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Federal Income Tax Rates 2012

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Federal Income Tax Rates 2012

Federal income tax rates 2012 37. Federal income tax rates 2012   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. Federal income tax rates 2012  The maximum adoption credit is $12,970 for 2013. Federal income tax rates 2012 See Adoption Credit . Federal income tax rates 2012 Plug-in electric vehicle credit. Federal income tax rates 2012  This credit has expired. Federal income tax rates 2012 Credit for prior year minimum tax. Federal income tax rates 2012  The refundable portion of the credit for prior year minimum tax has expired. Federal income tax rates 2012 Excess withholding of social security and railroad retirement tax. Federal income tax rates 2012  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. Federal income tax rates 2012 2% of wages up to $113,700. Federal income tax rates 2012 If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. Federal income tax rates 2012 See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . Federal income tax rates 2012 Introduction This chapter discusses the following nonrefundable credits. Federal income tax rates 2012 Adoption credit. Federal income tax rates 2012 Alternative motor vehicle credit. Federal income tax rates 2012 Alternative fuel vehicle refueling property credit. Federal income tax rates 2012 Credit to holders of tax credit bonds. Federal income tax rates 2012 Foreign tax credit. Federal income tax rates 2012 Mortgage interest credit. Federal income tax rates 2012 Nonrefundable credit for prior year minimum tax. Federal income tax rates 2012 Plug-in electric drive motor vehicle credit. Federal income tax rates 2012 Residential energy credits. Federal income tax rates 2012 Retirement savings contributions credit. Federal income tax rates 2012 This chapter also discusses the following refundable credits. Federal income tax rates 2012 Credit for tax on undistributed capital gain. Federal income tax rates 2012 Health coverage tax credit. Federal income tax rates 2012 Credit for excess social security tax or railroad retirement tax withheld. Federal income tax rates 2012 Several other credits are discussed in other chapters in this publication. Federal income tax rates 2012 Child and dependent care credit (chapter 32). Federal income tax rates 2012 Credit for the elderly or the disabled (chapter 33). Federal income tax rates 2012 Child tax credit (chapter 34). Federal income tax rates 2012 Education credits (chapter 35). Federal income tax rates 2012 Earned income credit (chapter 36). Federal income tax rates 2012 Nonrefundable credits. Federal income tax rates 2012   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. Federal income tax rates 2012 These credits may reduce your tax to zero. Federal income tax rates 2012 If these credits are more than your tax, the excess is not refunded to you. Federal income tax rates 2012 Refundable credits. Federal income tax rates 2012   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. Federal income tax rates 2012 These credits are added to the federal income tax withheld and any estimated tax payments you made. Federal income tax rates 2012 If this total is more than your total tax, the excess will be refunded to you. Federal income tax rates 2012 Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. Federal income tax rates 2012 However, if the total of these credits is more than your tax, the excess is not refunded to you. Federal income tax rates 2012 Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. Federal income tax rates 2012 The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. Federal income tax rates 2012 If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. Federal income tax rates 2012 If your modified AGI is $234,580 or more, you cannot take the credit. Federal income tax rates 2012 Qualified adoption expenses. Federal income tax rates 2012   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. Federal income tax rates 2012 These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. Federal income tax rates 2012 Nonqualified expenses. Federal income tax rates 2012   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. Federal income tax rates 2012 Eligible child. Federal income tax rates 2012   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. Federal income tax rates 2012 Child with special needs. Federal income tax rates 2012   An eligible child is a child with special needs if all three of the following apply. Federal income tax rates 2012 The child was a citizen or resident of the United States (including U. Federal income tax rates 2012 S. Federal income tax rates 2012 possessions) at the time the adoption process began. Federal income tax rates 2012 A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. Federal income tax rates 2012 The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. Federal income tax rates 2012 Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. Federal income tax rates 2012 When to take the credit. Federal income tax rates 2012   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. Federal income tax rates 2012 If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. Federal income tax rates 2012 See the Instructions for Form 8839 for more specific information on when to take the credit. Federal income tax rates 2012 Foreign child. Federal income tax rates 2012   If the child is not a U. Federal income tax rates 2012 S. Federal income tax rates 2012 citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. Federal income tax rates 2012 You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8839” on the line next to that box. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information, see the Instructions for Form 8839. Federal income tax rates 2012 Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. Federal income tax rates 2012 Amount of credit. Federal income tax rates 2012   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. Federal income tax rates 2012 In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. Federal income tax rates 2012   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   To take the credit, you must complete Form 8910 and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8910” on the line next to that box. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Instructions for Form 8910. Federal income tax rates 2012 Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. Federal income tax rates 2012 Qualified alternative fuel vehicle refueling property. Federal income tax rates 2012   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. Federal income tax rates 2012 To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Federal income tax rates 2012 To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. Federal income tax rates 2012   The following are alternative fuels. Federal income tax rates 2012 Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. Federal income tax rates 2012 Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. Federal income tax rates 2012 Electricity. Federal income tax rates 2012 Amount of the credit. Federal income tax rates 2012   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. Federal income tax rates 2012 For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   To take the credit, you must complete Form 8911 and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8911” on the line next to that box. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Form 8911 instructions. Federal income tax rates 2012 Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. Federal income tax rates 2012 You may be able to take a credit if you are a holder of one of the following bonds. Federal income tax rates 2012 Clean renewable energy bonds (issued before 2010). Federal income tax rates 2012 New clean renewable energy bonds. Federal income tax rates 2012 Qualified energy conservation bonds. Federal income tax rates 2012 Qualified school construction bonds. Federal income tax rates 2012 Qualified zone academy bonds. Federal income tax rates 2012 Build America bonds. Federal income tax rates 2012 In some instances, an issuer may elect to receive a credit for interest paid on the bond. Federal income tax rates 2012 If the issuer makes this election, you cannot also claim a credit. Federal income tax rates 2012 Interest income. Federal income tax rates 2012   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   Complete Form 8912 and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8912” on the line next to that box. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information, see the Instructions for Form 8912. Federal income tax rates 2012 Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. Federal income tax rates 2012 S. Federal income tax rates 2012 possession as a credit against your U. Federal income tax rates 2012 S. Federal income tax rates 2012 income tax. Federal income tax rates 2012 Or, you can deduct them as an itemized deduction (see chapter 22). Federal income tax rates 2012 You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. Federal income tax rates 2012 S. Federal income tax rates 2012 tax under any of the following. Federal income tax rates 2012 Foreign earned income exclusion. Federal income tax rates 2012 Foreign housing exclusion. Federal income tax rates 2012 Income from Puerto Rico exempt from U. Federal income tax rates 2012 S. Federal income tax rates 2012 tax. Federal income tax rates 2012 Possession exclusion. Federal income tax rates 2012 Limit on the credit. Federal income tax rates 2012   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. Federal income tax rates 2012 S. Federal income tax rates 2012 tax liability (Form 1040, line 44), multiplied by a fraction. Federal income tax rates 2012 The numerator of the fraction is your taxable income from sources outside the United States. Federal income tax rates 2012 The denominator is your total taxable income from U. Federal income tax rates 2012 S. Federal income tax rates 2012 and foreign sources. Federal income tax rates 2012 See Publication 514 for more information. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   Complete Form 1116 and attach it to your Form 1040. Federal income tax rates 2012 Enter the credit on Form 1040, line 47. Federal income tax rates 2012 Exception. Federal income tax rates 2012   You do not have to complete Form 1116 to take the credit if all of the following apply. Federal income tax rates 2012 All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). Federal income tax rates 2012 If you had dividend income from shares of stock, you held those shares for at least 16 days. Federal income tax rates 2012 You are not filing Form 4563 or excluding income from sources within Puerto Rico. Federal income tax rates 2012 The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). Federal income tax rates 2012 All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit and these requirements, see the Instructions for Form 1116. Federal income tax rates 2012 Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. Federal income tax rates 2012 If you qualify, you can take the credit each year for part of the home mortgage interest you pay. Federal income tax rates 2012 Who qualifies. Federal income tax rates 2012   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. Federal income tax rates 2012 Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Federal income tax rates 2012 Amount of credit. Federal income tax rates 2012   Figure your credit on Form 8396. Federal income tax rates 2012 If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Federal income tax rates 2012   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Federal income tax rates 2012 To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Federal income tax rates 2012      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. Federal income tax rates 2012   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. Federal income tax rates 2012 If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. Federal income tax rates 2012 See Publication 530 for more information. Federal income tax rates 2012 Carryforward. Federal income tax rates 2012   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. Federal income tax rates 2012 If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Federal income tax rates 2012   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. Federal income tax rates 2012 Be sure to include any credit carryforward from 2010, 2011, and 2012. Federal income tax rates 2012   Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8396” on the line next to that box. Federal income tax rates 2012 Reduced home mortgage interest deduction. Federal income tax rates 2012   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Federal income tax rates 2012 You must do this even if part of that amount is to be carried forward to 2014. Federal income tax rates 2012 For more information about the home mortgage interest deduction, see chapter 23. Federal income tax rates 2012 Recapture of federal mortgage subsidy. Federal income tax rates 2012   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. Federal income tax rates 2012 The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. Federal income tax rates 2012 See the Instructions for Form 8828 and chapter 15 for more information. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Form 8396 instructions. Federal income tax rates 2012 Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. Federal income tax rates 2012 If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. Federal income tax rates 2012 This is called the alternative minimum tax. Federal income tax rates 2012 The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. Federal income tax rates 2012 If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. Federal income tax rates 2012 You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53, and check box b. Federal income tax rates 2012 You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Instructions for Form 8801. Federal income tax rates 2012 Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. Federal income tax rates 2012 Qualified plug-in electric drive motor vehicle. Federal income tax rates 2012   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Federal income tax rates 2012 Qualified two- or three-wheeled plug-in electric vehicle. Federal income tax rates 2012   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. Federal income tax rates 2012 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Federal income tax rates 2012 Certification and other requirements. Federal income tax rates 2012   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. Federal income tax rates 2012 However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. Federal income tax rates 2012   The following requirements must also be met to qualify for the credit. Federal income tax rates 2012 You are the owner of the vehicle. Federal income tax rates 2012 If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. Federal income tax rates 2012 You placed the vehicle in service during 2013. Federal income tax rates 2012 The vehicle is manufactured primarily for use on public streets, roads, and highways. Federal income tax rates 2012 The original use of the vehicle began with you. Federal income tax rates 2012 You acquired the vehicle for your use or to lease to others, and not for resale. Federal income tax rates 2012 In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. Federal income tax rates 2012 You use the vehicle primarily in the United States. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   To take the credit, you must complete Form 8936 and attach it to your Form 1040. Federal income tax rates 2012 Include the credit in your total for Form 1040, line 53. Federal income tax rates 2012 Check box c and enter “8936” on the line next to that box. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Form 8936 instructions. Federal income tax rates 2012 Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. Federal income tax rates 2012 Nonbusiness energy property credit. Federal income tax rates 2012 Residential energy efficient property credit. Federal income tax rates 2012 If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. Federal income tax rates 2012 Nonbusiness energy property credit. Federal income tax rates 2012   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. Federal income tax rates 2012   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. Federal income tax rates 2012    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. Federal income tax rates 2012   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. Federal income tax rates 2012 Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. Federal income tax rates 2012 Exterior window (including skylights). Federal income tax rates 2012 Exterior doors. Federal income tax rates 2012 Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. Federal income tax rates 2012   Residential energy property is any of the following. Federal income tax rates 2012 Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. Federal income tax rates 2012 Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. Federal income tax rates 2012 Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. Federal income tax rates 2012 Residential energy efficient property credit. Federal income tax rates 2012   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. Federal income tax rates 2012 The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Federal income tax rates 2012 Basis reduction. Federal income tax rates 2012   You must reduce the basis of your home by the amount of any credit allowed. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   Complete Form 5695 and attach it to your Form 1040. Federal income tax rates 2012 Enter the credit on Form 1040, line 52. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on these credits, see the Form 5695 instructions. Federal income tax rates 2012 Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. Federal income tax rates 2012 However, you cannot take the credit if either of the following applies. Federal income tax rates 2012 The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). Federal income tax rates 2012 The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). Federal income tax rates 2012 Student. Federal income tax rates 2012   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. Federal income tax rates 2012 School. Federal income tax rates 2012   A school includes a technical, trade, or mechanical school. Federal income tax rates 2012 It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   Figure the credit on Form 8880. Federal income tax rates 2012 Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see the Form 8880 instructions. Federal income tax rates 2012 Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. Federal income tax rates 2012 If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. Federal income tax rates 2012 Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. Federal income tax rates 2012 If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. Federal income tax rates 2012 The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   To take the credit, attach Copy B of Form 2439 to your Form 1040. Federal income tax rates 2012 Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. Federal income tax rates 2012 More information. Federal income tax rates 2012   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. Federal income tax rates 2012 Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. Federal income tax rates 2012 You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. Federal income tax rates 2012 You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. Federal income tax rates 2012 S. Federal income tax rates 2012 Treasury–HCTC. Federal income tax rates 2012 ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. Federal income tax rates 2012 You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). Federal income tax rates 2012 You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. Federal income tax rates 2012 S. Federal income tax rates 2012 military health system (TRICARE). Federal income tax rates 2012 You were not imprisoned under federal, state, or local authority. Federal income tax rates 2012 Your employer did not pay 50% or more of the cost of coverage. Federal income tax rates 2012 You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. Federal income tax rates 2012 But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. Federal income tax rates 2012 If you meet all of these conditions, you may be able to take a credit of up to 72. Federal income tax rates 2012 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. Federal income tax rates 2012 You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. Federal income tax rates 2012 The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. Federal income tax rates 2012 You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. Federal income tax rates 2012 If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. Federal income tax rates 2012 TAA recipient. Federal income tax rates 2012   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). Federal income tax rates 2012 Example. Federal income tax rates 2012 You received a trade adjustment allowance for January 2013. Federal income tax rates 2012 You were an eligible TAA recipient on the first day of January and February. Federal income tax rates 2012 Alternative TAA recipient. Federal income tax rates 2012   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. Federal income tax rates 2012 Example. Federal income tax rates 2012 You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. Federal income tax rates 2012 The program was established by the Department of Labor. Federal income tax rates 2012 You were an eligible alternative TAA recipient on the first day of October and November. Federal income tax rates 2012 RTAA recipient. Federal income tax rates 2012   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. Federal income tax rates 2012 PBGC pension recipient. Federal income tax rates 2012   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. Federal income tax rates 2012 You were age 55 or older on the first day of the month. Federal income tax rates 2012 You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Federal income tax rates 2012 If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. Federal income tax rates 2012 How to take the credit. Federal income tax rates 2012   To take the credit, complete Form 8885 and attach it to your Form 1040. Federal income tax rates 2012 Include your credit in the total for Form 1040, line 71, and check box c. Federal income tax rates 2012   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. Federal income tax rates 2012 For details, see Publication 502 or Form 8885. Federal income tax rates 2012 More information. Federal income tax rates 2012   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. Federal income tax rates 2012 Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. Federal income tax rates 2012 If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Federal income tax rates 2012 If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. Federal income tax rates 2012 If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. Federal income tax rates 2012 2% rate. Federal income tax rates 2012 You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. Federal income tax rates 2012 For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. Federal income tax rates 2012 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. Federal income tax rates 2012 45%) or the Additional Medicare Tax rate (. Federal income tax rates 2012 9%). Federal income tax rates 2012 The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. Federal income tax rates 2012 Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. Federal income tax rates 2012 40 RRTA tier 2 $84,300 $3,709. Federal income tax rates 2012 20 All wages are subject to Medicare tax withholding. Federal income tax rates 2012   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Federal income tax rates 2012 Be sure to attach a copy of all of your W-2 forms. Federal income tax rates 2012 Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. Federal income tax rates 2012 Employer's error. Federal income tax rates 2012   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. Federal income tax rates 2012 The employer should adjust the tax for you. Federal income tax rates 2012 If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Federal income tax rates 2012 Joint return. Federal income tax rates 2012   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Federal income tax rates 2012 Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. Federal income tax rates 2012 How to figure the credit if you did not work for a railroad. Federal income tax rates 2012   If you did not work for a railroad during 2013, figure the credit as follows: 1. Federal income tax rates 2012 Add all social security tax withheld (but not more than $7,049. Federal income tax rates 2012 40 for each employer). Federal income tax rates 2012 Enter the total here   2. Federal income tax rates 2012 Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Federal income tax rates 2012 Add lines 1 and 2. Federal income tax rates 2012 If $7,049. Federal income tax rates 2012 40 or less, stop here. Federal income tax rates 2012 You cannot take  the credit   4. Federal income tax rates 2012 Social security tax limit 7,049. Federal income tax rates 2012 40 5. Federal income tax rates 2012 Credit. Federal income tax rates 2012 Subtract line 4 from line 3. Federal income tax rates 2012 Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. Federal income tax rates 2012 You are married and file a joint return with your spouse who had no gross income in 2013. Federal income tax rates 2012 During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. Federal income tax rates 2012 Social security tax of $3,720 was withheld. Federal income tax rates 2012 You also worked for another employer in 2013 and earned $55,000 in wages. Federal income tax rates 2012 $3,410 of social security tax was withheld from these wages. Federal income tax rates 2012 Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. Federal income tax rates 2012 60 for the excess social security tax withheld. Federal income tax rates 2012 1. Federal income tax rates 2012 Add all social security tax withheld (but not more than $7,049. Federal income tax rates 2012 40 for each employer). Federal income tax rates 2012 Enter the total here $7,130. Federal income tax rates 2012 00 2. Federal income tax rates 2012 Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. Federal income tax rates 2012 Add lines 1 and 2. Federal income tax rates 2012 If $7,049. Federal income tax rates 2012 40 or less, stop here. Federal income tax rates 2012 You cannot take the credit 7,130. Federal income tax rates 2012 00 4. Federal income tax rates 2012 Social security tax limit 7,049. Federal income tax rates 2012 40 5. Federal income tax rates 2012 Credit. Federal income tax rates 2012 Subtract line 4 from line 3. Federal income tax rates 2012 Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. Federal income tax rates 2012 60 How to figure the credit if you worked for a railroad. Federal income tax rates 2012   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. Federal income tax rates 2012 Add all social security and tier 1 RRTA tax withheld at the 6. Federal income tax rates 2012 2% rate (but not more than $7,049. Federal income tax rates 2012 40 for each employer). Federal income tax rates 2012 Enter the total here   2. Federal income tax rates 2012 Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Federal income tax rates 2012 Add lines 1 and 2. Federal income tax rates 2012 If $7,049. Federal income tax rates 2012 40 or less, stop here. Federal income tax rates 2012 You cannot take  the credit   4. Federal income tax rates 2012 Social security and tier 1 RRTA  tax limit 7,049. Federal income tax rates 2012 40 5. Federal income tax rates 2012 Credit. Federal income tax rates 2012 Subtract line 4 from line 3. Federal income tax rates 2012 Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. Federal income tax rates 2012   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. Federal income tax rates 2012 More information. Federal income tax rates 2012   For more information on the credit, see Publication 505. Federal income tax rates 2012 Prev  Up  Next   Home   More Online Publications
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Committee for the Implementation of Textile Agreements

The Committee for the Implementation of Textile Agreements is responsible for matters affecting textile trade policy, and for supervising the implementation of all textile trade agreements.

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Address: Office of Textiles and Apparel
U.S. Department of Commerce

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The Federal Income Tax Rates 2012

Federal income tax rates 2012 11. Federal income tax rates 2012   Casualties, Thefts, and Condemnations Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Casualties and TheftsDeductible losses. Federal income tax rates 2012 Nondeductible losses. Federal income tax rates 2012 Family pet. Federal income tax rates 2012 Progressive deterioration. Federal income tax rates 2012 Decline in market value of stock. Federal income tax rates 2012 Mislaid or lost property. Federal income tax rates 2012 Farming Losses How To Figure a Loss Deduction Limits on Losses of Personal-Use Property When Loss Is Deductible Proof of Loss Figuring a Gain Other Involuntary ConversionsCondemnation Irrigation Project Livestock Losses Tree Seedlings Postponing GainException. Federal income tax rates 2012 Related persons. Federal income tax rates 2012 Replacement Property Replacement Period How To Postpone Gain Disaster Area LossesWho is eligible. Federal income tax rates 2012 Covered disaster area. Federal income tax rates 2012 Reporting Gains and Losses Introduction This chapter explains the tax treatment of casualties, thefts, and condemnations. Federal income tax rates 2012 A casualty occurs when property is damaged, destroyed, or lost due to a sudden, unexpected, or unusual event. Federal income tax rates 2012 A theft occurs when property is stolen. Federal income tax rates 2012 A condemnation occurs when private property is legally taken for public use without the owner's consent. Federal income tax rates 2012 A casualty, theft, or condemnation may result in a deductible loss or taxable gain on your federal income tax return. Federal income tax rates 2012 You may have a deductible loss or a taxable gain even if only a portion of your property was affected by a casualty, theft, or condemnation. Federal income tax rates 2012 An involuntary conversion occurs when you receive money or other property as reimbursement for a casualty, theft, condemnation, disposition of property under threat of condemnation, or certain other events discussed in this chapter. Federal income tax rates 2012 If an involuntary conversion results in a gain and you buy qualified replacement property within the specified replacement period, you can postpone reporting the gain on your income tax return. Federal income tax rates 2012 For more information, see Postponing Gain , later. Federal income tax rates 2012 Topics - This chapter discusses: Casualties and thefts How to figure a loss or gain Other involuntary conversions Postponing gain Disaster area losses Reporting gains and losses Drought involving property connected with a trade or business or a transaction entered into for profit Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and Theft Loss Workbook Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch D (Form 1040) Capital Gains and Losses Sch F (Form 1040) Profit or Loss From Farming 4684 Casualties and Thefts 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Federal income tax rates 2012 Casualties and Thefts If your property is destroyed, damaged, or stolen, you may have a deductible loss. Federal income tax rates 2012 If the insurance or other reimbursement is more than the adjusted basis of the destroyed, damaged, or stolen property, you may have a taxable gain. Federal income tax rates 2012 Casualty. Federal income tax rates 2012   A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Federal income tax rates 2012 A sudden event is one that is swift, not gradual or progressive. Federal income tax rates 2012 An unexpected event is one that is ordinarily unanticipated and unintended. Federal income tax rates 2012 An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Federal income tax rates 2012 Deductible losses. Federal income tax rates 2012   Deductible casualty losses can result from a number of different causes, including the following. Federal income tax rates 2012 Airplane crashes. Federal income tax rates 2012 Car, truck, or farm equipment accidents not resulting from your willful act or willful negligence. Federal income tax rates 2012 Earthquakes. Federal income tax rates 2012 Fires (but see Nondeductible losses next for exceptions). Federal income tax rates 2012 Floods. Federal income tax rates 2012 Freezing. Federal income tax rates 2012 Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses, in Publication 547. Federal income tax rates 2012 Lightning. Federal income tax rates 2012 Storms, including hurricanes and tornadoes. Federal income tax rates 2012 Terrorist attacks. Federal income tax rates 2012 Vandalism. Federal income tax rates 2012 Volcanic eruptions. Federal income tax rates 2012 Nondeductible losses. Federal income tax rates 2012   A casualty loss is not deductible if the damage or destruction is caused by the following. Federal income tax rates 2012 Accidentally breaking articles such as glassware or china under normal conditions. Federal income tax rates 2012 A family pet (explained below). Federal income tax rates 2012 A fire if you willfully set it, or pay someone else to set it. Federal income tax rates 2012 A car, truck, or farm equipment accident if your willful negligence or willful act caused it. Federal income tax rates 2012 The same is true if the willful act or willful negligence of someone acting for you caused the accident. Federal income tax rates 2012 Progressive deterioration (explained below). Federal income tax rates 2012 Family pet. Federal income tax rates 2012   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed above under Casualty are met. Federal income tax rates 2012 Example. Federal income tax rates 2012 You keep your horse in your yard. Federal income tax rates 2012 The ornamental fruit trees in your yard were damaged when your horse stripped the bark from them. Federal income tax rates 2012 Some of the trees were completely girdled and died. Federal income tax rates 2012 Because the damage was not unexpected or unusual, the loss is not deductible. Federal income tax rates 2012 Progressive deterioration. Federal income tax rates 2012   Loss of property due to progressive deterioration is not deductible as a casualty loss. Federal income tax rates 2012 This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Federal income tax rates 2012 Examples of damage due to progressive deterioration include damage from rust, corrosion, or termites. Federal income tax rates 2012 However, weather-related conditions or disease may cause another type of involuntary conversion. Federal income tax rates 2012 See Other Involuntary Conversions , later. Federal income tax rates 2012 Theft. Federal income tax rates 2012   A theft is the taking and removing of money or property with the intent to deprive the owner of it. Federal income tax rates 2012 The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. Federal income tax rates 2012 You do not need to show a conviction for theft. Federal income tax rates 2012   Theft includes the taking of money or property by the following means: Blackmail, Burglary, Embezzlement, Extortion, Kidnapping for ransom, Larceny, Robbery, or Threats. Federal income tax rates 2012 The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Federal income tax rates 2012 Decline in market value of stock. Federal income tax rates 2012   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. Federal income tax rates 2012 However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. Federal income tax rates 2012 You report a capital loss on Schedule D (Form 1040). Federal income tax rates 2012 For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Federal income tax rates 2012 Mislaid or lost property. Federal income tax rates 2012   The simple disappearance of money or property is not a theft. Federal income tax rates 2012 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Federal income tax rates 2012 Example. Federal income tax rates 2012 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Federal income tax rates 2012 The diamond falls from the ring and is never found. Federal income tax rates 2012 The loss of the diamond is a casualty. Federal income tax rates 2012 Farming Losses You can deduct certain casualty or theft losses that occur in the business of farming. Federal income tax rates 2012 The following is a discussion of some losses you can deduct and some you cannot deduct. Federal income tax rates 2012 Livestock or produce bought for resale. Federal income tax rates 2012   Casualty or theft losses of livestock or produce bought for resale are deductible if you report your income on the cash method. Federal income tax rates 2012 If you report your income on an accrual method, take casualty and theft losses on property bought for resale by omitting the item from the closing inventory for the year of the loss. Federal income tax rates 2012 You cannot take a separate deduction. Federal income tax rates 2012 Livestock, plants, produce, and crops raised for sale. Federal income tax rates 2012   Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. Federal income tax rates 2012 You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero. Federal income tax rates 2012   For plants with a preproductive period of more than 2 years, you may have a deductible loss if you have a tax basis in the plants. Federal income tax rates 2012 You usually have a tax basis if you capitalized the expenses associated with these plants under the uniform capitalization rules. Federal income tax rates 2012 The uniform capitalization rules are discussed in chapter 6. Federal income tax rates 2012   If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. Federal income tax rates 2012 You get the deduction by omitting the item from your inventory at the close of your tax year. Federal income tax rates 2012 You cannot take a separate casualty or theft deduction. Federal income tax rates 2012 Income loss. Federal income tax rates 2012   A loss of future income is not deductible. Federal income tax rates 2012 Example. Federal income tax rates 2012 A severe flood destroyed your crops. Federal income tax rates 2012 Because you are a cash method taxpayer and already deducted the cost of raising the crops as farm expenses, this loss is not deductible, as explained above under Livestock, plants, produce, and crops raised for sale . Federal income tax rates 2012 You estimate that the crop loss will reduce your farm income by $25,000. Federal income tax rates 2012 This loss of future income is also not deductible. Federal income tax rates 2012 Loss of timber. Federal income tax rates 2012   If you sell timber downed as a result of a casualty, treat the proceeds from the sale as a reimbursement. Federal income tax rates 2012 If you use the proceeds to buy qualified replacement property, you can postpone reporting the gain. Federal income tax rates 2012 See Postponing Gain , later. Federal income tax rates 2012 Property used in farming. Federal income tax rates 2012   Casualty and theft losses of property used in your farm business usually result in deductible losses. Federal income tax rates 2012 If a fire or storm destroyed your barn, or you lose by casualty or theft an animal you bought for draft, breeding, dairy, or sport, you may have a deductible loss. Federal income tax rates 2012 See How To Figure a Loss , later. Federal income tax rates 2012 Raised draft, breeding, dairy, or sporting animals. Federal income tax rates 2012   Generally, losses of raised draft, breeding, dairy, or sporting animals do not result in deductible casualty or theft losses because you have no basis in the animals. Federal income tax rates 2012 However, you may have a basis in the animal and therefore may be able to claim a deduction if either of the following situations applies to you. Federal income tax rates 2012 You use inventories to determine your income and you included the animals in your inventory. Federal income tax rates 2012 You capitalized the expenses associated with the animals under the uniform capitalization rules and therefore have a tax basis in the animals subject to a casualty or theft. Federal income tax rates 2012 When you include livestock in inventory, its last inventory value is its basis. Federal income tax rates 2012 When you lose an inventoried animal held for draft, breeding, dairy, or sport by casualty or theft during the year, decrease ending inventory by the amount you included in inventory for the animal. Federal income tax rates 2012 You cannot take a separate deduction. Federal income tax rates 2012 How To Figure a Loss How you figure a deductible casualty or theft loss depends on whether the loss was to farm or personal-use property and whether the property was stolen or partly or completely destroyed. Federal income tax rates 2012 Farm property. Federal income tax rates 2012   Farm property is the property you use in your farming business. Federal income tax rates 2012 If your farm property was completely destroyed or stolen, your loss is figured as follows:      Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive      You can use the schedules in Publication 584-B to list your stolen, damaged, or destroyed business property and to figure your loss. Federal income tax rates 2012   If your farm property was partially damaged, use the steps shown under Personal-use property next to figure your casualty loss. Federal income tax rates 2012 However, the deduction limits, discussed later, do not apply to farm property. Federal income tax rates 2012 Personal-use property. Federal income tax rates 2012   Personal-use property is property used by you or your family members for personal purposes and not used in your farm business or for income-producing purposes. Federal income tax rates 2012 The following items are examples of personal-use property: Your main home. Federal income tax rates 2012 Furniture and electronics used in your main home and not used in a home office or for business purposes. Federal income tax rates 2012 Clothing and jewelry. Federal income tax rates 2012 An automobile used for nonbusiness purposes. Federal income tax rates 2012 You figure the casualty or theft loss on this property by taking the following steps. Federal income tax rates 2012 Determine your adjusted basis in the property before the casualty or theft. Federal income tax rates 2012 Determine the decrease in fair market value of the property as a result of the casualty or theft. Federal income tax rates 2012 From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you receive or expect to receive. Federal income tax rates 2012 You must apply the deduction limits, discussed later, to determine your deductible loss. Federal income tax rates 2012    You can use Publication 584 to list your stolen or damaged personal-use property and figure your loss. Federal income tax rates 2012 It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Federal income tax rates 2012 Adjusted basis. Federal income tax rates 2012   Adjusted basis is your basis (usually cost) increased or decreased by various events, such as improvements and casualty losses. Federal income tax rates 2012 For more information about adjusted basis, see chapter 6. Federal income tax rates 2012 Decrease in fair market value (FMV). Federal income tax rates 2012   The decrease in FMV is the difference between the property's value immediately before the casualty or theft and its value immediately afterward. Federal income tax rates 2012 FMV is defined in chapter 10 under Payments Received or Considered Received . Federal income tax rates 2012 Appraisal. Federal income tax rates 2012   To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Federal income tax rates 2012 But other measures, such as the cost of cleaning up or making repairs (discussed next) can be used to establish decreases in FMV. Federal income tax rates 2012   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Federal income tax rates 2012 The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Federal income tax rates 2012 This information is needed to limit any deduction to the actual loss resulting from damage to the property. Federal income tax rates 2012 Cost of cleaning up or making repairs. Federal income tax rates 2012   The cost of cleaning up after a casualty is not part of a casualty loss. Federal income tax rates 2012 Neither is the cost of repairing damaged property after a casualty. Federal income tax rates 2012 But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Federal income tax rates 2012 The repairs are actually made. Federal income tax rates 2012 The repairs are necessary to bring the property back to its condition before the casualty. Federal income tax rates 2012 The amount spent for repairs is not excessive. Federal income tax rates 2012 The repairs fix the damage only. Federal income tax rates 2012 The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Federal income tax rates 2012 Related expenses. Federal income tax rates 2012   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, temporary housing, or a rental car, are not part of your casualty or theft loss. Federal income tax rates 2012 However, they may be deductible as farm business expenses if the damaged or stolen property is farm property. Federal income tax rates 2012 Separate computations for more than one item of property. Federal income tax rates 2012   Generally, if a single casualty or theft involves more than one item of property, you must figure your loss separately for each item of property. Federal income tax rates 2012 Then combine the losses to determine your total loss. Federal income tax rates 2012    There is an exception to this rule for personal-use real property. Federal income tax rates 2012 See Exception for personal-use real property, later. Federal income tax rates 2012 Example. Federal income tax rates 2012 A fire on your farm damaged a tractor and the barn in which it was stored. Federal income tax rates 2012 The tractor had an adjusted basis of $3,300. Federal income tax rates 2012 Its FMV was $28,000 just before the fire and $10,000 immediately afterward. Federal income tax rates 2012 The barn had an adjusted basis of $28,000. Federal income tax rates 2012 Its FMV was $55,000 just before the fire and $25,000 immediately afterward. Federal income tax rates 2012 You received insurance reimbursements of $2,100 on the tractor and $26,000 on the barn. Federal income tax rates 2012 Figure your deductible casualty loss separately for the two items of property. Federal income tax rates 2012     Tractor Barn 1) Adjusted basis $3,300 $28,000 2) FMV before fire $28,000 $55,000 3) FMV after fire 10,000 25,000 4) Decrease in FMV  (line 2 − line 3) $18,000 $30,000 5) Loss (lesser of line 1 or line 4) $3,300 $28,000 6) Minus: Insurance 2,100 26,000 7) Deductible casualty loss $1,200 $2,000 8) Total deductible casualty loss $3,200 Exception for personal-use real property. Federal income tax rates 2012   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Federal income tax rates 2012 Figure the loss using the smaller of the following. Federal income tax rates 2012 The decrease in FMV of the entire property. Federal income tax rates 2012 The adjusted basis of the entire property. Federal income tax rates 2012 Example. Federal income tax rates 2012 You bought a farm in 1990 for $160,000. Federal income tax rates 2012 The adjusted basis of the residential part is now $128,000. Federal income tax rates 2012 In 2013, a windstorm blew down shade trees and three ornamental trees planted at a cost of $7,500 on the residential part. Federal income tax rates 2012 The adjusted basis of the residential part includes the $7,500. Federal income tax rates 2012 The fair market value (FMV) of the residential part immediately before the storm was $400,000, and $385,000 immediately after the storm. Federal income tax rates 2012 The trees were not covered by insurance. Federal income tax rates 2012 1) Adjusted basis $128,000 2) FMV before the storm $400,000 3) FMV after the storm 385,000 4) Decrease in FMV (line 2 − line 3) $15,000 5) Loss before insurance (lesser of line 1 or line 4) $15,000 6) Minus: Insurance -0- 7) Amount of loss $15,000 Insurance and other reimbursements. Federal income tax rates 2012   If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Federal income tax rates 2012 You do not have a casualty or theft loss to the extent you are reimbursed. Federal income tax rates 2012   If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Federal income tax rates 2012 You must reduce your loss even if you do not receive payment until a later tax year. Federal income tax rates 2012    Do not subtract from your loss any insurance payments you receive for living expenses if you lose the use of your main home or are denied access to it because of a casualty. Federal income tax rates 2012 You may have to include a portion of these payments in your income. Federal income tax rates 2012 See Insurance payments for living expenses in Publication 547 for details. Federal income tax rates 2012 Disaster relief. Federal income tax rates 2012   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. Federal income tax rates 2012 Excludable cash gifts you receive also do not reduce your casualty loss if there are no limits on how you can use the money. Federal income tax rates 2012   Generally, disaster relief grants received under the Robert T. Federal income tax rates 2012 Stafford Disaster Relief and Emergency Assistance Act are not included in your income. Federal income tax rates 2012 See Federal disaster relief grants , later, under Disaster Area Losses . Federal income tax rates 2012   Qualified disaster relief payments for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Federal income tax rates 2012 See Qualified disaster relief payments , later, under Disaster Area Losses . Federal income tax rates 2012 Reimbursement received after deducting loss. Federal income tax rates 2012   If you figure your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. Federal income tax rates 2012 Actual reimbursement less than expected. Federal income tax rates 2012   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. Federal income tax rates 2012 Actual reimbursement more than expected. Federal income tax rates 2012   If you later receive more reimbursement than you expected after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Federal income tax rates 2012 However, if any part of your original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Federal income tax rates 2012 Do not refigure your tax for the year you claimed the deduction. Federal income tax rates 2012 See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. Federal income tax rates 2012 If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. Federal income tax rates 2012 See Figuring a Gain in Publication 547 for information on how to treat a gain from the reimbursement you receive because of a casualty or theft. Federal income tax rates 2012 Actual reimbursement same as expected. Federal income tax rates 2012   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. Federal income tax rates 2012 Lump-sum reimbursement. Federal income tax rates 2012   If you have a casualty or theft loss of several assets at the same time without an allocation of reimbursement to specific assets, divide the lump-sum reimbursement among the assets according to the fair market value of each asset at the time of the loss. Federal income tax rates 2012 Figure the gain or loss separately for each asset that has a separate basis. Federal income tax rates 2012 Adjustments to basis. Federal income tax rates 2012   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive and by any deductible loss. Federal income tax rates 2012 The result is your adjusted basis in the property. Federal income tax rates 2012 Amounts you spend on repairs to restore your property to its pre-casualty condition increase your adjusted basis. Federal income tax rates 2012 See Adjusted Basis in chapter 6 for more information. Federal income tax rates 2012 Example. Federal income tax rates 2012 You built a new silo for $25,000. Federal income tax rates 2012 This is the basis in your silo because that is the total cost you incurred to build it. Federal income tax rates 2012 During the year, a tornado damaged your silo and your allowable casualty loss deduction was $1,000. Federal income tax rates 2012 In addition, your insurance company reimbursed you $4,000 for the damage and you spent $6,000 to restore the silo to its pre-casualty condition. Federal income tax rates 2012 Your adjusted basis in the silo after the casualty is $26,000 ($25,000 - $1,000 - $4,000 + $6,000). Federal income tax rates 2012 Deduction Limits on Losses of Personal-Use Property Casualty and theft losses of property held for personal use may be deductible if you itemize deductions on Schedule A (Form 1040). Federal income tax rates 2012 There are two limits on the deduction for casualty or theft loss of personal-use property. Federal income tax rates 2012 You figure these limits on Form 4684. Federal income tax rates 2012 $100 rule. Federal income tax rates 2012   You must reduce each casualty or theft loss on personal-use property by $100. Federal income tax rates 2012 This rule applies after you have subtracted any reimbursement. Federal income tax rates 2012 10% rule. Federal income tax rates 2012   You must further reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Federal income tax rates 2012 Apply this rule after you reduce each loss by $100. Federal income tax rates 2012 Adjusted gross income is on line 38 of Form 1040. Federal income tax rates 2012 Example. Federal income tax rates 2012 In June, you discovered that your house had been burglarized. Federal income tax rates 2012 Your loss after insurance reimbursement was $2,000. Federal income tax rates 2012 Your adjusted gross income for the year you discovered the burglary is $57,000. Federal income tax rates 2012 Figure your theft loss deduction as follows: 1. Federal income tax rates 2012 Loss after insurance $2,000 2. Federal income tax rates 2012 Subtract $100 100 3. Federal income tax rates 2012 Loss after $100 rule $1,900 4. Federal income tax rates 2012 Subtract 10% (. Federal income tax rates 2012 10) × $57,000 AGI $5,700 5. Federal income tax rates 2012 Theft loss deduction -0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($5,700). Federal income tax rates 2012    If you have a casualty or theft gain in addition to a loss, you will have to make a special computation before you figure your 10% limit. Federal income tax rates 2012 See 10% Rule in Publication 547. Federal income tax rates 2012 When Loss Is Deductible Generally, you can deduct casualty losses that are not reimbursable only in the tax year in which they occur. Federal income tax rates 2012 You generally can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Federal income tax rates 2012 However, losses in federally declared disaster areas are subject to different rules. Federal income tax rates 2012 See Disaster Area Losses , later, for an exception. Federal income tax rates 2012 If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Federal income tax rates 2012 Leased property. Federal income tax rates 2012   If you lease property from someone else, you can deduct a loss on the property in the year your liability for the loss is fixed. Federal income tax rates 2012 This is true even if the loss occurred or the liability was paid in a different year. Federal income tax rates 2012 You are not entitled to a deduction until your liability under the lease can be determined with reasonable accuracy. Federal income tax rates 2012 Your liability can be determined when a claim for recovery is settled, adjudicated, or abandoned. Federal income tax rates 2012 Example. Federal income tax rates 2012 Robert leased a tractor from First Implement, Inc. Federal income tax rates 2012 , for use in his farm business. Federal income tax rates 2012 The tractor was destroyed by a tornado in June 2012. Federal income tax rates 2012 The loss was not insured. Federal income tax rates 2012 First Implement billed Robert for the fair market value of the tractor on the date of the loss. Federal income tax rates 2012 Robert disagreed with the bill and refused to pay it. Federal income tax rates 2012 First Implement later filed suit in court against Robert. Federal income tax rates 2012 In 2013, Robert and First Implement agreed to settle the suit for $20,000, and the court entered a judgment in favor of First Implement. Federal income tax rates 2012 Robert paid $20,000 in June 2013. Federal income tax rates 2012 He can claim the $20,000 as a loss on his 2013 tax return. Federal income tax rates 2012 Net operating loss (NOL). Federal income tax rates 2012   If your deductions, including casualty or theft loss deductions, are more than your income for the year, you may have an NOL. Federal income tax rates 2012 An NOL can be carried back or carried forward and deducted from income in other years. Federal income tax rates 2012 See Publication 536 for more information on NOLs. Federal income tax rates 2012 Proof of Loss To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. Federal income tax rates 2012 You must have records to support the amount you claim for the loss. Federal income tax rates 2012 Casualty loss proof. Federal income tax rates 2012   For a casualty loss, your records should show all the following information. Federal income tax rates 2012 The type of casualty (car accident, fire, storm, etc. Federal income tax rates 2012 ) and when it occurred. Federal income tax rates 2012 That the loss was a direct result of the casualty. Federal income tax rates 2012 That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Federal income tax rates 2012 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Federal income tax rates 2012 Theft loss proof. Federal income tax rates 2012   For a theft loss, your records should show all the following information. Federal income tax rates 2012 When you discovered your property was missing. Federal income tax rates 2012 That your property was stolen. Federal income tax rates 2012 That you were the owner of the property. Federal income tax rates 2012 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Federal income tax rates 2012 Figuring a Gain A casualty or theft may result in a taxable gain. Federal income tax rates 2012 If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Federal income tax rates 2012 You generally report your gain as income in the year you receive the reimbursement. Federal income tax rates 2012 However, depending on the type of property you receive, you may not have to report your gain. Federal income tax rates 2012 See Postponing Gain , later. Federal income tax rates 2012 Your gain is figured as follows: The amount you receive, minus Your adjusted basis in the property at the time of the casualty or theft. Federal income tax rates 2012 Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. Federal income tax rates 2012 Amount you receive. Federal income tax rates 2012   The amount you receive includes any money plus the value of any property you receive, minus any expenses you have in obtaining reimbursement. Federal income tax rates 2012 It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. Federal income tax rates 2012 Example. Federal income tax rates 2012 A tornado severely damaged your barn. Federal income tax rates 2012 The adjusted basis of the barn was $25,000. Federal income tax rates 2012 Your insurance company reimbursed you $40,000 for the damaged barn. Federal income tax rates 2012 However, you had legal expenses of $2,000 to collect that insurance. Federal income tax rates 2012 Your insurance minus your expenses to collect the insurance is more than your adjusted basis in the barn, so you have a gain. Federal income tax rates 2012 1) Insurance reimbursement $40,000 2) Legal expenses 2,000 3) Amount received  (line 1 − line 2) $38,000 4) Adjusted basis 25,000 5) Gain on casualty (line 3 − line 4) $13,000 Other Involuntary Conversions In addition to casualties and thefts, other events cause involuntary conversions of property. Federal income tax rates 2012 Some of these are discussed in the following paragraphs. Federal income tax rates 2012 Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes. Federal income tax rates 2012 You report the gain or deduct the loss on your tax return for the year you realize it. Federal income tax rates 2012 However, depending on the type of property you receive, you may not have to report your gain on the involuntary conversion. Federal income tax rates 2012 See Postponing Gain , later. Federal income tax rates 2012 Condemnation Condemnation is the process by which private property is legally taken for public use without the owner's consent. Federal income tax rates 2012 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 property. Federal income tax rates 2012 The owner receives a condemnation award (money or property) in exchange for the property taken. Federal income tax rates 2012 A condemnation is a forced sale, the owner being the seller and the condemning authority being the buyer. Federal income tax rates 2012 Threat of condemnation. Federal income tax rates 2012   Treat the sale of your property under threat of condemnation as a condemnation, provided you have reasonable grounds to believe that your property will be condemned. Federal income tax rates 2012 Main home condemned. Federal income tax rates 2012   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. Federal income tax rates 2012 For information on this exclusion, see Publication 523. Federal income tax rates 2012 If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. Federal income tax rates 2012 See Postponing Gain , later. Federal income tax rates 2012 (You cannot deduct a loss from the condemnation of your main home. Federal income tax rates 2012 ) More information. Federal income tax rates 2012   For information on how to figure the gain or loss on condemned property, see chapter 1 in Publication 544. Federal income tax rates 2012 Also see Postponing Gain , later, to find out if you can postpone reporting the gain. Federal income tax rates 2012 Irrigation Project The sale or other disposition of property located within an irrigation project to conform to the acreage limits of federal reclamation laws is an involuntary conversion. Federal income tax rates 2012 Livestock Losses Diseased livestock. Federal income tax rates 2012   If your livestock die from disease, or are destroyed, sold, or exchanged because of disease, even though the disease is not of epidemic proportions, treat these occurrences as involuntary conversions. Federal income tax rates 2012 If the livestock were raised or purchased for resale, follow the rules for livestock discussed earlier under Farming Losses . Federal income tax rates 2012 Otherwise, figure the gain or loss from these conversions using the rules discussed under Determining Gain or Loss in chapter 8. Federal income tax rates 2012 If you replace the livestock, you may be able to postpone reporting the gain. Federal income tax rates 2012 See Postponing Gain below. Federal income tax rates 2012 Reporting dispositions of diseased livestock. Federal income tax rates 2012   If you choose to postpone reporting gain on the disposition of diseased livestock, you must attach a statement to your return explaining that the livestock were disposed of because of disease. Federal income tax rates 2012 You must also include other information on this statement. Federal income tax rates 2012 See How To Postpone Gain , later, under Postponing Gain . Federal income tax rates 2012 Weather-related sales of livestock. Federal income tax rates 2012   If you sell or exchange livestock (other than poultry) held for draft, breeding, or dairy purposes solely because of drought, flood, or other weather-related conditions, treat the sale or exchange as an involuntary conversion. Federal income tax rates 2012 Only livestock sold in excess of the number you normally would sell under usual business practice, in the absence of weather-related conditions, are considered involuntary conversions. Federal income tax rates 2012 Figure the gain or loss using the rules discussed under Determining Gain or Loss in chapter 8. Federal income tax rates 2012 If you replace the livestock, you may be able to postpone reporting the gain. Federal income tax rates 2012 See Postponing Gain below. Federal income tax rates 2012 Example. Federal income tax rates 2012 It is your usual business practice to sell five of your dairy animals during the year. Federal income tax rates 2012 This year you sold 20 dairy animals because of drought. Federal income tax rates 2012 The sale of 15 animals is treated as an involuntary conversion. Federal income tax rates 2012    If you do not replace the livestock, you may be able to report the gain in the following year's income. Federal income tax rates 2012 This rule also applies to other livestock (including poultry). Federal income tax rates 2012 See Sales Caused by Weather-Related Conditions in chapter 3. Federal income tax rates 2012 Tree Seedlings If, because of an abnormal drought, the failure of planted tree seedlings is greater than normally anticipated, you may have a deductible loss. Federal income tax rates 2012 Treat the loss as a loss from an involuntary conversion. Federal income tax rates 2012 The loss equals the previously capitalized reforestation costs you had to duplicate on replanting. Federal income tax rates 2012 You deduct the loss on the return for the year the seedlings died. Federal income tax rates 2012 Postponing Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed, stolen, or other involuntarily converted property. Federal income tax rates 2012 Your basis in the new property is generally the same as your adjusted basis in the property it replaces. Federal income tax rates 2012 You must ordinarily report the gain on your stolen, destroyed, or other involuntarily converted property if you receive money or unlike property as reimbursement. Federal income tax rates 2012 However, you can choose to postpone reporting the gain if you purchase replacement property similar or related in service or use to your destroyed, stolen, or other involuntarily converted property within a specific replacement period. Federal income tax rates 2012 If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. Federal income tax rates 2012 To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. Federal income tax rates 2012 If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. Federal income tax rates 2012 Example 1. Federal income tax rates 2012 In 1985, you constructed a barn to store farm equipment at a cost of $20,000. Federal income tax rates 2012 In 1987, you added a silo to the barn at a cost of $15,000 to store grain. Federal income tax rates 2012 In May of this year, the property was worth $100,000. Federal income tax rates 2012 In June the barn and silo were destroyed by a tornado. Federal income tax rates 2012 At the time of the tornado, you had an adjusted basis of $0 in the property. Federal income tax rates 2012 You received $85,000 from the insurance company. Federal income tax rates 2012 You had a gain of $85,000 ($85,000 – $0). Federal income tax rates 2012 You spent $80,000 to rebuild the barn and silo. Federal income tax rates 2012 Since this is less than the insurance proceeds received, you must include $5,000 ($85,000 – $80,000) in your income. Federal income tax rates 2012 Example 2. Federal income tax rates 2012 In 1970, you bought a cabin in the mountains for your personal use at a cost of $18,000. Federal income tax rates 2012 You made no further improvements or additions to it. Federal income tax rates 2012 When a storm destroyed the cabin this January, the cabin was worth $250,000. Federal income tax rates 2012 You received $146,000 from the insurance company in March. Federal income tax rates 2012 You had a gain of $128,000 ($146,000 − $18,000). Federal income tax rates 2012 You spent $144,000 to rebuild the cabin. Federal income tax rates 2012 Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. Federal income tax rates 2012 Buying replacement property from a related person. Federal income tax rates 2012   You cannot postpone reporting a gain from a casualty, theft, or other involuntary conversion if you buy the replacement property from a related person (discussed later). Federal income tax rates 2012 This rule applies to the following taxpayers. Federal income tax rates 2012 C corporations. Federal income tax rates 2012 Partnerships in which more than 50% of the capital or profits interest is owned by C corporations. Federal income tax rates 2012 Individuals, partnerships (other than those in (2) above), and S corporations if the total realized gain for the tax year on all involuntarily converted properties on which there are realized gains is more than $100,000. Federal income tax rates 2012 For involuntary conversions described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. Federal income tax rates 2012 If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Federal income tax rates 2012 If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Federal income tax rates 2012 Exception. Federal income tax rates 2012   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the involuntarily converted property. Federal income tax rates 2012 Related persons. Federal income tax rates 2012   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. Federal income tax rates 2012 For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Federal income tax rates 2012 Death of a taxpayer. Federal income tax rates 2012   If a taxpayer dies after having a gain, but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. Federal income tax rates 2012 The executor of the estate or the person succeeding to the funds from the involuntary conversion cannot postpone reporting the gain by buying replacement property. Federal income tax rates 2012 Replacement Property You must buy replacement property for the specific purpose of replacing your property. Federal income tax rates 2012 Your replacement property must be similar or related in service or use to the property it replaces. Federal income tax rates 2012 You do not have to use the same funds you receive as reimbursement for your old property to acquire the replacement property. Federal income tax rates 2012 If you spend the money you receive for other purposes, and borrow money to buy replacement property, you can still choose to postpone reporting the gain if you meet the other requirements. Federal income tax rates 2012 Property you acquire by gift or inheritance does not qualify as replacement property. Federal income tax rates 2012 Owner-user. Federal income tax rates 2012   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. Federal income tax rates 2012 Examples of property that functions in the same way as the property it replaces are a home that replaces another home, a dairy cow that replaces another dairy cow, and farm land that replaces other farm land. Federal income tax rates 2012 A grinding mill that replaces a tractor does not qualify. Federal income tax rates 2012 Neither does a breeding or draft animal that replaces a dairy cow. Federal income tax rates 2012 Soil or other environmental contamination. Federal income tax rates 2012   If, because of soil or other environmental contamination, it is not feasible for you to reinvest your insurance money or other proceeds from destroyed or damaged livestock in property similar or related in service or use to the livestock, you can treat other property (including real property) used for farming purposes, as property similar or related in service or use to the destroyed or damaged livestock. Federal income tax rates 2012 Weather-related conditions. Federal income tax rates 2012   If, because of drought, flood, or other weather-related conditions, it is not feasible for you to reinvest the insurance money or other proceeds in property similar or related in service or use to the livestock, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the livestock you disposed of. Federal income tax rates 2012 Example. Federal income tax rates 2012 Each year you normally sell 25 cows from your beef herd. Federal income tax rates 2012 However, this year you had to sell 50 cows. Federal income tax rates 2012 This is because a severe drought significantly reduced the amount of hay and pasture yield needed to feed your herd for the rest of the year. Federal income tax rates 2012 Because, as a result of the severe drought, it is not feasible for you to use the proceeds from selling the extra cows to buy new cows, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the cows you sold. Federal income tax rates 2012 Standing crop destroyed by casualty. Federal income tax rates 2012   If a storm or other casualty destroyed your standing crop and you use the insurance money to acquire either another standing crop or a harvested crop, this purchase qualifies as replacement property. Federal income tax rates 2012 The costs of planting and raising a new crop qualify as replacement costs for the destroyed crop only if you use the crop method of accounting (discussed in chapter 2). Federal income tax rates 2012 In that case, the costs of bringing the new crop to the same level of maturity as the destroyed crop qualify as replacement costs to the extent they are incurred during the replacement period. Federal income tax rates 2012 Timber loss. Federal income tax rates 2012   Standing timber you bought with the proceeds from the sale of timber downed as a result of a casualty, such as high winds, earthquakes, or volcanic eruptions, qualifies as replacement property. Federal income tax rates 2012 If you bought the standing timber within the replacement period, you can postpone reporting the gain. Federal income tax rates 2012 Business or income-producing property located in a federally declared disaster area. Federal income tax rates 2012   If your destroyed business or income-producing property was located in a federally declared disaster area, any tangible replacement property you acquire for use in any business is treated as similar or related in service or use to the destroyed property. Federal income tax rates 2012 For more information, see Disaster Area Losses in Publication 547. Federal income tax rates 2012 Substituting replacement property. Federal income tax rates 2012   Once you have acquired qualified replacement property that you designate as replacement property in a statement attached to your tax return, you cannot substitute other qualified replacement property. Federal income tax rates 2012 This is true even if you acquire the other property within the replacement period. Federal income tax rates 2012 However, if you discover that the original replacement property was not qualified replacement property, you can, within the replacement period, substitute the new qualified replacement property. Federal income tax rates 2012 Basis of replacement property. Federal income tax rates 2012   You must reduce the basis of your replacement property (its cost) by the amount of postponed gain. Federal income tax rates 2012 In this way, tax on the gain is postponed until you dispose of the replacement property. Federal income tax rates 2012 Replacement Period To postpone reporting your gain, you must buy replacement property within a specified period of time. Federal income tax rates 2012 This is the replacement period. Federal income tax rates 2012 The replacement period begins on the date your property was damaged, destroyed, stolen, sold, or exchanged. Federal income tax rates 2012 The replacement period generally ends 2 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Federal income tax rates 2012 Example. Federal income tax rates 2012 You are a calendar year taxpayer. Federal income tax rates 2012 While you were on vacation, farm equipment that cost $2,200 was stolen from your farm. Federal income tax rates 2012 You discovered the theft when you returned to your farm on November 11, 2012. Federal income tax rates 2012 Your insurance company investigated the theft and did not settle your claim until January 5, 2013, when they paid you $3,000. Federal income tax rates 2012 You first realized a gain from the reimbursement for the theft during 2013, so you have until December 31, 2015, to replace the property. Federal income tax rates 2012 Main home in disaster area. Federal income tax rates 2012   For your main home (or its contents) located in a federally declared disaster area, 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 involuntary conversion. Federal income tax rates 2012 See Disaster Area Losses , later. Federal income tax rates 2012 Property in the Midwestern disaster areas. Federal income tax rates 2012   For property located in the Midwestern disaster areas (defined in Table 4 in the 2008 Publication 547) that was destroyed, damaged, stolen, or condemned, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Federal income tax rates 2012 This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Midwestern disaster areas. Federal income tax rates 2012 Property in the Kansas disaster area. Federal income tax rates 2012   For property located in the Kansas disaster area that was destroyed, damaged, stolen, or condemned after May 3, 2007, as a result of the Kansas storms and tornadoes, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Federal income tax rates 2012 This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Kansas disaster area. Federal income tax rates 2012 Property in the Hurricane Katrina disaster area. Federal income tax rates 2012   For property located in the Hurricane Katrina disaster area that was destroyed, damaged, stolen, or condemned after August 24, 2005, as a result of Hurricane Katrina, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Federal income tax rates 2012 This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Federal income tax rates 2012 Weather-related sales of livestock in an area eligible for federal assistance. Federal income tax rates 2012   For the sale or exchange of livestock 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. Federal income tax rates 2012 The IRS may extend the replacement period on a regional basis if the weather-related conditions continue for longer than 3 years. Federal income tax rates 2012   For information on extensions of the replacement period because of persistent drought, see Notice 2006-82, 2006-39 I. Federal income tax rates 2012 R. Federal income tax rates 2012 B. Federal income tax rates 2012 529, available at  www. Federal income tax rates 2012 irs. Federal income tax rates 2012 gov/irb/2006-39_IRB/ar11. Federal income tax rates 2012 html. Federal income tax rates 2012 For a list of counties for which exceptional, extreme, or severe drought was reported during the 12 months ending August 31, 2013, see Notice 2013-62, available at IRS. Federal income tax rates 2012 gov. Federal income tax rates 2012 Condemnation. Federal income tax rates 2012   The replacement period for a condemnation begins on the earlier of the following dates. Federal income tax rates 2012 The date on which you disposed of the condemned property. Federal income tax rates 2012 The date on which the threat of condemnation began. Federal income tax rates 2012 The replacement period generally ends 2 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Federal income tax rates 2012 But see Main home in disaster area , Property in the Midwestern disaster areas , Property in the Kansas disaster area , and Property in the Hurricane Katrina disaster area , earlier, for exceptions. Federal income tax rates 2012 Business or investment real property. Federal income tax rates 2012   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 close of the first tax year in which any part of the gain on the condemnation is realized. Federal income tax rates 2012 Extension. Federal income tax rates 2012   You can apply for an extension of the replacement period. Federal income tax rates 2012 Send your written application to the Internal Revenue Service Center where you file your tax return. Federal income tax rates 2012 See your tax return instructions for the address. Federal income tax rates 2012 Include all the details about your need for an extension. Federal income tax rates 2012 Make your application before the end of the replacement period. Federal income tax rates 2012 However, you can file an application within a reasonable time after the replacement period ends if you can show a good reason for the delay. Federal income tax rates 2012 You will get an extension of the replacement period if you can show reasonable cause for not making the replacement within the regular period. Federal income tax rates 2012 How To Postpone Gain You postpone reporting your gain by reporting your choice on your tax return for the year you have the gain. Federal income tax rates 2012 You have the gain in the year you receive insurance proceeds or other reimbursements that result in a gain. Federal income tax rates 2012 Required statement. Federal income tax rates 2012   You should attach a statement to your return for the year you have the gain. Federal income tax rates 2012 This statement should include all the following information. Federal income tax rates 2012 The date and details of the casualty, theft, or other involuntary conversion. Federal income tax rates 2012 The insurance or other reimbursement you received. Federal income tax rates 2012 How you figured the gain. Federal income tax rates 2012 Replacement property acquired before return filed. Federal income tax rates 2012   If you acquire replacement property before you file your return for the year you have the gain, your statement should also include detailed information about all the following items. Federal income tax rates 2012 The replacement property. Federal income tax rates 2012 The postponed gain. Federal income tax rates 2012 The basis adjustment that reflects the postponed gain. Federal income tax rates 2012 Any gain you are reporting as income. Federal income tax rates 2012 Replacement property acquired after return filed. Federal income tax rates 2012   If you intend to buy replacement property after you file your return for the year you realize gain, your statement should also say that you are choosing to replace the property within the required replacement period. Federal income tax rates 2012   You should then attach another statement to your return for the year in which you buy the replacement property. Federal income tax rates 2012 This statement should contain detailed information on the replacement property. Federal income tax rates 2012 If you acquire part of your replacement property in one year and part in another year, you must attach a statement to each year's return. Federal income tax rates 2012 Include in the statement detailed information on the replacement property bought in that year. Federal income tax rates 2012 Reporting weather-related sales of livestock. Federal income tax rates 2012   If you choose to postpone reporting the gain on weather-related sales or exchanges of livestock, show all the following information on a statement attached to your return for the tax year in which you first realize any of the gain. Federal income tax rates 2012 Evidence of the weather-related conditions that forced the sale or exchange of the livestock. Federal income tax rates 2012 The gain realized on the sale or exchange. Federal income tax rates 2012 The number and kind of livestock sold or exchanged. Federal income tax rates 2012 The number of livestock of each kind you would have sold or exchanged under your usual business practice. Federal income tax rates 2012   Show all the following information and the preceding information on the return for the year in which you replace the livestock. Federal income tax rates 2012 The dates you bought the replacement property. Federal income tax rates 2012 The cost of the replacement property. Federal income tax rates 2012 Description of the replacement property (for example, the number and kind of the replacement livestock). Federal income tax rates 2012 Amended return. Federal income tax rates 2012   You must file an amended return (Form 1040X) for the tax year of the gain in either of the following situations. Federal income tax rates 2012 You do not acquire replacement property within the replacement period, plus extensions. Federal income tax rates 2012 On this amended return, you must report the gain and pay any additional tax due. Federal income tax rates 2012 You acquire replacement property within the required replacement period, plus extensions, but at a cost less than the amount you receive from the casualty, theft, or other involuntary conversion. Federal income tax rates 2012 On this amended return, you must report the part of the gain that cannot be postponed and pay any additional tax due. Federal income tax rates 2012 Disaster Area Losses Special rules apply to federally declared disaster area losses. Federal income tax rates 2012 A federally declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Robert T. Federal income tax rates 2012 Stafford Disaster Relief and Emergency Assistance Act. Federal income tax rates 2012 It includes a major disaster or emergency declaration under the act. Federal income tax rates 2012 A list of the areas warranting public or individual assistance (or both) under the Act is available at the Federal Emergency Management Agency (FEMA) web site at www. Federal income tax rates 2012 fema. Federal income tax rates 2012 gov. Federal income tax rates 2012 This part discusses the special rules for when to deduct a disaster area loss and what tax deadlines may be postponed. Federal income tax rates 2012 For other special rules, see Disaster Area Losses in Publication 547. Federal income tax rates 2012 When to deduct the loss. Federal income tax rates 2012   You generally must deduct a casualty loss in the year it occurred. Federal income tax rates 2012 However, if you have a deductible loss from a disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct that loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster happened. Federal income tax rates 2012 If you make this choice, the loss is treated as having occurred in the preceding year. Federal income tax rates 2012    Claiming a qualifying disaster loss on the previous year's return may result in a lower tax for that year, often producing or increasing a cash refund. Federal income tax rates 2012   You must make the choice to take your casualty loss for the disaster in the preceding year by the later of the following dates. Federal income tax rates 2012 The due date (without extensions) for filing your tax return for the tax year in which the disaster actually occurred. Federal income tax rates 2012 The due date (with extensions) for the return for the preceding tax year. Federal income tax rates 2012 Federal disaster relief grants. Federal income tax rates 2012   Do not include post-disaster relief grants received under the Robert T. Federal income tax rates 2012 Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, or funeral expenses. Federal income tax rates 2012 Do not deduct casualty losses or medical expenses to the extent they are specifically reimbursed by these disaster relief grants. Federal income tax rates 2012 If the casualty loss was specifically reimbursed by the grant and you received the grant after the year in which you deducted the casualty loss, see Reimbursement received after deducting loss , earlier. Federal income tax rates 2012 Unemployment assistance payments under the Act are taxable unemployment compensation. Federal income tax rates 2012 Qualified disaster relief payments. Federal income tax rates 2012   Qualified disaster relief payments are not included in the income of individuals to the extent any expenses compensated by these payments are not otherwise compensated for by insurance or other reimbursement. Federal income tax rates 2012 These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Federal income tax rates 2012 No withholding applies to these payments. Federal income tax rates 2012   Qualified disaster relief payments include payments you receive (regardless of the source) for the following expenses. Federal income tax rates 2012 Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. Federal income tax rates 2012 Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a federally declared disaster. Federal income tax rates 2012 (A personal residence can be a rented residence or one you own. Federal income tax rates 2012 ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a federally declared disaster. Federal income tax rates 2012   Qualified disaster relief payments include amounts paid by a federal, state, or local government in connection with a federally declared disaster to individuals affected by the disaster. Federal income tax rates 2012    Qualified disaster relief payments do not include: Payments for expenses otherwise paid for by insurance or other reimbursements, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Federal income tax rates 2012 Qualified disaster mitigation payments. Federal income tax rates 2012   Qualified disaster mitigation payments made under the Robert T. Federal income tax rates 2012 Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not included in income. Federal income tax rates 2012 These are payments you, as a property owner, receive to reduce the risk of future damage to your property. Federal income tax rates 2012 You cannot increase your basis in property, or take a deduction or credit, for expenditures made with respect to those payments. Federal income tax rates 2012 Sale of property under hazard mitigation program. Federal income tax rates 2012   Generally, if you sell or otherwise transfer property, you must recognize any gain or loss for tax purposes unless the property is your main home. Federal income tax rates 2012 You report the gain or deduct the loss on your tax return for the year you realize it. Federal income tax rates 2012 (You cannot deduct a loss on personal-use property unless the loss resulted from a casualty, as discussed earlier. Federal income tax rates 2012 ) However, if you sell or otherwise transfer property to the Federal Government, a state or local government, or an Indian tribal government under a hazard mitigation program, you can choose to postpone reporting the gain if you buy qualifying replacement property within a certain period of time. Federal income tax rates 2012 See Postponing Gain , earlier, for the rules that apply. Federal income tax rates 2012 Other federal assistance programs. Federal income tax rates 2012    For more information about other federal assistance programs, see Crop Insurance and Crop Disaster Payments and Feed Assistance and Payments in chapter 3 earlier. Federal income tax rates 2012 Postponed tax deadlines. Federal income tax rates 2012   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Federal income tax rates 2012 The tax deadlines the IRS may postpone include those for filing income, excise, and employment tax returns, paying income, excise, and employment taxes, and making contributions to a traditional IRA or Roth IRA. Federal income tax rates 2012   If any tax deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Federal income tax rates 2012 Go to http://www. Federal income tax rates 2012 irs. Federal income tax rates 2012 gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Federal income tax rates 2012 Who is eligible. Federal income tax rates 2012   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Federal income tax rates 2012 Any individual whose main home is located in a covered disaster area (defined next). Federal income tax rates 2012 Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Federal income tax rates 2012 Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area. Federal income tax rates 2012 Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Federal income tax rates 2012 The main home or principal place of business does not have to be located in the covered disaster area. Federal income tax rates 2012 Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Federal income tax rates 2012 The spouse on a joint return with a taxpayer who is eligible for postponements. Federal income tax rates 2012 Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose necessary records to meet a postponed tax deadline are located in the covered disaster area. Federal income tax rates 2012 Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Federal income tax rates 2012 Any other person determined by the IRS to be affected by a federally declared disaster. Federal income tax rates 2012 Covered disaster area. Federal income tax rates 2012   This is an area of a federally declared disaster area in which the IRS has decided to postpone tax deadlines for up to 1 year. Federal income tax rates 2012 Abatement of interest and penalties. Federal income tax rates 2012   The IRS may abate the interest and penalties on the underpaid income tax for the length of any postponement of tax deadlines. Federal income tax rates 2012 Reporting Gains and Losses You will have to file one or more of the following forms to report your gains or losses from involuntary conversions. Federal income tax rates 2012 Form 4684. Federal income tax rates 2012   Use this form to report your gains and losses from casualties and thefts. Federal income tax rates 2012 Form 4797. Federal income tax rates 2012   Use this form to report involuntary conversions (other than from casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Federal income tax rates 2012 Also use this form if you have a gain from a casualty or theft on trade, business or income-producing property held for more than 1 year and you have to recapture some or all of your gain as ordinary income. Federal income tax rates 2012 Form 8949. Federal income tax rates 2012   Use this form to report gain from an involuntary conversion (other than from casualty or theft) of personal-use property. Federal income tax rates 2012 Schedule A (Form 1040). Federal income tax rates 2012   Use this form to deduct your losses from casualties and thefts of personal-use property and income-producing property, that you reported on Form 4684. Federal income tax rates 2012 Schedule D (Form 1040). Federal income tax rates 2012   Use this form to carry over the following gains. Federal income tax rates 2012 Net gain shown on Form 4797 from an involuntary conversion of business property held for more than 1 year. Federal income tax rates 2012 Net gain shown on Form 4684 from the casualty or theft of personal-use property. Federal income tax rates 2012    Also use this form to figure the overall gain or loss from transactions reported on Form 8949. Federal income tax rates 2012 Schedule F (Form 1040). Federal income tax rates 2012   Use this form to deduct your losses from casualty or theft of livestock or produce bought for sale under Other expenses in Part II, line 32, if you use the cash method of accounting and have not otherwise deducted these losses. Federal income tax rates 2012 Prev  Up  Next   Home   More Online Publications