Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

File 2012 Taxes For Free

File 1040Www Irs Gov FormspubsCan I File State Taxes For FreeHow To Fill Out A 1040ez Tax FormFree 1040ezHow Do I File An Amended Tax Return For 20102008 Federal Tax Forms1040How Do I Fill Out 1040xMailing Address 1040ezIrs Tax Extension Forms1040ez Tax Table1040ez Efile1040ez TaxPrintable Tax Forms 1040ez1040ez CalculatorFree 1040ez FormFree File 1040ezAmending Tax ReturnHrblockState Of Louisiana Amended Return Form 1040xHow To Do State Taxes For FreeIrs Form 990 Ez 20102010 Tax Form 1040Irs Gov Free File Federal State TaxesCan You File 2011 Taxes OnlineTax Form 1040aWhen Can I File An Amended Tax Return For 2012Irs Free TaxI Need To Amend My 2009 Tax ReturnIf I Am Unemployed Do I File TaxesEz Tax FormsIrs GovCan You File Your 2011 Taxes To 2013 FilingFree Tax ReturnH&r Block Free Tax PrepFile 2010 State Tax ReturnI Need To File My 2012 Taxes For FreeDownload A 1040ez Federal Tax Form2011 Tax Schedule

File 2012 Taxes For Free

File 2012 taxes for free Index A Adjusted basis Worksheet 1 to figure, Worksheet A Instructions. File 2012 taxes for free Assistance (see Tax help) F Free tax services, How To Get Tax Help H Help (see Tax help) M More information (see Tax help) P Publications (see Tax help) T Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. File 2012 taxes for free TTY/TDD information, How To Get Tax Help W Worksheets Adjusted basis (Worksheet 1), Worksheet A Instructions. File 2012 taxes for free Prev  Up     Home   More Online Publications
Español

Register to Vote

Find assistance with registering to vote and voting.

Registering to Vote

The U.S. Election Assistance Commission has resources for voters, including voter guides, registration information, voting accessibility, and information for military and overseas voters.

Voter Eligibility

To be eligible to vote, you must be a U.S. citizen. In most states, you must be 18 years old to vote, but some states do allow 17 year olds to vote. States also have their own residency requirements to vote. For additional information about state-specific requirements and voter eligibility, contact your state election office.

How to Register

In almost all states, you can register by mail to vote using the National Mail Voter Registration Form. North Dakota, Wyoming, American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands do not accept the National Mail Voter Registration Form. New Hampshire accepts it only as a request for an absentee voter mail-in registration form. If you live in one of these states, please check with your state election office to find out how to register to vote.

You may also use the National Mail Voter Registration Form to update your registration if you changed your name, to change your address, or to register with a political party.

You may be able to apply to register to vote in person at the following public facilities:

In some states, you can also register online to vote. To learn if your state offers online voter registration, please contact your state election office.

Back to Top

Back to Top

State Registration Deadlines

Almost every state has a voter registration deadline. In order to be eligible to vote in the November elections, you must submit the National Mail Voter Registration Form by these deadlines:

  • Alabama – Voter registration is closed during the 10 days before an election. Applications must be postmarked or delivered by the eleventh day prior to the election.
  • Alaska – 30 days before the election
  • Arizona – 29 days before the election
  • Arkansas – 30 days before the election
  • California – 15 days before the election
  • Colorado – 29 days before the election. If the application is received in the mails without a postmark, it must be received within 5 days of the close of registration.
  • Connecticut – 14 days before the election
  • Delaware – The fourth Saturday before a primary or general election, and 10 days before a special election.
  • District of Columbia – 30 days before the election
  • Florida – 29 days before the election
  • Georgia – The fifth Monday before any general primary, general election, or presidential preference primary, or regularly scheduled special election following the Georgia Election Code. If a special  election is scheduled on a date other that those dates prescribed by the Georgia Election Code, registration would close on the fifth day after the call.
  • Hawaii – 30 days before the election
  • Idaho – 25 days before the election
  • Illinois – 28 days before the election
  • Indiana – 29 days before the election
  • Iowa – Must be delivered by 5 PM, 10 days before the election, if it is a state primary or general election; 11 days before all others. Registration forms which are postmarked 15 or more days before an election are considered on time even if received after the deadline. If you fail to meet these deadlines, you can register to vote on election day.
  • Kansas – Postmarked or delivered 21 days before the election.
  • Kentucky – 29 days before the election
  • Louisiana – 30 days before the election
  • Maine – Delivered 21 business days before the election or you can register in-person up to and including election day.
  • Maryland – Delivered by 9 PM, 21 days before the election
  • Massachusetts – 20 days before the election
  • Michigan – 30 days before the election
  • Minnesota – Delivered by 5 PM, 21 days before the election. You can also register at the polling place on election day.
  • Mississippi – 30 days before the election
  • Missouri – 28 days before the election
  • Montana – 30 days before the election
  • Nebraska – The third Friday before the election (or delivered by 6 PM, on the second Friday before the election)
  • Nevada – The deadline for mail-in registration is the fifth Saturday before any primary or general election. In person registration remains available until 9 PM on the third Tuesday preceding any primary or general election. You may register to vote in person only by appearing at the office of the County Clerk/Registrar of Voters.
  • New Hampshire – Town and city clerks will accept the National Mail Voter Registration Form only as a request for their own absentee voter mail-in registration form, which your city or town clerk must receive by 10 days before the election. You can register at the town or city clerk’s office or in-person on election day.
  • New Jersey – 21 days before the election
  • New Mexico – 28 days before the election
  • New York – 25 days before the election
  • North Carolina – Postmarked 25 days before the election or received in the elections office or designated voter registration agency site by 5 PM, 25 days before the election.
  • North Dakota – No voter registration
  • Ohio – 30 days before the election
  • Oklahoma – 25 days before the election
  • Oregon – 21 days before the election
  • Pennsylvania – 30 days before an election or primary
  • Rhode Island – 30 days before the election
  • South Carolina – 30 days before the election
  • South Dakota – Received 15 days before the election
  • Tennessee – 30 days before the election
  • Texas – 30 days before the election
  • Utah – 30 days before the election for mail-in applications and 15 days before the election for walk-in registration at the county clerk’s office
  • Vermont – Delivered to the town clerk before 5 PM, on the Wednesday before the election
  • Virginia – Delivered 22 days before the election
  • Washington – 29 days before the election or 8 days before the election if delivered in person to the local voter registration office
  • West Virginia – 21 days before the election
  • Wisconsin – 20 days before the election or completed in the local voter registration office up to 5 PM or the close of business, whichever is later, on the Friday before the election. You can also register at the polling place on election day.
  • Wyoming – Cannot accept the National Mail Voter Registration Form. You can register in-person, by mail, or at the polls on election day.

Back to Top

Back to Top

The File 2012 Taxes For Free

File 2012 taxes for free 2. File 2012 taxes for free   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. File 2012 taxes for free Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. File 2012 taxes for free S. File 2012 taxes for free or foreign source income. File 2012 taxes for free This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. File 2012 taxes for free S. File 2012 taxes for free Virgin Islands (USVI). File 2012 taxes for free Generally, the same rules that apply for determining U. File 2012 taxes for free S. File 2012 taxes for free source income also apply for determining possession source income. File 2012 taxes for free However, there are some important exceptions to these rules. File 2012 taxes for free Both the general rules and the exceptions are discussed in this chapter. File 2012 taxes for free U. File 2012 taxes for free S. File 2012 taxes for free income rule. File 2012 taxes for free   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. File 2012 taxes for free Table 2-1 shows the general rules for determining whether income is from sources within the United States. File 2012 taxes for free Table 2-1. File 2012 taxes for free General Rules for Determining U. File 2012 taxes for free S. File 2012 taxes for free Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. File 2012 taxes for free Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. File 2012 taxes for free For more information, see Regulations section 1. File 2012 taxes for free 863-1(b). File 2012 taxes for free Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. File 2012 taxes for free Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. File 2012 taxes for free Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. File 2012 taxes for free It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. File 2012 taxes for free Services performed wholly within a relevant possession. File 2012 taxes for free   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. File 2012 taxes for free However, there is an exception for income earned as a member of the U. File 2012 taxes for free S. File 2012 taxes for free Armed Forces or a civilian spouse. File 2012 taxes for free U. File 2012 taxes for free S. File 2012 taxes for free Armed Forces. File 2012 taxes for free   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. File 2012 taxes for free However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. File 2012 taxes for free Civilian spouse of active duty member of the U. File 2012 taxes for free S. File 2012 taxes for free Armed Forces. File 2012 taxes for free   If you are a bona fide resident of a U. File 2012 taxes for free S. File 2012 taxes for free possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. File 2012 taxes for free Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. File 2012 taxes for free S. File 2012 taxes for free possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. File 2012 taxes for free Services performed partly inside and partly outside a relevant possession. File 2012 taxes for free   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. File 2012 taxes for free Compensation (other than certain fringe benefits) is sourced on a time basis. File 2012 taxes for free Certain fringe benefits (such as housing and education) are sourced on a geographical basis. File 2012 taxes for free   Or, you may be permitted to use an alternative basis to determine the source of compensation. File 2012 taxes for free See Alternative basis , later. File 2012 taxes for free   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. File 2012 taxes for free In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. File 2012 taxes for free Time basis. File 2012 taxes for free   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). File 2012 taxes for free Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. File 2012 taxes for free The time period for which the income is made does not have to be a year. File 2012 taxes for free Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. File 2012 taxes for free Example. File 2012 taxes for free In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. File 2012 taxes for free Your Puerto Rico source income is $60,000, figured as follows. File 2012 taxes for free       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. File 2012 taxes for free   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. File 2012 taxes for free Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. File 2012 taxes for free You determine the period to which the income is attributable based on the facts and circumstances of your case. File 2012 taxes for free For more information on multi-year compensation, see Treasury Decision (T. File 2012 taxes for free D. File 2012 taxes for free ) 9212 and Regulations section 1. File 2012 taxes for free 861-4, 2005-35 I. File 2012 taxes for free R. File 2012 taxes for free B. File 2012 taxes for free 429, available at www. File 2012 taxes for free irs. File 2012 taxes for free gov/irb/2005-35_IRB/ar14. File 2012 taxes for free html. File 2012 taxes for free Certain fringe benefits sourced on a geographical basis. File 2012 taxes for free   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. File 2012 taxes for free Housing. File 2012 taxes for free Education. File 2012 taxes for free Local transportation. File 2012 taxes for free Tax reimbursement. File 2012 taxes for free Hazardous or hardship duty pay. File 2012 taxes for free Moving expense reimbursement. File 2012 taxes for free For information on determining the source of the fringe benefits listed above, see Regulations section 1. File 2012 taxes for free 861-4. File 2012 taxes for free Alternative basis. File 2012 taxes for free   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. File 2012 taxes for free If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. File 2012 taxes for free De minimis exception. File 2012 taxes for free   There is an exception to the rule for determining the source of income earned in a possession. File 2012 taxes for free Generally, you will not have income from a possession if during a tax year you: Are a U. File 2012 taxes for free S. File 2012 taxes for free citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. File 2012 taxes for free This exception began with income earned during your 2008 tax year. File 2012 taxes for free Pensions. File 2012 taxes for free   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. File 2012 taxes for free The contribution portion is sourced according to where services were performed that earned the pension. File 2012 taxes for free The investment earnings portion is sourced according to the location of the pension trust. File 2012 taxes for free Example. File 2012 taxes for free You are a U. File 2012 taxes for free S. File 2012 taxes for free citizen who worked in Puerto Rico for a U. File 2012 taxes for free S. File 2012 taxes for free company. File 2012 taxes for free All services were performed in Puerto Rico. File 2012 taxes for free Upon retirement you remained in Puerto Rico and began receiving your pension from the U. File 2012 taxes for free S. File 2012 taxes for free pension trust of your employer. File 2012 taxes for free Distributions from the U. File 2012 taxes for free S. File 2012 taxes for free pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. File 2012 taxes for free S. File 2012 taxes for free source income. File 2012 taxes for free Investment Income This category includes such income as interest, dividends, rents, and royalties. File 2012 taxes for free Interest income. File 2012 taxes for free   The source of interest income is generally determined by the residence of the payer. File 2012 taxes for free Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. File 2012 taxes for free   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. File 2012 taxes for free See Regulations section 1. File 2012 taxes for free 937-2(i) for more information. File 2012 taxes for free Dividends. File 2012 taxes for free   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. File 2012 taxes for free There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. File 2012 taxes for free For more information, see Regulations section 1. File 2012 taxes for free 937-2(g). File 2012 taxes for free Rental income. File 2012 taxes for free   Rents from property located in a relevant possession are treated as income from sources within that possession. File 2012 taxes for free Royalties. File 2012 taxes for free   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. File 2012 taxes for free   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. File 2012 taxes for free Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. File 2012 taxes for free The most common situations are discussed below. File 2012 taxes for free Real property. File 2012 taxes for free   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. File 2012 taxes for free The location of the property generally determines the source of income from the sale. File 2012 taxes for free For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. File 2012 taxes for free If, however, the home you sold was located in the United States, the gain is U. File 2012 taxes for free S. File 2012 taxes for free source income. File 2012 taxes for free Personal property. File 2012 taxes for free   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. File 2012 taxes for free Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. File 2012 taxes for free If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. File 2012 taxes for free   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. File 2012 taxes for free The rules applying to sales of inventory are discussed below. File 2012 taxes for free For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. File 2012 taxes for free Inventory. File 2012 taxes for free   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. File 2012 taxes for free The source of income from the sale of inventory depends on whether the inventory was purchased or produced. File 2012 taxes for free Purchased. File 2012 taxes for free   Income from the sale of inventory that you purchased is sourced where you sell the property. File 2012 taxes for free Generally, this is where title to the property passes to the buyer. File 2012 taxes for free Produced. File 2012 taxes for free   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. File 2012 taxes for free For information on making the allocation, see Regulations section 1. File 2012 taxes for free 863-3(f). File 2012 taxes for free Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. File 2012 taxes for free S. File 2012 taxes for free citizen or resident alien prior to becoming a bona fide resident of a possession. File 2012 taxes for free You are subject to these special rules if you meet both of the following conditions. File 2012 taxes for free For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. File 2012 taxes for free For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). File 2012 taxes for free If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. File 2012 taxes for free Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. File 2012 taxes for free S. File 2012 taxes for free tax return. File 2012 taxes for free (See chapter 3 for additional filing information. File 2012 taxes for free ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. File 2012 taxes for free These rules apply to dispositions after April 11, 2005. File 2012 taxes for free For details, see Regulations section 1. File 2012 taxes for free 937-2(f)(1) and Examples 1 and 2 of section 1. File 2012 taxes for free 937-2(k). File 2012 taxes for free Example 1. File 2012 taxes for free In 2007, Cheryl Jones, a U. File 2012 taxes for free S. File 2012 taxes for free citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. File 2012 taxes for free S. File 2012 taxes for free corporation listed on the New York Stock Exchange. File 2012 taxes for free On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. File 2012 taxes for free Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. File 2012 taxes for free On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. File 2012 taxes for free On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. File 2012 taxes for free Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. File 2012 taxes for free The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. File 2012 taxes for free This existing special rule applies if you are a U. File 2012 taxes for free S. File 2012 taxes for free citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. File 2012 taxes for free S. File 2012 taxes for free assets during the 10-year period beginning when you became a bona fide resident. File 2012 taxes for free The gain is U. File 2012 taxes for free S. File 2012 taxes for free source income that generally is subject to U. File 2012 taxes for free S. File 2012 taxes for free tax if the property is either (1) located in the United States; (2) stock issued by a U. File 2012 taxes for free S. File 2012 taxes for free corporation or a debt obligation of a U. File 2012 taxes for free S. File 2012 taxes for free person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). File 2012 taxes for free See chapter 3 for filing information. File 2012 taxes for free Special election. File 2012 taxes for free   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. File 2012 taxes for free Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. File 2012 taxes for free This election overrides both of the special rules discussed earlier. File 2012 taxes for free   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. File 2012 taxes for free Marketable securities. File 2012 taxes for free   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. File 2012 taxes for free Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. File 2012 taxes for free S. File 2012 taxes for free holding periods. File 2012 taxes for free   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. File 2012 taxes for free The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. File 2012 taxes for free This is your gain (or loss) that is treated as being from sources within the relevant possession. File 2012 taxes for free If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. File 2012 taxes for free Example 2. File 2012 taxes for free Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. File 2012 taxes for free S. File 2012 taxes for free and possession holding periods. File 2012 taxes for free Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. File 2012 taxes for free Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). File 2012 taxes for free By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. File 2012 taxes for free Other personal property. File 2012 taxes for free   For personal property other than marketable securities, use a time-based allocation. File 2012 taxes for free Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. File 2012 taxes for free      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. File 2012 taxes for free Example 3. File 2012 taxes for free In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. File 2012 taxes for free On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. File 2012 taxes for free On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. File 2012 taxes for free She had owned the interest for a total of 1,720 days. File 2012 taxes for free Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. File 2012 taxes for free The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). File 2012 taxes for free By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. File 2012 taxes for free Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. File 2012 taxes for free Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. File 2012 taxes for free These rules do not apply to amounts paid as salary or other compensation for services. File 2012 taxes for free See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. File 2012 taxes for free Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. File 2012 taxes for free These circumstances are listed below. File 2012 taxes for free You have an office or other fixed place of business in the relevant possession to which the income can be attributed. File 2012 taxes for free That office or place of business is a material factor in producing the income. File 2012 taxes for free The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. File 2012 taxes for free An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. File 2012 taxes for free The three kinds of income from sources outside the relevant possession to which these rules apply are the following. File 2012 taxes for free Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. File 2012 taxes for free Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. File 2012 taxes for free Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. File 2012 taxes for free Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. File 2012 taxes for free Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. File 2012 taxes for free Example. File 2012 taxes for free Marcy Jackson is a bona fide resident of American Samoa. File 2012 taxes for free Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. File 2012 taxes for free A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. File 2012 taxes for free Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. File 2012 taxes for free The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. File 2012 taxes for free However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. File 2012 taxes for free Prev  Up  Next   Home   More Online Publications