within the replacement period. 2012 free1040x file online Advance payment. 2012 free1040x file online   If you pay a contractor in advance to build your replacement property, you have not bought replacement property unless it is finished before the end of the replacement period (discussed later). 2012 free1040x file online Replacement property. 2012 free1040x file online   To postpone reporting gain, you must buy replacement property for the specific purpose of replacing your condemned property. 2012 free1040x file online You do not have to use the actual funds from the condemnation award to acquire the replacement property. 2012 free1040x file online Property you acquire by gift or inheritance does not qualify as replacement property. 2012 free1040x file online Similar or related in service or use. 2012 free1040x file online   Your replacement property must be similar or related in service or use to the property it replaces. 2012 free1040x file online   If the condemned property is real property you held for productive use in your trade or business or for investment (other than property held mainly for sale), like-kind property to be held either for productive use in trade or business or for investment will be treated as property similar or related in service or use. 2012 free1040x file online For a discussion of like-kind property, see Like-Kind Property under Like-Kind Exchanges, later. 2012 free1040x file online Owner-user. 2012 free1040x file online   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. 2012 free1040x file online Example. 2012 free1040x file online Your home was condemned and you invested the proceeds from the condemnation in a grocery store. 2012 free1040x file online Your replacement property is not similar or related in service or use to the condemned property. 2012 free1040x file online To be similar or related in service or use, your replacement property must also be used by you as your home. 2012 free1040x file online Owner-investor. 2012 free1040x file online   If you are an owner-investor, similar or related in service or use means that any replacement property must have the same relationship of services or uses to you as the property it replaces. 2012 free1040x file online You decide this by determining all the following information. 2012 free1040x file online Whether the properties are of similar service to you. 2012 free1040x file online The nature of the business risks connected with the properties. 2012 free1040x file online What the properties demand of you in the way of management, service, and relations to your tenants. 2012 free1040x file online Example. 2012 free1040x file online You owned land and a building you rented to a manufacturing company. 2012 free1040x file online The building was condemned. 2012 free1040x file online During the replacement period, you had a new building built on other land you already owned. 2012 free1040x file online You rented out the new building for use as a wholesale grocery warehouse. 2012 free1040x file online The replacement property is also rental property, so the two properties are considered similar or related in service or use if there is a similarity in all the following areas. 2012 free1040x file online Your management activities. 2012 free1040x file online The amount and kind of services you provide to your tenants. 2012 free1040x file online The nature of your business risks connected with the properties. 2012 free1040x file online Leasehold replaced with fee simple property. 2012 free1040x file online   Fee simple property you will use in your trade or business or for investment can qualify as replacement property that is similar or related in service or use to a condemned leasehold if you use it in the same business and for the identical purpose as the condemned leasehold. 2012 free1040x file online   A fee simple property interest generally is a property interest that entitles the owner to the entire property with unconditional power to dispose of it during his or her lifetime. 2012 free1040x file online A leasehold is property held under a lease, usually for a term of years. 2012 free1040x file online Outdoor advertising display replaced with real property. 2012 free1040x file online   You can elect to treat an outdoor advertising display as real property. 2012 free1040x file online If you make this election and you replace the display with real property in which you hold a different kind of interest, your replacement property can qualify as like-kind property. 2012 free1040x file online For example, real property bought to replace a destroyed billboard and leased property on which the billboard was located qualify as property of a like-kind. 2012 free1040x file online   You can make this election only if you did not claim a section 179 deduction for the display. 2012 free1040x file online You cannot cancel this election unless you get the consent of the IRS. 2012 free1040x file online   An outdoor advertising display is a sign or device rigidly assembled and permanently attached to the ground, a building, or any other permanent structure used to display a commercial or other advertisement to the public. 2012 free1040x file online Substituting replacement property. 2012 free1040x file online   Once you designate certain property as replacement property on your tax return, you cannot substitute other qualified property. 2012 free1040x file online But, if your previously designated replacement property does not qualify, you can substitute qualified property if you acquire it within the replacement period. 2012 free1040x file online Controlling interest in a corporation. 2012 free1040x file online   You can replace property by acquiring a controlling interest in a corporation that owns property similar or related in service or use to your condemned property. 2012 free1040x file online You have controlling interest if you own stock having at least 80% of the combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation. 2012 free1040x file online Basis adjustment to corporation's property. 2012 free1040x file online   The basis of property held by the corporation at the time you acquired control must be reduced by your postponed gain, if any. 2012 free1040x file online You are not required to reduce the adjusted basis of the corporation's properties below your adjusted basis in the corporation's stock (determined after reduction by your postponed gain). 2012 free1040x file online   Allocate this reduction to the following classes of property in the order shown below. 2012 free1040x file online Property that is similar or related in service or use to the condemned property. 2012 free1040x file online Depreciable property not reduced in (1). 2012 free1040x file online All other property. 2012 free1040x file online If two or more properties fall in the same class, allocate the reduction to each property in proportion to the adjusted basis of all the properties in that class. 2012 free1040x file online The reduced basis of any single property cannot be less than zero. 2012 free1040x file online Main home replaced. 2012 free1040x file online   If your gain from a condemnation of your main home is more than you can exclude from your income (see Main home condemned under Gain or Loss From Condemnations, earlier), you can postpone reporting the rest of the gain by buying replacement property that is similar or related in service or use. 2012 free1040x file online The replacement property must cost at least as much as the amount realized from the condemnation minus the excluded gain. 2012 free1040x file online   You must reduce the basis of your replacement property by the postponed gain. 2012 free1040x file online Also, if you postpone reporting any part of your gain under these rules, you are treated as having owned and used the replacement property as your main home for the period you owned and used the condemned property as your main home. 2012 free1040x file online Example. 2012 free1040x file online City authorities condemned your home that you had used as a personal residence for 5 years prior to the condemnation. 2012 free1040x file online The city paid you a condemnation award of $400,000. 2012 free1040x file online Your adjusted basis in the property was $80,000. 2012 free1040x file online You realize a gain of $320,000 ($400,000 − $80,000). 2012 free1040x file online You purchased a new home for $100,000. 2012 free1040x file online You can exclude $250,000 of the realized gain from your gross income. 2012 free1040x file online The amount realized is then treated as being $150,000 ($400,000 − $250,000) and the gain realized is $70,000 ($150,000 amount realized − $80,000 adjusted basis). 2012 free1040x file online You must recognize $50,000 of the gain ($150,000 amount realized − $100,000 cost of new home). 2012 free1040x file online The remaining $20,000 of realized gain is postponed. 2012 free1040x file online Your basis in the new home is $80,000 ($100,000 cost − $20,000 gain postponed). 2012 free1040x file online Replacement period. 2012 free1040x file online   To postpone reporting your gain from a condemnation, you must buy replacement property within a certain period of time. 2012 free1040x file online This is the replacement period. 2012 free1040x file online   The replacement period for a condemnation begins on the earlier of the following dates. 2012 free1040x file online The date on which you disposed of the condemned property. 2012 free1040x file online The date on which the threat of condemnation began. 2012 free1040x file online   The replacement period generally ends 2 years after the end of the first tax year in which any part of the gain on the condemnation is realized. 2012 free1040x file online However, see the exceptions below. 2012 free1040x file online Three-year replacement period for certain property. 2012 free1040x file online   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the end of the first tax year in which any part of the gain on the condemnation is realized. 2012 free1040x file online However, this 3-year replacement period cannot be used if you replace the condemned property by acquiring control of a corporation owning property that is similar or related in service or use. 2012 free1040x file online Five-year replacement period for certain property. 2012 free1040x file online   The replacement period ends 5 years after the end of the first tax year in which any part of the gain is realized on the compulsory or involuntary conversion of the following qualified property. 2012 free1040x file online Property in any Midwestern disaster area compulsorily or involuntarily converted on or after the applicable disaster date as a result of severe storms, tornadoes, or flooding, but only if substantially all of the use of the replacement property is in a Midwestern disaster area. 2012 free1040x file online Property in the Kansas disaster area compulsorily or involuntarily converted after May 3, 2007, but only if substantially all of the use of the replacement property is in the Kansas disaster area. 2012 free1040x file online Property in the Hurricane Katrina disaster area compulsorily or involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, but only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. 2012 free1040x file online Extended replacement period for taxpayers affected by other federally declared disasters. 2012 free1040x file online    If you are affected by a federally declared disaster, the IRS may grant disaster relief by extending the periods to perform certain tax-related acts for 2013, including the replacement period, by up to one year. 2012 free1040x file online For more information visit www. 2012 free1040x file online irs. 2012 free1040x file online gov/uac/Tax-Relief-in-Disaster-Situations. 2012 free1040x file online Weather-related sales of livestock in an area eligible for federal assistance. 2012 free1040x file online   Generally, if the sale or exchange of livestock is due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. 2012 free1040x file online    If the weather-related conditions continue for longer than 3 years, the replacement period may be extended on a regional basis until the end of your first drought-free year for the applicable region. 2012 free1040x file online See Notice 2006-82. 2012 free1040x file online You can find Notice 2006-82 on page 529 of Internal Revenue Bulletin 2006-39 at www. 2012 free1040x file online irs. 2012 free1040x file online gov/irb/2006-39_IRB/ar13. 2012 free1040x file online html. 2012 free1040x file online    Each year, the IRS publishes a list of counties, districts, cities, or parishes for which exceptional, extreme, or severe drought was reported during the preceding 12 months. 2012 free1040x file online If you qualified for a 4-year replacement period for livestock sold or exchanged on account of drought and your replacement period is scheduled to expire at the end of 2013 (or at the end of the tax year that includes August 31, 2013), see Notice 2013-62. 2012 free1040x file online You can find Notice 2013-62 on page 466 of Internal Revenue Bulletin 2013-45 at www. 2012 free1040x file online irs. 2012 free1040x file online gov/irb/2013-45_IRB/ar04. 2012 free1040x file online html. 2012 free1040x file online The replacement period will be extended under Notice 2006-82 if the applicable region is on the list included in Notice 2013-62. 2012 free1040x file online Determining when gain is realized. 2012 free1040x file online   If you are a cash basis taxpayer, you realize gain when you receive payments that are more than your basis in the property. 2012 free1040x file online If the condemning authority makes deposits with the court, you realize gain when you withdraw (or have the right to withdraw) amounts that are more than your basis. 2012 free1040x file online   This applies even if the amounts received are only partial or advance payments and the full award has not yet been determined. 2012 free1040x file online A replacement will be too late if you wait for a final determination that does not take place in the applicable replacement period after you first realize gain. 2012 free1040x file online   For accrual basis taxpayers, gain (if any) accrues in the earlier year when either of the following occurs. 2012 free1040x file online All events have occurred that fix the right to the condemnation award and the amount can be determined with reasonable accuracy. 2012 free1040x file online All or part of the award is actually or constructively received. 2012 free1040x file online For example, if you have an absolute right to a part of a condemnation award when it is deposited with the court, the amount deposited accrues in the year the deposit is made even though the full amount of the award is still contested. 2012 free1040x file online Replacement property bought before the condemnation. 2012 free1040x file online   If you buy your replacement property after there is a threat of condemnation but before the actual condemnation and you still hold the replacement property at the time of the condemnation, you have bought your replacement property within the replacement period. 2012 free1040x file online Property you acquire before there is a threat of condemnation does not qualify as replacement property acquired within the replacement period. 2012 free1040x file online Example. 2012 free1040x file online On April 3, 2012, city authorities notified you that your property would be condemned. 2012 free1040x file online On June 5, 2012, you acquired property to replace the property to be condemned. 2012 free1040x file online You still had the new property when the city took possession of your old property on September 4, 2013. 2012 free1040x file online You have made a replacement within the replacement period. 2012 free1040x file online Extension. 2012 free1040x file online   You can request an extension of the replacement period from the IRS director for your area. 2012 free1040x file online You should apply before the end of the replacement period. 2012 free1040x file online Your request should explain in detail why you need an extension. 2012 free1040x file online The IRS will consider a request filed within a reasonable time after the replacement period if you can show reasonable cause for the delay. 2012 free1040x file online An extension of the replacement period will be granted if you can show reasonable cause for not making the replacement within the regular period. 2012 free1040x file online   Ordinarily, requests for extensions are granted near the end of the replacement period or the extended replacement period. 2012 free1040x file online Extensions are usually limited to a period of 1 year or less. 2012 free1040x file online The high market value or scarcity of replacement property is not a sufficient reason for granting an extension. 2012 free1040x file online If your replacement property is being built and you clearly show that the replacement or restoration cannot be made within the replacement peri
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Form 1040, U.S. Individual Income Tax Return
Annual income tax return filed by citizens or residents of the United States
Related: Instructions for Form 1040   Tax Tables

Additional forms and schedules for filing Form 1040

Form 1040-A, U.S. Individual Income Tax Return
Shorter version of Form 1040 allows you to report limited types of income and to claim certain adjustments. You cannot itemize deductions if you file Form 1040-A
Related: Instructions for Form 1040-A

Form 1040-ES, Estimated Tax for Individuals
Figure and pay your estimated tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.)
Related: Instructions for Form 1040-ES

Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents
Simplest individual income tax return form to fill out. If you file Form 1040EZ, you cannot itemize deductions or claim any adjustments to income or tax credits (other than the earned income credit).
Related: Inst 1040-EZ

Need help choosing the right 1040 for your situation? Use the Interactive Tax Assistant (ITA) or read Which Form - 1040, 1040A, or 1040EZ?

Form 2848, Power of Attorney and Declaration of Representative
Use Form 2848 to authorize an individual to represent you before the IRS.
Related: Instructions for Form 2848

Form 8821, Tax Information Authorization
Authorizes any individual, corporation, firm, organization, or partnership you designate to inspect and/or receive your confidential information for the type of tax and the years or periods listed on the form.

Form 8949, Sales and Other Dispositions of Capital Assets
Reconcile amounts that were reported to you and the IRS on Form 1099-B or 1099-S (or substitute statement) with the amounts you report on your return.
Related: Instructions for Form 8949

Form 9465, Installment Agreement Request
Request monthly payments through an installment agreement if you're not financially able to pay your tax debt immediately. 
Related: Instructions for Form 9465  Online Payment Agreement Application

Form 990, Return of Organization Exempt From Income Tax
Used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
Related: Instructions for Form 990  Schedules for Form 990

Form SS-4, Application for Employer Identification Number (EIN)
Apply for an Employer Identification Number. An EIN is a nine-digit number assigned to employers, sole proprietors, corporations, partnerships, estates, trusts, certain individuals, and other entities for tax filing and reporting purposes.
Related: Instructions for Form SS-4  Apply for an EIN online

Form W-2, Wage and Tax Statement (Info copy only)
Employers must complete, file with the Social Security Administration, and furnish to their employees Form W-2 showing the wages paid and taxes withheld for the year for each employee.
Related: Instructions for Form W-2 and W-3  Order Employer Returns Online

Form W-4, Employee's Withholding Allowance Certificate
Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.
Related: Withholding Calculator

Form W-9, Request for Taxpayer Identification Number (TIN) and Certification
Provide your correct TIN to the person who is required to file an information return with the IRS to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA.
Related: Instructions for the Requestor of Form W-9

Publication 15 (Circular E), Employer's Tax Guide
Explains your tax responsibilities as an employer. It also includes tax tables that you need to figure the taxes to withhold from each employee.
Related: Read Pub 15 Online

Publication 17, Your Federal Income Tax
Explains the general rules for filing a federal income tax return. It supplements the information contained in your tax form instruction booklet. It explains the tax law to make sure you pay only the tax you owe and no more.
Related: Read Pub 17 Online

Publication 502, Medical and Dental Expenses
Explains the itemized deduction for medical and dental expenses that you claim on Schedule A (Form 1040).
Related: Read Pub 502 Online

Publication 590, Individual Retirement Arrangements (IRAs)
Explains individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.
Related: Read Pub 590 Online

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The 2012 Free1040x File Online

2012 free1040x file online Part Five -   Deducción Estándar y Deducciones Detalladas Después de calcular su ingreso bruto ajustado, entonces puede restar las deducciones utilizadas para calcular los ingresos tributables. 2012 free1040x file online Puede restar la deducción estándar o las deducciones detalladas. 2012 free1040x file online Las deducciones detalladas son deducciones por determinados gastos enumerados en el Anexo A (Formulario 1040). 2012 free1040x file online Los diez capítulos de esta sección tratan sobre la deducción estándar, cada deducción detallada y el límite sobre algunas de sus deducciones detalladas si su ingreso bruto ajustado es mayor que ciertas cantidades. 2012 free1040x file online Vea el capítulo 20 para saber qué factores debe tener en cuenta al decidir si debe restar o no la deducción estándar o las deducciones detalladas. 2012 free1040x file online Table of Contents 20. 2012 free1040x file online   Deducción EstándarQué Hay de Nuevo Introduction Cantidad de la Deducción Estándar Deducción Estándar para DependientesDefinición del ingreso del trabajo. 2012 free1040x file online Quién Debe Detallar las DeduccionesCuándo detallar las deducciones. 2012 free1040x file online Personas casadas que presentan la declaración por separado. 2012 free1040x file online 21. 2012 free1040x file online   Gastos Médicos y DentalesQué Hay de Nuevo Introduction Useful Items - You may want to see: ¿Qué Son Gastos Médicos? ¿Qué Gastos Puede Incluir Este Año?Estados donde rige la ley de los bienes gananciales. 2012 free1040x file online ¿Qué Cantidad de los Gastos Puede Deducir? ¿De Qué Personas Puede Incluir Gastos Médicos?Usted Cónyuge Dependiente Difuntos ¿Qué Gastos Médicos se Pueden Incluir?Primas de Seguros Comidas y Alojamiento Transporte Gastos del Cuidado de un Dependiente Incapacitado ¿Cómo se Tratan los Reembolsos?Reembolso de Seguros Indemnizaciones por Lesiones Personales Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos¿Qué Formulario Debe Usar para la Declaración? Gastos de Trabajo Relacionados con un Impedimento Costos del Seguro Médico para Personas que Trabajan por Cuenta Propia 22. 2012 free1040x file online   ImpuestosIntroductionGobierno tribal de indios estadounidenses. 2012 free1040x file online Useful Items - You may want to see: Requisitos para Deducir Todo Impuesto Impuestos sobre los IngresosImpuestos Estatales y Locales sobre los Ingresos Impuestos Extranjeros sobre los Ingresos Impuestos Generales sobre las VentasVehículos de motor. 2012 free1040x file online Impuestos sobre Bienes RaícesImpuestos sobre bienes raíces de años anteriores. 2012 free1040x file online Ejemplos. 2012 free1040x file online Formulario 1099-S. 2012 free1040x file online Cantidades Relacionadas con Bienes Raíces que no Puede Deducir Impuestos sobre Bienes Muebles Impuestos y Cargos que no Puede Deducir Dónde se Anotan las Deducciones 23. 2012 free1040x file online   Gastos de InteresesIntroduction Useful Items - You may want to see: Intereses Hipotecarios de ViviendaCantidad Deducible Puntos Primas de Seguro Hipotecario Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios Intereses Procedentes de InversionesBienes de Inversión Asignación de Gastos de Intereses Límite sobre la Deducción Cantidades que No Puede DeducirIntereses Personales Asignación de Intereses Cómo Hacer la DeclaraciónMás de un prestatario. 2012 free1040x file online Fondos procedentes de una hipoteca utilizados para negocios o inversiones. 2012 free1040x file online 24. 2012 free1040x file online   DonacionesIntroduction Useful Items - You may want to see: Organizaciones que Reúnen los Requisitos para Recibir Donaciones DeduciblesTipos de Organizaciones Calificadas Donaciones que Puede DeducirDonaciones de las Cuales Usted se Beneficia Gastos Pagados a Nombre de un Estudiante que Vive con Usted Gastos de Bolsillo al Prestar Servicios Donaciones que no Puede DeducirDonaciones Hechas a Personas Físicas Donaciones Hechas a Organizaciones no Calificadas Donaciones de las Cuales Usted se Beneficia Valor de Tiempo o Servicios Gastos Personales Cargos de Tasación Donaciones de BienesExcepción. 2012 free1040x file online Artículos domésticos. 2012 free1040x file online Deducción de más de $500. 2012 free1040x file online Formulario 1098-C. 2012 free1040x file online Se acerca el plazo para la presentación de la declaración y aún no tiene el Formulario 1098-C. 2012 free1040x file online Excepción 1: vehículo usado o mejorado por la organización. 2012 free1040x file online Excepción 2: vehículo donado o vendido a una persona necesitada. 2012 free1040x file online Deducción de $500 o menos. 2012 free1040x file online Derecho al uso de los bienes. 2012 free1040x file online Bienes muebles tangibles. 2012 free1040x file online Intereses futuros. 2012 free1040x file online Determinación del Valor Justo de Mercado Donación de Bienes Cuyo Valor ha Disminuido Donación de Bienes Cuyo Valor ha Aumentado Cuándo Puede Deducir sus DonacionesCheques. 2012 free1040x file online Mensaje de texto. 2012 free1040x file online Tarjeta de crédito. 2012 free1040x file online Pago telefónico. 2012 free1040x file online Título de acciones. 2012 free1040x file online Pagaré. 2012 free1040x file online Opción. 2012 free1040x file online Fondos de un préstamo. 2012 free1040x file online Límites sobre DeduccionesCantidades Trasladadas al Año Siguiente Documentación que se Debe MantenerDonaciones en Efectivo Donaciones que no Sean en Efectivo Gastos de Bolsillo Cómo Declarar las Donaciones Caritativas 25. 2012 free1040x file online   Pérdidas por Hecho Fortuito y Robo no Relacionadas con los NegociosQué Hay de Nuevo Introduction Useful Items - You may want to see: Hecho FortuitoMascota de la familia. 2012 free1040x file online Deterioro progresivo. 2012 free1040x file online Daños ocasionados por paneles de yeso (drywall) corrosivos. 2012 free1040x file online Robo Pérdidas de Depósitos Comprobación de las Pérdidas Cómo Calcular una PérdidaDisminución del Valor Justo de Mercado Base Ajustada Seguro y Otros Reembolsos Un Solo Hecho Fortuito en Bienes Múltiples Límites de la DeducciónRegla de los $100 Regla del 10% Cuándo Declarar Ganancias y PérdidasPérdidas en Zonas de Desastre Cómo Declarar Ganancias y Pérdidas 26. 2012 free1040x file online   Gastos de Automóvil y Otros Gastos de Negocio del EmpleadoQué Hay de Nuevo Introduction Useful Items - You may want to see: Gastos de ViajeViajes Lejos de Su Domicilio Domicilio Tributario Trabajo o Asignación Temporal ¿Qué Gastos de Viaje se Pueden Deducir? Viajes en los Estados Unidos Viajes Fuera de los Estados Unidos Convenciones Gastos de EntretenimientoLímite del 50% ¿Qué Gastos de Entretenimiento se Pueden Deducir? ¿Qué Gastos de Entretenimiento no se Pueden Deducir? Gastos por Regalos Gastos de TransportePersonal en Reserva de las Fuerzas Armadas. 2012 free1040x file online Cargos de estacionamiento. 2012 free1040x file online Publicidad en el automóvil. 2012 free1040x file online Uso compartido de automóviles. 2012 free1040x file online Transporte de herramientas o instrumentos. 2012 free1040x file online Gastos de desplazamiento de sindicalistas desde el centro del sindicato. 2012 free1040x file online Gastos de Automóvil Mantenimiento de DocumentaciónCómo Demostrar los Gastos Cuánto Tiempo Tiene que Guardar Documentación y Recibos Cómo Hacer la DeclaraciónRegalos. 2012 free1040x file online Empleados estatutarios. 2012 free1040x file online Reembolsos Cómo Llenar los Formularios 2106 y 2106-EZ Reglas Especiales 27. 2012 free1040x file online   Beneficios Tributarios para Estudios Relacionados con el TrabajoQué Hay de Nuevo Introduction Useful Items - You may want to see: Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la DeducciónEstudios Requeridos por el Empleador o por Ley Estudios para Mantener o Mejorar Destrezas Estudios para Satisfacer los Requisitos Mínimos Estudios que lo Capacitan para un Nuevo Oficio o Negocio Qué Gastos se Pueden Deducir Reembolso no reclamado. 2012 free1040x file online Gastos de Transporte Gastos de Viaje No se Permiten Beneficios Dobles Reembolsos Cómo Deducir Gastos de NegociosPersonas que Trabajan por Cuenta Propia Empleados Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Gastos de Trabajo Relacionados con un Impedimento Documentación 28. 2012 free1040x file online   Deducciones MisceláneasQué Hay de Nuevo Introduction Useful Items - You may want to see: Deducciones Sujetas al Límite del 2%Gastos del Empleado no Reembolsados (Línea 21) Costos de la Preparación de la Declaración de Impuestos (Línea 22) Otros Gastos (Línea 23) Deducciones no Sujetas al Límite del 2%Lista de Deducciones Gastos no DeduciblesLista de Gastos no Deducibles 29. 2012 free1040x file online   Límite sobre Deducciones DetalladasIntroduction Useful Items - You may want to see: ¿Está Usted Sujeto al Límite? ¿Qué Deducciones Detalladas Están Limitadas? ¿Qué Deducciones Detalladas no Están Limitadas? ¿Cómo se Calcula el Límite?Ejemplo Prev  Up  Next   Home   More Online Publications